IKEA, the renowned furniture chain with 462 stores in 62 cities worldwide, officially entered its 80th year. On the 12th, the company opened its North Asia headquarters in Taipei for the first time. The office features extensive, home-style common areas, focus rooms for employees to unleash their creativity, and thoughtful automatic height-adjustable desks, showcasing IKEA's commitment to human capital and sustainability. The event also reaffirmed IKEA's global commitment to becoming climate positive by 2030 and reducing greenhouse gas emissions by 50%.
Adrian Worth, Managing Director of IKEA North Asia, shares his business strategy in Taiwan. Photo by Liu Youjun
Admitting the high cost of sustainable products, we aim to achieve a win-win situation by controlling prices through volume.
IKEA invited Adrian Worth, Managing Director of North Asia, to share its business strategy in Taiwan and engage in a Q&A session with the media on various aspects, including environmental sustainability, humanistic care, and employee well-being. IKEA asked the media: Between "low price" and "sustainability," which would IKEA's decision-makers choose? 88% of the media professionals at the event chose sustainability. Adrian expressed surprise at this result, as IKEA products must be designed with price as the starting point to compete with similar products in the market. However, he also believes that good design combines form, function, quality, sustainability, and affordability—in other words, "democratic design." IKEA believes that good furniture is designed for everyone. Therefore, while sustainable products may cost more, if they can be produced in large quantities, they can be affordable to consumers, achieving a win-win situation.
IKEA's big blue box is equipped with nearly 20,000 solar panels
In the face of global environmental and climate change, IKEA, long-standingly concerned with sustainability, strives to incorporate environmentally friendly practices into every aspect of its operations. In its retail channels, IKEA implements energy conservation and recycling initiatives in stores and offices. Its Taichung, Taoyuan, and Neihu stores have all received Bronze, Gold, and Diamond Green Building certifications.
This year, IKEA installed solar panels on the roof of its Xinzhuang store. The total number of solar panels at all "blue boxes" (stand-alone stores) and logistics centers in Taiwan has reached nearly 20,000, with a total annual carbon emission reduction of 4,421 tons, equivalent to 12 Daan Forest Parks. The introduction of electric trucks to join the delivery team has also helped reduce carbon emissions.
IKEA, which has long been concerned about sustainability, strives to incorporate environmental protection into every aspect of life. Photo by Liu Youjun
In product design, IKEA is committed to fully utilizing renewable and recycled materials by 2030 and reducing carbon emissions in its production processes. Adelson believes, "Sustainable living is a trend in Taiwan and globally. Providing consumers with products that enable sustainable living will increase consumer awareness of sustainability. As sustainable products become more accessible and demand increases, prices will likely fall, creating a positive cycle of sustainable supply and demand." In 2022, IKEA also launched the BLÅVINGAD Ocean Collection, which recycles discarded ocean plastic and incorporates it into pillows and dolls.
Extending the life cycle of furniture through leasing and reselling
In 2020, IKEA created the world's first commercial furniture rental space for the public space on the 35th floor of Taipei 101; in 2022, it also renovated the employee cafeteria for Taiwan Power Company. This "commercial furniture rental service" uses a rent-in-place-buy approach, which is different from the traditional linear model of "manufacture, purchase, use, and discard." Leasing not only reduces consumption, maintenance, and waste disposal costs, but IKEA will also purchase back the leased furniture after the contract ends for recycling and reuse, realizing the concept of a circular economy.
In addition to corporate collaborations, Adelson also mentioned to reporters that while Taiwan excels in waste recycling, Hong Kong's secondhand furniture market is comparatively more mature. IKEA is currently collaborating with Carousell, selling used furniture and items that have been displayed or rented to Hong Kong buyers through the IKEA section of the trading platform. The company hopes to bring this model back to Taiwan in the future. Currently, IKEA Taiwan not only sells display items in its in-store discount areas, but also hosts the "Recycle Old, Love" secondhand market for consumers, launching a recycling program for used furniture. This provides a venue and channel for people to trade and exchange, extending the life value of products.
Source: Environmental Information Center
