Ingvar Kamprad Early years and the beginning of IKEA Kamprad was born in the south of Sweden in 1926 and raised on a farm called Elmtaryd, near the small village of Agunnaryd. Ingvar began to develop a business as a young boy, selling matches to neighbors from his bicycle. He found that he could buy matches in bulk very cheaply from Stockholm, sell them individually at a low price and still make a good profit. From matches, he expanded to selling fish, Christmas tree decorations, seeds and later ball-point pens and pencils. In 1943, when Ingvar was 17, his father gave him a gift for succeeding in his studies. The gift was used to establish his own business. The name IKEA was formed from the founder's initials (I.K.) plus the first letters of Elmtaryd and Agunnaryd, the farm and village where he grew up.

IKEA originally sold pens, wallets, picture frames, table runners, watches, jewelery and nylon stockings – whatever Ingvar found a need for that he could fill with a product at a reduced price. In 1945 the first IKEA advertisements appear in local newspapers. When Ingvar Kamprad outgrew his ability to make individual sales calls, he began advertising in local newspapers and operating a makeshift mail order catalog. He distributed his products via the county milk van, which delivered them to the nearby train station. Soon furniture has been introduced into the IKEA product range. It was produced by local manufacturers in the forests close to Ingvar Kamprad's home. The positive response was gratifying, and the line expanded. In 1953 the furniture showroom is opened in Almhult. The IKEA range focused to home furnishing products in the early 1950s. The opening of the showroom was an important moment in the development of the IKEA concept. For the first time customers could see and touch its furnishings before ordering. This came about as a solution to a problem. IKEA found itself in a price war with its main competitor. As both companies lowered prices, quality came at risk. By opening the showroom, IKEA could in three dimensions present its products with function, quality and low price. And people did just what IKEA had hoped: they wisely chose the products with the best value for the money. In 1955 IKEA begins designing its own furniture. There were several reasons for IKEA to start designing its own furniture. But what actually led to this – possibly its best move ever – was quite ironic. Pressure from its competitors caused suppliers to boycott IKEA. This reaction to its early success required us to begin designing its own furniture, and became the basis for future growth. Ultimately, this would lead to innovative design and improved function at lower prices. Then, by lucky inspiration, one early IKEA employee decided to remove a table's legs so it would fit into a car, and to avoid transport damage. From that point on, we began to think in terms of design for flat packaging. Which led to even further reductions in price for its customers. A pattern had begun to establish itself at IKEA. Turning problems into opportunities.

IKEA worldwide expansion

In 1973, the first store outside Scandinavia is opened outside Zurich, Switzerland. Its success paved the way for a rapid expansion in Germany, which is the largest IKEA market today. In 1975 the first IKEA stores are opened in, Canada and the Netherlands. In 1985 the first IKEA store opens in the USA. During the next seven years new IKEA stores are opened in the UK, Italy, Hungary, Poland, Czech Republic and United Arab Emirates. In 1993 IKEA reaches 114 stores in 25 countries. In 1997 IKEA introduces Children's IKEA. IKEA has always provided furnishings for the entire family. But since kids are the most important people in the world, IKEA decided to put them in the spotlight. We worked with two groups of experts to develop products. Child psychologists and professors in playing helped us develop things that are good for kids' motor skills, social development and creativity. Then the other experts, kids, helped us choose the winners. Play areas, children's room settings, baby areas, special meals in the restaurant and still more play areas make IKEA a place kids love to visit. The first version of www.IKEA.com launches. In 1998 IKEA opens its first store in China. In 1999 IKEA numbers 53,000 co-workers across a global network of over 150 stores in 29 countries on four continents. Ingvar Kamprad initiated the Big Thank You Event as a millennium reward to the many co-workers within the IKEA group. The total of all sales worldwide on this special day was given to the employees. The goal for the day was high, but the actual result was higher – approximately 187 million NLG. Every co-worker, from the snack bar staff and stock clerks to the president, got the same bonus. For most, this bonus was more than a month's pay. It turned out to be a great way to thank the hard working IKEA co-workers for contributing to the success over the last millennium. And this is only the beginning. The first IKEA store opens in Russia in 2000. Kamprad has lived in Epalinges, Switzerland since 1976. According to an interview with TSR, the French language Swiss TV broadcaster, Kamprad drives a 15 year old car, only flies economy class, and encourages IKEA employes to always write on both sides of a paper.

Net worth

not be included in calculations of his wealth. Forbes magazine continues to rank Bill Gates at #1, ranking Kamprad at #4. It was in the aftermath of the Veckans Affarer article that Kamprad advanced from #12 to his current position on the Forbes list. As of March 2005, the sliding value of the U.S. dollar put Kamprad ahead as the richest person in the world in another report. In March 2006, Forbes magazine estimated his fortune at US$28 billion The Dutch-registered Stichting INGKA Foundation is named after Kamprad, and owns INGKA Holding, the parent company for all IKEA stores. The charitable foundation was reported by the business magazine The Economist in May 2006 to be technically the world's wealthiest charity – with an estimated value of at least US$36 billion in 2006 (larger than the Bill & Melinda Gates Foundation).