The WEALTHTECH Book

The Ingredients of IKEA’s Approach for a Starry Wealth Management – Choose to Change the Competitive Arena in a Mature Sector

By Dr Alessandro Bologna

Investment Advisor, Deutsche Bank S.p.A. – Wealth Management

While waiting for the birth of my first son, I prepared the room that would welcome him. When I had finished putting together a chest of drawers bought at IKEA, I was seized by a mood of satisfaction mixed with pride that led me to wonder: “How is it possible that I am so happy to buy furniture in a box that I need to bring home and in addition build too?” Reflecting on the distinctive features that convinced me to be an IKEA customer, I might mention:

• fair pricing
• the perception of a good level of quality
• simplicity of instructions
• modern and attractive design
• the satisfaction of always being able to successfully complete the task and a wonderful catalogue that allows you to view the result in advance.

I therefore asked myself what ingredients Mr Kamprad used to change the competition within a sector that is highly mature and saturated. We can clearly see an analogy with wealth management: a very mature market with players who have to reinvent themselves in order to remain competitive. In addition, the disruption is coming from other sectors – technological innovation in products, processes and channels, combined with the dissatisfaction of the end customers and the reduction of margins.

In the following paragraphs I will try to identify the ingredients that made ...