Ikea Mega Stores Coming To Bangkok Soon

[george]

Ikea mega-stores coming here soon

Singapore-based Ikano, which has received the franchise rights for opening Ikea home-furnishing mega-stores, has shown its commitment to invest in Thailand despite the economic and political difficulties.

The company plans to open at least three Ikea outlets in Bangkok, said managing director Tom Huzell.

Wholly owned by Luxembourg's Ikano Group, the Singaporean subsidiary now has the franchise rights for Ikea stores in Singapore, Malaysia and Thailand.

Ikea is one of the world's biggest retail chains for home-furnishing products, with more than 300 stores in 35 countries.

"We see Thailand as a great potential market," Huzell said.

He called Thailand a fantastic supplier country, one that is a strong, skilled production base for home-furnishing products. Ikea purchases Bt5 billion worth of furniture products annually from Thailand as part of its global sourcing strategy. The opening of Ikea stores in Thailand will encourage local suppliers to access Ikea's global market.

Huzell said Singapore was now ranked 12th globally for Ikea in number of visitors, and Malaysia fifth. "We expect Thailand to take a top-ranking position for Ikea, as well."

Huzell said each store would cost ค80 million (Bt3.76 billion) to open, occupy 35,000 square metres of retail space and carry 9,500 products.

The Ikano subsidiary and Siam Future Development yesterday announced a new joint venture called SF Development, which will build a Bt10-billion shopping complex called Mega Bangna, featuring the first Ikea store and expected to create 20,000 jobs.

The first Ikea will be in Mega Bangna, located on Bang Na-Trat Road Km 9, near the Kanchanaphisek Outer Ring Road.

Huzell said that in accordance with the Foreign Business Act, Ikano would own only 49 per cent of the new joint venture. Siam Future will own another 49 per cent and local furniture-maker SPS Global Trade the rest.

SPS has supplied home-furnishing products to Ikea for more than 20 years.

Siam Future Development CEO Nopporn Witoonchat said the Mega Bangna shopping complex would consist of 400,000 square metres on 290 rai of land. Construction of the mega-complex will start in the third quarter, with opening scheduled for no later than the first quarter of 2011.

The Mega Bangna complex will cost Bt10 billion, consisting of Bt3 billion for the land and the rest for construction. Its catchment area - a radius of 40-50 kilometres of radius from the venue - will cover 14 million people. The complex is expected to attract 40 million shoppers annually.

"Mega Bangna will open by 2011, and we expect it to break even in 10 years," said Nopporn.

Huzell said Ikano now operated two Ikea stores in Singapore and one in Malaysia.

"We are also interested in opening Ikea stores in other potential markets in this region, such as the Philippines, Vietnam and Indonesia," he said.

-- The Nation 2009-05-12

[TAWP]

Yay - with a little bit of luck I can finally start picking up some real food-products from back home too...

[Thai at Heart]

Well there goes Index then!

[Scott]

I am glad.

[teacup]

I'm glad too.

But their stuffs have been getting more and more expensive over this last few years, here in the US.

It used to have quite reasonable prices, but not anymore.

Many of their funitures, well I can find them with better quality and prices... at many high end store nearby.

Just my experiences here

Not to mention many of their .."ready to assemble" pieces.....DEAR LORD!!!

It will be amusing to watch many of the thais with those instruction pamplets

Edited May 12, 2009 by teacup

[MJo]

Finally good food products always available. Meatballs for lunch...

[mhatami]

Finally good food products always available. Meatballs for lunch...

I hate these Meg stores, they all carry same shxxt and pretty soon only few choices and everyone and everything will look the same

Edited May 12, 2009 by mhatami

[teacup]

Finally good food products always available. Meatballs for lunch...

Their Almond Cake is the best!!....yum yum

[MJo]

Finally good food products always available. Meatballs for lunch...

I hate these Meg stores, they all carry same shxxt and pretty soon only few choices and everyone and everything will look the same

I don't care what they sell and how their products look and how much it costs. I just want my foodstuff from their store and my meatballs for lunch once a month or so.

So Ikea, please hurry up !

[angiud]

But Ikea should be famous for cheap furniture? or for food?

[teacup]

Their furnitures are not cheap anymore, trust me

I have been going to IKEA since during my uni years.

Edited May 12, 2009 by teacup

[MJo]

Back in europe i used to buy furniture from Ikea time to time if they had models i liked. Out here i purchase only food from them. Stuff that is not available elsewhere

[Thai at Heart]

I'm glad too.

But their stuffs have been getting more and more expensive over this last few years, here in the US.

It used to have quite reasonable prices, but not anymore.

Many of their funitures, well I can find them with better quality and prices... at many high end store nearby.

Just my experiences here

Not to mention many of their .."ready to assemble" pieces.....DEAR LORD!!!

It will be amusing to watch many of the thais with those instruction pamplets

USD weakness is a great thing isn't it.

[missmoneypenny]

FINALLY.

over priced SB Furniture/Home Pro/Index, bring on some quality cheapness!

[bertlamar]

actually, I think you'll find Ikea is similar price to Index etc; a lot of those guys make Ikea stuff OEM anyhow AFAIK.

Overrated cheap junk - rather would buy real wood furniture than MDF junk anyhow (all the ones listed above).

[MisterMan]

SB Furniture with their pseudo nouveau rich white lacquer.. at outrageous prices. It is amazing what people will pay for particle board.

Ikea has great accessories.

I have heavy over the door stainless steal hooks that were hand carried from Sweden. Impossible to find in Thailand. Quality and practical and I can still close the door! Id like to see SB Furniture top that!

I hope you can order online as I am in Phuket!

I agree this will also bring a new concept of assembly required to Thailand, I wonder if it will work!

[Priceless]

Their furnitures are not cheap anymore, trust me

I have been going to IKEA since during my uni years.

I think that their desired market position is "Value for money".

Have you got any inside information on what their pricing will be like here in Thailand, or what market are you basing your opinion on?

/ Priceless

[Thai at Heart]

I may be wrong, but I think SB and several other of the furniture manufacturers here are suppliers of IKEA. I lived in Europe a few years ago for a while and bought a computer desk and drawers from IKEA only to return and by more furniture here 2 years later and low an behold, there was the identical computer desk being marketed as brand new in SB.

It would appear that the domestic manufacturers managed to keep IKEA out whilst they got larger and larger, not any more. I would however think that IKEA won't be able to put those suppliers out of business, so I would expect pricing will be similar to Index or SB, just with differentiated designs. Although, IKEA could by all the suppliers out and take over SB and Index's large malls!

[nickynomates]

OHHHH the hours of fun.

I can't see many sales on the flat packs.

Instructions in Burmese maybe for the home help to put up.

[DP25]

I'm sure they will have a delivery and assembly service. At the prices Ikea charges people aren't going to be doing it themselves.

Looked at the Singapore Ikea site, they have meatballs for 6.50$S, not too bad, hopefully they'll make it here.

[supbangkok]

Praise Jesus! IKEA is still one of the funnest stores to shop in!

Have been a shopper for years and years!

Aisles and aisles of great stuff for your house, and it is very well priced.

They do have delivery and assembly.

And the cafeteria is always a good value. IKEA please hurry!

INDEX and SB ar so overproced for dull chip board.

[Texpat]

Overrated cheap junk - rather would buy real wood furniture than MDF junk anyhow.

Agree 100%

Nice hardwood furniture available here at a fraction of the build-it-yourself, prefabricated, pressed-particleboard crap.

[animatic]

Idex and Winner need worry, because Ikea fills a niche that they have ignored.

Yes more expensive, but much better visible and invisible quality in general.

But not too expensive, as noted above, good value for the money.

I brought an Ikea bought Computer desk from europe and

have been beating on it mercilessly for years.

Held up better than expected. Still using it for electronics work.

I have had Ikea stuff in my homes on 2 continents so far,

and am happy to have that option here now too.

Oh, yes I agree with the fun shopping bit too.

Always quirky displays and odd settings.

Kept me from being bored silly following the wife.

Edited May 13, 2009 by animatic

[MHM]

How to assemble your Froodi bookcase. Insert locking flange G into plate F. Screw nut H on bolt T while twisting bracket P. Give up and resort to harsh language. Sell books

[svenivan]

IKEA is not only furniture for homes. They have very good and pricy furniture and other things for office.

We bought all the stuff for our new office with 18 people from IKEA. Absolut very good quality and for most items almost half price compared to other shops.

Here in Thailand I will go there to get some good food!

[Ricardo]

I look forward to seeing their version of a flat-pack rice-bowl.

And will certainly check-out the Swedish-meatballs & shrimp open-sandwiches, but those high-calorie chocolate-balls are top of the list, oh & 'Glogg' (mulled-wine) at Christmas-time.

[LeungKen]

Will the new Bangkok Ikea mega-store be carrying this line also ?

[teacup]

Ikea furniture assemblage is designed to torture you!!!

I'm convinced men wrote all those directions...

esepcially the ones that say start with “x“, show this really big ,…..busy pictures that indicate a miracle can happen..and then…. Waaa-laaa..finished products!!!

Drives me <deleted> nuts.. ….Grrrr

And

Have you ever had the pleasure of taking them apart?

BAH!..holey moley!!!….I think you would be better off with a sledge hammer!! …just to save your health~~…haha

Anyhow....I do agree they have other things that COOL tho, plus delious Swedish coffee

[teacup]

Their furnitures are not cheap anymore, trust me

I have been going to IKEA since during my uni years.

I think that their desired market position is "Value for money".

Have you got any inside information on what their pricing will be like here in Thailand, or what market are you basing your opinion on?

/ Priceless

Well used to be "good value for money" during my uni years....good for us, uni kids----very afforable and many stuffs w/ COOL design....That was 8-9 yrs agos.

Oh I'm still going over there today, however over the years their stuffs are getting more expensive without any major improvement in quality,....comparing to many home furnishishing stores nearby here in the US.

Their furnitures are now crappy made.....may be coz they had recently changed the suppliers/mfgr?....hmm

Most flat packs used to make in the Czech, but now are made in Luthilania and others poorer eastern european countries without the quality control.

Just my personal experiences and opinions shopping at IKEA

Edited May 13, 2009 by teacup

[EvilDrSomkid]

I grew up with Ikea. I like Ikea, too. The missus also likes Ikea and we spoke about why Ikea was not in Thailand.

In fact, there are Ikea pieces in Thailand already. I brought my Ikea dining table set, Ikea bed and Ikea couch to Thailand.

I did ask her: Do you think that Thai people will like to assemble their furniture themselves?

She said: Are you saying Thai people are stupid?

Eeerm, well, no but eeerrmm... you get the picture.

I tried to explain that the kind of people who would like to buy (afford) Ikea style things, would not be the kind of people who would WANT to assemble stuff.

But really, first time we went to Index, it was just like walking into an Ikea shøp. Even the pricetags look like Ikea, <deleted>.