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Founder of Global reputable Brand IKEA dies in Sweden at 91

by reputationpoll
August 6, 2019
in Reputable personality
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Founder of  Global reputable Brand IKEA dies in Sweden at 91
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Ingvar Kamprad, a Swedish entrepreneur became one of the world’s richest men by turning simply-designed, low-cost furniture into the global Ikea empire, died on Saturday at his home in Smaland, Sweden. He was 91.

His death was confirmed by the company in a statement on Sunday.

He grew up on a farm in the lake-dotted province of Smaland, in southern Sweden, a dyslexic boy who milked cows and found it hard to concentrate in school. His family was poor, and he earned money selling matches and pencils in villages. At 17, he registered his mail-order business in household goods, calling it Ikea, formed of his initials and those of his farm, Elmtaryd, and village, Agunnaryd.

Over the next seven decades, Mr. Kamprad built Ikea into the world’s largest furniture retailer — an archipelago of more than 350 stores in 29 countries across Europe, North America, the Caribbean, the Middle East and Asia, with sales of 38.3 billion euros ($47.6 billion), more than 930 million store visits and 210 million recipients of catalogs in 32 languages.

It made him wealthy beyond imagining. Bloomberg Billionaires Index listed him as the world’s eighth-richest person, worth $58.7 billion. But his driving ambition led to alcoholism, years of fascination with fascism and, trying to lead his employees by example, into a life of almost monastic frugalities.
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All his life, Mr. Kamprad practiced thrift and diligence, and he portrayed those traits as the basis for Ikea’s success. He lived in Switzerland to avoid Sweden’s high taxes, drove an old Volvo, flew only economy class, stayed in budget hotels, ate cheap meals, shopped for bargains and insisted that his home was modest, that he had no real fortune and that Ikea was held by a charitable trust.

It was not exactly so, as reporters found. His home was a villa overlooking Lake Geneva, and he had an estate in Sweden and vineyards in Provence. He drove a Porsche as well as the Volvo. His cut-rate flights, hotels and meals were taken in part as an exemplar to his executives, who were expected to follow suit, to regard employment by Ikea as a life’s commitment — and to write on both sides of a piece of paper.

Ikea was indeed operated through a charitable trust in the Netherlands, and a complex series of holding companies, all controlled by the Kamprad family to avoid any chance that Ikea might be taken public or broken up. It also provided tax shelters and a structure for preserving the company intact after Mr. Kamprad’s death.

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