I have a couple of Lack coffee tables that are 15-20 years old and have lasted fine. I think some products are loss leaders to get you in the store.
They are extremely efficient in production, distribution and store layout etc. They probably have a lot fewer staff than other furniture stores. Of course you have to pick, deliver and assemble everything yourself or pay them quite a lot to do it for you, to cover the cost fully.
I live 2 miles from Ikea and have paid £30 or more for delivery before, because that’s what it costs to send 2 people out in a van and to unload a load of wardrobe boxes into my bedroom. Other furniture shops do ‘free’ delivery but charge a lot more for their products.
Some of their furniture is made abroad. I have just bought one of their kitchens and the worktops were made in Eastern Europe. It is probably cheaper to make worktops there and ship them here than it is to make them here due to wages and Health and Safety requirements etc.
I can’t comment on their ethics but can see lots of other unrelated reasons why they are cheaper than other places. But then, everywhere mass market is probably no better ethics-wise.
And some places deliberately price their products at a higher level to attract the Ikea = cheap rubbish crowd.