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 giant with brick-and-mortar stores, successfully transitioned to a new online sales model that now accounts for a quarter of its revenues. We talked to Anna Rumianova, e-commerce expert and current BM4U manager, about how the business model was transformed and the challenges involved.
IKEA has long built its success on brick-and-mortar stores. What led it to make such a dramatic turn towards e-commerce?
IKEA is a global brand that operates in more than 50 markets. A significant part of its business model has always been large format brick-and-mortar stores, which have been synonymous with quality furniture and purposeful solutions for the home. Until 2017, online sales were more or less neglected and considered inefficient. However, changes in the market and the increase in demand for online shopping have forced the company to pivot. So in 2018, after I joined, I was given a clear brief – to build a new responsive website, build an e-commerce team and get online sales moving.
The transition to e-commerce brought huge organisational changes, what were the biggest challenges you faced?
The company was going through a reorganization 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-so-user-friendly design of the website, which required a complete redesign. Despite these challenges, I convinced the management that a quality e-commerce team was the key to success. Gradually, we managed to build a stable base and overcome the initial mistrust.
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 easier navigation. In addition to the organizational changes, I addressed 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 site, setting up store dispatch processes and ensuring goods were delivered to customers. In addition, they needed to find ways to effectively motivate their team to perform at their best even in the challenging restructuring environment. Such demanding projects require not only capable managers, but also high erudition in project management. The international team had 11 members, all but one of whom were successfully transferred to the 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 in 2023. This share was crucial during the pandemic, when brick-and-mortar stores were closed. Thanks to a stable e-commerce channel and precisely set processes, the company not only survived the crisis, but even gained the opportunity for further expansion.
The new e-shop set the standards for the 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. Investing in digital has not only paid off, it has 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 who have know-how from similarly challenging projects. Engage them and turn crises into growth for your company!