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World’s Largest Furniture Retailer IKEA All Set to Enter Pakistani Market

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Now Reading: World’s Largest Furniture Retailer IKEA All Set to Enter Pakistani Market

The world’s largest furniture retail company – IKEA – is reportedly going to enter the Pakistani markets soon i.e. within a time frame of just a few months. Being a multinational conglomerate that is famous for its unique designs and ready-to-assemble furniture, IKEA would most likely bring its cost-effective product range to a commercially antagonized Pakistani market.

This news of IKEA launching in Pakistan started circulating on various local media outlets after the Pakistani Ambassador to Germany, Dr. Mohammad Faisal, announced it first. Dr. Faisal, in a statement on Tuesday, said that he had met Dieter Mettke from the multinational IKEA conglomerate who was en route to Pakistan to start its operations there and that future projects in collaboration with the conglomerate are being looked forward to.

In what is now a deleted tweet, he had stated,

“Met Dieter Mettke IKEA Deutschland. He is going to Pakistan to be in charge of Ikea operations. We look forward to Ikea opening up stores in major cities of Pakistan.”

As mentioned above, IKEA is a multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories. It was founded in Sweden in 1943 by 17-year-old Ingvar Kamprad. The first proper store for it opened in Amhult, Sweden. IKEA started its Asia push in the early 2000s and it is widely known that IKEA has been the world’s largest furniture retailer since 2008.

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Then in 2018, the international retailer launched its store in the Indian market. As for its worldwide market now, to date, the outlet has over 271 stores in the EU, 82 in Asia, 65 in North America, 14 in the UAE, 11 in Oceania and 2 in Africa. As of now, the group has already taken its huge out-of-town stores packed with modern Scandinavian style to more than two dozen markets, having its products and experience easily recognizable across all of them.

It is to be noted that while in developed markets, it is positioned as a low-priced mass-market brand, in emerging markets, where low prices are the targeted norm, it more so targets a growing middle class that aspires to get lifestyle products of international standard at affordable rates.

Though, as good as this news is for the consumers, realistically speaking: local furniture manufacturers are bound to be not-happy at this news as if an outlet like IKEA opens up in Pakistan, it is bound to force several local companies out of business.

What should be the role of policy in this situation? Tell us in the comments below!

 

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