Wohnst Du noch oder lebst Du schon?
I chose a German advertising slogan as this post’s title for a lack of alternatives (well, one was: ‘Screw yourself in Kazakhstan’). Why? IKEA decided to enter the Kazakhstani market.
Ikea, the world’s largest home-furnishing retailer, plans to invest $500 million opening its first two shopping malls in Kazakhstan as economic growth fuels increased spending in the central Asian country.
One of the giant furniture shops will open in Almaty, the other in Astana. It is a good development for Kazakhstan, although I doubt the products will be affordable for the wider population - something that often sets IKEA apart from its more upmarket competitors in Western Europe.
It will also be a logistical challenge for the multinational to open two shops in Kazakhstan. While the company already has a pretty big presence in Russia, moving into Central Asia will mean much longer transport routes.
But it’s good news for Kazakhstan and for the region: Long considered too remote, too sparsely-populated and too poor - IKEA’s move will have spillover effects and create jobs, and other retail giants will watch closely.
And that all of our flats look the same is something I myself already got used to.
on January 23rd, 2008 at 11:15 am
I disagree that the product will not be affordable for a wider population esp in Almaty and Astana. IKEA is the cheapest place for furniture shopping and therefore welcome in Kazakhstan to create more furniture options for Kazakhs. In the end most of the furniture is made in China at a cheaper cost and if Kazakhs can afford to buy cars although mostly used, they will also be able to afford to buy cheap IKEA furniture!
on January 23rd, 2008 at 2:58 pm
Good news, and Almatians will sweep off the shelves for sure. Like in Kazan - people bought everything (!) in the first day of grand opening, including cups and napkins.
on January 23rd, 2008 at 3:10 pm
On Registan, Josh discusses the same story (we actually almost wrote the same posts without knowing!). In the comments, KZBlog is confident that IKEA will be able to fill the niche for mid-priced furniture.
Taking into account that Kazakhstan still only boasts a relatively small middle-income group, I stand by my opinion that it will be a rather exclusive treat to buy Scandinavian furniture for self-assembly.
That’s not to say that cheap cups, candles, etc. will sell well. In the end, we all know that while IKEA really has some cheap stuff, their average sofa/kitchen/bed often isn’t.
Yet I agree with Adam, it is good news!
on January 24th, 2008 at 8:43 pm
Sofa/Kitchen/bed stuff in IKEA is the cheapest in the US and compared to prices in KZ in furniture stores I am sure IKEA will be one of the cheapest or at least midrange, therefore I am sure IKEA will be a good place for shopping for at least 50% of Kazakhs! Therefore Kazakhs won’t have to go to Urumchi to buy furniture, I disagree with Ben that most Kazakhs won’t afford IKEA furniture, esp in Almaty and Astana living standards have gone up.
on January 24th, 2008 at 9:10 pm
Thanks Nurzhan. I think IKEA will not suffer from too few customers, that’s for sure. And maybe you’re even right with your 50% estimate, after all the shops will cater to the urbanites in Astana and Almaty. I personally can’t wait to set my foot in one of the shops!
on January 25th, 2008 at 12:41 pm
Good news! I’m sure everybody will be waiting for it! Even today it’s very popular in Almaty, I bought an IKEA sofa from Chinese catalogue. A lot of people make orders from China and UAE.