Why it took time for Ikea to get here

GET YOUR DIY hands ready, Manila: Ikea is finally coming to town.
In a launch on Nov. 20, Ikea announced the opening of what could be the world’s largest Ikea store (at 65,000 sqm.) in 2020 at the Mall of Asia complex. According to a press release, “the store will be about as big as 150 basketball courts — almost double the size of a typical IKEA big blue-box. The shop floor will be similar to other IKEA stores but the building will also house a call center and a supersized warehouse to accommodate e-commerce operations”.
RUMOR HAS IT
The rumors of an Ikea opening have been buzzing around since about 2016, but that it really would be opening in the Philippines, and the actual year of opening, were only revealed last week. Said Georg Platzer, Market Development Manager, and future IKEA Store Manager in Manila, in a speech, he has been in Manila for two and a half years doing the groundwork.
He told BusinessWorld, “This is a big operation. A 65,000 sqm. store requires a lot of different activities to be done backstage, before you can even announce it. I can tell you, we’re very satisfied with the timeline. In any new country where we go, we open the first store; it takes between six to seven years.”
“It’s really a massive project. Our entire value chain has to be prepared for that,” he said. “It’s big, and that takes time.”
DIY PHILOSOPHY
Ikea was founded in Sweden by Ingvar Kamprad in 1943. It has the unique proposition of selling furniture at low prices that one can choose to build themselves. Since then, it has spread its do-it-yourself philosophy throughout the Americas, Europe, Asia — they have more than 400 locations around the world.
Mr. Platzer says that they have arrived in the country independently, and the partnership with SM only extends to land tenantship. “SM is the company building the building. We’ll be a tenant, and lease the building from SM. That is the partnership.”
It was also announced during the launch that 500 positions within the company will be made open for applicants, which one can view in advance through www.IKEA.ph.
Collections and other items will also be made available through the Web site.
DESIGNS AND RECYCLING
Mr. Platzer said that all the company’s designs are conceptualized in Sweden, but any Filipino designer who might want to make a pitch are encouraged to get in touch with the headquarters. As for materials and product sourcing, he said, “We are the retailer. Sourcing and production is a different category under the Ikea brand. Usually, when we start retailing, we also start looking for suppliers. If we find a supplier in the Philippines, this supplier should supply the whole world — not only for the Philippine market.”
Earlier this year Ikea, which is the world’s biggest furniture retailer, announced that by 2030, it would use only renewable and recycled materials in its products.
Inter IKEA, the owner of the brand best known for its low-cost flat-pack furniture, said in June that it aimed to reduce the climate impact of each of its products by more than two thirds by the end of next decade.
Currently, 60% of the Ikea range is based on renewable materials, while nearly 10% contain recycled materials.
PHILIPPINE POPULATION
In commenting on the new store’s large size, Mr. Platzer spoke about the country’s population at more than a hundred million. “We have a need for a warehouse. We have a logistical need; that’s why we also have a bigger store than other stores. We have a need for a bigger restaurant, because we’re expecting a lot of visitors. We want to give them a convenient shopping experience.”
As for price ranges — Ikea’s DIY philosophy is one of the reasons for its relatively low cost — Mr. Platzer said, “There’s one clear mandate in Ikea. We have to be the lowest price in the market.”
Is the end goal for Ikea a world where people can build their own furniture; to go back to basics; to be more sustainable? The answer is a lot more simple than that. Mr. Platzer says to check the back of his business card, where it would say, “Create a better everyday life for many people.” “There is no end. It’s just the beginning.” — Joseph L. Garcia with a report from Reuters