Swedish furniture giant IKEA is actively seeking to strengthen its market presence in the Philippines through innovative initiatives, including discussions around potential in-mall pop-ups to enhance customer engagement and brand visibility.
Max von Bodungen, IKEA’s digital and remote selling manager, shared insights during the 2024 Market Report for the Philippines hosted by Business Sweden. He noted that these initiatives aim to assess market demand and build brand awareness, although the plans remain in the exploratory stage. “There’s been talk about pop-ups inside malls as a marketing and customer relationship tool. It’s about raising awareness in new areas and checking if there’s enough demand to justify opening a store. But nothing is set in stone yet,” he explained.
Notable growth in the Philippines
While IKEA experienced a global decline in financial sales this year, the brand reported notable sales growth in the Philippines, attributed to its expanding delivery and assembly services. The company has enhanced its nationwide delivery options and broadened its assembly network, making its products more accessible to customers.
Von Bodungen emphasized the importance of understanding local consumer habits, noting, “Customers often start with small items like napkins before moving on to larger purchases. Nobody comes in and buys a wardrobe on their first visit. A physical presence in every major city would be ideal, but we need a significant customer base to sustain a full-fledged IKEA store.”
IKEA Philippines has tailored its offerings to local preferences, featuring exclusive items like the “dipper,” which is unique to the country. However, the global range of over 9,000 products remains largely standardized across different markets.
As the brand contemplates its future steps in the Philippines, it continues to abide by its core principle of leveraging high volume to maintain competitive pricing. “Expansion, whether in new markets or existing ones, is essential for IKEA to stay competitive,” said von Bodungen.
Source: Manila Standard IKEA pop-ups
