Wednesday, January 23, 2008

IKEA Opens in Almaty, Kazakhstan


Joshua Foust reports on Registan.net that Sweden's most famous furniture store--already established in Moscow--has opened in Kazakhstan's capital and largest city:
IKEA, the discount Swedish retailer which furnished a swath of my apartment, is opening two stores in Kazakhstan—one in Astana, and one in Almaty. Ben notes the many positive spillover effects this move should bring to the country, despite the fact that far too many people will find even IKEA too expensive, and despite the much longer and more problematic supply chain (think of the woes Lufthansa faced with overflight rights with Russia).
Which reminds me of my 2003 visit to the FAYZ furniture factory in Tashkent, Uzbekistan, where with a delegation from either the UN or EBRD we met with the former worker's Communist Party chief, now running the factory--a glamorous Uzbek woman CEO, by the way. FAYZ had just received some computerized German manufacturing equipment, and a trainload of Russian wood had just arrived in the yard to coincide with our delegation. Still, the furniture was not up to world standards, somehow the design was a little old-fashioned. Why not make a deal with IKEA? I asked the chief. She paused, said that she knew about IKEA, but that Uzbekistan was not yet ready for IKEA.

Now that Kazakhstan is ready for IKEA, can Uzbekistan be far behind?