Episode 2 Flatpack Empire


Episode 2

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Transcript


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Where are you going? It's not there. There is the beginning of the shop.

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I'm completely lost.

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Love it or loathe it,

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the world's largest furniture shop has shaped the way we live.

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As soon as you're in, you can't get out, can you?

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You spend and spend and spend, really.

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Founded in 1943,

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Ingvar Kamprad established Ikea as a global brand

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before his recent death at the age of 91.

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His unique approach to business still guides staff today.

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I've always seen Ikea as more of a movement than a company.

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For the first time in its 75 year history...

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Hej-hej!

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..Sweden's most famous export has granted our cameras worldwide access.

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Namaste!

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We filmed the £34 billion operation over the course of a year...

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It is a big machine. It needs to be fed.

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..following their rapid global expansion...

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We're just entering one of the biggest markets in the world.

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I think that we're writing some history, actually.

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..discovering what it takes for a new product to make it to the shelves...

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So, I wanted to do a cot and a coffin, so I approached Ikea with that idea

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and they just said, "No, you're joking."

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..and learning the secrets of how it became one of the largest

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and most influential companies in the world.

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It is creativity versus commercialism and finding that beautiful balance.

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Every morning before the customers arrive,

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each of Ikea's 399 stores restock their shelves.

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I just received this and I have no clue where they go in.

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Follow the arrows!

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HE CHUCKLES

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In Helsingborg, Sweden, one employee has recently been promoted.

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But Jesper Brodin is no ordinary member of staff.

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He's worked for the company for 20 years, and just two days ago,

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became the fifth CEO in its 75-year history.

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Lots of butterflies in the stomach.

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Obviously, like anybody stepping into a new job, you think about,

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"Will I manage? Can I really add any value?

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"Will I make any sense?"

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And then you kind of figure it out.

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But this is my - what can it be? - seventh or eighth job in Ikea.

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So, maybe tenth job in life, so...

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..you tend to get a little bit more relaxed, also.

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But I also have a humble approach to it and don't overestimate your own importance.

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Jesper may be in charge, but he's starting his new job on the shop floor

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to get a better understanding of how the business works.

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The biggest learning so far this morning is the inefficiency

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in the unpacking, where some things are ready to sell

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and some things still need a lot of handling.

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Anything he learns could be rolled out in stores around the world.

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It can look like a detail, but when you start to do the math in Ikea, it's huge.

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2.4 million Swedish krona.

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So, a quarter of a million euros, about there.

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That's just one store. How many stores do you have?

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We're opening number 400.

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So, yeah, 400.

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-They must have one good one out of that!

-I know!

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On the outskirts of Sheffield, a new store is taking shape.

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Do you want us to take them next door or do you want to sit them down?

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What do you want to do? It's five to.

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Six months into the build and management are introducing the project to the local press.

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We are a company that actually has a purpose

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and our purpose is to create a better everyday life for the many people

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and we'd like to do this through home furnishings.

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Yeah? Because we have a very strong belief that everybody deserves a good home, yeah?

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Gillian Drakeford is country retail manager in the UK.

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I'm really excited today that we're actually at this point,

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because most of the customers are saying, "Well, if I want to shop,

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"I either have to go south to Nottingham or north to Leeds,"

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so, yeah, this is a good thing for us.

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And it's fantastic to see the steel frame because once you have the steel frame,

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it moves very, very quickly.

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I am so pleased that I am the store manager of Ikea, Sheffield.

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Bringing the Ikea brand onto a new market is incredibly exciting and,

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of course, the number one question you all want to know is,

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"When is it going to open?"

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I can assure you nobody wants to know that more than me and this team sitting here!

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LAUGHTER

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But it will be as soon as our construction team tell us it's watertight.

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One of the company's most experienced managers, Gary Deacon,

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will be in charge of the store.

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I did build Belfast, and I built and managed Dublin,

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and now I'm building Sheffield, and I was also incredibly fortunate

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to run Wembley when it was the biggest store in the Ikea world,

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so how lucky does that make me?

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With the store due to open in July,

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the team have just seven months to recruit and train 500 new employees.

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These 500-odd jobs that you will be creating, will they make a big impact here, do you think?

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I think today, if you are passionate about home furnishings,

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you must be so excited that Ikea is coming,

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and, of course, for anybody to be told there are 500 real jobs coming, that must give those people hope.

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-ALL:

-Whoo!

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The stores are nothing without products.

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Every year, hundreds of millions are mass-produced.

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One of their biggest sellers is the Billy bookcase, with one sold every ten seconds.

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For the last 40 years,

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they've been made in southern Sweden

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by one of the company's longest serving suppliers, the Gyllensvaans.

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It's here we produce a lot of furniture for Ikea.

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The Billy bookcase, for example.

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And here is my sister.

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My sister's husband. No, my daughter's husband!

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HE LAUGHS

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-My brother's sons, Morten and Philip.

-Hej!

-And my son.

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Hello.

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How many family members are in your company?

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I think it's nine.

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But I have to count.

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I think it's nine.

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That's my father.

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This is the letter my father got from Ingvar.

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It is our first contact with Ikea.

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What does it say?

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We want to buy furniture.

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And they did. Starting with just 120,000 units a year,

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growing to millions today.

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This is Morten.

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He is in charge of purchasing and contact with Ikea.

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-You've got the hardest job?

-The toughest job. I think so, yeah.

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The factory takes delivery of sheets of chipboard before cutting...

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..laminating with protective foil...

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..packaging and sending to Ikea.

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This is the area where we receive the chipboards.

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We receive about 700 tonnes daily,

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and it is about 19 to 22 trucks every day coming with chipboard.

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This is a very big volume in the factory.

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The Gyllensvaans' factory is Ikea's biggest supplier of Billy bookcases.

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We produce about 170,000 weekly.

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This is the box folder where we make the box,

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and here we put in protection

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to protect the furniture that we have in the flatpack.

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We try to be more and more efficient every year

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so we can lower the prices

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as Ikea is expecting, and we can produce more furniture every year.

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Follow me. Let's go to breakfast.

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Until recently, the factory supplied over 6 million Ikea products globally.

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A few years ago,

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we delivered the Billy bookcase to the whole world.

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We delivered worldwide, to Asia, to Australia, all over.

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And we lost the volume to Asia.

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Mainly because Ikea wants to buy furniture more locally.

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-Was that hard?

-It's a challenge.

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Yes. Billy is a bookcase that many producers want to produce.

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Huge volumes, quite a simple bookcase.

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We lost 600,000 bookcases.

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-Yes.

-Approximately.

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-10%?

-Yes, 10%.

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We lost.

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We have never fired anybody because of lack of work, no.

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You can never feel confident.

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You never know, never know.

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To keep their 240 staff in work,

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Eric and Morten have been trying to secure a lucrative contract

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for a new range of cupboards called Platsa.

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If we get the Platsa deal, we will get to produce about 700,000 doors

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to the Platsa range, and it is for North America and North Europe.

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They have already produced a small number,

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which failed a water damage test at Ikea's lab in Almhult,

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putting them three months behind schedule.

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The challenge is to fix all the surface demands.

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Very, very tough surface demands for water.

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We have to solve it.

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You only have one client, right?

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Yes, one client, one customer.

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The factory is one of hundreds worldwide

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mass-producing flatpack furniture.

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The decision whether to give the Gyllensvaans the contract will be made

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at design and production HQ in Almhult.

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Platsa is a new range coming in that Gyllensvaans has been part of quoting.

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As it seems right now, they will have 45% of the matrix.

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Simply, we have to make sure that the products are being produced and sold

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under the brand of Ikea, that they manage the daily life in a family at home.

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You should be able to spill out a couple of coffee or a glass of water

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without destroying the furniture, simply.

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So, that is what the task is about.

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-Hej.

-Hej. Hello again.

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Olof Ahlberg is in charge of the Platsa contract.

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After they failed the water test,

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he is concerned about the factory passing a retest and hitting the delivery schedule.

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What I see as a risk is that...

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Because, I mean, if we don't manage this,

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there is a possibility, of course, to place the matrix at the other supplier.

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Now, we have been working with this for at least two, three months.

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We need to make progress, otherwise he takes the decision.

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Because time is flying, of course.

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-Also in this case, we're getting closer and closer to first production and so on.

-Yes, yeah.

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You saw the letter down there and the demands,

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it is the same today as it was in... Before.

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It is high demands, good quality, right price and then they buy.

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This is a happy factory.

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We are very important for the area, also.

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Our workers feel that we can work together.

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Hej-hej!

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My father did it this way,

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and every year you had to produce faster and better quality.

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They put the pressure on us and we...

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-Try to live up to it.

-Yes.

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You look a little bit worried, I must say.

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It creates a bad feeling in my stomach.

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The factory won't get the contract until they pass a retest.

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Ikea have some very high standards, don't they?

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Yeah, I think the customer demands, they increase year by year,

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and, of course, that puts requirements on us, Ikea,

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and also the suppliers and our partners.

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So, for sure, it is tough demands on quality, for instance,

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and we can't compromise on that area.

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But it's also a business?

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It is business in the end, for sure.

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No question about it. We need to secure the demands.

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This is where all these products that you see here,

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they are born here, they started here.

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Like the PS Maskros lamp.

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That idea started here and then it has been developed

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and sold all over the world.

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James Futcher is starting work on a quirky new collection.

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-Can we catch up later about the stuff you missed?

-Yes.

-OK, cheers.

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Aimed at a younger market,

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James and the team are showing some ideas to his boss,

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head of design, Marcus Engman.

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-OK.

-Yes, we have products that are a little bit more open for interpretation.

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One of them being this leg set.

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-It comes in sections.

-Then you put together your own legs?

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-Yes.

-That's one thing.

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-What's more, then?

-Build your own rug.

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So, it comes in maybe a kit

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with certain cut shapes.

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-OK. All in all, that would be quite nice, actually.

-Yeah.

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Many of our customers, especially the younger generation,

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they want to have products that are unique,

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and each product looking different,

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so it's a big change for us to see how we can work with

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mass production, but make unique products.

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Hanna, when you've finished there,

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could you bring up the ceramic 3-D drawings?

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-Yeah.

-Cheers.

-Thanks.

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One of Ikea's newest designers, Hanna-Kaarina,

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is pitching some of her ideas into the collection.

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What's your idea?

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A vase.

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I was thinking that we always try to make everything exactly the same,

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but maybe we could use the whole manufacturing process in a different way,

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and actually make pieces that are based on the same shape,

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but everything becomes unique.

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When you take it out from the mould, you just place it on the surface.

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You use your hands, so basically it's going to be...

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also unique pieces.

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Have you done it before?

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-By mistake!

-OK.

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So, it's actually embracing a mistake?

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Yeah. I think that could be quirky.

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-That could be really cool.

-Yeah.

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Today, we make everything the same in big volumes,

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but Hanna's got this idea of sticking a finger in each vase

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or handprint, to make it different.

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I mean, that's really crazy, but when you think about it,

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it's really fun and it makes mass production

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in a different way.

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We can have mass production with uniqueness.

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Do you think that each one will come out different?

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Yeah, I think so.

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If we just play a bit with the clay as well.

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It's quite nice to do something a bit more experimental.

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That's not what Ikea is usually doing,

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so that's a nice chance to shake the system as well, a bit.

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Why do you want to shake the system?

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Just for fun!

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I think the challenges are cost.

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That if it started to become too expensive,

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then we don't really fulfil what we want to do at Ikea.

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The next stage is to get the supplier to really understand what our idea is.

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To be on the factory floor,

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to work with the specialists in the ceramic factory,

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in the production line,

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and make that idea work within the process

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so we can produce thousands of vases that are different.

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It's going to be exciting to see how Hanna's idea comes to fruition.

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Yeah. And if we have to modify the shape, as well,

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let's see what we have to do.

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Hopefully they have some ideas to see how we can make the idea work.

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Hanna-Kaarina's design is so unusual,

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she and James have come to meet with a supplier who is used to

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mass-producing millions of products for Ikea.

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-It's not such an industrialised set-up so far, so it seems promising.

-Yeah.

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They start by inspecting a sample with the supplier's management.

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-Yes.

-But the vase has no imperfections.

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I don't think they fully understand.

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It's actually about doing something, provoking a discussion.

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So then we can talk about all the steps.

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Yeah, because what we can actually do here...

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-Yeah, like squeeze one.

-Yeah.

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Then it's also,

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I kind of think it's not about you doing it,

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it's actually about having a discussion, because I don't think they understand it fully.

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From what we've seen, what could be possible that they could do in production?

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IN ENGLISH:

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But we don't want that.

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That's what we want. It is to understand what can we do

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within the production steps so then we can design something.

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A little bit frustrating.

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I thought the supplier would have been more prepared

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and we would have had more samples,

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and be really able to dive in

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and to see how we could create this imperfection.

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In general, it's a question like how much we can modify.

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-Maybe that's too much.

-Yeah.

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-Is it just a level of... just a little?

-Yeah.

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It's how do we achieve something that looks different.

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IN ENGLISH:

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That's fine. That's even nicer.

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Ah, OK.

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Then that one actually has a story, it belongs to that person,

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that's their fingerprint.

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Here we can make handmade individual products that are

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available for the many people, because it will be in a price picture.

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But I think that's where we need to go through the steps -

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how do we do it so we get the right price?

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It's like a give and take relationship.

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It seems the bosses have finally understood,

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but the real test will be tomorrow, when the team return to see the workers make prototypes.

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We want Hanna to have all of the drawings ready tomorrow,

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so then we can bring up the discussion again.

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Are these shapes possible?

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It's all fun making something that looks good,

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but if it's not at the right price, then you can't afford to buy it.

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-HE SINGS:

-# She told me she missed school today...#

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Since the press launch,

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the Sheffield store has fallen a month behind schedule

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and is now due to open in August, just 16 weeks away.

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When we get on site now, you're going to say to me, "Gary, that store's not opening."

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You look at it now and you think, really?!

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Are people going to be shopping in that? Is that going to be finished?

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Not this August, you're thinking next August.

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No, seriously, you are. Look at that.

0:21:370:21:39

Seriously, can you believe?

0:21:390:21:40

We need eight weeks to shop fit it, so eight weeks before, they've got to hand that over.

0:21:400:21:45

The lift shaft at the back still isn't in.

0:21:450:21:47

There's no lift. There's no roof on this half, is there?

0:21:470:21:51

Can you see a roof? That's not watertight, is it?

0:21:510:21:55

You need it to be watertight?

0:21:550:21:56

HE LAUGHS

0:21:560:21:58

Otherwise the trades can't come in. The electricians, the plasterers.

0:21:580:22:01

Nobody can start until it's watertight, so let's go and meet them

0:22:010:22:04

and see what they've got to say.

0:22:040:22:05

16 weeks from now.

0:22:230:22:25

16 weeks.

0:22:250:22:27

It is hard to believe, isn't it, we're going to stand here in 16 weeks

0:22:270:22:30

and that's going to be an operating unit.

0:22:300:22:32

But I trust. I keep saying I trust, don't I? I trust. I do trust.

0:22:320:22:36

Well, it needs to, doesn't it?

0:22:440:22:46

Cos there's no back end and no roof at the moment.

0:22:460:22:49

-Eh?

-There's no back end and no roof.

0:22:490:22:51

HE LAUGHS

0:22:510:22:53

He seems to think it's OK! He knows.

0:22:540:22:57

When do we go watertight?

0:23:020:23:03

Overall watertight will be by mid-June.

0:23:050:23:07

Mid-June?! Oh, Christ.

0:23:070:23:09

OK, Adil, if you'd like to go With Gareth.

0:23:140:23:17

With Gary worried about the build, on the other side of town,

0:23:170:23:21

a massive recruitment drive has begun.

0:23:210:23:23

The Steel City, there were so many people that lost their jobs

0:23:240:23:28

and morale went really down, so I think it's a great boost for the city,

0:23:280:23:31

that Ikea is coming to Sheffield. Exciting.

0:23:310:23:37

Come on, I don't bite!

0:23:370:23:38

Ikea have had over 4,500 applications for just 500 jobs.

0:23:380:23:43

Can I have the next group for... # Getting to know you. #

0:23:430:23:48

Maria Crosby will be the logistics manager at the new Sheffield store,

0:23:480:23:53

and is part of the team responsible for recruiting staff.

0:23:530:23:56

Can you go and get me a form?

0:23:560:23:57

Can you get me one of those candidate sheet forms?

0:23:570:24:00

They're not just looking at CVs and skills.

0:24:000:24:03

At Ikea, it's all about having the right personality.

0:24:030:24:06

We don't want everyone to be the same, we're not robots.

0:24:060:24:10

We just want to be similar. Yeah?

0:24:100:24:13

The culture and values in Ikea, it's the same here in England, in Sheffield,

0:24:130:24:18

as it is in Dubai or Spain or, obviously, Sweden.

0:24:180:24:22

It doesn't matter what Ikea you go into, it's exactly the same.

0:24:220:24:25

The team are looking for people who possess the eight key values

0:24:270:24:31

that Ingvar Kamprad founded the company on in 1943.

0:24:310:24:34

OK, so humbleness and willpower, simplicity, togetherness...

0:24:380:24:42

This is where I get stuck. Cos they're my three.

0:24:440:24:47

My three, my three that I hold dear.

0:24:480:24:50

Humbleness and willpower is a massive one for me.

0:24:500:24:53

Togetherness is also amazing.

0:24:530:24:55

Without togetherness, we have nothing.

0:24:550:24:58

This is very different to any other company you've ever worked in.

0:24:580:25:01

It really is. I can't stress that enough.

0:25:010:25:04

Being able to have the opportunity to work in that box is amazing.

0:25:040:25:08

What I want you to do,

0:25:080:25:09

and I know some of you might be a little uncomfortable doing it, but we don't bite at all.

0:25:090:25:14

I just want you to say hello and where in the store do you think you can see yourself working.

0:25:140:25:19

I'm Tom, I live in Greenhill in Sheffield.

0:25:190:25:22

Where I see myself in Ikea would definitely be something customer facing.

0:25:240:25:29

The way I see it, it's helping people.

0:25:290:25:31

Hi, I'm Luke, I currently...

0:25:330:25:35

I live in Rotherham and currently work for Poundland...

0:25:350:25:38

..as a replenisher/sales assistant,

0:25:400:25:43

but I am willing to climb the ladder in any business.

0:25:430:25:48

Have you enjoyed today?

0:25:480:25:49

INAUDIBLE RESPONSE

0:25:490:25:51

So, getting to work for 5am, would that be an issue?

0:25:520:25:55

I could ask my mum to drop me off.

0:25:560:25:58

-She won't mind.

-Excellent, so you'll be able to...

0:26:000:26:03

I'm fully flexible.

0:26:030:26:05

I do it to look after my family, cos I pay my mum board.

0:26:050:26:10

We pay £8.45 an hour.

0:26:100:26:12

-Is that to anyone?

-To anyone, yeah.

0:26:120:26:15

-Is that OK?

-Yeah.

-OK.

0:26:160:26:18

He was a very, very humble, very much a family person, which is,

0:26:180:26:23

in terms of values, that really, really fits.

0:26:230:26:25

But he was also determined and eager.

0:26:250:26:28

It seemed to go well, the interview?

0:26:280:26:30

Yeah, yeah, it went really well.

0:26:300:26:32

What were you and Maria talking about?

0:26:320:26:35

-Was she called Maria?

-Yeah.

-I thought she were called Claire!

0:26:350:26:37

INTERVIEWER CHUCKLES

0:26:370:26:39

OK, so, Luke, you can say, I want to be a manager.

0:26:390:26:43

I want to be the best I can be.

0:26:430:26:46

I want to know what that looks like.

0:26:460:26:47

I didn't know Ikea even existed, I'll be honest with you.

0:26:470:26:51

I thought it were Lidl at first.

0:26:510:26:53

They've got a nice uniform, but this one's just yellow.

0:26:530:26:56

You look like a McDonald's straw in it or something.

0:26:580:27:00

Almost look a bit emotional! Bless her!

0:27:050:27:07

You get that sometimes, don't you?

0:27:070:27:09

Keep your eyes out for Luke. He'll be my manager soon!

0:27:090:27:13

-Hello.

-How are you?

-It will be interesting to see the samples today.

-It will.

-Yeah.

0:27:480:27:55

Having failed Ikea's strict water test regulations,

0:27:550:27:58

Morten is preparing a new batch of cupboard samples to be reassessed.

0:27:580:28:02

The first time we failed because of the 16 hour water requirements.

0:28:030:28:09

It is like a water test.

0:28:090:28:11

Take a drop of water,

0:28:110:28:13

put it under a glass for 16 hours, and then it should make

0:28:130:28:16

no structure change or visible changes to the board.

0:28:160:28:19

The last samples failed when the external foil wrap blistered.

0:28:210:28:26

This is the new foil that we are testing.

0:28:260:28:30

Just making ten samples and then send to the test lab.

0:28:300:28:34

Let's just hope also that it can pass all the tests.

0:28:340:28:38

The foil is glued to MDF panels using a specialist machine.

0:28:380:28:42

The board is coming out.

0:28:440:28:46

The surface is looking good.

0:28:490:28:51

But we have to look closer to really see if it's perfect.

0:28:540:28:58

Last year, we cut down some shifts and we have kept all the people,

0:29:030:29:07

but we lost some volume to Asia and now we are fighting to get it back.

0:29:070:29:12

If this test doesn't succeed,

0:29:250:29:26

I'm quite hesitant that we will get this volume,

0:29:260:29:30

so failure is not really an option for us right now.

0:29:300:29:34

We have to succeed with the test.

0:29:340:29:36

It looks good to me.

0:29:360:29:38

Then we have problems.

0:29:450:29:46

Ikea test more than 15,000 products a year in their hi-tech purpose-built lab.

0:29:560:30:02

The first sign - no photography, right?

0:30:030:30:05

This is where the magic happens.

0:30:120:30:14

This is where we make all the mechanical testing

0:30:170:30:19

for all different kind of furnitures,

0:30:190:30:22

like chairs, like sofas, like beds.

0:30:220:30:24

We have another room here where we test textile and surfaces,

0:30:270:30:32

especially the surface resilience to different fluids and so on.

0:30:320:30:35

Today, I have a sample from Gyllensvaans.

0:30:380:30:41

And I am testing cold liquids, water.

0:30:410:30:44

So we have the still water and a filter paper...

0:30:510:30:54

..which I put on the surface.

0:30:550:30:56

And I leave it there for 16 hours.

0:30:590:31:01

The test is ongoing right now.

0:31:150:31:17

We're coming to an end when it comes to time,

0:31:170:31:19

where we need to make sure we have the tests in place.

0:31:190:31:22

Otherwise we will jeopardise the sale starts, etc.

0:31:240:31:27

It has been some hiccups and failures along the road.

0:31:270:31:30

If not, we need to move on and place the matrix and the volume at another supplier.

0:31:300:31:37

I think they are a little bit nervous, yes.

0:31:370:31:39

Now I am looking for some kind of a change.

0:31:440:31:47

I am looking for any mark, or if I see some bubbles or structure change.

0:31:470:31:52

If I see a strong mark, it will fail.

0:31:540:31:56

If I see some small or large structure change, it will also fail.

0:31:560:32:02

The Gyllensvaans will find out if they've passed the test in 24 hours' time.

0:32:020:32:06

We are very thorough when we do the assessments,

0:32:070:32:10

so we won't let any bad samples get in the store.

0:32:100:32:13

So they could touch in this, anywhere in this striped part.

0:32:210:32:27

James and Hanna-Kaarina have been struggling to translate

0:32:270:32:30

their imperfect vase idea to the supplier.

0:32:300:32:32

I think it's something, when we go into the factory,

0:32:390:32:42

when we start to pull it out,

0:32:420:32:43

Hanna can actually start to explain what her idea is.

0:32:430:32:47

IN MANDARIN:

0:32:470:32:49

Now that management understand,

0:32:560:32:58

the big test is whether the workers can actually create Hanna-Kaarina's maverick idea.

0:32:580:33:03

The big final thing is to really physically pick the vase out of the mould.

0:33:030:33:10

Here we go. Have you explained to him not to be careful?

0:33:100:33:14

I am worried that it's going to go wrong.

0:33:140:33:16

IN MANDARIN:

0:33:160:33:19

Relax. You know, it's not about being careful.

0:33:290:33:32

If he needs to put his fingers in to get it out...

0:33:320:33:34

Now take it out. Yeah, brilliant.

0:33:390:33:41

Put it down. Yes, that's it.

0:33:410:33:44

-That's one.

-Perfect!

0:33:440:33:47

That was actually the magic moment.

0:33:470:33:49

They actually understand it.

0:33:490:33:50

It looks like it's possible.

0:33:500:33:52

I wouldn't say we've solved it all.

0:33:520:33:54

Sort of happy, but confused at the same time.

0:33:540:33:57

Maybe it's going to be OK.

0:33:570:34:00

Now they know the factory can make the vase,

0:34:010:34:03

James is keen to ensure each one being unique hasn't added too much to the price.

0:34:030:34:08

How did it look, do you have rough price ideas on the imperfection?

0:34:080:34:13

That's quite important, to know roughly where we are on those.

0:34:130:34:16

If you just take that green one, what price?

0:34:160:34:20

Cos, I mean, that's not far off.

0:34:200:34:21

IN ENGLISH:

0:34:210:34:24

That's quite a lot.

0:34:300:34:31

The team will find out the final price when the vase samples arrive in Sweden in a few weeks' time.

0:34:320:34:37

But I'm a little bit worried.

0:34:400:34:41

I mean, how much are those vases going to be?

0:34:420:34:44

Cos, I mean, it's not much difference in material.

0:34:440:34:47

With just two months until the grand opening,

0:34:560:34:58

the Sheffield store has a roof, but it's still not finished.

0:34:580:35:01

Recruitment, however, is complete.

0:35:020:35:04

Are you ready for this? Do you want to know why it's called Ikea?

0:35:070:35:11

Because they've got the I at the start of his first name,

0:35:110:35:14

then they've got the K at the start of his second name.

0:35:140:35:18

Took it all in, didn't he?

0:35:180:35:20

Luke has landed one of the 500 jobs and is about to start his in-store training.

0:35:220:35:27

-INTERVIEWER:

-Why do you think you got the job?

0:35:270:35:29

Because I've got experience in retail, and I like customers.

0:35:290:35:34

What do you think the customers will be like at Ikea?

0:35:340:35:36

Well, they're all from Sheffield, mostly, aren't they?

0:35:360:35:39

So they're going to have banter. They're going to have a laugh.

0:35:390:35:43

As the Sheffield store isn't finished,

0:35:470:35:49

new recruits are learning the ropes in Nottingham.

0:35:490:35:52

You see how the number ends in 20?

0:35:520:35:54

So, anything with a number that is 20 or bigger means a forklift has to

0:35:540:35:57

get it down. Everything else below is available for the customer.

0:35:570:36:01

My job is replenishment.

0:36:010:36:03

We have to get all the pallets done before the shop opens.

0:36:040:36:07

I think, for me, it's more than just stacking shelves.

0:36:100:36:12

I want the co-workers engaged with the product as well, and what we sell,

0:36:120:36:15

and be passionate about it.

0:36:150:36:17

Half of these things, I've never seen my life.

0:36:170:36:19

I don't even know what you'd use that for.

0:36:190:36:20

I don't even know what you use that for.

0:36:200:36:24

If I looked at that, I'd have thought it was something

0:36:240:36:26

you play Russian roulette with.

0:36:260:36:28

You know when you go to the casino and chuck that ball in?

0:36:290:36:31

That's what I'd this it was.

0:36:310:36:33

Some days are very hectic, so you do have to have a bit of speed

0:36:330:36:37

about you and have a keen eye for detail.

0:36:370:36:40

I know what it's for.

0:36:400:36:42

Pineapple. So, yeah.

0:36:420:36:43

Pineapple splitter.

0:36:430:36:44

Oh, no, it's an apple slicer.

0:36:460:36:48

Not a pineapple one.

0:36:480:36:49

HE SMIRKS

0:36:490:36:50

Gary? You can ring the bell.

0:36:580:37:01

-Ring the bell?

-Or stand and stare, whichever is most effective.

0:37:010:37:04

BELL RINGS

0:37:040:37:05

The UK's top managers are assembled to hear an important update

0:37:070:37:12

about the Sheffield store.

0:37:120:37:14

So, that's the team that I've been working with

0:37:140:37:16

for the last nearly 11 months now. You can't quite see it,

0:37:160:37:18

but if you were to look closely at Kate and Laura,

0:37:180:37:21

you will see how much they have aged in 11 months.

0:37:210:37:23

LAUGHTER

0:37:230:37:25

That's what opening a new store does for you.

0:37:250:37:27

It's working with you, Gary.

0:37:270:37:28

LAUGHTER

0:37:280:37:30

-I just throw it out and you bat it back.

-I did.

0:37:300:37:34

OK, so, in terms of date,

0:37:340:37:37

for the last eight weeks, we have been opening on the 31st of August.

0:37:370:37:40

I think you have all received an e-mail to say now it is likely to be

0:37:400:37:43

the 28th of September.

0:37:430:37:44

You will get your invite, and I look forward to having what I hope will

0:37:440:37:47

be a wonderful day with you, on what is looking like the 28th of September.

0:37:470:37:51

Thank you.

0:37:510:37:53

APPLAUSE

0:37:530:37:54

-Well done.

-Thank you very much. You were super.

0:37:580:38:00

-Good, wasn't it?

-Yes.

0:38:000:38:02

As a company, we never like to say "Put back, delayed."

0:38:020:38:05

We don't like to use that language.

0:38:050:38:07

But, ultimately, it was hoping to open in July.

0:38:070:38:11

Then we had a revised date of August 31st.

0:38:110:38:13

Then, at the last minute, the very 11th hour, almost the 12th hour,

0:38:130:38:17

we got this delay again of four weeks to the end of September.

0:38:170:38:21

The truth is, we'll lose 6 million of sales by not opening,

0:38:210:38:24

and therefore that will have an impact on the cost picture.

0:38:240:38:26

And that means we need to look at how do we find that additional sales, yeah?

0:38:260:38:32

So, will it come from pushing Gary and the team to really secure

0:38:320:38:36

and over-perform? Ultimately, I have agreed with my board

0:38:360:38:39

that our organisation will deliver the goals that have been set, and we just need to do that.

0:38:390:38:46

Although the Sheffield building is now watertight, they're having to

0:38:510:38:54

delay the opening to allow time to prepare the interior.

0:38:540:38:57

It always feels a little bit of a disappointment when you have to move the date.

0:39:030:39:07

But you can now see why we were not opening on the 31st of August.

0:39:070:39:11

The 28th of September will be a super day, when we open.

0:39:110:39:14

Having opened Belfast and Dublin, it's that always wanting to know,

0:39:170:39:20

can you do better than you did last time?

0:39:200:39:22

I think the pressure on Sheffield is that when we opened Dublin,

0:39:220:39:26

I think it was accepted that it was the best store opening that we had ever achieved.

0:39:260:39:30

Of course, because I was the guy who opened Dublin,

0:39:300:39:32

I always knew that if I got Sheffield, it is another level.

0:39:320:39:35

And of course, if it's not, it will be so personal.

0:39:350:39:38

It will hurt me like hell.

0:39:380:39:39

The test results of the Gyllensvaans cupboard samples are back.

0:39:480:39:51

The latest data says that we passed the test.

0:39:540:39:57

So now we finally have an approved test for Platsa.

0:39:570:40:01

And we have a go-ahead on the business, together with Gyllensvaans.

0:40:010:40:05

Even though it's passed,

0:40:050:40:06

Ikea aren't placing the full order until they're satisfied the factory

0:40:060:40:10

can produce the required volume to their strict standards.

0:40:100:40:13

I sure hope they have the assembly line and all parts of the factory

0:40:140:40:19

in place, or prepared, simply. Yes.

0:40:190:40:21

We've got Platsa, and it's a lot of work.

0:40:290:40:33

The initial order is 200,000 units,

0:40:340:40:37

to be delivered in just three months' time.

0:40:370:40:40

I hope it goes faster, because we are in a really hurry.

0:40:400:40:44

Problem in the machine.

0:40:570:40:58

The plastic got loose and got caught up in the machine,

0:40:580:41:02

so we need to redo it.

0:41:020:41:04

-INTERVIEWER:

-You don't need delays, do you?

-Not at all.

0:41:040:41:06

Producing the Platsa, alongside the Billy bookcase,

0:41:070:41:10

means the factory is stretched to the limit.

0:41:100:41:13

Quite stressful. Very hard to catch up when you stop for a while.

0:41:140:41:18

Plastic got stuck in the oven.

0:41:300:41:31

We don't understand what is wrong.

0:41:310:41:33

-Oh!

-Smoke comes from that machine.

0:41:370:41:40

Something wrong with the lift,

0:41:440:41:46

something wrong with the electronic motor on that one.

0:41:460:41:49

-It needs to be fixed.

-INTERVIEWER:

-You are having a bad day?

-Yes.

0:41:490:41:53

Stressful day.

0:41:550:41:56

Once the first batch is ready, Olaf will be visiting to sign off

0:41:580:42:02

the entire multi-million pound contract.

0:42:020:42:05

If we can't deliver in time,

0:42:050:42:07

then I think it will be a business consequence for the future.

0:42:070:42:13

Ikea needs to have reliable suppliers.

0:42:140:42:16

Yes, we like it like this. It's not boring at all.

0:42:210:42:24

-Oh, great, Christina.

-Here is the box.

0:42:350:42:37

-Hello.

-Did they just come today?

0:42:370:42:40

Yes. Just come, really fresh.

0:42:400:42:42

-I hope they haven't broken.

-Hope not!

0:42:420:42:45

Hanna-Kaarina's imperfect vase samples have arrived.

0:42:450:42:48

When we open this package, I think it's going to be make or break.

0:42:500:42:54

It will either be smiley faces or sad faces.

0:42:540:42:56

Ah!

0:43:000:43:01

Not too bad.

0:43:030:43:04

I'm happy that the shape is not too much...

0:43:060:43:08

It's not too distorted, is it?

0:43:080:43:10

So it's actually quite good.

0:43:100:43:11

Whoa!

0:43:120:43:13

What do you think, Hanna, are you pleased?

0:43:190:43:21

I think it looks quite nice, actually.

0:43:210:43:23

-I was a bit worried it might look a little bit childish.

-Yeah.

0:43:230:43:26

I'm pretty happy, actually.

0:43:280:43:30

I'm sort of... I feel I'm relieved that it's...

0:43:300:43:34

I was a bit stressed, to be honest.

0:43:340:43:37

Yes, it seems promising, actually.

0:43:370:43:39

Seeing the samples and seeing that they have

0:43:390:43:41

actually understood the concept and they can produce pieces that are unique,

0:43:410:43:45

it's really good for us.

0:43:450:43:46

Almost a little bit lost for words. It looks like it's going to work.

0:43:460:43:49

Really exciting.

0:43:490:43:50

It will be very interesting to see what other people think.

0:43:500:43:53

It's decision day.

0:43:550:43:57

James needs to present the design to the business team for final approval.

0:43:570:44:00

So, this is the final collection meeting that we have invited you to today.

0:44:000:44:04

So, this is actually where we decide what the collection will consist of.

0:44:040:44:08

They've agreed a cost with the supplier, which will allow

0:44:080:44:11

other stores to sell the vase at a suitable recommended price.

0:44:110:44:16

-The price point is 12.90 for this one.

-For this one?

-Yeah.

0:44:160:44:19

And then we have the smaller one.

0:44:190:44:22

9.99.

0:44:220:44:23

As the team deliberate, all Hanna-Kaarina can do is wait for news.

0:44:240:44:29

What I like about Hanna is she puts her heart and soul into everything.

0:44:310:44:35

And you can see that she wants to succeed and make it.

0:44:360:44:40

You can see that she goes that extra mile.

0:44:400:44:43

When briefing at this project, we actually approached Hanna-Kaarina,

0:44:450:44:49

one of our own in-house designers.

0:44:490:44:50

How could you challenge that thing, mass production,

0:44:500:44:53

everything looks the same?

0:44:530:44:55

How could you make something look different?

0:44:550:44:57

She had some super stupid, crazy ideas.

0:44:570:45:00

Why don't we press a finger or poke a ceramic pot to make it different?

0:45:000:45:04

The first samples you see here were actually done just as we left.

0:45:040:45:07

They were just getting it. But do you like the idea?

0:45:070:45:11

Do you think...? It's very different.

0:45:110:45:14

All of our glasses look exactly the same.

0:45:140:45:16

Here, we're allowing for... You know, they will be in the store,

0:45:160:45:19

lined up slightly different with this human touch.

0:45:190:45:22

Looking at these marks, I don't see that as handmade,

0:45:220:45:25

I see it as somebody punching on purpose from different sides.

0:45:250:45:30

It's a tricky process to get them to destroy the perfect mould.

0:45:300:45:34

For me, I work in the square area of Ikea, I would be very much, like,

0:45:340:45:41

I don't think I'll get it.

0:45:410:45:42

You are used to finding the mass production at Ikea.

0:45:420:45:46

You kind of feel like this must be a defect.

0:45:460:45:49

Personally, I think that it'll work, if the communication is really, really clear.

0:45:490:45:54

I think it's really interesting and super exciting.

0:45:540:45:56

I think we will need everybody behind it to get it to work

0:45:560:46:00

from explaining in supply, communication,

0:46:000:46:03

even forecasting and selling.

0:46:030:46:04

Because it's very different, like you say, Nikolai, it's not the norm.

0:46:040:46:07

After two hours, a decision is made.

0:46:140:46:17

-Hello.

-Hanna.

0:46:200:46:22

-Moment of...

-Well done.

0:46:230:46:26

-We made it.

-Really?

0:46:260:46:27

-No, we did. We had the meeting today.

-OK.

0:46:270:46:29

It went really well.

0:46:290:46:30

-It's going to happen.

-Nice.

0:46:310:46:33

You must be a little bit excited. It could be your first product in Ikea.

0:46:330:46:37

Yes. I like starting with the crazy stuff, it's good.

0:46:370:46:41

I think the exciting thing is we're going to go for it.

0:46:420:46:45

It's going to be between 60,000 and 70,000 pieces of these vases.

0:46:450:46:49

-So, I think that's super exciting.

-That's a lot.

0:46:490:46:51

Many people will be able to have an Ikea Hanna-Kaarina affected vase.

0:46:510:46:57

Yes, that's crazy.

0:46:570:47:00

We did it.

0:47:000:47:01

Sometimes I think I should cycle around the store,

0:47:120:47:15

get there quicker to the meeting, wouldn't we?

0:47:150:47:17

If you were not following me now, I could just borrow that bike.

0:47:170:47:20

With just six days until the big opening,

0:47:200:47:22

Gary's called a crisis meeting to discuss

0:47:220:47:25

one of the most important parts of the store - wardrobes.

0:47:250:47:29

I honestly want to start by saying it's awesome.

0:47:300:47:33

I think the store looks absolutely super.

0:47:330:47:36

Except Pax.

0:47:360:47:38

Pax wardrobes are one of Ikea's biggest sellers.

0:47:380:47:41

Stocked in every store around the world,

0:47:410:47:44

they're available in multiple combinations.

0:47:440:47:46

There's 130 combinations.

0:47:460:47:49

I think we are showing 15.

0:47:490:47:50

-23.

-Out of 130.

0:47:500:47:53

24 combinations.

0:47:530:47:55

-Really?

-Yes.

-One, two, three...

0:47:550:47:58

..four, five, six, seven, eight, nine, ten...

0:48:000:48:04

..11, 12, 13, 14, 15.

0:48:040:48:07

I still get 15.

0:48:070:48:08

Adam, show me why you get more.

0:48:100:48:11

You're calculating just with closed, right?

0:48:140:48:16

-Not open? So you're not counting with doors on.

-OK.

0:48:160:48:19

I believe that if any of my neighbours now come

0:48:210:48:24

to buy a wardrobe, yeah, that is not a wardrobe.

0:48:240:48:27

Put some doors on it for me and it's a wardrobe.

0:48:270:48:30

What you show me here is the inside of a wardrobe.

0:48:300:48:32

I'd say, yeah, that's true.

0:48:320:48:34

That's the inside of a wardrobe.

0:48:340:48:36

I don't think something without a door, in my opinion,

0:48:360:48:39

should be called a wardrobe.

0:48:390:48:41

I don't. But if you tell me it should,

0:48:410:48:43

then I can agree on that one that we disagree.

0:48:430:48:46

If you take the whole Ikea range, in most countries,

0:48:500:48:54

absolutely in the UK,

0:48:540:48:56

in all 19 stores today, the number one cash machine is bedrooms.

0:48:560:49:00

The wardrobes takes us the most money.

0:49:000:49:03

So, it's the one that if you want to walk round today and say,

0:49:030:49:06

"What looks amazing," you would always want to start with Pax wardrobes

0:49:060:49:10

and freestanding wardrobes, because they're where the money comes from.

0:49:100:49:13

We have a combination of nearly 200 doors to show

0:49:130:49:16

and we've decided to show 15 out of 200.

0:49:160:49:20

With Gary determined to have the perfect opening,

0:49:240:49:27

his mind is turning to the big day itself.

0:49:270:49:29

-INTERVIEWER:

-Is the success of Ikea Sheffield personal for you?

-Yes.

0:49:300:49:35

When we open the door, will there be 100, 300, 500, 1,000?

0:49:360:49:41

I'm going to say 500.

0:49:410:49:43

If there's more than 500 people,

0:49:430:49:45

I'm going to say that's exceeded what I expected.

0:49:450:49:49

If there's only 300 or 400 people, at 9.55, I guess, deep down inside,

0:49:490:49:54

I will be a little bit disappointed.

0:49:540:49:56

Olaf is on his way to conduct a delivery inspection

0:50:040:50:07

at the Gyllensvaans factory.

0:50:070:50:08

Simply, if Gyllensvaans wouldn't pass the first delivery inspection,

0:50:100:50:15

we would not be OK to send deliveries out from the factory, simply.

0:50:150:50:21

And, of course, that would jeopardise the time plans.

0:50:220:50:25

There would be potential risks of delays and so on.

0:50:250:50:28

And, of course, that is something that we try to avoid.

0:50:290:50:33

With the production issues ironed out,

0:50:360:50:38

today's visit is to make sure the cupboards are up to standard.

0:50:380:50:42

We're going to have a check, it's called the first delivery inspection.

0:50:420:50:45

So, they check all the issues regarding quality of the product,

0:50:450:50:49

of the packaging, the pallets and everything,

0:50:490:50:51

so it's according to what they need.

0:50:510:50:55

-INTERVIEWER:

-So, it's pretty intense?

-Yeah.

0:50:550:50:58

It's make or break.

0:50:590:51:01

Pass today and they'll secure the entire contract of 700,000 units.

0:51:010:51:06

It's really important that we get success

0:51:060:51:09

in this first delivery inspection, so we get this range, so we can continue to grow with Ikea.

0:51:090:51:15

So we can have all these workers coming every day and doing their job.

0:51:150:51:20

It's important for the community.

0:51:200:51:22

Success hinges on passing a vital drop test.

0:51:250:51:28

It's one of the tests that is really important to pass,

0:51:280:51:31

with the packaging.

0:51:310:51:32

It simulates that the customer will drop the box,

0:51:320:51:35

and we have added protection inside the box

0:51:350:51:38

so it doesn't hurt the product inside.

0:51:380:51:40

-INTERVIEWER:

-So, in an hour's time, Ikea are going to do this test?

0:51:400:51:43

-Yes.

-Why are you doing this so late?

0:51:430:51:45

We've done it before, but then we had sample boxes.

0:51:450:51:49

Now we have boxes from the real production.

0:51:490:51:51

So, we want to make sure that they have the same quality as the samples

0:51:510:51:55

that we have received before.

0:51:550:51:57

-This has only just come in, has it?

-Yes, yesterday.

0:51:570:52:00

-So it's really last-minute?

-Yes.

0:52:000:52:01

They've just arrived.

0:52:050:52:06

-Welcome.

-Thanks.

0:52:080:52:12

It's the final step before go-ahead.

0:52:120:52:15

So, it would be nice to have to tick off and say,

0:52:150:52:17

"Yes, now we're ready to go, finally."

0:52:170:52:20

Nervous and excited at the same time.

0:52:280:52:31

The product is dropped from a height of 40 centimetres.

0:52:310:52:35

OK.

0:52:350:52:37

Yes.

0:52:370:52:39

It's passed. You don't see it,

0:52:520:52:54

there is no damages or anything on the surface.

0:52:540:52:58

The Gyllensvaans win the contract.

0:53:030:53:05

As always, Ikea will keep a close eye on production.

0:53:090:53:12

I would say slowing down, if you are having that mind-set,

0:53:150:53:19

that attitude, that is dangerous for a company.

0:53:190:53:22

Then you become kind of fat and lazy

0:53:220:53:24

and the competitors will catch up.

0:53:240:53:26

It never stops. If we want to grow, we cannot just be satisfied.

0:53:260:53:31

We need to continue all the time.

0:53:310:53:33

-INTERVIEWER:

-What time have you been here since?

0:53:440:53:46

-What time is it now?

-It's about 7am now.

0:53:460:53:48

I've been here since 4am.

0:53:480:53:51

-How come?

-Well, I thought people would be queueing up.

0:53:510:53:54

But there's no-one here yet.

0:53:540:53:56

Test, one, two, one, two.

0:53:560:53:58

I didn't come with my wife, because they say that a trip to Ikea is,

0:53:580:54:02

could become a relationship breaker, even for the strongest relationship,

0:54:020:54:06

with the amount of arguments and what have you that you could have.

0:54:060:54:09

Julie Dore, Olivia Blake.

0:54:110:54:14

Why do I keep mixing the names up and saying Julie Blake and Olivia Dore,

0:54:140:54:18

when it's Julie Dore and Olivia Blake?

0:54:180:54:20

After months of preparation, as Gary prepares his speech,

0:54:210:54:25

anticipation outside is building.

0:54:250:54:27

We thought there'd have been a bigger queue.

0:54:300:54:32

A really big queue.

0:54:320:54:33

Hello, good morning. Oh, no.

0:54:380:54:39

Good morning, everybody, and a warm welcome to the UK's 20th store.

0:54:430:54:48

I begin by giving an extended welcome to His Excellency,

0:54:480:54:53

the Swedish ambassador, Torbjorn Sohlstrom.

0:54:530:54:56

And to the leader of our council, Julie Dore.

0:54:560:55:01

And to all of you who have travelled here at your own expense,

0:55:010:55:04

thank you very much, I appreciate you being here.

0:55:040:55:08

APPLAUSE

0:55:080:55:10

Can I ask, do we know if people are queueing?

0:55:100:55:12

Do we have a small queue, any queue?

0:55:120:55:14

Is it 50, 20?

0:55:140:55:16

-100?

-50 to 60.

-50 to 60. OK.

0:55:160:55:20

-INTERVIEWER:

-What brings you down to Ikea?

0:55:250:55:27

Well, it's my wife's birthday today.

0:55:270:55:29

She wanted to come. That's why we're here.

0:55:290:55:32

Birthday meatballs!

0:55:320:55:33

Logistics, are you ready?

0:55:330:55:35

CHEERING

0:55:350:55:36

Customer Relations, are you ready?

0:55:360:55:38

CHEERING

0:55:380:55:39

Gillian Drakeford, are you ready?

0:55:390:55:41

Yes!

0:55:410:55:43

Yes! Gary Deacon, are you ready?

0:55:430:55:45

Oh, yes!

0:55:450:55:46

Let's get that door open.

0:55:480:55:50

CHEERING

0:55:510:55:54

After a six-hour wait, Chris is the first customer through the doors.

0:55:570:56:00

CHEERING

0:56:070:56:08

Adam. Adam, why have you not pegged them back?

0:56:080:56:11

Look at the queue.

0:56:110:56:12

Ever the perfectionist, Gary has one more niggle.

0:56:120:56:15

Come this way. Come this way.

0:56:180:56:20

It's quicker. Come this way, it's quicker.

0:56:200:56:23

There we go. There we go.

0:56:230:56:24

Look at the queue. What do you think it is, 700?

0:56:280:56:32

-It's more than that. There's 1,000.

-1,000 people? 1,000 people.

0:56:330:56:38

He believes 1,000 plus. Closer to 1,000 than 700.

0:56:380:56:42

-1,000 plus.

-1,000 people.

0:56:420:56:45

1,000 people. More than 1,000 people.

0:56:450:56:49

Marta Garcia from the business team has a sales update

0:57:000:57:06

with the all-important figures.

0:57:060:57:08

So, are we level or are we up? We're not down.

0:57:080:57:11

I know we're not down, we're too busy to be down.

0:57:110:57:14

Are we level or are we up?

0:57:140:57:16

What do you think? How much?

0:57:160:57:18

-Up.

-Yes, by how much, do you think?

0:57:180:57:21

I would be happy with £10,000.

0:57:210:57:24

I would be an exceptionally happy man at 20,000.

0:57:240:57:27

We are at £35,000 up on our goal today so far.

0:57:270:57:32

-Are you serious?

-Yes.

-You swear?

-I promise you.

-35,000 up?

0:57:320:57:35

Yes.

0:57:350:57:36

That is awesome!

0:57:360:57:38

It's a promising start,

0:57:380:57:41

but there's a long way to go to plug the shortfall caused by the delay.

0:57:410:57:45

Show me the money. Show me the money.

0:57:450:57:48

Show me the money!

0:57:480:57:49

-Next time...

-So, these room sets will go.

0:57:510:57:54

We will not have this walkway, and that's revolutionary.

0:57:550:57:58

To design for Ikea, we have to design for all the people,

0:57:580:58:04

all around the world.

0:58:040:58:05

So, now we're going into India.

0:58:050:58:08

An Ikea bag on the market.

0:58:080:58:10

The potential is enormous.

0:58:100:58:11

I don't think that we understand what we're getting into.

0:58:110:58:15

Uncover the mysteries of flatpack, everyday design and brand names.

0:58:150:58:20

To find out more, go to...

0:58:200:58:22

..and follow the links to the Open University.

0:58:240:58:28

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