How Ikea US Remains Agile and Adaptive

While the role of digital technology in disrupting traditional retail isn’t new—in fact, it has been unfolding for over 20 years—there is a new level of urgency for retailers to double down on personalization, adaptability and innovation. The reality is, even with vaccines in circulation, an alternate retail universe is among us and with it the expectations to accelerate digital initiatives.Ikea, one of the dominant global retail brands who faced significant disruption due to Covid-19, is looking ahead and carving a positive future forward through data and innovation. Umesh Sripad, chief digital officer, Ikea U.S., will take the virtual stage at Adweek’s Brandweek summit, Sept. 20-24, to offer a glimpse into the brand's blueprint for ramping up its omniplatform business. Prior to the event, we spoke with Sripad to explore how the company is adapting to the current climate and reimagining retail innovation and customer experiences. Adweek: What changes has the company made to continue offering those great experiences during the pandemic? Umesh Sripad: Our vision to create a better everyday life for many remains unchanged, but how we go about it needs to be a little different. We want to meet our customers where and how they wish to shop with ease, convenience and affordability regardless of which channel they are shopping on. During the pandemic, we focused on growing and evolving our shoppable app and our "Clicks and Bricks" business. Ikea Made a Reality Show That Traps Contestants in the 1990s The pandemic brought unprecedented challenges for marketers. What’s been the biggest challenge for you? How are you getting through it? Understanding the needs and intent of a consumer is pivotal in providing a personalized experience. To add complexity, we have seen the proliferation of channels and platforms where consumers engage with brands. Marketing technology enables marketers to bring together platforms and data across the customer journeys to build smarter strategies, streamline processes and identify ways to orchestrate personalized campaigns. What’s the biggest lesson you learned as a marketer during this time? We’ve learned so much in the last 18 months and the lessons are best captured in three categories: Transformation begins with People, then Business and Technology follow. In regards to people, communication is key. The pandemic did not affect everyone the same way, but everyone has been affected; high levels of stress and anxiety have been widely recognized and felt. Timely and widespread communication has been of the utmost importance for us at Ikea; we have always prioritized our co-workers’ and customers’ safety and security. Through effective and consistent communication, we’ve managed to run a secure shopping and working experience for both our customers and co-workers. Connection builds the Ikea community. At the beginning of the pandemic, remote work emerged as the new norm. Empowering our teams with the right tools, technology and workflows were vital. This helped our co-workers to be connected to work from anywhere and serve customers from home. As for business lessons, Ikea learned to be reactive, agile and adaptive. There was no predetermined playbook for us to refer to and act. Instead, we were writing our own playbook as we lived and learned a day at a time. To reflect on the last 18 months, we have taken some bold decisions and executed strategies that have set us up on this great platform to accelerate forward, including continued investment in executing the "Clicks and Bricks" strategy, Omnichannel Ikea. We’re also continuing to meet our customers where they are with the recent acquisitions of Traemand, Task Rabbit, Geo-Magical labs, etc. Lastly, we opened a new Ikea format store in Queens, N.Y. In the area of technology, we’ve learned how modernization and automation have changed the game for Ikea during this time. We have an incredible list of disruptive technologies that are in play now: edge computing, IoT, 5G, computer vision, augmented reality, virtual reality and mixed reality, deep learning, real-time and predictive data analytics, AI, automation, cognitive computing and modern CRM and cloud computing—all representing the future of retail and business. As we adapt to a "Clicks and Bricks" mindset throughout our business, we’ll not only benefit from a cultural shift but also savings through greater efficiencies. Ultimately, transformation is about making the business not just profitable but sustainable. What changes has the pandemic accelerated? Ikea has been undergoing a transformation before the pandemic began. The changes we accelerated allowed us to continue to safely operate our business and meet the changing needs of our customers. This included The Digital Hub, which was created in the U.S. with the intention of developing our digital capabilities to better meet the needs of our customers, especially via ecommerce. Ikea also turned stores into warehouses so that we could ship products directly to nearby customers and had products shipped directly to our stores so that we could get products back on store shelves faster. We started offering Click and Collect curbside pickup at many locations and launched a new Ikea app that allows customers to shop all Ikea products and ship directly to their homes or our stores for pick up as well. What have been the wins for the marketing industry in 2021? What excites you heading into the next 12 months? 2021 has been the year of several firsts and experiments. Global marketing trends share the common theme of breaking out of our often transactional and operational mindset to a more holistic and authentic approach to meet human needs. Some examples of the wins include: Purpose-driven approach: We have seen several organizations deeply attuned to defining why and who they are built to serve. Agility: Organizations continuously experiment with new ways to meet and serve the needs of the customer. Customer experience: Finding new ways to provide the best customer experience across all touchpoints. Talent: Developing internal competence and acquiring new talent to maneuver the headwinds and creating a competitive difference. As we head into the next 12 months, I am super excited to continue to experiment, learn and evolve to meet the needs and demands of the customer in these strategies: Winning customer loyalty: Our teams are focused on delivering exceptional customer experience and services across all touchpoints to continue to win customer loyalty and trust. Strengthening data foundation and analytics: Understanding the customer’s intent and providing a personalized shopping experience is key to success in the omnichannel journey. Continued adaptability and Innovation: Speed of execution continues to be of significance. Empowering teams to reimagine physical, digital and hybrid customer journeys and continually experimenting on optimizing experience, business model innovation and digitally transforming. During the pandemic, customers more than ever before wanted to form deep connections with the brands they use—behavior that’s not going anywhere. What is Ikea doing to connect with customers in the current climate? It’s essential for brands to stand for something more than just profits. Consumers are paying attention to what brands are doing to have a positive social impact and it influences their purchasing decisions. Ikea has always been purpose-led and stands up for what we believe in as a brand. For Ikea U.S., we focus on creating better lives at home while protecting our planet and advocating for equality. What’s one thing you wish more consumers knew about Ikea? Ikea provides affordable solutions for customers to build their dream homes. Ikea is more than just a furniture provider; we have a passion for life at home. We call it democrating design because we believe quality, affordable and sustainable home furnishing is for the many. Ikea is also committed to having a positive impact on the world, from the communities where we source our materials to how our products help our customers live a more sustainable life at home.

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Road to Brandweek: How Ikea US Remains Reactive, Agile and Adaptive

The retailer is looking ahead and carving a positive future forward through data and innovation

Erica Perry

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Erica Perry