The DJ Model of IKEA

Value innovation as a growth platform

*The image above is actually a spoof by IKEA Australia. IKEA’s collaboration with Kanye never happened.

The DJ model of growth is when a company uses collaborations to increase its relevancy and revenue. This model addresses the challenge of growth in mature markets.

The DJ model is used by mass retailers who sell products that are easily commodified, like Swatch or Uniqlo, and also by legacy luxury retailers with a global footprint, like Louis Vuitton, Moncler or Mini.

The strategy behind the DJ model of growth is a remix: the DJ model keeps reframing a brand for customers in a new context.

The DJ model reintroduces a brand in the market by remixing it with different parts of culture, community, technology or natural environment. A constant stream of new brand associations and attributes keeps a brand image fresh and a brand visible among consumers and cultural commentators alike.

For example, despite being founded in 1970’s, Uniqlo keeps its brand fresh through collaborations with a range of fashion and streetwear designers, artists, furniture designers, and restaurants. Keith Haring, Jil Sander, Eames, Undercover, Lemaire, a series of Japanese ramen shops and J.W. Anderson all made the cut.