Russian furniture manufacturers are lobbying the government in an attempt to claw back ground from IKEA in the cheaper end of the domestic market.
The Swedish company recorded sales of US$200m in Russia during 2001, despite only operating one store in the country until this year. And according to some estimates it could control as much as 10% of the market.
The Association of Furniture and Timber Processing Enterprises plans to call on the government to raise import duties on furniture. It says this is needed to give Russian manufacturers time to invest and to launch competitive products.
The association also disagrees with IKEA’s strategic investor status which enables it to enjoy allowances in customs clearance and taxation.
IKEA has managed to achieve a lowering of import duties several times.
