國際企業宜家家居拓展至印尼市場所將面對的挑戰

Abstract

Indonesia is a developing country which recently experiences strong economic growth in all industry sectors. Many foreign companies plan to invest in Indonesia in the coming years. One of them is IKEA the giant furniture retailer from Sweden. With the strong concept IKEA has expanded into 40 countries and in 2014 IKEA will open the first store in Indonesia. In expanding to a country, several factors are taken into account in order to figure out the attractiveness of the market. In this paper, IKEA expansion to Indonesia is analyzed by using 5 keys of home furnishing consumption as defined by Euromonitor. The Indonesia home furnishing industry is growing due to the stable economic and rising disposable income thus the people is spending more on durable goods. However, several challenges might arise from the fact that the local people are not accustomed to DIY concept, the many competitors in the market and the location of IKEA first store since it is located outside the city center. Based on the analysis on the challenges that IKEA might face in Indonesia, this paper suggests some solution to minimize the potential issues. Finally, though the IKEA expansion to Indonesia is expected to face some issues, based on the interviews with top management of IKEA and the author’s analysis, IKEA is pretty optimistic in term of competing with local competitors and seizing the market.