Ikea will soon begin testing a furniture-leasing program - which includes renting out entire kitchens - that could provide "scalable subscription services" in the company's future.
In an effort to be a more environmentally friendly business, the Swedish furniture giant will try leasing office furniture like desks and chairs to business customers, beginning in Switzerland. Entire kitchens will be rented out.
“You could say leasing is another way of financing a kitchen. When this circular model is up and running, we have a much bigger interest in not just selling a product but seeing what happens with it and that the consumer takes care of it,” Torbjorn Lööf, the chief executive of Inter Ikea, which owns the Ikea brand, told the Financial Times.
Items will be rented out for a preset period of time. Ikea would then either rent out that furniture again or refurbish and sell it.
“When that leasing period is over, you hand it back and you might lease something else," Lööf continued.
Lööf said there are considerations to launch a spare parts business, allowing customers to buy and replace furniture components no longer available in Ikea stores.
The strategy is based on an increased effort to prolong the life of a product. Lööf told the financial times that the program could help Ikea cut its climate footprint by 15 percent. The company has been at work designing recyclable sofas and investing in wind power and forests. It hopes to be carbon-negative by 2030.
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