Ingvar Kamprad learned how to make money at a young age when he started selling matches in Sweden and built a loyal clientele. He applied these important business lessons to his new venture, IKEA, which today is one of the largest companies in the world. Ingvar Kamprad’s net worth was approximately $58.7 billion at the time of his death. He was known to be frugal, and passed on cost benefits to his customers.
People may call IKEA founder Ingvar Kamprad frugal, but the fact is that his respect for money and his drive for cost control made IKEA one of the most loved and admired companies in the world. He died of pneumonia on Saturday, January 27, 2018, at the age of 91.
IKEA started small, but over the years grew to become a behemoth that designs and sells ready-to-assemble furniture, kitchen appliances, and home accessories. In 2016, it sold around $45.18 billion of goods, and as of November 2017, had 411 stores in 49 countries.
Naturally, people are curious about the IKEA founder’s net worth and want to know how rich Ingvar Kamprad was at the time of his death.
According to sources, Ingvar Kamprad’s net worth was estimated at $58.7 billion at the time of his death. He was known for his low-key and cost-conscious lifestyle, and it was an important part of IKEA’s corporate philosophy.
Kamprad once said “It is not only for cost reasons that we avoid the luxury hotels. We don’t need flashy cars, impressive titles, uniforms or other status symbols. We rely on our strength and our will!”
Ingvar Kamprad’s Net Worth Compared to Other Business Leaders
- At the time of his death, Ingvar Kamprad was the second richest man in Europe.
Entrepreneur at a Young Age
- Kamprad started building a business from a young age by selling matches at the age of seven, buying them in bulk at very low prices in Stockholm, Sweden and selling them individually at a low price to make a tidy profit.
- From matches, he soon graduated to selling fish, seeds, Christmas tree decorations, pencils, and ballpoint pens.
- Kamprad founded IKEA in 1943 and started selling kitchen tables. In 1948, he diversified into furniture and started selling them through mail order.
- According to reports, he moved with his family to Switzerland in 1976 to avoid the high Swedish taxes and stayed there until 2014 after which he returned to Sweden.
Keeping the Customer on Top
- Kamprad tried to pass on cost savings to the customer, which is one of the primary reasons that IKEA furniture is affordable by the masses.
- According to reports, he drove a 1993 Volvo 240, flew only in economy class, recycled tea bags, pocketed salt and pepper packets at restaurants, and encouraged IKEA employees to use both sides of a piece of paper.
Sharing His Success Story
- Even though Kamprad was a very private person, he shared the story of his success with people through several of his books like A Testament of a Furniture Dealer in 1976, and more recently the autobiographical book Leading by Design: The IKEA Story.
- He pioneered the concept of flat-pack furniture that would fit comfortably inside its box, thereby saving space and money. He avoided the costs of assembly by letting customers build their own furniture.
- Kamprad was an innovative and conscientious businessman who passed on cost savings to his customers making IKEA one of the most loved and recognizable brands in the world. In his death, the world has lost a titan of the industry.