Self-Made Billionaires: Ingvar Kamprad, Founder of the IKEA Empire

How Much is Ingvar Kamprad Worth?

While estimates of Kamprad’s wealth vary, some sources report his net worth to have been as high as $58.7 billion, reflecting his extraordinary journey from humble beginnings to global retail titan. 

Before Kamprad passed away, he structured IKEA’s ownership to benefit the company in the long term rather than his family. As a result, his wealth wasn’t directly inherited, and the IKEA fortune doesn’t belong to any single person. Kamprad’s unique ownership structure ensured his legacy benefited IKEA’s long-term growth, embodying his frugal ethos and commitment to sustainable business practices.

Ingvar Kamprad Biography

How did Ingvar Kamprad, a poor, dyslexic child from the quaint village of Elmtaryd in the Swedish province of Smaland, become the founder of IKEA, a global furniture empire? 

Born with a curious mind and a knack for business, Kamprad grew up in a modest household. His early years were marked by the frugality and resourcefulness needed to make ends meet. 

He started his entrepreneurial endeavors at a young age, selling matches at five, and later expanded to selling Christmas decorations, pencils, and fish. This humble beginning laid the foundation for what would become a worldwide retail phenomenon.

Ingvar Kamprad: A Comprehensive Business Profile

• 1926 

IKEA founder Ingvar Kamprad was born at the maternity ward “Vita Korset” in Älmhult in Småland, southern Sweden. He was the son of Feodor Kamprad (1893-1984) and Berta Linnea Matilda Nilsson (1901-1956). While his mother was from Sweden, his father’s family originated from Germany, and he immigrated to Sweden at a young age with his parents.

• 1931 

Even as a young boy, Ingvar Kamprad knew he wanted to start a business. At just five years old, he took his first entrepreneurial step by selling matches. Soon after, he began selling Christmas cards, seeds, and pens to neighbors on his bike.

• 1943 

At just seventeen years old, Kamprad founded IKEA in his small hometown of Elmtaryd, Sweden. He used a small amount of money given to him by his father as a reward for his good school performance. 

At first, Kamprad focused on selling household items like picture frames, jewelry, and nylon stockings. Although his initial ventures were modest, they marked the beginning of a storied career that would see him amass significant wealth and create a global retail phenomenon.

• 1948 

Kamprad expanded IKEA’s product line to include furniture and defied the low-cost, low-quality trade-off. While competitors cut corners, Kamprad prioritized affordability without sacrificing product integrity. 

A 1948-49 IKEA brochure (“ikéa-nytt”) offered insight into the company’s competitive pricing strategy: High turnover, direct delivery, and minimal overhead. Kamprad’s core vision – affordability with quality – remains a cornerstone of IKEA’s culture and brand identity today.

• 1950s

Faced with IKEA’s competitive low prices, Swedish furniture retailers scrambled to fight back, afraid that IKEA would drive them out of business. In the 1950s, they even tried to stop Kamprad from attending or exhibiting at furniture fairs. Undeterred, IKEA turned this adversity into an opportunity, seeking partnerships with suppliers beyond Sweden.

• 1953

High logistics costs and damage during mail-order furniture deliveries hampered IKEA’s early growth. While flatpack furniture existed, it hadn’t gained widespread adoption in Sweden. That’s when IKEA pioneered the use of flatpacks for its products. This shift to self-assembly furniture not only slashed transportation expenses but also resonated with customers, becoming a key driver of IKEA’s success.

In addition, a permanent showroom was opened in Älmhult, providing a valuable space for Ingvar Kamprad to connect directly with customers. The showroom allowed him to directly observe customer interaction with IKEA products and gather valuable feedback that would later shape the future of the brand.

• 1958

In the early years of IKEA, Ingvar Kamprad wore many hats, serving as head of purchasing, HR, and development. However, he recognized the need for assistance to facilitate the company’s international expansion. 

In 1958, as IKEA’s first store opened in Älmhult, Kamprad met Norwegian consultant Hans Bernhard Nielsen. This meeting marked the beginning of a pivotal collaboration. Over the following years, Nielsen and Kamprad strategized to expand IKEA into other Nordic countries, laying the groundwork for the company’s broader international growth.

• 1960

Kamprad didn’t stop at furniture. He observed that customers would leave the store at lunchtime to eat at nearby restaurants or street vendors, disrupting their shopping. He recognized that hungry customers were less likely to make purchases. 

In June 1960, IKEA stores only served coffee and cold dishes, but that changed by the end of the year. The IKEA kitchens underwent a makeover and became fully equipped to start offering a variety of hot snacks and á la carte meals. Kamprad’s plan worked, and customers ended up staying longer and buying more.

• 1963

IKEA expanded its footprint by opening a new store in Nesbru, just outside Oslo. The store was managed by Jan Johannessen, who played a crucial role in its early success. This expansion marked a significant milestone for IKEA as it ventured into the Norwegian market, further solidifying its presence in Scandinavia. 

Hans Bernhard Nielsen and Ingvar Kamprad, who had developed a strong business relationship and friendship, continued to collaborate closely.

• 1965

Kamprad went looking for cheap land on the outskirts of Stockholm in an attempt to find a strategic location to build a big store. He found it, and in 1965, the flagship IKEA store opened its doors. 

This architectural marvel, inspired by the iconic Guggenheim Museum in New York, was the largest furniture store in Northern Europe. Its unique spiral design and expansive layout were not just visually striking but also highly functional. 

The store was positioned for easy access by car and featured ample parking, accommodating the growing number of suburban shoppers. This decision to establish a store away from the city center became integral to the IKEA concept — transforming potato fields into bustling retail hubs.

• 1970

Late one cold September evening, a neon sign atop IKEA’s Kungens Kurva store caught fire. Instead of marking the end of IKEA, this marked another beginning. It prompted a redesign of the store layout and operations. 

The staff rallied to clear fire-damaged goods and prepare for the reopening. In just 194 days, a newly planned IKEA store emerged, featuring a new open warehouse area for customers. Customers could now effortlessly pick up products, transport them home, and assemble them themselves.

• 1976

IKEA expanded beyond Scandinavia with its first store in Spreitenbach, Switzerland, quickly followed by additional locations in Germany.

• The early 80s 

Recognizing the need for both independence and long-term viability, Kamprad separated the ownership of the retail operation from the core IKEA concept and brand. By keeping these separate roles in independent business groups operating under a franchise system, Kamprad believed this would help give the IKEA brand “eternal life.”

• 1995

The concept of “democratic design” was launched by French designer Phillipe Stark, guiding IKEA’s product development and evaluation, focusing on five key dimensions: function, form, quality, sustainability, and low price.

Kamprad’s Education

Ingvar Kamprad attended Gothenburg’s Handelsinstitut, now part of Hvitfeldtska Gymnasiet, from 1943 to 1945. While rooted in Älmhult, Sweden’s local education system, his entrepreneurial spirit blossomed without a formal university degree. 

Kamprad’s keen business sense and innovative approach set him apart from many other entrepreneurs. His early days selling small items like matches provided a practical apprenticeship, laying the groundwork for his future empire. 

This real-world education, coupled with his relentless drive and unconventional vision, proved more valuable than any traditional financial curriculum. Ultimately, this unique combination fueled the creation of IKEA, a global behemoth in the home furnishings industry.

How Kamprad Became a Billionaire

Ingvar Kamprad, founder of IKEA, rose to prominence through a pioneering approach that prioritized customer-centricity, innovation, and value for money. His unwavering commitment to enhancing consumer convenience and affordability, coupled with a fearless embrace of unconventional solutions, revolutionized the furniture industry and established IKEA as a global leader.

1. Initially, he sold items like picture frames, jewelry, and nylon stockings via telephone. As his business boomed and expanded, he began distributing catalogs. 
2. By 1948, Kamprad ventured into selling affordable furniture, which quickly became a hit, leading IKEA to focus solely on home furnishings by 1951. 
3. He opened the first showroom in Älmhult, Sweden, just two years later.
4. Not everyone was happy with IKEA’s low prices. The brand’s affordability upset competitors, leading them to pressure Swedish suppliers to boycott the company. 
5. Kamprad’s response was innovative: he had IKEA design its own products and sourced materials from foreign suppliers. 
6. In 1953, he introduced flat-packed furniture designed for home assembly. This innovation significantly reduced shipping and labor costs, allowing customers to transport their purchases easily. 
7. The compact packaging also meant items could be stocked at the sales location rather than in a warehouse. 
8. By 1958, the first IKEA retail outlet opened, and stores soon followed across Western Europe and eventually worldwide.
9. Over the next five decades, nearly 300 IKEA stores opened globally, each distinguished by its vibrant blue and yellow facade. 
10. These stores typically offered over 80,000 items, featuring children’s play areas and Swedish restaurants. 
11. In 2000, IKEA began selling products online, leading to rapid expansion. 
12. By 2003, IKEA’s catalog boasted the largest annual print run globally, and by 2009, it was available in over two dozen languages. 

IKEA’s phenomenal success propelled Kamprad to become one of the wealthiest individuals in the world in the early 21st century.

How Kamprad’s Frugality Fit into His Business & Personal Life

Ingvar Kamprad believed in simplicity, and despite being rich, he was very frugal. 

He moved to Switzerland to avoid Sweden’s high taxes and drove the same 1993 Volvo 240 GL for nearly two decades, only parting with it when he was informed it was no longer safe to drive. He frequently rode the bus, flew economy, and stayed in modest hotels. He preferred getting his hair cut in developing countries where it was cheaper, sticking to his strict haircut budget. In a 1998 book, he mentioned visiting vegetable markets at closing time to find lower prices. By 2014, he claimed, “If you look at me now, I don’t think I’m wearing anything that wasn’t bought at a flea market.”

The frugality in his personal life also extended to his professional one. He often lectured his employees about turning off lights when leaving a room. It has also been said that employees were instructed never to throw away a piece of paper unless both sides had been used. On one occasion, he reprimanded someone for discarding the ends of a string, as the company would knot them back together. 

Finally, he didn’t even allow his executives to fly business class and encouraged them to drive modest cars. Even though he was one of the richest people in the world, he hated wasting time and money.

Seeing someone so wealthy avoid excess might seem strange. If you have so much money, why not use it? Some might see it as wasteful. Kamprad, often described as disagreeable, found this trait helpful. He didn’t care what people thought of him — he cared about furniture. This mindset likely contributed to his frugality. He kept a low profile and led a simple life despite his wealth.

Kamprad’s Personal Life

Ingvar Kamprad was married twice and had four children. His first marriage was to Kerstin Wadling in 1950, with whom he adopted a daughter, Annika. However, this marriage ended in divorce.

In 1963, Kamprad married his second wife, Margaretha Stennert. Together, they had three sons: Peter, Jonas, and Mathias. Margaretha played a significant role in Kamprad’s life, supporting him through the growth of IKEA and helping maintain the family’s low-profile lifestyle despite their vast wealth. Margaretha’s influence was seen in Kamprad’s personal and professional life, where frugality and simplicity were core values.

Kamprad’s children have also contributed to the IKEA empire. His three sons took on various roles within the company, building its continued success and innovation. 

Peter Kamprad, the eldest, has been particularly active in managing the family’s investments. Jonas and Mathias have also maintained significant positions within the company, ensuring that IKEA remains a family-driven business.

The Bottom Line

The road to success can be paved with obstacles, but those who see opportunity within the difficulty can reach immense success. Ingvar Kamprad faced numerous challenges early in his journey to wealth. 

Despite efforts by Swedish furniture retailers to drive him out of business, he expanded his market by partnering with suppliers outside Sweden. Kamprad addressed high logistics costs and delivery damage by pioneering flatpack furniture, which reduced expenses and delighted customers. 

After a devastating fire at the Kungens Kurva store in 1970, he redesigned the layout, introducing an open warehouse area that improved the shopping experience by allowing customers to pick up, transport, and assemble products effortlessly.

Kamprad consistently demonstrated an unwavering determination to succeed. His remarkable ability to understand consumer preferences and employ strategic thinking was commendable. By analyzing market needs and implementing innovative problem-solving methods, he successfully navigated and overcame numerous obstacles.

We all learn from mistakes. That’s how we got to where we are at today. In fact, everyone who ever did anything worth something failed on the journey towards success. What set them apart from the rest was the fact they got back up and tried again. If Kamprad had stopped when he encountered roadblocks, he would never have become a billionaire.

Remember, simplicity isn’t necessarily a bad thing. Take it from Kamprad, whose strategic vision, coupled with his commitment to simplicity and efficiency, built IKEA into a retail titan. His wealth, estimated at $58.7 billion, reflects not just financial success but the lasting impact of his innovative business practices and relentless pursuit of excellence.

FAQs

Q: Who is Ingvar Kamprad?
A: Ingvar Kamprad was a Swedish entrepreneur best known for founding IKEA, the world’s largest furniture retailer. Born on March 30, 1926, Kamprad started IKEA in 1943 when he was just 17 years old. His innovative approach to affordable, flat-pack furniture revolutionized the furniture industry.

Q: How did Ingvar Kamprad start IKEA?
A: Ingvar Kamprad started IKEA as a mail-order business in 1943. Initially, he sold small household items like pens, watches, and nylon stockings. In 1948, he expanded into furniture, leveraging his unique flat-pack design to make products affordable and easy to transport, which quickly became a key aspect of IKEA’s success.

Q: What was Ingvar Kamprad’s approach to business and finance?
A: Ingvar Kamprad was known for his frugality and cost-conscious approach. He emphasized efficiency and cost-saving measures throughout IKEA’s operations. This philosophy extended to his personal life, where he was known for his modest lifestyle despite his immense wealth. Kamprad’s financial strategies focused on long-term growth, sustainability, and maintaining low prices for customers.

Q: How did Ingvar Kamprad’s vision influence IKEA’s global success?
A: Ingvar Kamprad’s vision of providing affordable, well-designed furniture to the masses drove IKEA’s global expansion. His focus on flat-pack furniture, which reduced shipping and production costs, allowed IKEA to offer high-quality products at lower prices. Kamprad’s emphasis on innovation, efficiency, and sustainability helped IKEA become a household name worldwide.

Q: What is Ingvar Kampard’s legacy in the business world?
A: Ingvar Kamprad’s legacy is synonymous with transforming the furniture industry. His visionary approach, centered on affordability, efficiency, and customer-centric design, propelled IKEA into a global retail behemoth. Kamprad’s emphasis on frugality and continuous improvement has become a blueprint for success for countless businesses worldwide. His enduring impact underscores the power of innovative thinking and strategic business acumen.