This News is also iwas also in the Nations Business section!
IKANO GROUP
Ikea mega-stores coming here soon
By KWANCHAI RUNGFAPAISARN
THE NATION
Published on May 12, 2009



Singapore-based Ikano, which has received the franchise rights for opening Ikea home-furnishing mega-stores, has shown its commitment to invest in Thailand despite the economic and political difficulties.

The company plans to open at least three Ikea outlets in Bangkok in the next 10 years, said managing director Tom Huzell.

Wholly owned by Luxembourg's Ikano Group, the Singaporean subsidiary now has the franchise rights for Ikea stores in Singapore, Malaysia and Thailand.

Ikea is one of the world's biggest retail chains for home-furnishing products, with more than 300 stores in 35 countries.

"We see Thailand as a great potential market," Huzell said.

He called Thailand a fantastic supplier country, one that is a strong, skilled production base for home-furnishing products. Ikea purchases Bt5 billion worth of furniture products annually from Thailand as part of its global sourcing strategy. The opening of Ikea stores in Thailand will encourage local suppliers to access Ikea's global market.

Huzell said Singapore was now ranked 12th globally for Ikea in number of visitors, and Malaysia fifth. "We expect Thailand to take a top-ranking position for Ikea, as well."

Huzell said each store would cost ค80 million (Bt3.76 billion) to open, occupy 35,000 square metres of retail space and carry 9,500 products.

The Ikano subsidiary and Siam Future Development yesterday announced a new joint venture called SF Development, which will build a Bt10-billion shopping complex called Mega Bangna, featuring the first Ikea store and expected to create 20,000 jobs.

The first Ikea will be in Mega Bangna, located on Bang Na-Trat Road Km 9, near the Kanchanaphisek Outer Ring Road.

Huzell said that in accordance with the Foreign Business Act, Ikano would own only 49 per cent of the new joint venture. Siam Future will own another 49 per cent and local furniture-maker SPS Global Trade the rest.

SPS has supplied home-furnishing products to Ikea for more than 20 years.

Siam Future Development CEO Nopporn Witoonchat said the Mega Bangna shopping complex would consist of 400,000 square metres on 290 rai of land. Construction of the mega-complex will start in the third quarter, with opening scheduled for no later than the first quarter of 2011.

The Mega Bangna complex will cost Bt10 billion, consisting of Bt3 billion for the land and the rest for construction. Its catchment area - a radius of 40-50 kilometres of radius from the venue - will cover 14 million people. The complex is expected to attract 40 million shoppers annually.

"Mega Bangna will open by 2011, and we expect it to break even in 10 years," said Nopporn.

Huzell said Ikano now operated two Ikea stores in Singapore and one in Malaysia.

"We are also interested in opening Ikea stores in other potential markets in this region, such as the Philippines, Vietnam and Indonesia," he said.

Any comments to this SPEAK UP PLEASE!!!!

Your's The understudy!

Great, just what LOS needs, another store where the staff follow you around without a clue about what they sell or where it is.

Patience US, it's less than 3 hours since your announcement, on a rainy (some places) Tuesday night at 2210 hours.

I'm sure the morning will bring more comments from this end, and the EU end when they get off work or on lunch break.

I haven't gone back and re-read the first three pages of this thread, but I think we talked before that these products should be a success for medium budget Thai shoppers.

If they're going to export more from here thinking they'll capture more of the world in a recession thinking mood, they may be too late by the time they get more capacity up and running, and actually exporting more. The buying world may be back into a 'buying higher' mode by then.

Anyway, if you're thinking about stock investment opportunities, 50-50. I would perhaps sacrifice a low share price now and wait to see if the world economy and what they're offering is a match, say 12 months from now. Yes, I'm a bit bearish.

If you're thinking of finding a location here in Thailand and opening an outlet, I think that could be a success, IMO. But.....not HH, Pattaya, Chiang Mai, Bangkok, the power guys would swallow you up. Go to some place like Korat, Khon Kaen, Udom Thani, Rayong etc. I think your chances of capturing a market are better in places like that. However, you could come from a family of Army Generals? Pete

Good MOrning to Y'All here on HHAD

Well I think this venture comes a little late. Singapore and Malayisa have their Ikeas a long Time ago. And now they are venturing into Thaland?

Well better late than ever I say, But local Furniture Manurfacturers had geared up thier Designs recenlty. SB Furniture and Koncept have even set up a Show room style shop similar to Ikea which is called SB DEsign Square.

Hmmm... We must see if the econnomical Situation improves during the year of construction during all of 2010 and it's openning in 2011 a recovery in economic terms is @ hand!

Pete I'll agree with you that IKEA Furniture should be a success for medium buget Thai Shoppers and DYS bums. As SB Furniture is more focussed on the Comsopoltitan Foriegn /Thai user.

With 20.000 Jobs to be created with the new Mega BAng NA Mall it could be something for me as I'm planning to shed my Journalistic Skin like a snake to slip into a new skin in the Furniture Indusrty!

Your's The understudy!

Even MCOT news features this News as they are a little bit slower than the other News Agencys.

Thai, Swedish investors plan mega-shopping complex

BANGKOK, May 11 (TNA) - Thailand’s Siam Future Development Pcl. and Ikano Pte. Ltd. of Sweden on Monday signed an agreement to invest together in building a shopping centre on the eastern outskirts of Bangkok which will be the largest in Asia.

The agreement was signed here by Nopporn Witoonchart, chief executive officer of Siam Future Development, and Tom Huzell, managing director of Ikano Pte. Ltd., a subsidiary of Ikea and S.P.S. Global Trade.

Under the agreement, construction of the Mega Bangna Shopping Center will start late this year and due to be launched during the first quarter of 2011 with total investment of Bt20 billion.

The shopping centre will occupy an area of over 40,000 square metres and will become Thailand and Asia’s largest complex offering furniture products. It hopes to attract about 40 million customers annually and will offer more than 20,000 jobs on completion.

Mr. Huzell said his company had earlier invested significantly in Singapore and Malaysia and believed that the Mega Bangna Shopping Center could help Thai furniture producers to be able boost overseas exports.

He expressed optimism that Thai politics and economy would improve in future.

Thai Finance Minister Korn Chatikavanij, who witnessed the agreement signing ceremony, said it was a positive sign that foreign investors had decided to invest in a mega project in Thailand as they believed that economy would improve in the next few years.

Siam Future Development stock on Monday jumped 10.6 per cent to close at Bt3.74 on the Stock Exchange of Thailand, its highest since last October. (TNA)

If anybody have an opinion or comment PLease I BEG You post overhere!!!

Your's The understudy

At what level or in what capacity are you thinking of? Pete

I have bought Ikea furniture in the UK and managed to put it together, but, it took me quite a long while. We recently furnished a house in Hua Hin and bought some of our furniture from Index. I am pleased to say that they delivered on time and a two man, uniformed team, assembled the flat pack stuff efficiently and mess free. If this type of furniture suits your taste and budget I would recommend them. BTW we bought electrical items from Big Kiang, including aircon, ceiling fans and a TV, all delivered the next day at very good prices.

I'm not sure yet as this News is fairly new and I hafta get things in line before making A Job aplication. Maybe Corperate Communications officer, a member of the Marketting Team.

I've looked @ other Foreing?Thai Forums without participating of course and found out maily good responses so far. Now I would hear from my fellow HHAD Men of Honors of how do you think will the entry IKEA to Thailand in 2 years.

I think INdex and Winner must be worried because they will fill a nice largely ognored. Yet prices are unknown but they will be expensive but Ikea porducts will be visible and unvisible by Quality.

Your's The understudy!!!

Good evening from LosAng to Y'all my fellas of HHAD Community!!!

Here are the first pics and facts of how IKEA in Bangkok and it's adjacent Mall in Bang Na will look like all Pics are courtesy of Siam Future Development


A Detailed scatch of how the inside would look like.


The Centers Floorplan


Detailed scatch of the front Entrance


Aerial View of the entire Mallground plus IKEA


second Aerial View


Location, Location, Location


Image says it all!


Volume of Traffics


Fact sheet Eins


Fact sheet Zwei


schedule Chart


Computer Generated Image Big!


At a Glance

Well What do Y'all think? Is This new Mall Development? I have my own reservations and critisims regarding the Design of that Center as Well. What they are that I will gonna tell ya a few songs are in. Pete. Margeret, Sarge, STEVE G, Buksida and Y'all please voice your opinion and give a "shout Out" on this newly Mall that's being constructed just outside Bangers!!!

Your's The understudy!!!!

Is this still a CONCEPT or has construction started ( should have been last quarter 2009) ?

Hi thee PET

Sources @ Skyscrapercity.com say Comstruction has been Started and it's ongoing! They want to get the most important Parts done before Rainy Season sets in!

Your's The understudy!!!

Yeah they could employ the Swedish chef out of Sesame street for the food court and have the myriad of sales staff dressed in blond wigs with platts that would make Lolitas look like a high school reunion (oops sorry it does) speaking - urrt da burrta gert !!
Opportunity for Swedish speakers to come forward for some in service training too (oops sorry those on an O visa not allowed)!!!
PS the knock up furniture couldn't be any worse than what you get flogged in HH !!!