Ingvar KampradFrom Wikipedia, the free encyclopedia

Ingvar Kamprad

Ingvar Kamprad lecturing a group of students at Växjö University (23 March 2004).

Born30 March 1926 (age 85)Älmhult, Kronoberg County

Occupation Entrepreneur

Net worth US$6 billion (2011)[1]

Spouse Margaretha

Children4 children: sons Peter, Jonas and Matthias; daughter[2]

Ingvar Feodor Kamprad ( pronunciation (help·info); born 30 March 1926) is a Swedish business magnate and the founder of IKEA, a retail (specialty) company.

According to Forbes magazine, As of 2011, he is the 162nd wealthiest person in the world with an estimated net worth of around US$6 billion in 2011.[3] However, according to Swedish business weekly Veckans Affärer,[4] he is the wealthiest person in the world with an estimated wealth of between $50bn and $90bn, owning the IKEA franchise through Interogo Foundation and Stichting INGKA Foundation.

Ingvar Kamprad was born in Pjätteryd, now part of Älmhult Municipality, and grew up on a farm called Elmtaryd (now spelled Älmtaryd), near the small village of Agunnaryd in Ljungby Municipality in the province of Småland, Sweden.

He is a second generation Swede of German descent, his grandfather having first moved the family to Sweden from Germany.

[edit] Career

Kamprad began to develop a business as a young boy, selling matches to neighbors from his bicycle. He found that he could buy matches in bulk very cheaply from Stockholm, sell them individually at a low price, and still make a good profit. From matches, he expanded to selling fish, Christmas tree decorations, seeds, and later ballpoint pens and pencils. When Kamprad was 17, his father gave him a cash reward for succeeding in his studies.[5] He used this money to establish what has grown into IKEA.

The acronym IKEA is made up of the initials of his name (Ingvar Kamprad) plus those of Elmtaryd, the family farm where he was born, and the nearby village Agunnaryd.

Kamprad has lived in Epalinges, Switzerland since 1976. According to an interview with TSR, the French language Swiss TV broadcaster, Kamprad drives a 15-year-old Volvo 240, flies only economy class, and encourages IKEA employees to always write on both sides of a paper.[6] In addition, Kamprad has been known to visit IKEA for a "cheap meal." He is also known to buy Christmas paper and presents in post-Christmas sales. Despite this, he allows himself some luxuries; he owns a villa in an upmarket part of Switzerland, a large country estate in Sweden, and a vineyard in Provence, France, he also drove a Porsche for several years.[7][8][9]

[edit] Net worth

According to Swedish business weekly Veckans Affärer,[10] he is the wealthiest person in the world. This report is based on the assumption that Kamprad owns the entire company, an approach that both IKEA and the Kamprad family reject. Kamprad personally retains little ownership in the company, having transferred his interest to Stichting INGKA Foundation and INGKA Holding as part of a complex tax sheltering scheme that leaves his actual degree of control vague.[11]

As of March 2007, Ingvar Kamprad was the fourth wealthiest person in the world, according to Forbes magazine, with an estimated net worth of US$33 billion.[12] In March 2010, Forbes magazine estimated his fortune at US$23 billion, making him the 11th richest person in the world. Though, as of March 2011, Kamprad's net worth had declined substantially (down US$17 billion) to a final value of US$6 billion. He had fallen from 11th spot on Forbes to 162nd because his lawyers produced documents that prove the foundation he created, and heads, in Lichtenstein owns IKEA, and its bylaws bar him and his family from benefiting from its funds.[1]

[edit] Stichting INGKA Foundation

The Dutch-registered Stichting INGKA Foundation is named after Ingvar Kamprad (i.e. ING + KA) who owns INGKA Holding, the parent company for all IKEA stores. The charitable foundation was reported by the business newspaper The Economist in May 2006 to be technically the world's wealthiest charity – with an estimated value of at least US$36 billion in 2006 (larger than the Bill & Melinda Gates Foundation) – but its primary purpose is

corporate tax-avoidance and anti-takeover protection for IKEA.[11] Kamprad is chairman of the foundation.

[edit] Works

While generally a private person, Kamprad has published a few notable works. He first detailed the IKEA concept of frugality and enthusiasm in a manifesto entitled A Testament of a Furniture Dealer. Written in 1976, it has since been considered the fundamental ideology of the IKEA furniture retail concept. He also worked with Swedish journalist Bertil Torekull on the book Leading by Design: The IKEA Story. In the autobiographical account, he further describes his philosophies and the trials and triumphs of the founding of IKEA.[13]

[edit] Fascist involvement

In 1994, the personal letters of the Swedish fascist activist Per Engdahl were made public after his death, and it was revealed that Kamprad had joined Engdahl's pro-fascist New Swedish Movement in 1942. Kamprad had raised funds for and recruited members to said group at least as late as September 1945. When Kamprad quit the group is unknown, but he remained a friend of Engdahl until the early 1950s.[14] Kamprad devotes two chapters to his time in Nysvenska Rörelsen in his book, Leading By Design: The IKEA Story and, in a 1994 letter to IKEA employees, called his affiliation with the organization the "greatest mistake of his life.

IKEA STORY

IKEA Founder Ingvar Kamprad made headlines in early 2004 when Swedish business magazine Veckans Affarer reported that he had surpassed Bill Gates as the world's wealthiest person. While IKEA's unconventional ownership structure makes this the matter of some debate, there is no doubt that IKEA is still one of the largest, most successful privately held companies in the world, with over 200 stores in 31 countries, employing over 75,000 people and generating over 12 billion in sales annually.Born Entrepreneur:Kamprad was born in the south of Sweden in 1926 and raised on a farm called Elmtaryd, near the small village of Agunnaryd. At an early age, he learned that he could buy matches in bulk from Stockholm and sell them at a fair price, but a good profit. He reinvested his profits and expanded to fish, seeds, Christmas tree decorations, and pens and pencils. At age 17, Kamprad's father gave him a nice reward for doing well in school. What did he spend it on? He founded IKEA.The Birth of IKEA:The name IKEA was formed from Kamprad's initials (I.K.) plus the first letters of Elmtaryd and Agunnaryd, the farm and village where he grew up. He continued to expand his business to a variety of goods, including wallets, watches, jewelery and stockings. When he outgrew his ability to call on his customers individually, he converted to a sort of makeshift mail order operation, hiring the local milk van to make his deliveries."The Greatest Mistake of My Life":During his teens, Kamprad attended some pro-Nazi meetings. When this was uncovered in 1994, Kamprad said, "This is part of my life I bitterly regret...[A]fter a couple of meetings in

pure Nazi style, I quit." In a letter to employees titled "The Greatest Mistake of My Life", he asked forgiveness, and he devoted two chapters to it in his 1998 book, The History of IKEA. In an interview after its publication, he said, "Now I have told all I can. Can one ever get forgiveness for such stupidity?"Focus on Furniture:In 1947, Kamprad introduced furniture into the IKEA product line. The use of local manufacturers allowed him to keep his costs down. The furniture was a hit, and in 1951, Kamprad decided to discontinue all other product lines and focus on furniture. In 1953, the first IKEA showroom opened. It came about because of competitive pressures. IKEA was in a price war with its main competitor. The showroom allowed people to see it, touch it, feel it, and be sure of the quality before buying.Competition Leads to Innovation:IKEA has now become known worldwide for its innovative and stylish designs. Almost all IKEA products are designed to for flat packaging, which reduces shipping costs, minimizes transport damage, increases store inventory capacity, and makes it easier for customers to take the furniture home themselves, rather than needing delivery. But the original reason for it was competitive pressure from IKEA's competitors to their suppliers, who actually boycotted IKEA, forcing IKEA to do it themselves.Good Design, Good Function and Good Quality, with Low Prices:Kamprad's vision has been the driving force behind IKEA's succcess. IKEA hires its own designers, who have received numerous awards over the years. Kamprad believes that the company exists not just to improve people's lives, but to improve the people themselves. The self-service store design and ease of assembly of their furniture are not merely cost controls, but an opportunity for self-sufficiency. This vision is reinforced in their advertising and catalog, as well.All In the Family:Kamprad has been extremely shrewd in creating IKEA's organizational structure. It is owned ultimately by a Dutch trust controlled by the Kamprad family, with various holding companies handling different aspects of IKEA's operations, such as franchising, manufacturing, and distribution. IKEA even has an investment banking arm. Kamprad has repeatedly resisted pressure to take the company public, feeling that it would slow their decision-making processes that have allowed their phenomenal growth.Frugality and Charity:On the one hand, Kamprad has a reputation for being, well, "cheap". He takes the subway to work, and when he drives, it's an old Volvo. Rumor is that when he stays in a hotel, if he feels the urge to drink one of those expensive sodas from the wetbar, he replaces it later with one picked up from a nearby convenience store. Yet IKEA has a long tradition of community outreach and philanthropy, with each store encouraged to support local causes, plus international sponsorship of UNICEF and others.