Ingvar Kamprad - Billionaire built the IKEA furniture empire from nothing

Ingvar Kamprad, the founder of the IKEA furniture chain, is one of the richest self-made billionaires in the world with a net worth of $48.1 billion at his peak. However, few people know that Ingvar Kamprad built a billion-dollar empire from two empty hands.

Business mind from a young age

Ingvar Feodor Kamprad was born on March 30, 1926 on a small farm named Elmtaryd near the village of Agunnaryd, in the province of Smland, Sweden. It was a time when the Swedish countryside was extremely difficult because the country was still a poor and backward agricultural country.

Kamprad started making money at the age of 5 selling matches. When he was 10 years old, he rode his bike around the neighborhood selling Christmas decorations, fish and pencils.

Young Kamprad helps strawberry pickers and anglers sell their products. After that, he continued to expand his business, selling Christmas decorations. Although he was only 13-14 years old, Kamprad had already set himself business goals, first a bicycle, then a typewriter for work.

At the age of 17, Kamprad was rewarded with a small amount of money by his father for achieving good results in school. With that modest amount of money, Ingvar founded his own company called IKEA. The name is an acronym for the first two letters of his name, combined with the initials of the family farm where he was born (Elmtaryd) and the nearest village (Agunnaryd).

Tremendous success

From humble beginnings selling holiday souvenirs to neighborhood kids at an early age. During the first 5 years, his shop mainly sold small household items, such as picture frames. He continued to expand his business into a range of other items, including leather wallets, watches, jewelery and socks. As he developed his business capacity to meet the different requirements of his customers, he temporarily stopped using mail orders and hired local milk trucks to transport his goods.

In 1947, Kamprad first introduced furniture and the main product group of IKEA's store system. Sourcing from local producers allows him to keep prices low compared to competitors in the field. Wooden furniture gradually becomes "attracting customers".

In 1951, Kamprad decided not to pursue other products, but only focused on furniture. In 1953, IKEA opened its first furniture showroom under great pressure from competitors. At this time, the company is in a price war with its main competitor, so this showroom helps consumers to have closer contact with the company's wooden products, because they can see and touch them. feel, feel and trust the quality before deciding to buy.

In 1956, Kamprad revolutionized the furniture market by introducing "flatpacking", which meant that IKEA would cut product costs by allowing consumers to buy furniture. in pieces and assemble them yourself. For nearly 70 years, IKEA is today a giant corporation with an annual growth rate of at least 10%. In addition to Sweden and the Nordic region, the furniture market of this group also expands to the US, UK, Germany, Netherlands, Russia, China...

The name Igvar Kampard, has become too familiar in the business market. The number of assets owned by this furniture billionaire is now up to tens of billions of dollars. In 2009, he was the 5th richest person in the world and the second richest tycoon in Northern Europe. Just like that, Ingvar Kamprad built the IKEA company with a value of 11.8 billion USD and became a billionaire.

It is because he has experienced a poor childhood that Kamprad appreciates the value of labor. Although he later became one of the richest self-made billionaires in the world, he always maintained his identity: working hard, living frugally and always willing to share difficulties with others - that is also the values that are always associated with IKEA.

Simple despite being rich

IKEA furniture brand is present in Sweden, Norway, Denmark and 47 countries around the world with more than 300 stores. According to the Daily and Sunday Express, a third of kitchens in France and Sweden are IKEA. In Norway, the ratio is half. In the UK, the numbers are worse, but only slightly below the top.

Children born from IKEA beds, sleep in IKEA cribs, while their parents sit on IKEA sofas, eat with IKEA dishes, and these dishes are also stored in IKEA cabinets.

In 2015, amid a slowing global economy and many economic downturns, IKEA still posted a record-high full-year profit of £3.2 billion. Sales in the 44 countries with IKEA stores increased by about 10% to £27.6 billion.

There is no doubt that IKEA is one of the largest and most successful privately held companies in the world, with hundreds of malls around the globe, over 90,000 employees and generating profits of more than 12 billion euros a year.

As a celebrity, Ingvar Kamprad's life is extremely simple. He lived a simple life, spent very frugally, to the point of being considered stingy. He did not like pomp, nor did he like to teach life. His only travel companion in Sweden is an "old-fashioned" Volvo.

Kamprad can easily afford a private jet, but he often flies economy class, even choosing low-cost airlines. If he had to fly abroad, he would just buy a second-class ticket and carry his own belongings. He likes to stay in hotels where breakfast is served free of charge. Once, when Kamprad went to a party to receive the Entrepreneur of the Year award, he was denied entry by security when they saw him get off a bus.

One of his hobbies during vacations is cross-country cycling. Explaining his frugal lifestyle, Kamprad said: "How can I ask my employees to be frugal if I keep spending lavishly and lavishly?".

Mr. Kamprad also often travels to Switzerland by bus. If he travels by train, he also takes a second-class seat. Mr. Kamprad also avoids wearing western clothes, his life is no different from ordinary people and he likes to go to the market to buy vegetables and fruits in the afternoon because that is when the prices are quite cheap. Instead of eating at fancy restaurants, Kamprad often pops into one of his stores for a casual meal of his favorite meatballs. Whenever he ate at the restaurant, he often took small packets of salt and pepper to pocket and take home to use. Years ago, Europe's second-richest billionaire still drove an old Volvo. He abandoned the car only when he was convinced that it was too dangerous to continue using it.

In addition, employees in Kamprad's company are required to use both sides of each sheet of paper and turn off the lights when leaving the room. He believes that it is hard work and a frugal lifestyle that makes IKEA. He also always tries to instill in his employees a belief that: "No one can get rich by wasting money".

In Kamprad's view, luxury is not only superfluous but also a sin. In a memoir, Kamprad wrote: "We didn't need shiny cars, fancy titles, uniforms or other status symbols. We relied on our strength and our will. ".

This billionaire passed away in 2018, at the age of 91. However, every time he is mentioned, Swedish Prime Minister Stefan Lofven calls billionaire Kamprad a man full of inspiration. Ingvar "Kamprad is the only businessman who has had a big influence on Swedish business and who designs interiors for many homes," said Mr. Lofven.

Furniture firm Ikea is currently owned by the Stichting Ingka Foundation (Netherlands) founded by Kamprad, but he remained a senior advisor until his death. Its 2017 global revenue reached 36.3 billion euros ($45 billion). According to Reuters, IKEA is expected to have $62 billion in annual sales by 2020.

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