No one would have expected Ikea to house its largest-ever store in a country where 24% of the population lives below the poverty poverty Asian Development Bank Philippines and ADB Read more line and the average average Statista Percentage distribution of households living in residential units in the Philippines in 2020, by floor area Read more living space is between 107 and 312 square feet (sq.
Ikea’s largest store has nailed the US$3B Filipino furniture market, hammering the craftsmen’s share
Ikea brought Nordic folding tables and Ektorp sofas to Manila, sending some local furniture makers and suppliers running for cover
Ikea managed to tap into existing consumer-purchasing habits to hit the ground running in the Philippines
Before Ikea entered the country, the CAGR of the Philippines’ furniture sector was 8.22%. Now, it’s 12%
While the retailer is putting a squeeze on local ‘fast furniture’ sellers, the effect on custom furniture makers has been small
The furniture retailer’s profits have been declining outside Asia. Placing the world’s largest Ikea store in the Philippines signals a long-term commitment to the region