Swedish retailer IKEA has topped SG$1 billion in revenue across Southeast Asia this year for the first time. Last year, its revenue sat at SG$1 billion and has now surged to SG$1.21 billion.
The Singapore market contributed SG$341 million, while Malaysia generated SG$495 million and Thailand SG$374 million to the overall sales. According to IKEA's financials, the retailer saw 98 million new visitors to stores and shopping centres across the Southeast Asia region. IKEA also recorded 51.7 million visits to its websites with new navigation and inspiration, a 16% increase from last year.
The retailer owns and operates stores and eCommerce in Singapore, Malaysia and Thailand. In Singapore, IKEA distributed a second catalogue last year to grow brand awareness among Singaporeans. The retailer also launched an interior design service touchpoint at one of its stores in Singapore, connecting with 1,000 new customers. IKEA also partnered with the National Environment Agency to support the drive towards zero waste in June this year.
Meanwhile, in Southeast Asia overall, IKEA increased its B2B sales by 42%, and has embarked on opening two new stores in Philippines and Mexico, as well as an IKEA-anchored Toppen Shopping Centre in Johor Bahru in November 2019. The new Toppen shopping centre will feature a rooftop with outdoor play spaces, a sports zone and a community garden.
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Christian Rojkjaer, managing director of IKEA Southeast Asia said the company's vision is to create a better everyday life as IKEA faces increasing competition and is met with changing customer behaviours.
"We aim to offer the best deal there is in every market and we have a wide price ladder within our range so, even in challenging times, IKEA has something for everyone no matter the size of his or her wallet. Our shopping centres add to the total value by creating meeting places that are the hub of the community – and, together with IKEA, provide a great day out,” he added.
Earlier this month, IKEA Southeast Asia moved its regional creative account from long-time partner BBH Singapore to TBWA\\Singapore. For a period of three years, TBWA\\ will be responsible for most of the brand’s creative work including integrated campaigns, store opening campaigns, digital and social communications across Singapore, Malaysia and Thailand.
In addition, IKEA proved to be a brand well-loved globally as it was one of the only non-tech brands to crack the top 10 in the annual global brand health ranking by YouGov BrandIndex. The score is based on more than six million interviews with panellists who answer questions about a company’s quality, value and their level of satisfaction with the brand, among other things. It takes into account perceptions of a brand’s reputation and whether consumers would recommend the brand to others.
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