Ikea opens first store in Indonesia
Swedish furniture giant Ikea will open its first store in Indonesia this week on a 35,000 square-meter property in Alam Sutera area of Tangerang, Banten province, about 25 kilometers away from the capital city Jakarta. Indonesia is the 46th country of expansion for the furniture giant and its first store in Alam Sutera is the 364th worldwide.
This store will provide 7,000 home furnishing products, of which 550 will be manufactured in Indonesia and distributed across the globe.
“I am so happy they finally opened in Indonesia, so that I don’t have to go to Singapore anymore to get their products,” Erni Pujianti, a dentist in Jakarta told The Establishment Post saying she does not mind the high price because of the “good quality”.
IKEA targets middle class customers by offering products at relatively affordable prices. The company says it expects to tap a third of the 28-million Greater Jakarta residents and reach two-thirds within the next ten years.
According to data from the country’s furniture association, Indonesia’s domestic furniture trade is worth around $1.6 billion, and more than 40 per cent is catered by imported products.
Indonesia enjoyed a decade of strong economic growth which then creating a new middle class and affluent consumers. This segment of middle class consumers in Indonesia that will grow in both size and purchasing power through 2020, according to The Boston Consulting Group (BCG) report released in early March this year.
Such growth is lifting millions from lower income socioeconomic levels into the middle class and affluent categories. The number of middle class and affluent consumers in Indonesia is projected to double between 74 million in 2012 to 141 million in 2020. At that point, the island of Java alone will have more middle class and affluent consumers than the entire population of Thailand.
During that period, some eight to nine million people will enter the middle class category each year swelling the ranks of the middle class consumers in Indonesia. There are now 25 locations in Indonesia, both cities and regencies, with middle class and affluent class populations in excess of 500,000, and there will be 54 locations by 2020.
Swedish furniture giant Ikea will open its first store in Indonesia this week on a 35,000 square-meter property in Alam Sutera area of Tangerang, Banten province, about 25 kilometers away from the capital city Jakarta. Indonesia is the 46th country of expansion for the furniture giant and its first store in Alam Sutera is the 364th worldwide. This store will provide 7,000 home furnishing products, of which 550 will be manufactured in Indonesia and distributed across the globe. “I am so happy they finally opened in Indonesia, so that I don’t have to go to Singapore anymore to get their...
Swedish furniture giant Ikea will open its first store in Indonesia this week on a 35,000 square-meter property in Alam Sutera area of Tangerang, Banten province, about 25 kilometers away from the capital city Jakarta. Indonesia is the 46th country of expansion for the furniture giant and its first store in Alam Sutera is the 364th worldwide.
This store will provide 7,000 home furnishing products, of which 550 will be manufactured in Indonesia and distributed across the globe.
“I am so happy they finally opened in Indonesia, so that I don’t have to go to Singapore anymore to get their products,” Erni Pujianti, a dentist in Jakarta told The Establishment Post saying she does not mind the high price because of the “good quality”.
IKEA targets middle class customers by offering products at relatively affordable prices. The company says it expects to tap a third of the 28-million Greater Jakarta residents and reach two-thirds within the next ten years.
According to data from the country’s furniture association, Indonesia’s domestic furniture trade is worth around $1.6 billion, and more than 40 per cent is catered by imported products.
Indonesia enjoyed a decade of strong economic growth which then creating a new middle class and affluent consumers. This segment of middle class consumers in Indonesia that will grow in both size and purchasing power through 2020, according to The Boston Consulting Group (BCG) report released in early March this year.
Such growth is lifting millions from lower income socioeconomic levels into the middle class and affluent categories. The number of middle class and affluent consumers in Indonesia is projected to double between 74 million in 2012 to 141 million in 2020. At that point, the island of Java alone will have more middle class and affluent consumers than the entire population of Thailand.
During that period, some eight to nine million people will enter the middle class category each year swelling the ranks of the middle class consumers in Indonesia. There are now 25 locations in Indonesia, both cities and regencies, with middle class and affluent class populations in excess of 500,000, and there will be 54 locations by 2020.
