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Ikea brand sold for 75 billion kronor

Ikea brand sold for 75 billion kronor

Published: 09 Aug 2012 12:11 GMT+02:00
Updated: 09 Aug 2012 12:11 GMT+02:00

The Ikea brand has been sold for 75 billion kronor ($11.2 billion) to one of the Swedish furniture giant’s daughter companies, with experts saying that the price tag is "reasonable".

The brand was sold by the Kamprad controlled Interogo, based in the tax haven of Liechtenstein, to daughter company Ikea Systems in the Netherlands.

And 75 billion kronor is not an unreasonable sum, according to one expert.

“If you buy Ikea’s brand you are simultaneously buying all the customer relations and good will that the company has worked for. That’s what you pay for – not the logo,” explains Bengt Håkansson of Brand Clinic to the TT news agency.

There can be two companies within one branch that are roughly the same size with the same market, yet one will have a large amount of customers where the other is struggling to stay alive.

“One is bought and the other sold. Ikea is a brand that is bought to a very high degree. It combines low prices with cultural values. People like Ikea no matter what,” Håkansson said.

"Kamprad has succeeded in getting people to know that deep down, he is a good man and has done something good for Sweden. It’s infinitely valuable to have won over so many people’s consciousness."

The Ikea brand ranks 89th among the world’s 100 most valuable brands, but is not the highest ranking Swedish company.

Clothes retailer H&M is ranked 58th – a brand worth an estimated 125 billion kronor.

TT/The Local/og

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Your comments about this article

13:09 August 9, 2012 by brucifier
"People like Ikea no matter what" Håkansson said.

I don't!!!

fact back home nobody even knows what Ikea is, that is nice!!!
14:39 August 9, 2012 by SOIS.COM
"cultural values" says Mr. Kamprad early on learned how to utilize the eqv. of slave labor effectively in eastern Europe and then later Asia. No wonder considering his nazi roots. What is interesting in terms of social engineering is companies such as Ikea that employ high levels of slave labor .is that consumers ignore the conditions the workers exist in and instead buy the fantasy ...the marketing gimmick that Ikea and other such companies portray...evidence we live in societies where most swallow the big lie. In the end if you buy from Ikea you are supporting the use of labor used in conditions in many cases that is not that many degrees away from concentration camp labor.

Ideally, each product should have a small video of its life cycle from begging to end with who made it and how much they earned, how many hours they work a week, etc. My fear is people would see deplorable working conditions and still buy the products anyway as society seems quite apathetic as of late.
14:40 August 9, 2012 by unionisten
@brucifyer i dont think Ikea aim its efforts towards the 3d world
15:34 August 9, 2012 by engagebrain
IKEA was once Swedish but is now based in Leichtenstein - but despite avoiding Swedish taxes IKEA manages to retain an associated with Sweden in the eye of the consumer, thereby benefiting from Sweden's brand recognition and reputation.
20:03 August 9, 2012 by brucifier
@unionisten I come from neither a 3d world or a 3rd world country, infact I emerge from the (so called) first world, Aotearoa is it's name and frankly most kiwis wouldn't swap a flying fish to know anything about Ikea! My opinion is now heard!
22:13 August 9, 2012 by DAVID T
@SOIS.COM Wow such an expert on IKEA - You've been to the factories as well judging by what you wrote - Or do you just grab any old crap you heard in the pub and make out you know everything - God I'd get very bored if I listen to you all day
22:24 August 9, 2012 by voiceofreason
If you live or hail from Almhult (don't mind my spelling), you would be grateful to Ikea and would love to kiss the founder's feet.

The town only exists because of Ikea so Ingmar has not totally abandoned Sweden
00:30 August 10, 2012 by Al1234
@SOIS.COM not heard about http://www.ikeafoundation.org/ABOUT-US/Where-the-money-comes-from.aspx ?

Also IKEA's suppliers must adhere to iworking which protects the worker's rights.
04:04 August 10, 2012 by Spuds MacKenzie
So is IKEA now Dutch or Liechtensteinian?? Doesn't sound like a Swedish company anymore. :(
10:59 August 10, 2012 by 007
the IKEA story is amazing and kudos for kamprad to have taken it to where it is today. like any wise entrepreneur and company, you set up the structure of your company to maximize your profitability and assure you the best conditions for the success of the company.

IKEA profiles itself as a swedish company and despite the legal bases of the group's subsidiaries and affiliated companies, it has an extraordinarily swedish corporate culture. all design and marketing is thoroughly dominated by swedes and swedish cultural values. and even if based in the netherlands, inter-IKEA, the owner of the franchise (and new owner of the brand) has swedish echoing throughout its corridors. englishmen, germans, dutch, etc employees often speak swedish too even if they're in delft.

and to be ranked 89th globally...with about 350 stores TOTAL...is damn impressive.
18:51 August 10, 2012 by SOIS.COM
@David T and Al1234

"Journalism is printing what someone else does not want printed: everything else is public relations."

― George Orwell

Relying on the source of information to be the same that also has a subjective interest is bad journalism and lacks critical thinking. IKEA as any other company will use PR to cover up as much truth as possible that would negatively impact them.

It is well known Kamprad was a Nazi and if the historical labor relations with suppliers are looked at the idea of placing the "Untermensch" in the eqv. of concentration camps to benefit the consumers of IKEA and the owners of IKEA then those Nazi ideals still hold true.

Regarding certification. Many factories are certified, often certification is a rubber stamp, a PR gimmick. If IKEA has nothing to hide then let all the employees of all the suppliers place cameras in their working environments and allow potential customers to ask those workers questions.

Try the documentaries Santa's Workshop and No Logo as primers to understand how such companies as Wal Mart, Ikea, and Tesco use the eqv. of Slave labor and how these companies are destroying the public space in the countries they sell in.
23:18 August 10, 2012 by 007
dot com, you live too much in some imaginary world where everything is separated into good and evil. kamprad was 17 at the time you lump into "being a nazi" as if he were on the advisory team for hitler. i sure hope i won't be judged today by choices i made at 17.

also, regarding your warnings of ikea factories functioning on par as "slave labor", could you refer to specific accusations? in which countries? how does IKEA "destroy public space" in the countries they sell in anyhow?
05:46 August 13, 2012 by SOIS.COM
@007. Kamprad was much older than 17 when he decided for Ikea to use prison labor in East Germany in the 70's and Cuba in the 80's. If that is not fascist/nazi I don't know what is.

Ikea is a case in PR failure regarding their handling of complaints of human rights and they were dragged kicking and screaming to join RUGMARK. In fact, its a business case often studied.

Today, we see their efforts at union busting via Swedwood in the Danville, Va. USA.

On the other hand, IKEA spends a great deal of money promoting their version of the truth of their child labor and human rights record. IKEA as most multi's do not changed until they are forced, as is the case in India, any "goodwill" IKEA is trying to present is whitewash...Today, IKEA steals employ files in France...

Kamprad says being a Nazi was "his life's biggest mistake". And yet he keeps repeating the same mistake and only corrects his companies behavior when he gets caught.
14:35 August 13, 2012 by ponderer
What kind of "experts" are these that do not realize that selling a BRAND, meaning a NAME, from one subsidiary to another of the SAME mother company for 75 BILLION (!!!) is money laundering plain and simple ... ?
18:03 August 13, 2012 by alecLoTh
I'll second that ponderer. Placing a questionable value on a subjective thing such as goodwill and using that to affect real value is nothing more than shuffling papers.
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