Register
to get articles and more to your inbox
News & insights
Archive
Directory
Ikea Eyes Southeast Asian Expansion, But Sponsorship To Remain Low
The Swedish company, which has more than 400 stores in 49 markets globally, has most recently been focusing on expanding in China and Russia.
That said, CEO Torbjorn Loof told Bloomberg that opening more locations in Southeast Asia and South America is a top priority. Currently, Ikea’s ASEAN presence includes stores in Singapore, Malaysia, Indonesia and Thailand as well as a recent announcement last month to say that they are launching a new e-commerce platform in Singapore and Malaysia.
Loof said the expansion target into Vietnam and the Philippines will take place over the next five years.
However, in terms of Sponsorship investment in the Southeast Asian market, we are unlikely to see Ikea spending significantly: their current spend levels average out at a meagre US$25k per campaign and we have already seen a string of withdrawals in the past two years:
- ThaiTV3’s Tonight Show
- Singapore’s Earth Hour
- as well as brand-owned content activations Zodiac and The Shining in Singapore.
What’s more, the Swedish furniture is ploughing US$212m into a Southeast Asian regional hub in Malaysia, which adds more grist to the mill that their Sponsorship budgets will not be high on the brand’s priority list.
Ikea is a company that puts a high regard on footfall-in-store numbers believing that the more mud you throw at the wall, the more will stick. So the platforms that will excite them will be ones that can drive customers in store and are budget-friendly.
