IKEA to maintain ‘cutthroat’ pricing amid competition | ABS-CBN
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IKEA to maintain ‘cutthroat’ pricing amid competition
IKEA to maintain ‘cutthroat’ pricing amid competition
Shoppers load items bought from Ikea Pasay City on November 5, 2022. Gigie Cruz, ABS-CBN News
Shoppers load items bought from Ikea Pasay City on November 5, 2022. Gigie Cruz, ABS-CBN NewsMANILA -- Swedish home furnishing giant IKEA on Thursday said it welcomed the entry of more competitors in the Philippine market, following the opening of Japan’s Nitori and Australia’s Anko in Metro Manila this year.
MANILA -- Swedish home furnishing giant IKEA on Thursday said it welcomed the entry of more competitors in the Philippine market, following the opening of Japan’s Nitori and Australia’s Anko in Metro Manila this year.
It’s ultimately better for the customer, said Max von Bodungen, the Store Marketing and Communications Manager of IKEA Pasay City at the sidelines of a Business Sweden event.
It’s ultimately better for the customer, said Max von Bodungen, the Store Marketing and Communications Manager of IKEA Pasay City at the sidelines of a Business Sweden event.
“It makes us sharper, more agile. We’d be able to, of course, beat them at every price on a similar product. That’s our ambition. That’s our business philosophy. We always have to have the best price on all products because that’s where the volume comes,” he added.
“It makes us sharper, more agile. We’d be able to, of course, beat them at every price on a similar product. That’s our ambition. That’s our business philosophy. We always have to have the best price on all products because that’s where the volume comes,” he added.
Von Bodungen said the company’s pricing strategy this holiday season also paid off, as they are seeing better sales figures compared to Christmas last year.
Von Bodungen said the company’s pricing strategy this holiday season also paid off, as they are seeing better sales figures compared to Christmas last year.
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“A big thing that we did was, counter to inflation, we lowered the prices on hundreds of products and I think in the Philippines, which is quite price sensitive, that was a good investment… We’ve had some fantastic weekends and also weekdays the last couple of months,” he said.
“A big thing that we did was, counter to inflation, we lowered the prices on hundreds of products and I think in the Philippines, which is quite price sensitive, that was a good investment… We’ve had some fantastic weekends and also weekdays the last couple of months,” he said.
“The most popular article is this plate. It used to be P50. Now it’s P40 and it’s flying (off the shelves),” he shared.
“The most popular article is this plate. It used to be P50. Now it’s P40 and it’s flying (off the shelves),” he shared.
According to Von Bodungen, the Philippine branch is doing even better than “global IKEA.”
According to Von Bodungen, the Philippine branch is doing even better than “global IKEA.”
Despite the business doing well, he said nothing has been decided yet in terms of expansion in the country— whether in Metro Manila still or in other regions.
Despite the business doing well, he said nothing has been decided yet in terms of expansion in the country— whether in Metro Manila still or in other regions.
“Ikea always comes into a new market with the ambition of opening more stores. It’s a question of where and how big the store should be and when and neither of those have been finalized yet,” he said.
“Ikea always comes into a new market with the ambition of opening more stores. It’s a question of where and how big the store should be and when and neither of those have been finalized yet,” he said.
“There’s definitely some people who think we should have physical exposure in Cebu, no doubt. Then there are people who think maybe Manila can support more stores,” he added.
“There’s definitely some people who think we should have physical exposure in Cebu, no doubt. Then there are people who think maybe Manila can support more stores,” he added.
Von Bodungen said a type of expansion they did undertake this year was having nationwide delivery and making sure that even delivery prices remain competitive.
Von Bodungen said a type of expansion they did undertake this year was having nationwide delivery and making sure that even delivery prices remain competitive.
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