Archive for the ‘Home’ Category

The Secret Behind Ikea

Friday, June 4th, 2010

You know you’ve spent hours wandering its hallowed halls, browsing cheaply-made furniture and believing that its functional European designs will somehow make you a better person. But have you ever wondered how a giant warehouse next to the highway can do that to you?

  • Ikea brought on Kerri Molinaro in 1992, and with her arrival came a brand-new approach to customer appeal. Molinaro brought fashion sense and an eye for merchandising to the efficient furniture store, and changed its image completely.
  • Ikea’s unique business model involves scrimping on production costs and sales staff, and splurging on things like consumer research, product design, and advertising.
  • The store’s layout is not a coincidence, either. Products are displayed alongside one another in beautifully decorated mock-rooms; items cleverly displayed on a wall are easy to find in nearby bins, and, of course, the store is a literal maze, trapping customers who cannot navigate beyond the store’s arrow guidance system.

Facts & Figures

  • More than 50% of Ikea visitors buy something before leaving; in women’s clothing stores this number is closer to 8%
  • Each Ikea store employs approximately 400 people. Of these, 30% are in sales and 70% work in the warehouse or in merchandising.
  • During an average visit, Ikea shoppers spend two hours in the store.

Best Quote

“Often people will never come into contact with staff until the cashier. These products are really selling themselves.” – Kerri Molinaro, President, Ikea Canada

Computers Are Too Complex, Make Them More Like iPhones!

Wednesday, March 3rd, 2010

Sometimes it seems as though computers are more trouble than they’re worth, but they may become much simpler in the not-too-distant future.

  • Although personal computers have become easier to use since their inception way back when, most people still encounter problems while using their computers and their current operating systems (like Snow Leopard for Mac or Windows Vista).
  • iPhones are the picture of simplicity, and could serve as a model for how computer companies construct operating systems in the future.
  • While it may seem a simple solution to the complexity problem, integrating an operating system similar to the iPhone’s would be difficult for a multitude of reasons, and especially troublesome for the implementation of the multitouch interface (that thing that allows you to move stuff on your iPhone with your finger).

Facts & Figures

  • Back in the day, if you wanted to open up a Microsoft Word document, you would’ve had to type in a cryptic command, like this:

DIR*.EXE
MSWORD.EXE A:\REPORT.DOC

  • Microsoft tries to make all their new versions of their primary operating system (Windows) familiar to customers of earlier versions, which accounts for the continuing complexity of the system.
  • Apple uses the iPhone’s operating system in its new iPad computer.
  • It would be easier for Apple to design a completely new operating system instead of implementing the multitouch interface onto a desktop computer.

Best Quote

“With the iPad and the horde of tablets that will follow it, we can expect computing to become much easier than what we’re accustomed to today.” – Brian Chen, Wired magazine

Consumption Gap Widens Between Haves and Have-Nots

Thursday, November 19th, 2009

While wealthier American shoppers have returned to patronizing high-end department stores, middle class consumers struggle to afford basics at Walmart.

  • Consumers at all income levels are focused on the value of their purchase and on not overspending.
  • Luxury chains report shoppers buying items such as shoes and dresses, while discount stores say their consumers are focused on food and socks.
  • Shoppers focused on saving in these economically tight times cannot afford to purchase items outside of the bare essentials.

Facts and Figures

  • The wealthy reigned in their spending most severely during the financial meltdown last fall.
  • Walmart has had to lower their prices to encourage their regular shoppers to continue buying.
  • Nordstrom’s third-quarter profit rose as sales improved compared with 2009.

Best Quote

“I used to consider shopping enertainment, but now I don’t think it’s enertainment.” – Patricia Murnane, Shopper and Risk Manager from New York