Thailand: Ikea touts e-commerce to boost sales

• May 24, 2019

Ikea has launched its online store as the Swedish furniture chain seeks to attract forward-looking customers in Thailand. 
According to Lacia Sherlock, deputy retail manager for Thailand, Singapore and the Philippines, the e-commerce platform was developed for modern shoppers and to meet the changing lifestyles of people who spend a considerable amount of time online. 
Ms Sherlock said the company took about two years to study market demand, develop infrastructure and prepare for the launch of Ikea’s e-commerce service in Southeast Asia. 
“We aim to provide an impressive online shopping experience similar to visiting our physical stores,” she said. 
Ikea started its online business in 2000 with Britain as the first country. The e-commerce platform has since expanded to 52 countries. 
In Southeast Asia, Ikea’s online store has been available in Singapore since 2017 and in Malaysia since 2018. 
According to Ms Sherlock, consumer response was tremendous in Singapore and Malaysia. In Singapore, sales from e-commerce accounted for 10% of total sales within three months, while in Malaysia they reached 5% of total sales. 
Ikea’s online store was soft-launched in Thailand on March 26 of this year to test the system and ensure full functionality before yesterday’s official launch. 
Tom Suter, store manager of Ikea Bangyai, said that during the two months of the test run there were 1.34 million visits and 4,900 orders at the Ikea website. 
The company expects roughly 17,000 online orders by the end of 2019. Average purchase per receipt is about 7,000 baht, more than double the average spending at Ikea’s physical stores. 
“We believe that Ikea’s online store will help strengthen, as well as drive the sustainable growth of, Ikea Thailand as our popular in-store shopping experience is complemented with our new online offering,” Mr Suter said, adding that the company expects sales from Ikea online in Thailand to make up about 3% of local Ikea sales this year and help boost overall sales by 2-3%. 
Ms Sherlock said customers visit Ikea’s website 30,000 times a day. Most orders come from Bangkok, Phuket, Chon Buri, Chiang Mai and Nonthaburi. 
Customers can shop on the Ikea online store for every item in stock, with delivery service available for a minimum fee of 149 baht. 
Ms Sherlock said the company still plans to keep opening physical stores in Thailand, viewing the country as a strong future market. 
The increasing ranks of middle-income people will benefit the home furnishing business, she said, adding that the company is also looking for a business partner with which to open a new Ikea format. 

Source: https://www.bangkokpost.com/business/news/1682796/ikea-touts-e-commerce-to-boost-sales