IKEA Singapore

Sunday, December 19, 2010
Accumulation of Sweden DIY furniture chain Ikea has agreed to offer cheaper products for Thai consumers by reducing their profit margin.
Will his first store in Bangkok _ _ its biggest store in Southeast Asia this November opened as part of the new Mega Mall Bang Na.
IKANO Ikea retail franchisees in Asia remains high on his mother's home furnishings business of supply security at affordable prices.
The company, as required by Ikea to selling only a small part of domestic products, which represent only 2% of the shipments. The rest is imported, the questions of how they keep prices low in a market where large cheap furniture provides.
Lars Svensson, deputy director of Ikea Bang Na, said that low prices could be reached by the negotiating position of the company since it has more than 300 stores.
"With more stores at lower prices through economies of scale," he said. "With import duties, life is not easy for us, but we need to fulfill our commitment to the consumer."
The company has extensive interviews with 500 consumers conducted in Thailand and visited 50 houses of the study of lifestyles of potential customers.
Ikea has a universal design that can be distributed worldwide. It had ceased sales of 23.8 billion (979 million baht) for the year in August.
Ikea believes that its products are practical, even if the markets have different tastes.
Ikea Bang Na, which will feature about 7,500 items, is expected to accommodate up to 4-5 million visitors per year. Space will be 43,000 square meters, including a restaurant with 700 seats.
IKANO Asia Ikea retail licenses in Singapore, Malaysia and Thailand. It has two branches in Singapore and Malaysia. The company is a cold store in Malaysia and attempts to penetrate the market in Vietnam and the Philippines.
Svensson said there is a possibility of opening a second branch in Bangkok for three years after the start of the first. In the next 10 years he will have three branches throughout the metropolitan region of Bangkok. Each store requires an investment of 60 million €.

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