Swedish furniture store IKEA is exploring ways to deepen its market presence in the Philippines, with discussions underway about innovative strategies such as in-mall pop-ups and other customer engagement approaches.
IKEA digital and remote selling manager Max von Bodungen said the initiatives aim to gauge demand and increase brand awareness, although no concrete plans were finalized yet.
“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 said at the sidelines of the 2024 Market Report for the Philippines hosted by Business Sweden.
While the brand faced a decrease in financial sales worldwide this year, it reported growth in the Philippines, driven by expanding delivery and assembly services.
IKEA offers delivery nationwide and broadened its truck delivery and assembly network, making its products more accessible.
Von Bodungen emphasized the importance of understanding consumer habits in the region.
“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,” he said.
IKEA Philippines carries a selection tailored to local preferences, including exclusive items like the “dipper,” unique to the country. The global range of over 9,000 articles remains largely standardized across markets.
IKEA said that as it considers its next steps in the Philippines, the brand remains committed to its foundational philosophy: leveraging high volume to maintain competitive pricing.
“Expansion, whether in new markets or existing ones, is essential for IKEA to stay competitive,” von Bodungen said.
