A brief visit to the Swedish behemoth gives a snapshot of Israel’s future.
Recently I saw a short video of young Japanese women fawning over the baby of one of their friends. It was noted that none of the other women had any children, and their enchantment with the toddler was like one seeing a Bugatti Veyron or something else rarely seen. The reality is that Japan and much of the developed world have birth rates that are putting their countries in peril of falling apart. All Western countries, Russia, and China have birth rates below the accepted 2.1 births per woman needed to keep a population steady. All countries except one—Israel. Israel’s 2023 births per woman was 2.85, while that of the United States was 1.62.
It would seem that every trip to our local IKEA ends up with an article. There was once a line from a George Bernard Shaw play, “Those who can’t do, teach”—and that was the assumption. Anyone can teach! But all of us know from very personal experience that while anyone can stand in front of a chalkboard or the like, there are very few teachers who can inspire and help push us to new heights of knowledge and capability. My professor father said that if I had three or four truly outstanding teachers from kindergarten through graduate school, then I would have done well.
Just as in education, not all are made to succeed in business. The U.S. has had no shortage of savvy businessmen who have revolutionized our lives. Who could forget Steve Jobs pulling an iPod nano from the mini pocket of his jeans? What of Elon Musk’s revolution in EV cars throughout the world? Just as there are some people with a great talent for sports or cooking, some people know how to do business right. IKEA, the brainchild of Ingvar Kamprad, is an extraordinary business creation.
While one may legitimately say that IKEA’s stuff is not the last word in quality or the height of fashion, their wealth and breadth of products are still amazing. Their stores all follow the same pattern that leads you from the beginning of the store on the second floor to the checkouts below. They have an exceptional number of products, generally at very good prices. I read once that their designers are given a task with a predetermined price point and of course a requirement for flat packaging, their hallmark innovation.
Beyond the goods lies an additional genius. The Israeli stores are attuned to their primary customers: the people who are buying or building new homes and apartments are generally religious. Religious families have the highest birth rate along with women from the Arab population. All goods in the stores have Hebrew names and explanations as to their use and functionality. There are multiple nursing rooms, several play areas for young children and two kosher restaurants—one for dairy and one for meat—that meet Jewish dietary requirements and, of course, have children's meals. The goods are focused on the needs of young families, including many items that can be folded up to save precious space or that have multiple uses. There are examples of different sized rooms and how much one can pack into them with IKEA’s efficient furniture arrangements. IKEA’s offerings and prices allow young families to furnish their new homes and afford beds, tables, book shelves and kitchen needs. They have same-day delivery and extremely professional, multilingual staff.
During our visit, I would not be exaggerating to say that I saw over 100 baby carriages in the store. Obviously, there were many customers who would not fit into the “young family” motif, but it was very common to see parents with their children and a grandchild or two shopping for a new bedroom set or dining room table. One could see generations of Israelis in the stores, and the large number of kids says a great deal about the focus of Israel. Israel's raison d’etre was to preserve the future of the Jewish people after the destruction of one third of the Jewish people during the Holocaust. Besides the pure brutality of Hamas and its helpers on October 7th, 2023, the act of murdering so many Jews was a major strike to the perceived purpose of this state. IKEA opened its first store in Netanya on a Saturday and was not kosher or religious-friendly. As they learned the nature of the population, they understood that if they wanted to sell a lot of beds and dining room sets, then they needed to make their stores religious-friendly. All of the food they sell, including the dairy-free soft ice cream, comes with solid kosher supervision. If the first rule of business is, “Know your customer!” then IKEA Israel has upheld that rule with flying colors.
While it may seem as a no-brainer to have Hebrew descriptions for products and family-friendly amenities, one does not have to make a big effort to find large companies that are beyond tone-deaf. A few major airlines show on their maps “Palestine” but no Israel for flights coming into the country. How does it feel to have your country vanished by leftwing IT lunatics? Many multinationals land in Israel and make little to no effort to adapt their products to local customs. McDonald's made most of their restaurants not kosher and thus lost a huge percentage of the population. IKEA chose to match its products to the locals' needs. A Jewish kitchen has requirements revolving around kosher food and the separation of meat and dairy. IKEA gets it and promotes kitchens that have separate sinks and food preparation areas. Those who don’t understand the clientele wouldn’t offer the same and would not understand why their products don’t move. Top-tier kitchen appliances come with Sabbath settings—factory installed. Religious families benefit from companies that cater to their needs; the companies themselves simply make more money and establish a strong reputation in the country.
When I came here on a U.S. Fulbright Fellowship, the directors of the program told a funny story. They gave their Israeli fellows a questionnaire including the following question: “What did you least like about your stay in the U.S.?” What was the answer? “The American mop.” Israelis generally have stone floors and love to throw water around when they clean; they are not accustomed to the very dry mopping of delicate wood floors. IKEA has gotten into the Israeli way of thinking, and both the locals and the Swedish company benefit from the arrangement.