Georg Platzer: Behind the Scenes with IKEA Philippines (Part 1)
Southeast Asia Manager and IKEA Philippines Head Georg Platzer says this about his work, "In IKEA, I could live my life, be myself, and be authentic, not needing to fulfill any roles with room to grow and improve myself. I was never tired of going to work; this is why I have so much energy in this job."
IKEA. How do you pronounce it? Europeans call it "ee-kay-uh," while English-speaking countries pronounce it as "ai-kee-uh". I say tomato-tomato because whether you pronounce this iconic brand with a long or short I, one thing is for sure, its name needs no introduction.
The brand's humble beginnings can be traced back to 1943 when Ingvar Kamprad founded IKEA at 17. Back then, the business mainly sold household knick-knacks like pens, wallets, and picture frames in Älmhult, Sweden. As time passed, IKEA grew into a household name known worldwide, selling ready-to-assemble furniture and home accessories with 466 branches in 63 countries. Reaching so many people in different parts of the globe requires a lot of talented and dedicated people to ensure that the company runs like clockwork no matter where. Georg Platzer, IKEA Philippines Store Manager, is precisely one who guarantees that the company's mission/vision still holds true today as it did in 1943.
Georg and I are in one of the many room sets of IKEA Philippines. Behind us is the picture of an actual backdrop of the Metro Manila skyline.
How it Began
At the age of 24, Georg, then living in Graz, Austria, was looking for an escape from the rigors of the hospitality business where he was employed. The long hours, working well into the night, and public holidays did not sit well with his girlfriend back then. So when a Swedish home furnishings retailer offered employment with fantastic working hours, he jumped at the chance. He and his girlfriend applied together and got the job.
At first, Georg did not have an interest in home furnishings, let alone know what the job entailed, but from the get-go, IKEA made him feel welcomed. He recalls, "There was a different ambiance and a spirit of togetherness and teamwork. IKEA discovers young talents and makes them grow along with the company. As a young person who didn't know much, IKEA provided great support from its superiors and good mentorship."
Thus began Georg's 20 years of work in Austria alone, landing several positions in stores and the service office at headquarters. His proficiency led him to move around the country from Graz to Vienna, Innsbruck, and back to Vienna, performing as needed and as expected. There was the option of uprooting his life altogether, but he opted to stay in Austria to be with his growing family. By this time, Georg had married his then-girlfriend, Tatjana, and now celebrates thirty-seven years of marital bliss with their two sons, Daniel and Florian.
As the kids grew older, Georg's options widened, and management saw the prospect of opening a store in Southeast Europe. Backed with knowledge and expertise through the years, Georg and his family left Austria in 2010 and led the team to open the first IKEA store in Croatia in 2014.
From Southeast Europe to Southeast Asia
After a successful store opening in a new country, the wheels of fortune continued to turn for Georg as he connected with diverse groups of people in the IKEA world. Heads meet, ideas come in, and you soon start discussing what's next. Georg explains, "You start talking, and in our case, there is always the next step, and then one day, I met a guy from Singapore. We casually discussed the Southeast Asian market and expansion plans, throwing off ideas. My wife and I love traveling to Southeast Asia and have been to Thailand, Vietnam, Cambodia, and other countries except for the Philippines. We loved the countries and thought maybe one day; we'd have a chance to work there. You send some wishes to the universe, and they come true."
The ball started rolling after that. Serious talks ensued, and Georg received an offer to work in IKEA Southeast Asia without knowing exactly what the job required. There were several options in Malaysia, Thailand, and even Singapore.
Plans for the Philippines began in November 2015, and the offer became more concrete. Georg narrates, "They asked me if I would go to the Philippines just to start a business because I did the same thing in Croatia. They said that I had the knowledge and background, and they thought it would be beneficial, and indeed it was. So yeah, I said yes."
In January the following year, Georg went to the Philippines from Europe in secret to look around for three days. He shares, "It was not as we expected because it's so different from other Southeast Asian countries; however, we still liked it and decided to do it. So I came here in June 2016 and was the first IKEA coworker on the ground." The IKEA Philippines space was a small business office in The Enterprise Center, Makati, where Georg brought in the first team members on board. In the beginning, the team consisted of three members; four months later, there were five. Now, IKEA Philippines employs almost one thousand people, including all the internal service providers.
Selfie time with the hubby. No need to tell us twice; we will definitely enjoy our shopping in IKEA.
The Process
Inasmuch as we would all want an IKEA store to pop up overnight, as in all good things, much of it takes time and a lot of research. The Philippines has always been in the expansion plans of IKEA as there have been many countries that have played host for ten, fifteen and even twenty years. Take Singapore, for example, where IKEA has existed for four decades.
The key to opening a store in some places necessitates a franchisee to take care of the business. Ikano Retail, one of the twelve IKEA franchisees worldwide, decided to go to the Philippines in 2014 and check out the market potential, whether there was enough need for home furnishing, and if it would fit the market. It didn't take them much convincing, and they soon discovered that the Philippines proved to be a favorable market for IKEA.
Now the real work begins. When IKEA opens in a new country, meetings with different developers, looking for land, searching for partners, etc., is a process that can take seven to nine years, depending on which part of the world a new store is being built. It is safe to say that opening a store in a more developed country is faster than in a less developed country. For instance, for IKEA Philippines, it took seven years from conception to opening day.
Challenges Encountered
From the operational point of view, there were no significant challenges. Georg explains, "The bureaucracy is the same in any other country; there is a lot of paperwork and many areas where you must comply. Each country has specific compliance rules, laws, and standards that you need to apply and comply with. Specific categories in our range must be regulated in the Philippines, and you must fulfill all requirements to import and sell the items. All of this takes time. In this case, the main challenge is the time." Luckily, IKEA Philippines received much support from the trade industry and customs, which hastened the process.
Construction. The construction of the IKEA complex proved to be challenging. With the complexities of local building standards, Georg and his team underestimated the time it took to build such a massive structure in the Philippines. In addition, construction was put on hold for six weeks due to the pandemic, which caused an additional five to six months delay. As a result, the total construction time took a year longer than initially anticipated. Nevertheless, Georg points out, "We have learned a lot; now we know and are much better prepared for the next project."
As expected, setting up a business on such a grand scale comes with its challenges, but nothing that couldn't be managed with the proper know-how. Nothing comes easy, as they say, especially not with the first one. So take everything in stride and continue working; eventually, it will become easier because you'll have everything you need.
End of Part 1
Find out more about IKEA Philippines and Georg Platzer's shopping tips and tricks (with more pictures) next week in Part 2.