Taking IKEA to Russia

1. Taking IKEA to Russia By: Anna Constatino, Charlene Selle, Zien (Emily) Huang, Sebastian Eldrup-Jorgensen, Sidhesh Sarda, Thais Alvarez

2. Taking IKEA to Russia • IKEA offers furnishing products and house-wares that have a wide appeal to a variety of markets – both B2C and B2B. • The IKEA brand is associated with simple, low cost, stylish products and the low-cost strategy is especially aimed at attracting middle class, young people. • At the end of 2009 financial year IKEA group had 267 stores in 25 countries. • Russia is an interesting market because: • Market-based and globally integrated economy. • Population is 140 million – workforce is 76 million. • Unemployment rate 8.9% (2010). • Russia’s GDP per capita is $15,100 – which ranks 75 in the world. • The GDP growth rate was 2.9% in 2010 Q1 signaling a quick return to the stable economic situation prior to the financial crises (GDP was growing at 4-6% YOY). • Conclusion: Large middle class and a growing economy supported by the income distribution rates. • In Russia 72% of the population are between 15-64 years old, IKEA’s main target demographics. Furthermore Russia has experienced an increase focus on interior design.

3. Taking IKEA to Peru By: Anna Constatino, Charlene Selle, Zien (Emily) Huang, Sebastian Eldrup-Jorgensen, Sidhesh Sarda, Thais Alvarez

4. Taking IKEA to Peru • IKEA offers furnishing products and house-wares that have a wide appeal to a variety of markets – both B2C and B2B. • The IKEA brand is associated with simple, low cost, stylish products and the low-cost strategy is especially aimed at attracted young people. • At the end of 2009 financial year IKEA group had 267 stores in 25 countries. The first IKEA store in Latin America opened in February 17, 2010 in Santo Domingo, Dominican Republic. • Peru is an interesting market because: • Peru’s GDP, “the top growth performer in Latin America,”should expand 6.3 percent in 2010 and 6 percent in 2011 (IMF forecasts). The GDP per capita is $8600. • Free trade agreement between Peru and the EFTA (European Free Trade Association).Important for Ikea as it will help to reduce the costs. • Peru is an emerging, market-oriented economy characterized by a high level of foreign trade and a high level of inequality. • Fitch rates the peruvian economy BBB-, S&P rates it BBB+ • Due to its geographical location Peru has many harpors shipping is an obvious solution. • The Peruvians are expected to accept/welcome the price-quality ratio that IKEA provides.