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IKEA CEO Bets on Resilience Over Speed in Shifting World
20 Jan
Summary
- New CEO Juvencio Maeztu prioritizes resilience and simplification.
- IKEA India investment exceeds $1 billion for long-term growth.
- Company owned by a foundation, profits return to society.
Ingka Group's new global CEO, Juvencio Maeztu, is focusing on resilient growth and simplification to protect the furniture giant from global disruptions. He aims to build a business insulated from market volatility, drawing inspiration from founder Ingvar Kamprad's emphasis on simplification as a path to empowerment and speed.
Maeztu has outlined three key priorities: achieving significant growth in existing markets, fostering business resilience to manage increasing global disruptions, and simplifying operations. He noted that IKEA's foundation ownership means profits are reinvested into society, rather than distributed to private shareholders, aligning with a long-term societal benefit strategy.
The company continues its international expansion with various store formats, including new openings in New Zealand and smaller formats in tier-two and tier-three cities. In India, IKEA has invested over $1 billion, with Maeztu viewing the market as a century-long journey, emphasizing that a long-term commitment is essential for operating and succeeding in India.
