Petrus Palmér doesn’t want Hem to be the next Ikea
“No Black Friday. No seasonal sales. No promotional pricing.” Earlier this year, Petrus Palmér, the founder and CEO of Hem, wrote these words on LinkedIn about his decision to do away with all discounts. This isn’t the first time Hem’s business model has changed course. Palmér founded the cult-favorite Swedish brand—known for its collaborations with some of today’s most cutting-edge designers—in…
Petrus Palmér, founder and CEO of Hem, recently dismissed the idea of Black Friday, seasonal sales, and promotional pricing. Hem, a Swedish furniture brand founded in 2014, has shifted its sales strategy from direct-to-consumer to a greater focus on trade and wholesale. Palmér criticized Ikea for copying Hem X, the platform for creative collaborations, in their own Konstrunda collection.
He emphasized the importance of proper attribution and building trust with customers, stating that discounts erode that trust. Palmer's decision to eliminate discounts has impacted their e-commerce and direct sales, but has positively affected wholesale partners, who appreciate consistent pricing. Hem's identity is evolving, and while Palmér once aspired for Hem to be the "Ikea of the premier market," he now believes that scale and influence are not the same thing and that the pandemic may have created a false sense of influence.
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