Online Clock
Sweden is known for all kinds of things: rolling green spaces, the iconic ICEHOTEL, a fabulous view of the Northern Lights, the musical pop group ABBA, its enthusiastic embrace of recycling and green energy efforts, and so much more. But when it comes to innovation, ideas, and bold investments, the country has also made a mark.
Companies such as IKEA and Spotify are quick to come to mind, but there’s plenty more where that comes from. Many would even say that Sweden has played a significant role in shaping the global business landscape. The nation’s entrepreneurial culture has consistently produced companies that challenge established industries and find success far beyond Scandinavia.
Let’s take a closer look at what makes Swedish innovation so impactful.
IKEA
It’s hard to find an example of Swedish innovation that is more globally recognized than IKEA. What started as a home-grown business can now be found across the globe. More specifically, there are 487 IKEA stores spread out in 63 markets. While you may assume Sweden or even the US has the most IKEA stores, Germany actually holds that title.
The reach is massive, and it’s a success story that Sweden is extremely proud of. The furniture and accessory store opened its doors in 1958 with the first location in Älmhult, Sweden. Its founder, Ingvar Kamprad, had a single noble goal of making life better for people. He set out to do that, no matter how much people could afford to spend on furniture. Though IKEA is often known for its flat-pack furniture that requires assembly, the fact remains that it is wildly affordable in a typically expensive industry.
H&M
Switching gears entirely, Sweden is also responsible for a well-known clothing retailer with more than 4,000 stores scattered across 79 markets worldwide. Similar to IKEA, H&M is known for offering the latest fashion trends and designs at competitive prices.
What’s really interesting is the company’s journey towards more sustainable materials. It has set a goal of using sustainable and recycled materials by 2030. This is the kind of company positioning that shoppers are becoming more aware of and demanding more of retailers.
H&M Group has several brands, each of which must align with the company’s standards and brand identity. Looking back at its beginnings, the company was founded by Hennes & Mauritz AB, a Swedish clothing retailer in 1947. It became popular for its fast-fashion model, but with its quest towards sustainable materials, it has shifted its priorities over the years.
Spotify
If you love music, then you’re probably very familiar with the Spotify platform. Described as a digital music, video, and podcast service, it has more than 276 million subscribers and over 696 million users. These numbers make it the most popular streaming service. Spotify was founded by Daniel Ek and Martin Lorentzon in Sweden and launched in 2006. Its operational headquarters are still based in Sweden, and it now has 15 offices worldwide.
Online streaming was very new and exciting when Spotify launched, but it has managed to stay popular for several reasons. The biggest is the fact you can stream lots of content for free. Playing music is available to everyone for free, but people can upgrade to the Premium account to remove ads and get more features and content.
The company prides itself on encouraging curiosity. It’s the kind of company culture that seems modern, innovative, and inclusive. It’s about as far as you can get from a traditional bank or money lender. Spotify is about cultivating the entrepreneurial spirit, exactly what led to the creation of the business.
Klarna
An excellent example of Sweden’s contribution to fintech is Klarna. While this may seem like a relatively young company, its beginnings are now 20 years old. Klarna is the brainchild of three entrepreneurs from Sweden who understood where the world was heading in terms of ecommerce.
In 2005 they launched the company under the name Kreditor. That name didn’t last too long, as it was changed to Klarna in 2010. So what is Klarna? For those who haven’t used it before, Klarna provides users with flexible digital payment options, financial tools, and cashback options.
It was a fast rise to the top, and in 2012 its valuation was an eye-popping $1B. In 2018, Klarna managed to stay ahead of the curve and released a companion app. Once again the company did a great job recognizing consumer purchasing trends.
Fintech has been one of Sweden’s most dynamic exports, with firms like Klarna and fellow Swedish fintech Trustly streamlining online payments across Europe. And it’s not just meant for online shopping purchases; this tech has spread even further. Take a look at Trustly casinos, which show how Swedish innovation extends into finance as naturally as it does into music, design, and technology.
Volvo
Finally, we’ve got the popular car manufacturer Volvo. Volvos are known for being luxurious, reliable, and made with the latest technology. The company strives to give drivers a high-end experience, with cutting edge technology to back it up, and doesn’t just make cars—it also manufactures trucks and buses.
The company made such an iconic mark in the auto industry that in 2018 a large portion of its shares were bought by Geely Holding Group, a Chinese company. Founded in 1927, Volvo has been around for almost 100 years. Today its production facilities can be found in 18 countries, with its headquarters still in Sweden.
While it doesn’t have the earnings of some of the biggest automakers out there (Toyota, Hyundai, and Volkswagen), it is still holding its own. The company consistently touts its focus on innovation and safety technology to help set it apart from other brands.