IKEA Home Smart, initially launched in 2012 marked IKEA’s entry into the Smart Home Segment. Now, the Home Smart will become a whole business unit in itself responsible for managing the entire end to end Smart Home related operations of the company, announced IKEA in one of its press releases.
Björn Block, the head of IKEA Home Smart Business Unit mentioned that this move from IKEA was inspired by the need to provide a better life experience to its customers by exploring solutions and options beyond conventional methods of home furnishing.
Peter van der Poel, Manager IKEA Range & Supply said that the that the Home Smart is currently the largest Business Unit established post Children’s IKEA. The company will be seen investing heavily in Smart Home sector over the coming years via its newly established Home Smart Business Unit, he added.
IKEA has followed a vert unique strategy in entering the Smart Home Segment which is currently being led by some of the largest tech companies in the world.
The Swedish giant entered the Smart Home Segment in 2012 with Smart Displays and Wireless chargers, and later moved on to create business relationships and tie ups with some of the leading companies in the Smart Home Space. One example is IKEA’s tie up with Sonos to create Symfonisk Wireless Smart Speakers.
Our thoughts on IKEA Home Smart Business Unit
The Smart Home Industry is expected to be valued at nearly 150 Billion Dollars by 2024, and every big company in the world wants a piece of it, either directly or indirectly. That is why there has been an increased influx of companies into the Smart Home Segment recently.
It is a really good decision that IKEA has decided to put more focus on its Home Smart Business Unit. One major advantage that favours its entrance to the Smart Home Consumer segment is its already established fleet of customers.
According to a report from Statista, the Swedish Giant which is also the largest furniture retailer in the world has more than 780 million customers visiting their stores per year. IKEA is clearly loved by customers, and for decades, the company has been able to maintain that trust.
Hence, when a company with such a huge customer base enters the Smart Home Segment in full swing, that is meant to create some major ripples. This marks some heavy competition down the lane for the existing giants in the Smart Home Industry.
However, whether IKEA will develop its own brand of Smart Home Devices or continue associations with the existing players in the industry or do both is something to be wait and seen.