webfact Posted March 10, 2011 Share Posted March 10, 2011 Ikea plans two more stores in Bangkok By Kwanchai Rungfapaisarn The Nation Ikea, the iconic Swedish homefurnishings company, plans to invest another Bt6 billion in Thailand to open its second and third stores in western and northern Bangkok in the near future. Both new stores, which will be opened within the next five years, are anticipated to be similar in size to the first Bangkok Ikea in Bang Na, which will have 43,000 square metres of total retail space when it opens late this year. The move is in line with the company's ambition to become the No 1 homefurnishing company in Thailand. The company yesterday announced its would open Ikea Bangna in November. The store, with about 1,300 free parking spaces, will be the largest Ikea outlet in Southeast Asia. It will employ about 400 people and reflect the same unique architectural design for which Ikea stores are known worldwide. Ikea Bangna is 100 per cent owned by Ikano. Mega Bangna, the mall it will anchor, is 49 per cent owned by Ikano and 49 per cent by Siam Future Development. In addition to Thailand, Ikea plans to open its second store in Kuala Lumpur within the next two years, while the third store will be opened at Johor Bahru, Malaysia's secondlargest city, within the next three to four years. Tom Huzell, managing director of Ikano Retail Asia, the Ikea franchisee holding licences for Ikea in Singapore, Malaysia and Thailand, said the company expected to open its second Ikea store in Bangkok within the next three years. Meanwhile, the first store is anticipated to reach annual visitor traffic of 6 million people within the same threeyear period. "We would like to be in shopping clusters and to locate with other retailers," Huzell said. He added that the Ikea experience would meet and exceed the many needs and tastes of Thai consumers when Ikea Bangna opened its doors. In the first year of operation, Ikea expects more than 4.5 million people to visit its store and its many room displays, children's play area, and 700seat restaurant serving Swedish foods. The venture aims to be profitable from the beginning by keeping costs low, said Huzell, who has been with different Ikea franchisees for 26 years. Ikea Bangna will provide a wide selection of 7,500 furnishing designs. Thirty per cent of the product range will change four times a year. The company has sourced products from 70 countries, including Thailand. Huzell said Ikea's key strengths were its low prices, good function, and good design. "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. Mega Bangna is on the southwestern corner of Bang NaTrat Road and Eastern Ring Road at the BangpleeSuksawat Expressway intersection. Huzell said the company would maintain low prices at Ikea Bangna to fulfil its commitment to customers. Economy of scale helps Ikea keep prices low because of its bargaining power with 316 stores in 38 countries. Ikea says it develops new products around an estimated price, and design teams set out to create functional and durable furnishings, keeping costs low with careful use of resources. -- The Nation 2011-03-10 Link to comment Share on other sites More sharing options...
bkkjames Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly Link to comment Share on other sites More sharing options...
CosmicSurfer Posted March 10, 2011 Share Posted March 10, 2011 (edited) IKEA will revolutionize Retailing and Customer Service in Thailand... Index... Watch out.. Your Days are Numbered! I can't wait until they Open. When I was last in KL I picked up a catalog from their Store there (and had Swedish meatballs for Lunch).. I'm real interested to compare the KL prices with what they do here. A rare opportunity. Sort of Like the Big Mac Index for gloal food prices.. We can do an IKEA index comparing prices around the world.. It may keep Things honest here in Thailand. Interesting thought... Swedish Meatballs are the most popular Item on their restaurant menu.. But they are made of BEEF.. I wonder what will happen here. Will it remain #1? Will They change the recipe to pork? Will they sell it at all? Something to make you go... Hmmmm ??? CS Edited March 10, 2011 by CosmicSurfer Link to comment Share on other sites More sharing options...
snaggletooth Posted March 10, 2011 Share Posted March 10, 2011 IKEA will revolutionize Retailing and Customer Service in Thailand... Index... Watch out.. Your Days are Numbered! I can't wait until they Open. When I was last in KL I picked up a catalog from their Store there (and had Swedish meatballs for Lunch).. I'm real interested to compare the KL prices with what they do here. A rare opportunity. Sort of Like the Big Mac Index for gloal food prices.. We can do an IKEA index comparing prices around the world.. It may keep Things honest here in Thailand. Interesting thought... Swedish Meatballs are the most popular Item on their restaurant menu.. But they are made of BEEF.. I wonder what will happen here. Will it remain #1? Will They change the recipe to pork? Will they sell it at all? Something to make you go... Hmmmm ??? CS Agreed. THe more foreign competition in retail here the better. Then Thai stores will have improve their game, especially in terms of customers service and better return policies. Actually customer service is great in Thailand until you have a problem then they just laugh at you when you complain. Link to comment Share on other sites More sharing options...
rwhoov Posted March 10, 2011 Share Posted March 10, 2011 It's about time! They've had a store in K-L for years; I always wondered why they didn't have one here. I'm looking forward to the first store opening, but I'm guessing it will really be crowded for the first few months! Link to comment Share on other sites More sharing options...
StrandedBusinessPerson Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly I had no idea there was an ikea in BKK, but I went to Index Living Mall last month and was much impressed. Are the prices at ikea BKK comparable? BTW, is most of the stuff at Index made in Thailand, or is it just good quality Chinese? Thx!!! Link to comment Share on other sites More sharing options...
Greenside Posted March 10, 2011 Share Posted March 10, 2011 We could use one in Chiang Mai, for sure. Link to comment Share on other sites More sharing options...
StrandedBusinessPerson Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly I had no idea there was an ikea in BKK, but I went to Index Living Mall last month and was much impressed. Are the prices at ikea BKK comparable? BTW, is most of the stuff at Index made in Thailand, or is it just good quality Chinese? Thx!!! Link to comment Share on other sites More sharing options...
Soi Sauce Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly Can't see how you can say that, "knowingly". It's a policy that has made it the world's no.1 furniture retailer. IKEA offers good design at fantastic prices nexto the competition's.Its value is extraordinairy, I said knowingly having been a very satisfied customer in the UK for 20 years. Link to comment Share on other sites More sharing options...
ryladie99 Posted March 10, 2011 Share Posted March 10, 2011 IKEA will revolutionize Retailing and Customer Service in Thailand... Index... Watch out.. Your Days are Numbered! I can't wait until they Open. When I was last in KL I picked up a catalog from their Store there (and had Swedish meatballs for Lunch).. I'm real interested to compare the KL prices with what they do here. A rare opportunity. Sort of Like the Big Mac Index for gloal food prices.. We can do an IKEA index comparing prices around the world.. It may keep Things honest here in Thailand. Interesting thought... Swedish Meatballs are the most popular Item on their restaurant menu.. But they are made of BEEF.. I wonder what will happen here. Will it remain #1? Will They change the recipe to pork? Will they sell it at all? Something to make you go... Hmmmm ??? CS Agreed. THe more foreign competition in retail here the better. Then Thai stores will have improve their game, especially in terms of customers service and better return policies. Actually customer service is great in Thailand until you have a problem then they just laugh at you when you complain. like your posts...awesome and thanks...Hope everyone likes IKEA in Thailand.... I enjoy being at IKEA and always buy things for friends and teachers. Last valentine I was able to get 70 pieces of chocolate for my kids old teachers. I was so happy to give and the teachers were so delighted to receive...Wow?? only from IKEA....who has special price for everyone. Link to comment Share on other sites More sharing options...
Card Posted March 10, 2011 Share Posted March 10, 2011 IKEA will revolutionize Retailing and Customer Service in Thailand... Index... Watch out.. Your Days are Numbered! I can't wait until they Open. When I was last in KL I picked up a catalog from their Store there (and had Swedish meatballs for Lunch).. I'm real interested to compare the KL prices with what they do here. A rare opportunity. Sort of Like the Big Mac Index for gloal food prices.. We can do an IKEA index comparing prices around the world.. It may keep Things honest here in Thailand. Interesting thought... Swedish Meatballs are the most popular Item on their restaurant menu.. But they are made of BEEF.. I wonder what will happen here. Will it remain #1? Will They change the recipe to pork? Will they sell it at all? Something to make you go... Hmmmm ??? CS Agreed. THe more foreign competition in retail here the better. Then Thai stores will have improve their game, especially in terms of customers service and better return policies. Actually customer service is great in Thailand until you have a problem then they just laugh at you when you complain. Come on, customer service here is crap - it's all smiles and stalking and then u ask for something - they pass on the request to at least 3 others who don't speak English or have any knowledge of where or what they sell and then u are left alone as they wander off for a chat with their mates. The smiles cover absolute incompetence and a total lack of knowledge about customers and products. For example, the other day in Index in Pattaya, I asked for long wall mirrors in the mirror dept - after they assembled 4 'assistants' they came to the conclusion that they didn't have any and started to wander off. Within 5 meters, I saw exactly what I wanted on the wall. I agree complaints don't get u anywhere except "next week", week after week. And mark my words, it will be EXACTLY the same in Ikea. Nothing changes them, neither Tesco, Big C or Ikea have the management skills or influence to change their behaviour. And as far as Ikea creating competition - all they will do is provide thousands of furniture designs for local Thais to copy and maybe even try to pass on to as Ikea products - after all Ikea designs are often simple and functional - just what Thai traders are after. Roll on November. Link to comment Share on other sites More sharing options...
bkkjames Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly Can't see how you can say that, "knowingly". It's a policy that has made it the world's no.1 furniture retailer. IKEA offers good design at fantastic prices nexto the competition's.Its value is extraordinairy, I said knowingly having been a very satisfied customer in the UK for 20 years. sorry can I change my answer from knowingly to skeptically - even sarcastically? Link to comment Share on other sites More sharing options...
Pui Posted March 10, 2011 Share Posted March 10, 2011 (edited) We bought IKEA furniture in London and its was great. Nice looking, good quality and easy to assemble. I welcome this move. SB Furniture and Index are overpriced rubbish. Particle board computer desks that fall apart after 6 months…? I hate it with a passion. Bring on IKEA all day long. The problem might be the cost. Will this be considered a luxury and have the "Luxury Tax" imposed? They have a “Habitat” in Siam discovery but the prices where 3 time what they where in England. Marks & Spencers is 3 times the price and that for basic essentials. 1,500 baht for a 3 pack of boxers shorts that are 500 baht in England. Apart from foreigners the Lana style Chiang Mai recycle teak wood that I personally like is not so popular with the young. I think IKEA will be a huge success among Thai’s (that can afford it) Certainly in Bangkok, where people are looking for a more modern look. It just remains to see hows its priced. Edited March 10, 2011 by soundman Removed "quoted" deleted post. Link to comment Share on other sites More sharing options...
samlowry Posted March 10, 2011 Share Posted March 10, 2011 BBK locals, Q to you: why everybody reference to IKEA in future tense when there is 1st IKEA shop as mentioned in the news? Nobody was there? Nobody know about it? Or it's not open yet? Link to comment Share on other sites More sharing options...
givenall Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly What surprises me is that it takes so long to open a store. The stores are all flat top and basic constriction. All they needs is inventory and not all at the store. Most of the furniture are stored in a central place in the warehouse Link to comment Share on other sites More sharing options...
TechnikaIII Posted March 10, 2011 Share Posted March 10, 2011 All be it that much of their furniture is veneered particle board, the IKEA standard of finish certainly is miles above the laminated junk I've seen in stores around this country, including Tesco. ... junk particle board with zero tensile strength, with hideous lamination foils. Such crap I can hardly believe my eyes. Yes, the meat balls will have to be pork. It stands to reason that IKEA should do well in Thailand, with so many Scandinavians (Norwegians) setting up 'home' here, living on the cheap, in addition to their summer and winter cabins in Norway. I wonder how it will effect the standard of living for any sector of the Thai population. IKEA are not exactly the "Google" of employers. For my time in Norway, previously some 18 years, as a single parent I welcomed the many child friendly features, the kids cinema and play room, the cafes etc This was at IKEA Sleppenden - before it was modified to make it less comfortable. (Sadly it was being invaded by Pakistan, who's folk purchased little or nothing.) And I have many very useful kitchen items which were bought there. I can't wait to show my partner the Bang Na Store when it opens. I will be building a kitchen aside her little house, here in our village 3 hrs North of BKK, a sort of hybrid design, incorporating some Thai 'outdoor' feeling, with modern Swedish functionality in the business part, and my own solar hot water system. IKEA will be here. Link to comment Share on other sites More sharing options...
Shipwreck Posted March 10, 2011 Share Posted March 10, 2011 BBK locals, Q to you: why everybody reference to IKEA in future tense when there is 1st IKEA shop as mentioned in the news? Nobody was there? Nobody know about it? Or it's not open yet? The article says that the store will open 'at the end of this year'. Anyone have any more specific info on the opening date? Link to comment Share on other sites More sharing options...
bkkjames Posted March 10, 2011 Share Posted March 10, 2011 Isnt this first one supposed to open in 2012 near Bangna? Link to comment Share on other sites More sharing options...
CosmicSurfer Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly I had no idea there was an ikea in BKK, but I went to Index Living Mall last month and was much impressed. Are the prices at ikea BKK comparable? BTW, is most of the stuff at Index made in Thailand, or is it just good quality Chinese? Thx!!! IKEA is NOT open in Thailand yet.. in the OP they talk about the FIRST store in Bagna opening in November. IKEA is all about Design, Price, Quality.. probably in that order. But They do have excellent Customer Service, plus a great inventory control policy.. they are more likely to actually have Stock of what they are showing, unlike Thai retailers that are constantly out of stock of their Best Sellers. I love the store.. shopping there for Years in Canada and USA CS Link to comment Share on other sites More sharing options...
TechnikaIII Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly What surprises me is that it takes so long to open a store. The stores are all flat top and basic constriction. All they needs is inventory and not all at the store. Most of the furniture are stored in a central place in the warehouse IKEA will be building to their own standard, which is stringent, and rarely if ever seen in This country. They may well be having construction problems. Link to comment Share on other sites More sharing options...
CosmicSurfer Posted March 10, 2011 Share Posted March 10, 2011 BBK locals, Q to you: why everybody reference to IKEA in future tense when there is 1st IKEA shop as mentioned in the news? Nobody was there? Nobody know about it? Or it's not open yet? This shop is NOT Open yet.. It opens in NOVEMBER! CS Link to comment Share on other sites More sharing options...
Finlaco Posted March 10, 2011 Share Posted March 10, 2011 Its not often that an icon lives up to its 'reputatuin'. The first time I visited an Ikea Store was in Singapore and I must admit I was impressed with the value and design of their products. Link to comment Share on other sites More sharing options...
TechnikaIII Posted March 10, 2011 Share Posted March 10, 2011 "We offer consumers prices 1020 per cent lower than our competitors' similar basic products and up to 4050 per cent cheaper for midend to premium products," he said. All products or just the occasional loss leader he asked knowingly I had no idea there was an ikea in BKK, but I went to Index Living Mall last month and was much impressed. Are the prices at ikea BKK comparable? BTW, is most of the stuff at Index made in Thailand, or is it just good quality Chinese? Thx!!! "or is it just good quality Chinese?" IKEA constantly sources manufacturers from many countries, mostly Eastern Europe and Asia. Any one product can have components from more than one place. And the manufacturer will be changed according to quality and ability to deliver. One particular picture frame I used to buy frequently, varied in timber finish and glass quality, depending on source. I have now dropped it altogether because the latest lot were laminated, compressed wood fiber. I had one fall off the wall, because the screws holding the hanging wire simply pulled the fiber apart. (There is becoming a global shortage of timber, thanks in part to IKEA's hunger for the stuff.) Link to comment Share on other sites More sharing options...
napalm Posted March 10, 2011 Share Posted March 10, 2011 We could use one in Chiang Mai, for sure. And Phuket...... Link to comment Share on other sites More sharing options...
Benjie Posted March 10, 2011 Share Posted March 10, 2011 They would make a killing in Phuket. Link to comment Share on other sites More sharing options...
bangkokcitylimits Posted March 10, 2011 Share Posted March 10, 2011 Cool I'm a fan of IKEA and the IKEA stuff I brought by container is getting old after 15 years... Where is IKEA already in BKK ?? Link to comment Share on other sites More sharing options...
AsiaCheese Posted March 10, 2011 Share Posted March 10, 2011 IKEA will be building to their own standard, which is stringent, and rarely if ever seen in This country. They may well be having construction problems. I wouldn't be surprised at all (knowing the company since they opened their first store in the outskirts of Stockholm and having followed it a bit, amongst other through people working for it) that they have the "cookbook" to make employees tick a little different than the way another OP describes above. Problem is: people aren't stupid at all in Thailand; most just don't have access to schools that teach you to think (as opposed to learn off by heart and ending up not knowing crap about it). Halfway careful HR selection, internal education and motivation could easily turn that around in a place like IKEA. Ever been to an up-market hotel (not talking about run-down pseudo-5-star places) and noticed how people tick there? Careful selection, education & motivation is the 3-toothed key. Everywhere. Link to comment Share on other sites More sharing options...
dasy Posted March 10, 2011 Share Posted March 10, 2011 It's about time! They've had a store in K-L for years; I always wondered why they didn't have one here. I'm looking forward to the first store opening, but I'm guessing it will really be crowded for the first few months! The plan to open one was cancelled in 2006 when Taksin was ousted for IKEA did not want to support a non democratically chosen government...... Link to comment Share on other sites More sharing options...
MikeyIdea Posted March 10, 2011 Share Posted March 10, 2011 I must say that I am very impressed with IKEA, the only thing I dislike is that their shops are absolutely huge and laid out so that you have to walk through the whole thing even if you only want to buy one thing Link to comment Share on other sites More sharing options...
flemmie Posted March 10, 2011 Share Posted March 10, 2011 Aha, another one bites the dust... In fact there are shortcuts but need to be discovered, they do want you to traverse the entire store of course, but look carefully. I agree with AsiaCheese, IKEA has a perfect blueprint from establishing to franchising to construction to motivation to training etc... I lived in Moscow for a number of years and the service in the usual stores is horrible, yet IKEA comes out smelling. Can't wait for the skottbullar.. I must say that I am very impressed with IKEA, the only thing I dislike is that their shops are absolutely huge and laid out so that you have to walk through the whole thing even if you only want to buy one thing Link to comment Share on other sites More sharing options...
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