Swedish furniture giant expands presence in Philippines

CEBU, Philippines — Swedish home furnishing retail giant IKEA has expanded its presence in major key cities across the Philippines.

After successfully establishing its “Collection Point” facility in February 2022, IKEA Philippines has now extended its reach to major cities such as Davao, Cagayan de Oro City, and Iloilo City.

According to IKEA Philippines Leotina Bucur, this expansion move reinforces the brand’s commitment to serving diverse markets but also reflects its recognition of the growing demand for its high-quality and affordable home products in these progressive urban centers.

Reaching these regional markets through its newest online and delivery services including truck delivery, “Click & Collect,” and assembly services, the move is poised to bring the signature IKEA experience, characterized by stylish and functional designs, to even more Filipino households, enhancing the accessibility of their renowned home furnishing solutions.

The inclusion of Davao, Cagayan de Oro City, and Iloilo on IKEA’s network marks the company’s mission to make well-designed and sustainable home furnishings accessible to a broader spectrum of the Filipino population, even without establishing a physical store in these cities.

In an interview during the IKEA Philippines four-story facility tour in Pasay City, Manila, Bucur said IKEA continues to expand its presence. This will not only contribute to the local economy but also create more opportunities for Filipinos to embrace a modern and functional approach to home décor.

Benefiting from the robust real estate industry in the Philippines, IKEA registered a double-digit growth in terms of online orders in 2023, since its entry to the Philippines in 2021.

“We are now ready to expand (across the country,” said Jarek Lesniewski, Country Fulfillment Manager, IKEA Philippines.

With this further expansion, the many Filipinos of Iloilo, Davao, and Cagayan de Oro can now shop for any IKEA product available at IKEA.ph regardless of size and weight to be delivered straight to their homes through e-truck (electric truck) delivery.

According to Lesniewski, with Click & Collect, customers who opt to pick up their online orders at their most convenient time may choose to do so at designated collection points in these areas. “They (customers) can also have their flat-pack furniture conveniently assembled with assembly service.

“In September 2023, we launched parcel delivery nationwide which lets customers shop for small to medium-sized furnishings from IKEA. Starting January 15, we are thrilled to bring our full suite of delivery and assembly services to the many Filipinos in Visayas and Mindanao," said Lesniewski.

These new services will be launching on January 15 for Iloilo and Davao, and on February 1 for Cagayan de Oro with these rates:

• Parcel delivery fee starts at P350 for Visayas and Mindanao for orders up to a maximum weight of 40kg and a maximum length of 1.7 meters 

• Assembly and other service fees. All other furniture that requires assembly is nine percent of the original product's retail price. Sofa, sofa-bed, armchair, and footstool assembly 2.5 percent of the original product retail price.  A P50 charge per drilled hole applies to products, which require wall mounting and where assembly service has not been booked.

Sustainable Operation

Lesniewski emphasized that what makes this expansion even more exciting is that IKEA will be utilizing 100 percent electric vehicles (eVehicles) in partnership with Mober, a frontrunner in green logistics services in the Philippines, ensuring zero emissions and a sustainable delivery process. 

Mober, the pioneer in electric vehicle delivery in the Philippines, now has a total of 60 vehicles, encompassing 39 e-trucks, 17 e-vans, and 4 three-wheelers. The logistics powerhouse sets its sights on the Southeast Asian green delivery market, with ambitions of amassing a fleet of 100 electric vans and trucks by year-end and a staggering 500 units within the next two years.

“We are bringing the full IKEA online shopping experience to more people outside of Luzon, while also prioritizing sustainability and reducing our environmental impact,” said Lesniewski.

IKEA Philippines targets to utilize 100 percent e-vehicles for all its delivery operations, especially now that they are reaching out to more regional areas across the Philippines.

According to Mober founder and chief executive officer (CEO) Dennis Ng, IKEA Philippines managed to save over 7,000 kilograms of CO2 because they are using eVehicles in their home delivery operations.

“IKEA is the first retailer  [in the Philippines] who achieved this so much CO2 savings,” Ng said.

About 73 percent of IKEA’s products are sustainable. In fact, 99.5 percent of the wood used for IKEA products is either Forest Stewardship Council-certified or recycled.

IKEA is the world’s largest home furnishing retailer, with more than 464 stores across the globe.

In the Philippines, IKEA is part of Ikano Retail, the only franchisee owned by the family of the IKEA founder Ingvar Kamprad.