The furniture stores latest concept is to start renting out furniture. Sweden is one of the first countries where IKEA is trialling this new strategy, as part of a broader goal that the company is completely 'climate positive' by 2030.
This new venture is focused primarily on renting out furniture to companies in 30 markets around the world. Trial-run tests of this circular business model -venture are commencing in Sweden, Switzerland, Poland and the Netherlands throughout 2019, starting in Sweden as early as this spring.
A subscription-based service
Furniture will be leased out instead of sold, according to this new concept, for the purpose of Ikea retaining full ownership of the products. This way they will oversee the whole life-cycle of a product, to prolong it for as long as possible so as to cap waste, and develop new ways to limit environmental impact.
Whereas the different trial countries will have sightly different focus on what furniture is being leased out, the circular business model remains constant. The goal is to provide a subscription-based furniture service, according to Ikea's press release on Wednesday.
“You could say leasing is another way of financing a kitchen. When this circular model is up and running, we have a much bigger interest in not just selling a product but seeing what happens with it and that the consumer takes care of it,” Inter Ikea chief executive Torbjorn Lööf, recently shared with the Financial Times.
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