"Time is money" is the motto of the Swedish furniture manufacturer Ikea. Therefore, in order to give something back to customers with long journeys, they can pay with money.
Munich – If you want to go to Ikea, you often have to expect longer journeys. This is because the branches are usually located outside, for example in industrial areas. However, thanks to a new payment method that the Swedish furniture manufacturer has tested for the first time, visitors can benefit from the long journeys: instead of paying money, they pay with time.
| Ikea | |
|---|---|
| Industry: | Furniture and interior fittings |
| Foundation: | 1943 in Älmhult, Sweden |
| Founder: | Ingvar Kamprad |
| Head office: | Netherlands |
| Revenue (Germany/fiscal year 2022): | 5.6 billion euros |
| (Source: Ikea.com) |
Ikea tests new concept for paying with time – show route with Google Maps
Ikea needs huge premises to be able to display the variety of its products – from flower pots to sofas and shelves to entire fitted kitchens. Corresponding buildings are usually not found in the city center, so that Ikea stores are often built in the periphery. To ensure that customers still visit the stores despite long journeys instead of switching to online shopping, the furniture manufacturer has tested the "Buy with your time" concept in a store in Dubai.
Customers could decide at the checkout whether they wanted to pay for the selected products in the form of money as usual, or instead have their journey converted into times. As the business magazine Forbes reported, they had to show the navigation app Google Maps with the corresponding route they took to visit Ikea. Depending on how long the journey was, the customers received a corresponding credit, which was offset against the purchase price. The test of Ikea's new payment method took place in Dubai back in 2020. It remains to be seen whether the German branches will soon give it a try or even introduce this method.
Ikea now has more than 50 stores in Germany. © Sven Simon/Imago
New concept for paying at Ikea – there was a free hot dog for just five minutes of driving time
As a YouTube video from the channel "Ads for Brands" and an Instagram post from "businesstips.in" show, there was a Billy shelf for free for the equivalent of just under two hours of travel time. Or a small lacquer table free of charge for a journey of 49 minutes. For a journey time of five minutes, the Swedish furniture manufacturer donated a hot dog. Particularly expensive pieces of furniture, such as an exclusive chair, required a journey of over eight hours. The conversion of time into money was based on the average family income in Dubai. The concept has met with different opinions among Instagram users. One writes: "As a company, this doesn't make sense", another thinks it's a "brilliant marketing idea". And a third simply asks, "What about the time it takes to assemble the furniture?"
Ikea tests new concept for paying with time – incentive for local shopping
After the test in Dubai in 2019, Ikea no longer offered the concept with the slogan "Time is Money", but the new payment method could trigger a fundamental change in how products are bought and how the shopping experience changes in the future. While online shopping has recently become increasingly popular – also intensified by the Corona pandemic – the new concept could create an incentive to visit stores more frequently again.
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While spending a lot of time on the journey is advantageous with the "Buy with your time" concept, customers should save time with a different payment service at Ikea.
