a n I K E A x a i r b n b e x p e r i e n c e CO M P E T E N C I - PowerPoint PPT Presentation

a n I K E A x a i r b n b e x p e r i e n c e

CO M P E T E N C I E S “The IKEA shopping experience was sort of fun and certainly worthwhile, with thoughtful design that provided a favorable impression of the brand and led me to buy more.” Gus Lubin, Business Insider

“IKEA [...] now finds itself playing catch-up to more web-savvy rivals, racing to put more of its Lack coffee tables and Billy shelving online.” Hiroko Tabuchi, New York Times

B U S I N E S S P R O B L E M IKEA Ashley Furniture 9.0% 6.5% Market Size IKEA’s business problem is that their business model is less suited to online selling compared to other retailers, as it Profit has mostly relies on shoppers visiting their $2.6b physical showroom experience and Major Players All Other Furniture Stores collecting purchases themselves in-store. This has resulted in IKEA falling behind other furniture retailers in online sales Williams-Sonoma Wayfair Overstock.com IKEA 15.3% 9.9% 3.4% ~2% Market Size Profit $973m How can we blend IKEA's physical showroom experience with their online experience? Major Players All Other Furniture Stores

I N S I G H T S People are moving to new cities for “IKEA is permeating Airbnb’s 1.5 work and staying in short-term million listings. Show me a housing spaces while searching for one-bedroom riverfront apartment a permanent home. for rent in Klaipeda, Lithuania, and I’ll show you a Poang chair.” Julie Laksy, acclaimed journalist, editor and critic for i-D magazine HOW CAN WE LEVERAGE THESE OPPORTUNITIES TO BRING PEOPLE TO IKEA’S ONLINE WEBSITE?

P R O P O S A L IKEA Stay is a blend between a physical and digital showroom that allows people who are moving to a new city to visualize the way their homes could look and get a further understanding of what products work for them. Welcome, Joelle! Feel free to explore all the IKEA products during your stay with airbnb. SWIPE UP TO CONTINUE

Product Confidence Product Confidence Williams-Sonoma Williams-Sonoma IKEA Crate & Barrel Crate & Barrel Wayfair Wayfair Brick and Brick and E-Commerce E-Commerce Mortar Mortar IKEA Bed, Bath, and Beyond Bed, Bath, and Beyond Overstock.com Overstock.com Walmart Walmart Product Uncertainty Product Uncertainty

D E M O G R A P H I C Moving to a new city for work in the tech industry Looking to rent or buy a home Desires a stylish home, but on a budget Stays in short-term living solutions, such as airbnbs

C u s t o m e r F r i c t i o n s STERILE DIFFICULT Y ST YLING INCONVENIENT BUYER’S REMORSE SHOWROOMS FURNITURE IKEA LOCATIONS TEST & LIVE WITH AUTHENTIC, CONTEXT WEB PAGE LEVERAGING SELECT THE IKEA PRODUCTS LIVED-IN HOMES AIRBNB LOCATIONS I K E A S t a y S o l u t i o n s

A I R B N B H O S T S C A S U A L S E R I O U S H O B B Y Hosts who sublet their High-rated hosts that are Hosts that appreciate apartment from time to experienced in renting out having guests stay over in time when they are out of their place. They have found their spare room. They town or away on holiday. income in running an Airbnb enjoy the extra cash and and are looking to expand to meeting new people. more homes. They often purchase a place in order to renovate it into an Airbnb.

A I R B N B H O S T S C A S U A L S E R I O U S H O B B Y Hosts who sublet their High-rated hosts that are Hosts that appreciate apartment from time to experienced in renting out having guests stay over in time when they are out of their place. They have found their spare room. They town or away on holiday. income in running an Airbnb enjoy the extra cash and and are looking to expand to meeting new people. more homes. They often purchase a place in order to renovate it into an Airbnb.

DISCOUNTS ON IKEA I K E A FURNISHINGS AND ACCESS Product Discounts TO INTERIOR DESIGN CONSULTATION FROM IKEA, and Interior Design PROVIDED THEY ARE BOUND ACCESS TO A WORLDWIDE TO A HOSTING AGREEMENT CUSTOMER NETWORK IN URBAN LOCATIONS A FASTER ROI FOR ONLINE Reaching new PRESENCE, REL ATIVE TO H o s t s IN-HOUSE WEB DEVELOPMENT customer segments INCREASE IN CUSTOMER AT TENTION AND FLOW, RESULTING IN INCREASED REVENUE AND SALES APPEALS TO SERIOUS AIRBNB HOSTS Continued A i r b n b Cooperation MORE APPEALING SPACES TO OFFER M U T UA L R E L AT I O N S H I P

CO R E E X P E R I E N C E S digital: web & tablet 1. Discover 2. Engage 3. Explore

Our platform builds on the current IKEA touchpoints, but more TO U C H P O I N T S specifically creates a new engaging experience and focuses on purchases in the service and post service experience. AIRBNB IKEA DISCOVER ENGAGE EXPLORE [PRE-SERVICE, BEFORE STAY] [SERVICE, DURING STAY] [POST SERVICE, AFTER STAY] CHANNELS Live in IKEA Stay and try out products live Bookmark products, order now, or learn more tablet Receive email Explore products Book IKEA Stay through invitation to web in new contexts airbnb website experience web

B O O KI N G I KE A S TAY DISCOVER

TA B L E T E X P E R I E N C E DISCOVER

F U T U R E I M P L I C AT I O N S next steps --- Measurability --- Sector-Wide Implications --- Conclusion

M E A S U R A B I L I T Y Airbnb driven, IKEA website visits IKEA driven visits to Airbnb’s website General online traffic and sales for IKEA website Which products at airbnbs are most ‘bookmarked’ Number of Airbnbs using IKEA furniture Sales of products used in IKEA Stay

S EC TO R-WI D E I M P L I C AT I O N S 1. EXPAND TO OTHER RETAILERS 2. IKEA RENTAL SYSTEM IKEA Stay can be expanded to address the IKEA Stay can also lead to IKEA developing entirety of the furniture industry. Our idea can their own airbnb system. So, instead of renting not only translate to IKEA furniture, but to out spaces through airbnb, IKEA would have other furniture or home stores as well. their own rental system established. Collaborations could be built amongst airbnb and multiple companies.

CO N C LU S I O N LEVERAGES AIRBNB INCREASES ONLINE SALES GUESTS’ STAY IKEA Stay moves people towards their IKEA items are placed inside airbnb homes, online platform, now customers are drawn becoming a showroom you can live in, to the e-commerce and encouraged to strengthening the brand’s vision of ‘creating order products online. the perfect home’ with customers. BUILDS UP MARKET REFRESHES CATALOGUE OF INSPIRATION IKEA Stay creates an interest in an IKEA lifestyle by introducing potential customers IKEA Stay provides new ways to style homes to a home filled with IKEA furniture and through the airbnb context photos. This products. This makes the transition into the allows customers to see products in an authentic light, giving customers further brand more inviting for customers. reasons to purchase items.