IKEA - From Swedish Heritage To Southeast Asian Mall Culture

From beautiful furniture to delicious meatballs, IKEA is grasping the hearts of its customers worldwide, including Southeast Asia. Let's unfold what marketing strategies the Scandinavian brand used to build a firm stand in this 10,000-km-away region.

Dr. Siti MUNERAH | Sunway Business School, Malaysia

Kim Thanh LE | Nikkei BizRuptors

Published On 03 Nov 2023

Last Updated On 03 Nov 2023

At a glance

Origin

Sweden

Founded

1943

Sector

Home Furnishings Retailer

Entered Southeast Asia

1978

Abstract

IKEA has successfully transitioned its Swedish heritage into the dynamic Southeast Asian market, blending its iconic Scandinavian design with local cultural nuances. This case study delves into how IKEA leveraged its core principles of affordability, functionality, and sustainability while embracing cultural integration to resonate with local consumers. 

Key insights include IKEA’s localization strategies, such as adapting its food offerings and store layouts, and its investment in renewable energy and digital platforms. Furthermore, the study assesses the impact of market dynamics, including the rise of e-commerce, consumer preferences for offline purchases, and the challenges posed by the COVID-19 pandemic on IKEA's operations and growth.

This case study invites readers to explore IKEA's strategic decision-making, evaluate its competitive positioning, and consider future opportunities in a rapidly evolving market. The findings underscore IKEA's ability to balance global consistency with local relevance, offering a blueprint for businesses navigating international expansion in culturally diverse regions.
 

Disclaimers:

(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.

(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).

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