Ingvar Kamprad was the founder of IKEA in 1943; Ingvar was born in Smaland in the south of Sweden. As a young boy, Ingvar knew he wanted to develop a business. He began his career by selling fish, Christmas magazines and seeds. Within a few years he established a mail order business featuring products as diverse as the new ballpoint pens and furniture. In the furniture business was where Ingvar saw the greatest opportunity.
In 1951, IKEA was forbidden from selling directly to customers at fairs because various retailers thought that Ingvar was selling imitation. By 1952 IKEA was not allowed to show their prices on their furniture and the retail cartel members told the manufacturers not to sell to IKEA. Ingvar decided to buy from a few independent Swedish furniture makers and by establishing new sources in Poland. By doing this Ingvar realized that he could charge even lower prices on the furniture. The IKEA range focused on home furnishing products during the early 1950s. The opening of the showroom was an important moment in the development of the IKEA concept. For the first time, customers could see and touch the furnishings before ordering. This came about as a solution to the problem, as IKEA found itself in a price war with its main competitor. As both companies lowered prices, its quality came at a great risk. So, by opening a showroom, IKEA could in three dimensions present its products with function quality and low price. And as a result, people did just what IKEA had hoped: they chose the products wisely, with the best value for the money. As a result, the business grew.
By 1965 the IKEA store in Stockholm was opened. Thousands of people lines up for the opening of the flagship store. The 45,800 square meter store has a circular design, inspired by New York's Guggenheim Museum. This success has created huge capacity problems in serving the customers. By opening the warehouse and letting people serve themselves, an important part of the IKEA concept was born.
