A Twitter user and YouTube content creator Ishan Sharma made IKEA a top trend on the social media website on Thursday thanks to a tweet. Ishan Sharma, who has over 1.53 lakh followers, shared that he went to IKEA Bengaluru for just five items but left with 78, costing Rs 80,000. And then he justified his exorbitant shopping spree by putting it on IKEA (and the tricks the Swedish furniture giant uses) prompting users to troll him.
Sharma, in his tweet, outlined three specific techniques utilized by IKEA to maximize consumer spending. The first method, known as the Gruen Effect, revolves around the layout of IKEA's experience stores. He explained that the arrangement of these stores resembles a maze, forcing customers to navigate through the entire inventory even if they only require a single item.
“Even if you want just one item, you'll have to walk past their entire inventory. Normally in any store, a customer only sees 30% of its inventory. Not in IKEA. You end up forgetting what you came here for and that leads to impulse purchases,” Sharma wrote.
The second trick highlighted by Sharma is the Decoy Effect, which he personally witnessed while perusing IKEA's frame selection. He noted that the pricing structure for frames featured a large frame priced at Rs. 900, a medium-sized one at Rs. 700, and a smaller option at Rs. 400. The deliberate pricing disparity nudges customers towards perceiving the Rs. 900 frame as the best value for their money.
“This neat tricks generates over 14.3% more gross profit for IKEA every year,” he said.
Sharma's tweet also shed light on the Secret Psychology of IKEA food, the third technique apparently employed by the company. Although IKEA primarily positions itself as a furniture retailer, it allocates a considerable portion of its floor space to dining areas and food offerings. Surprisingly, the profit derived from the food segment constitutes a mere 5% of the company's overall revenue. However, over 30% of customers visit IKEA specifically for its food.
“But, why sell food as a furniture company? Because having food creates a sense of happiness, thereby elevating your mood. The mood of a customer largely affects how much they'll spend. In a 2012 survey report, customers who were well fed spent 2x more on home furniture and clothes,” he wrote.
The tweet got over 1.6 million views and Sharma was called out for justifying his extravagant shopping spree by blaming it on IKEA.
“No. You couldve just been more disciplined instead of finding theories that support your behaviour,” one user wrote.
Another wrote: “Dear Tweeter, first show us the receipt of the money you spent before we believe you.”
Sharma did share a photo of a long bill with his original tweet, but the amount spent was not visible.
“I never overbought any stuff from IKEA, this just shows how easily you can be persuaded,” read another comment.
Many thought it was a paid post. “And how much IKEA paid for this post?” one user asked.
After the tweet blew up, Sharma had a clarification.
“Chill guys, I was shopping for my new home, had to get beds, sofas, shelves and everything else. Hence, the long bill. Ofc I knew these tricks beforehand. I shared it since I found it interesting. No, it didn't persuade me. Can you find this content anywhere else? Yes, you can. Plenty of articles. I just shared my experience. No one’s stopping you from sharing your own,” he wrote.
IKEA, renowned for its affordable and stylish furniture, has become a global household name. The company's ability to blend innovative design, functionality, and competitive pricing has propelled it to the forefront of the industry.
IKEA has stores in Hyderabad, Mumbai and Bengaluru with Gurugram and Noida outlets coming soon.
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