PRODUCT-SERVICE SYSTEMS IN TRADE AS AN INNOVATIVE BUSINESS MODEL: THE CASE OF IKEA

Abstract

The aim of this paper is to analyze the case of the circular business model of the IKEA company, which is currently being implemented in the European divisions of the company. The information base was based on the company's reports and presentation materials posted on its official website. The study concluded that product-service systems are one of the most promising circular business models in trade. They reduce the barrier to initial investment, which in the case of furniture can be quite significant. In addition, the "furniture as a service" model is attractive for mobile categories of individual customers (students, tenants) and corporate clients, as it allows them to enter into flexible contracts. At the same time, for the company, the implementation of product-service models is associated with certain financial risks and requires the development of scientifically based innovative models for assessing the financial efficiency of such models.