Ikea: A Brand Maximizing Augmented Reality
Augmented Reality (AR) is a fantastic and mesmerizing tool. One that makes us feel like we are finally close to reaching the technological savvy that was expected of us by those dreamers in the mid-1900’s — first AR and then next step flying cars and talking robots. The first place to embrace the technology was the video game sector, with games like Pokemon Go soaring in popularity. With the rise of Augmented Reality (AR) video games flooding the market place and users receptive and excited about the technology, it was only a matter of time before companies attempted to embrace the technology within the marketplace. Ikea was one of the first adopters of AR technology when they launched the Ikea Place APP, a client dedicated to helping consumers try out furniture in their homes before buying it.
The Ikea Place App function by allowing the furniture of interest to be directly inserted into the user's home through the use of their camera. The precision of the app is astounding, and the piece is shown with exact measurements and can be viewed from multiple angles by simply walking around the room. There are currently over 3,200 items that are available to be used with this feature, which is a majority of their catalog and includes beds, sofas, desks, and tables. The app has been met with enthusiasm by both journals and the general public and is helping to push AR capabilities into the mainstream.
As Seth Godin says, a successful campaign stems from identifying a problem or need and finding a product to address that need. This is precisely what Ikea has done with the IKEA Place app. Ikea is making a smart move by embracing AR — this app is able to solve a real problem for customers and enhance the at-home buying experience. We have all struggled to decide whether a piece of furniture would look good in our own home and/or the color would match the aesthetic of the room, and now with this app, this is no longer an issue. Not only has this eased the buying experience, but they are the only ones doing it as a “first mover” on the idea. These two aspects show the companies dedication to its customers and drive brand loyalty for Ikea, allowing them to continue to dominate the furniture market.
Although it is hard to directly correlate the usage of the app to sales, the numbers are very promising and convey that this move was the right strategic move for the company. The app is the second second-most-popular free app built on Apple’s ARKit — this is a category that includes AR videogames. Additionally, the app has generated a mountain of marketing buzz since its release: it has spiked on google trends and was featured on Fast Company as one of the 50 most innovative companies. This media buzz has caused a trickle-down effect and has led to other similar companies developing similar apps (for example the paint company Sherwin Williams).
Overall, the app's popularity and the good press it has garnered will certainly help raise profits for Ikea. This app solves a practical problem, is easy to use, and makes the user feel innovative. With an app like this, Ikea will continue to gain loyal consumers and dominate the furniture market.
