The Swedish flat-pack furniture giant launched this summer in Oslo and Madrid its online platform for the resale between individuals of furniture from its brand called Preowned.
The head of Ingka, the holding company that groups together most of the Ikea stores in the world, said on Thursday that he was “optimistic” about the project to develop and expand its online platform for the resale of furniture from its brand between individuals, currently being tested in two cities. The Swedish giant of flat-pack furniture launched this marketplace called Preowned this summer in Oslo and Madrid. The test is due to last until December.
“I am personally studying the reactions” and “I am very optimistic” about the possibility of “offering (the platform) in many places, including France,” Jesper Brodin, CEO of Ingka, told the press.
Ingka includes most of Ikea’s stores worldwide and accounts for more than 90% of its total turnover. “There are already good platforms in every market” but “we believe our platform adds value,” he said, citing in particular the automatic access to furniture dimensions, assembly and disassembly instructions, or price suggestions.
“We must position ourselves on the second hand”, particularly as part of the efforts to reduce the environmental impact of the group, added the CEO.
An additional 15% credit to spend
In Oslo and Madrid, the service is free and the buyer and seller agree directly on the place of exchange of the product. The seller can choose to be paid or to receive an Ikea voucher with in this case an additional 15% credit to spend. “Interest in second-hand is growing,” according to Jesper Brodin, who says however that he does not have a financial objective for the activity at this stage.
“At the moment, I don’t know the economic end result” but “we believe that not being present in this large part of the market would be a mistake,” he explained.
According to Ikea, the global second-hand furniture market is growing rapidly, with an expected annual growth rate of 6.4% by 2024. About 10% of the second-hand furniture market is made up of its own branded products, the group estimates. Ikea currently offers to buy back second-hand furniture in its stores and offer it at reduced prices compared to new furniture.
