How Does Jysk Make Money? Jysk's Ikea Alternative Business Model

Jysk is a Danish retail chain selling furniture, mattresses, and home décor. The company was founded in 1979 by Lars Larsen, who opened the first Jysk store in the Danish city of Aarhus. As an eCommerce retailer, Jysk makes money by purchasing goods and selling them to customers for a profit.

Business Model Element	Analysis	Implications	Examples
Value Proposition	JYSK’s value proposition includes: – Affordable Home Furnishings: Offering a wide range of home and furniture products at competitive prices. – Scandinavian Design: Providing products with a distinct Scandinavian design aesthetic. – Quality and Durability: Ensuring the quality and durability of products. – Convenience: Offering a one-stop shopping experience for home needs. JYSK appeals to customers seeking affordable, stylish, and quality home furnishings with a Scandinavian touch.	Attracts budget-conscious consumers looking for affordable furniture. Appeals to customers who appreciate Scandinavian design aesthetics. Builds trust with a focus on product quality and durability. Provides convenience by offering a comprehensive range of home products. Offers a compelling value proposition in the home furnishing market.	– Affordable home and furniture products. – Scandinavian design aesthetics. – Emphasis on quality and durability. – A one-stop shopping experience for home needs.
Customer Segments	JYSK serves the following customer segments: 1. Budget Shoppers: Individuals looking for cost-effective home furnishing options. 2. Homeowners: Customers furnishing their homes or upgrading existing furniture. 3. Design Enthusiasts: Consumers who appreciate Scandinavian design. 4. Families: Families in need of functional and stylish home solutions. JYSK caters to a diverse customer base with varying budget and design preferences.	Attracts budget-conscious shoppers seeking affordable home furnishings. Provides options for homeowners looking to furnish or upgrade their homes. Appeals to design enthusiasts who appreciate Scandinavian aesthetics. Offers family-friendly solutions for functional and stylish living spaces. Targets a broad range of customer segments for market growth.	– Budget-conscious shoppers seeking affordable furnishings. – Homeowners looking to furnish or upgrade their homes. – Design enthusiasts appreciating Scandinavian aesthetics. – Families in need of functional and stylish home solutions.
Distribution Strategy	JYSK’s distribution strategy includes: – Brick-and-Mortar Stores: Operating physical retail stores across various locations. – E-commerce: Maintaining an online platform for digital shopping. – Catalogs: Offering print and digital catalogs for product browsing. – Supply Chain Management: Efficient supply chain to ensure product availability. JYSK ensures accessibility through physical stores, online shopping, catalogs, and effective supply chain management.	Provides convenience through physical stores for in-person shopping. Offers an online platform for digital shopping convenience. Utilizes catalogs for product browsing and ordering. Ensures product availability through efficient supply chain management. Implements a multi-channel distribution approach for customer convenience.	– Operating physical retail stores across various locations. – Maintaining an online platform for digital shopping. – Offering print and digital catalogs for product browsing. – Implementing efficient supply chain management.
Revenue Streams	JYSK generates revenue through several streams: 1. Product Sales: Earnings from the sale of home and furniture products. 2. E-commerce Sales: Revenue from online sales through the official website. 3. Catalog Sales: Income from sales facilitated through print and digital catalogs. 4. In-Store Services: Additional income from services offered in physical stores. JYSK diversifies its income sources through product sales, e-commerce, catalog sales, and in-store services.	Earns revenue from the sale of home and furniture products. Generates income through e-commerce sales on the official website. Benefits from catalog sales, both print and digital. Adds to revenue through in-store services offered to customers. Diversifies revenue streams for financial sustainability.	– Earnings from the sale of home and furniture products. – Revenue from online sales through the official website. – Income from sales facilitated through print and digital catalogs. – Additional income from services offered in physical stores.
Marketing Strategy	JYSK’s marketing strategy involves: – Advertising Campaigns: Running marketing campaigns through various channels. – Catalog Promotion: Promoting products through print and digital catalogs. – Online Presence: Maintaining a strong online presence with an official website. – Customer Loyalty: Offering loyalty programs and discounts to retain customers. JYSK focuses on advertising, catalog promotion, online presence, and customer loyalty programs to enhance brand awareness and customer retention.	Runs advertising campaigns through multiple channels for visibility. Promotes products through print and digital catalogs. Maintains a robust online presence to reach a wider audience. Encourages customer loyalty through programs and discounts. Implements a multi-faceted marketing approach for brand growth.	– Advertising campaigns through various channels. – Promotion of products through print and digital catalogs. – A strong online presence with an official website. – Customer loyalty programs and discounts to retain customers.
Organization Structure	JYSK’s organizational structure includes: – Executive Leadership: Led by the CEO, responsible for strategic direction. – Retail Operations: Managing physical store locations and in-store services. – E-commerce Division: Overseeing online sales and digital operations. – Marketing and Advertising: Engaging in marketing campaigns and catalog promotion. – Supply Chain Management: Ensuring efficient supply chain operations. JYSK maintains a structure aligned with core functions for efficient retail operations.	Led by an executive team responsible for strategic direction. Manages physical store locations and in-store services. Oversees online sales and digital operations through the e-commerce division. Engages in marketing campaigns and catalog promotion for brand visibility. Ensures efficient supply chain operations for product availability. Maintains a well-structured organization for operational efficiency.	– Led by an executive team responsible for strategic direction. – Manages physical store locations and in-store services. – Oversees online sales and digital operations through the e-commerce division. – Engages in marketing campaigns and catalog promotion. – Ensures efficient supply chain operations for product availability. – Maintains a well-structured organization for operational efficiency.
Competitive Advantage	JYSK’s competitive advantage stems from: – Affordable Pricing: Offering competitive prices for home and furniture products. – Scandinavian Design: Providing products with a distinct and popular design aesthetic. – Diverse Product Range: Offering a wide selection of home furnishings. – Multi-Channel Presence: Maintaining both physical stores and an online platform. – Customer Loyalty: Building customer loyalty through programs and discounts. JYSK’s strengths in pricing, design, product range, multi-channel presence, and customer loyalty position it as a competitive player in the home and furniture retail industry.	Distinguishes itself with competitive pricing for affordability. Offers products with a popular Scandinavian design aesthetic. Provides a wide selection of home furnishings. Maintains both physical stores and an online platform for accessibility. Builds customer loyalty through programs and discounts. Enjoys a competitive edge in the home and furniture retail market.	– Offering competitive prices for home and furniture products. – Providing products with a distinct Scandinavian design aesthetic. – Offering a wide selection of home furnishings. – Maintaining both physical stores and an online platform. – Building customer loyalty through programs and discounts. – Maintaining a competitive edge in the home and furniture retail industry.

Table of Contents

History of Jysk

Jysk is a Danish retail chain selling furniture, mattresses, and home décor.

The company was founded in 1979 by Lars Larsen, who opened the first Jysk store in the Danish city of Aarhus. After serving an apprenticeship in a drapery store and moving into the furniture business, Larsen decided he wanted to establish a bedding chain.

At the time, Larsen had practically no money. But through sheer energy and ambition, he managed to onboard several suppliers and a bank willing to fund his venture.

Larsen would continue to use this small branch of the Danish Norresundby Bank until he died in 2019.

For the first 22 years of operation, Jysk was known as Jysk Sengetøjslager – Danish for “Jutlandic Bedding Store”.

In Denmark, people from the Jutland Peninsula are associated with thoroughness, modesty, and honesty. Larsen sought to embody these values in his business to become a trustworthy retailer offering the best deals.

Today, Jysk is the largest Danish multinational retailer. It operates almost 3,000 stores in 50 countries worldwide. Like many similar businesses, Jysk experienced a surge in revenue as a result of the coronavirus pandemic, earning €4.1 billion for the 2019/20 financial year.

Jysk revenue generation

As an eCommerce retailer, Jysk makes money by purchasing goods and selling them to customers for a profit.

Jysk initially differentiated itself in the competitive furniture and home décor market with its distinctive blue and white goose logo.

The goose represents premium goose-down feathers, which are used in duvet covers and pillows to provide extra warmth.

This differentiation was important to the early success of the company. Operating exclusively in Scandinavia, Jysk had access to consumers who placed a high price on a good night’s sleep. In other words, Scandinavian culture is such that most consumers do not balk at spending hundreds of euros on pillows and bedding.

Logistics and commercial proficiency

Jysk also seeks to open small stores in convenient locations strategically located to major distribution centers. This enables the company to fulfill orders more quickly and create an easy shopping experience for the customer.

Order fulfillment times have also been decreased by the company reducing its reliance on Asian-made products. This also increases profit potential as supply chain costs are minimized.

Costs have been reduced further by establishing distribution facilities in Eastern Europe, a market which it views as underserved and underdeveloped.

In 2018, the company opened a facility in Bulgaria to reduce freight costs by a factor of 10 million trucking kilometers per year.

Quality control

With almost 2,500 European stores taking deliveries from distribution centers once a week, quality compliance measures ensure high standards are maintained.

Each center has inbound and outbound quality checks, with specialist staff inspecting products rigorously.

Jysk also collaborates with suppliers by conducting regular factory audits and holds twice-annual assembly days where furniture is put together to validate quality.

In combination with efficient logistics, quality control increases customer satisfaction and sales generation potential.

Jysk Financing

Jysk Financing allows customers to pay for purchases over $200 in equal monthly payments with no interest for 12 months.

While there are no admin or approval fees, the company charges an annual percentage rate (APR) for missed payments or outstanding balances. This rate varies by country but is usually in the range of 30 to 40%.

Key takeaways:

Jysk is a Danish multinational furniture and home décor retailer. It was founded in 1979 by Lars Larsen who wanted to create a bedding chain embodying the values of Jutlandic people.
Jysk gained traction in the Scandinavian market by selling premium goose-down products to consumers accustomed to paying hundreds of euros. The company then spread throughout Europe with the strategic placement of Jysk stores and distribution centers.
Jysk also has a focus on quality control to increase customer satisfaction and revenue. Regular audits of supplier factories and biannual assembly days ensure the company is known for quality products.

Key Highlights

Jysk Overview: Jysk is a Danish multinational retail chain specializing in furniture, mattresses, and home décor. It was founded in 1979 by Lars Larsen, who opened the first store in Aarhus, Denmark. Over the years, Jysk has grown to become a major player in the retail industry.
Company History: Lars Larsen, after working in the furniture business, founded Jysk with a focus on providing bedding products. The company was initially known as “Jysk Sengetøjslager,” which translates to “Jutlandic Bedding Store.” Jysk aimed to embody the values of thoroughness, modesty, and honesty associated with the people of Jutland.
Global Presence: Jysk has expanded significantly and now operates nearly 3,000 stores in 50 countries worldwide. It has become the largest Danish multinational retailer, gaining recognition and popularity across various markets.
Revenue Generation: Jysk operates as an eCommerce retailer, generating revenue by purchasing goods and selling them to customers at a profit. The company’s initial success was driven by its focus on quality bedding products, symbolized by its distinctive blue and white goose logo.
Strategic Differentiation: Jysk differentiated itself by offering premium goose-down bedding products, targeting consumers who value a good night’s sleep. The company leveraged its Scandinavian base to cater to customers willing to invest in quality bedding.
Logistics and Commercial Strategy: Jysk strategically locates its stores near major distribution centers to facilitate efficient order fulfillment. The company has reduced reliance on Asian-made products, established distribution facilities in Eastern Europe to cut costs, and opened a Bulgarian facility to reduce freight expenses.
Quality Control: To maintain high standards, Jysk emphasizes quality control measures. Distribution centers conduct inbound and outbound quality checks, and regular factory audits are conducted with suppliers. The company’s commitment to quality enhances customer satisfaction and sales potential.
Jysk Financing: Jysk offers financing options to customers, allowing them to make purchases over $200 in equal monthly payments with no interest for a specified period. The company charges an annual percentage rate (APR) for missed payments or outstanding balances.