The pandemic has changed the game in e-commerce. While some companies struggled to survive, others managed to turn the crisis into a strategic advantage. IKEA, a traditional brick-and-mortar store giant, has successfully transitioned to a new online sales model that now accounts for a quarter of its sales. We talked to Anna Rumianová, an expert on e-commerce and current manager of BM4U, about how the business model was transformed and the challenges that were associated with the transformation.
IKEA has long built its success on brick-and-mortar stores. What led to such a drastic turn towards e-commerce?
IKEA is a global brand that is present on more than 50 markets. A significant proportion of its business model has always been large physical stores, which have been synonymous with quality furniture and efficient solutions for the home. Until 2017, online sales were basically neglected and deemed ineffective. But changes in the market and an increasing demand for online shopping have forced the company to make a turnaround. When I started in 2018, I was given a clear brief – to create a new responsive website, to build an e-commerce team and to set online sales in motion.
The transition to e-commerce brought huge organisational changes. What were the biggest challenges you faced?
The company was going through a reorganisation that caused a hiring freeze, confusion in competencies and the departure of key employees. The team I took over was not sufficiently qualified and restructuring was inevitable. Another problem was the not particularly user-friendly design of the website, which required a complete redesign. Despite these challenges, I convinced the company management that a quality e-commerce team would be the key to success. We gradually established a stable base and initial mistrust was overcome.
How was the online sales channel built?
The implementation of the project was divided into several phases. We took the technical solution from the Swedish headquarters and localized it for three markets – Czech, Hungarian and Slovak. Content and SEO optimization was provided by a local team in cooperation with central experts. Shipping was coordinated with brick-and-mortar stores, which allowed for more efficient delivery of goods.
The new responsive website was launched in March 2019 and included an improved user experience, clearer design and easy navigation. In addition to the organisational changes, I dealt with a number of other challenges. These included aligning priorities between the local and central teams, ensuring smooth communication during the development and implementation of the new website, setting up processes for dispatching from stores and ensuring the delivery of goods to customers. In addition, I had to find ways to effectively motivate my team to perform at its best, even under the challenging conditions of restructuring. Such demanding projects not only require capable managers, but also high erudition in project management. The international team had 11 members, all but one of whom were successfully transferred to newly created departments.
Do you rate the project as a success?
Sure, the numbers speak for themselves. Within three years of the launch of the new website, the share of online sales reached 24.6% of the total turnover of CZK 12.1 billion in the Czech Republic for 2023. This share was crucial during the pandemic, when physical stores were closed. Thanks to a stable e-commerce channel and precisely set processes, the company not only survived the crisis but even gained an opportunity for further expansion.
The new online store set the standards for future development of e-commerce in the region and the benefits were not only financial. The project strengthened cooperation between the headquarters and local teams, leading to more effective coordination and sharing of know-how.
Inspiration and lessons
The IKEA story shows how a crisis can be turned into an opportunity. The investment in digitisation has not only paid off, it has additionally opened up new opportunities for growth. This project is proof that a motivated team and a clear strategy can overcome even seemingly insurmountable challenges.
Our BM4U team is full of experienced managers with know-how from such challenging projects. Get them involved and turn your company crisis into growth!