IKEA — “Start Up the Start-Up” (Taiwan)
Submitted by Starcom Taiwan
Case Study Summary:
IKEA Taiwan launched the “Start Up the Start-Up” campaign to support a new generation of entrepreneurs by transforming its home furnishing expertise into adaptable workspace solutions. With 99% of Taiwan’s businesses classified as SMEs (Small to Medium Enterprises)—and many operating in unconventional spaces like livestream studios, home bakeries, and micro-offices—I KEA saw an opportunity to redefine how business spaces are conceived and supported.
To address the unique demands of these microbusinesses, IKEA integrated AI technologies into its marketing and product strategy. This allowed the brand to shift from merely selling furniture to becoming a business partner for entrepreneurs. The initiative combined data-driven personalization with IKEA’s functional design to offer scalable, versatile, and affordable workspace solutions tailored to individual business needs.
Key Insights
- Strategic Transformation: IKEA repositions itself from a home brand to a workspace solutions provider for entrepreneurs.
- AI as an Enabler of Relevance: AI insight drove not just media optimization but the entire go-to-market strategy.
- Scalability: The model is adaptable for other markets experiencing SME growth and hybrid work trends.
- Business Impact: 5x increase in demand, 63% boost in visibility, and 93% drop in conversion costs.
Why was AI used?
AI was deployed to manage complexity at scale and uncover deeper customer insights, enabling IKEA to:
- Track Trends & Behavior: Through keyword mining, AI identified emerging trends like “affordable office furniture” and “flexible space design.”
- Match Products to Behaviors: Behavioral analysis revealed growing demand for multifunctional furniture, informing product promotion and development.
- Enhance Targeting & Conversion: AI built predictive customer models, mapping decision points and weighting user behaviors to deliver personalized, real-time messaging—resulting in a 93% reduction in conversion costs.
How did AI work with human creativity and insights?
AI amplified the creative efforts of IKEA and its agency partners by surfacing insights that guided tailored communications and product solutions. For example:
- Creatives used AI findings to craft campaigns for specific entrepreneur profiles (e.g., bakers, livestreamers).
- Human designers adapted IKEA’s product line into real-world applications, like modular desks, soundproof panels, and mobile kitchen carts.
- Service enhancements—like free design consultations or tiered discounts—were designed based on AI-identified needs.
Would the initiative have been possible without AI?
Not at the same scale or precision. Without AI, manually identifying the diverse and rapidly evolving needs of microbusinesses would have been inefficient and prone to error. AI enabled IKEA to quickly adapt offerings to niche markets, model customer decision-making, and deliver personalized, performance-driven campaigns—all contributing to 5x demand growth and a 63% boost in market visibility.
