Few names in Swedish business carry as much weight as IKEA. Behind the empire stood Ingvar Kamprad – the entrepreneur from Småland who, with frugality, vision and relentless drive, built a global furniture powerhouse and became one of the richest men in the world. This is the story of how it all began and what made IKEA what it is today.
Ingvar Kamprad, founder of IKEA, whose values of thrift and persistence shaped the company’s identity.
A seed in Småland
Ingvar Kamprad was born in 1926 in the village of Agunnaryd, Småland. Raised in a region marked by poverty and resourcefulness, he inherited the values of simplicity and thrift that would define his life. As a child he sold matches, pencils, greeting cards and even fish to neighbours, developing the entrepreneurial instincts that later shaped his empire.
In 1943, at just 17, he founded IKEA. The name came from his initials (Ingvar Kamprad), the family farm Elmtaryd and his home village Agunnaryd. At first, IKEA was a mail-order business selling all kinds of goods – but soon furniture became the central focus.
An early IKEA catalogue, marking the transition from mail-order general goods to household furniture.
The idea that disrupted furniture
In post-war Sweden, furniture was expensive, often seen as a lifetime investment. Kamprad realised young families needed affordable alternatives. He introduced functional, stylish furniture that was shipped in flat packages and assembled by the customer – a revolutionary concept.
Flat-pack designs reduced costs in transport and storage, while self-assembly shifted labour away from factories and onto households. What began as a practical cost-saving measure became IKEA’s unique selling point, forever changing the furniture industry.
When Swedish suppliers, pressured by the domestic furniture lobby, refused to work with him, Kamprad turned abroad, sourcing production in Poland. This bold move laid the foundation for IKEA’s international supply chain.
Flat-pack furniture: IKEA’s radical innovation that made stylish design affordable and transportable worldwide.
From Älmhult to the world
The first IKEA showroom opened in Älmhult in 1958. It was more than a store – it was an experience. Customers walked through showrooms, tested furniture, and picked up their flat-packed items in the warehouse.
In the 1960s and 1970s, IKEA expanded into Norway, Denmark, Switzerland and Germany – the latter becoming its most important market. Soon, IKEA was no longer just a store; it was a destination, complete with restaurants, play areas and a culture of its own.
Modern IKEA megastore: a global icon of affordability, scale and Scandinavian design.
The philosophy behind success
Kamprad’s personality was stamped on every corner of IKEA. Known for extreme thrift, he flew economy class, drove old Volvos, and lived modestly despite immense wealth. He wrote the “IKEA Testament”, a manifesto that set cultural and financial rules for the company: simplicity, humility, and relentless cost control.
The company’s mission, as Kamprad described it, was to “create a better everyday life for the many people” – making design democratic, accessible to everyone.
Controversies and setbacks
Kamprad’s legacy was not without shadows. His youthful involvement in a far-right movement during the 1940s was later revealed, something he described as his “greatest mistake”.
IKEA has also faced criticism over tax structures, supplier working conditions, and environmental impact. In response, the company has invested heavily in sustainability, renewable energy, and circular economy projects – aiming to stay aligned with changing consumer expectations.
A global icon
By the time of his death in 2018, Ingvar Kamprad had become one of the world’s wealthiest individuals, with an estimated fortune exceeding USD 50 billion. Yet he insisted he was not a conventional billionaire – he lived with the same simplicity that defined his brand.
Today, IKEA operates in more than 50 countries, with hundreds of stores and an iconic catalogue that has become part of global culture.
The legacy of Kamprad
Kamprad’s ultimate legacy is not only the furniture empire itself but also the philosophy of democratising design. Through his vision, IKEA became more than a retailer – it became a cultural symbol of simplicity, affordability and Scandinavian identity.
In many ways, his story mirrors Sweden’s transformation from a rural, resource-strapped nation to a modern, innovative society. Ingvar Kamprad turned frugality into a global advantage, reshaping how people around the world live in their homes.
REFH – Newshub, 2 September 2025
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