bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Saturday 23.06.2018 | Name days: Līga

Lithuania shows Estonians how to make use of IKEA

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Lithuania’s furniture industry has once again taught a lesson to Estonia of how to make use of such giant clients as IKEA also during the crisis period. Out of 30 main Baltics suppliers to IKEA, the major part is taken up by Lithuania, while Estonia supplies a very little share, reports the Estonian newspaper Aripaev.

Although Estonia is aware that it is very important to attract strong clients, promoting export and restructuring economy, their collaboration with IKEA has not been successful, despite the word-wide company has launched 12 new stores in 7 countries this year and manages 280 stores in 26 countries in total.

«One of the reasons is that there are different basic costs in Lithuania, however what matters is also the fact that Lithuanians tend to think on global-scale more than Estonians. They have had a king after all, they Catholics, with completely different mentality and bigger enterprises already from Soviet times,» says one of the leading Estonian furniture producers Priit Tamm.

«I believe it is already way too late for Estonia to collaborate with IKEA,» says Tamm.

Invest Lithuania senior analyst Dalius Simenas informs IKEA is of major importance for Lithuania furniture industry. «Before the crisis, furniture producers earned one third of export revenue thanks to IKEA. The tendency has been ongoing also in the first half 2010,» points out Simenas.

He says such export helps producers to cover for their domestic loss. «During difficult times consumers in both Europe and North America prefer cheap but qualitative furniture. There are tens of furniture producers in Lithuania developed thanks to IKEA

Statistics prove the fact – Lithuanian furniture and interior design goods export has increased by 11%, while Estonia experiences only 4% climb. Latvia reports 3% drop. During the crisis export fell by 15% in Lithuania, 18% in Estonia and 33% in Latvia.

Tamm says six to seven years ago Estonian furniture industry supplied IKEA, but when the client decided to transfer its factory to cheaper states, local furniture producers of Estonia started to look for other clients and develop their own brands.

According to Tamm, being a supplier for IKEA in Baltics means working only for them, accepting their business structure and philosophy reflecting the values of the company, «Becoming IKEA supplier means huge amounts of work that has to be managed well.»

Estonian producers tend to complain about IKEA costs and prices, as collaboration with them requires huge investments also from the supplier,» informs Tamm.

Estonian company Tramel informs they have considered cooperating with IKEA, but they required lower prices each year,  «If you do not agree, they conclude an agreement with someone else. We have made this mistake twice already.»

What is good is that IKEA store could be opened in Lithuania. IKEA spokesperson said they do not plan opening a store neither in Estonia, nor Latvia, while it could be launched in Lithuania in three to five years time.


Leave a reply

  1. Ruth.lt says:

    Estonia – lesson learnt….

  2. Estella says:

    I feel so much happier now I undertsnad all this. Thanks!

SRS uncovers numerous violations more than half of inspected companies

State Revenue Service’s Tax Control Office performed a total of 305 thematic inspections of employers in Latvia in Q1 2018. Authorities recorded violations in 171 inspections, according to information from SRS.

Third level pension plan deposit volumes reach new record value

Residents’ interest for pension savings remains high. The volume of deposits made to private pension funds in the first three months of 2018 has reached a new historic peak: a total of EUR 16.5 million has been paid to 3rd level pension accounts, which is 11.6% more when compared to the same period of 2017, as reported by Finance and Capital Market Commission.

Petrol station network in Latvia caught performing fraudulent activities with diesel fuel

State Revenue Service’s Tax and Customs Police have uncovered and put an end to a fraudulent scheme with diesel fuel performed by some network of petrol stations in Latvia, as confirmed by the service.

Kaimiņš: I believe CPCB is performing a political order

In the evening of Thursday, 21 June, Corruption Prevention and Combating Bureau released three people previously detained as part of a criminal process regarding possible illegal funding of KPV LV party – Saeima deputy Artuss Kaimiņš, his colleague Atis Zakatistovs, and businessman Viesturs Tamužs.

Latvia’s parliament conceptually supports new sanction regulations

On Thursday, 21 June, Saeima supported in the final reading amendments to the Law on International Sanctions and National Sanctions of the Republic of Latvia that are meant to improve sanction regime regulations to ensure efficient application of national and international sanctions, as reported by Saeima press-service.

Storm in Tallinn floods streets, cuts Croatia-Argentina match short on TV

A rain storm has hit northern Estonia on Thursday, flooding some streets in the capital Tallinn, damaged buildings and badly affected the broadcast of an interesting World Cup game.

American banks tested for financial stress show positive results

The U.S. has performed banking stress tests and found that the 35 largest banks operating in the country have enough funds on hand to sail safely through a severe financial crisis.

Saeima fires judge for coming to work in a drunken state

On Thursday, 21 June, Latvia’s parliament supported the proposal to dismiss Rezekne Court judge Arvis Garais from his post. 71 deputies voted in favour, no one abstained and no one voted against.

UK to have three requirements to EU citizens willing to remain in UK

For citizens of the European Union willing to continue living in the UK after the country leaves the bloc, they will have to submit applications and answer three key questions over the internet, according to the country's interior minister.

Weather in Latvia to be rainy and cool during Ligo; next week’s weather to be dry and hot

Weather at the end of the week in Latvia will be dictated by a cyclone. Because of that, there will be instances of rain on Ligo. Weather is expected to improve next week, however, according to Latvia’s State Environment, Geology and Meteorology Centre.

Lithuania’s blood plasma corruption scandal extends to Latvia

The former head of Lithuania‘s National Blood Centre, suspected of corruption and involvement in unlicenced activity, received more bad news this week from Latvia, where investigators of the Lithuanian Special Investigation Service had questioned the Latvian Health minister, Anda Čakša.

Administrative burden to be reduced for foreign students and researchers

The administrative burden will be reduced for foreign students and researchers, as well as all education and research institutions hosting them. This is provided by the amendments to the Immigration Law approved by the Saeima in the third reading on Thursday, 21 June.

Latvian Economy Minister endures no-confidence vote

Saeima declined opposition deputies’ request for dismissal of Economy Minister Arvils Ašeradens.

Swedbank economist becomes new member of Bank of Latvia Council

On Thursday, 21 June, Latvia’s Saeima approved Mārtiņš Kazāks in his new post as member of Bank of Latvia Council, as confirmed by Saeima’s press-service.

Pope Francis’ visit to Latvia will be a national holiday

Latvia’s parliament has approved in the final reading a law that makes 24 September – the day Pope Francis plans to visit Latvia – a national holiday.

ICT specialist numbers in Latvia are below Europe’s average level

In Latvia, information and communication technology specialists form only 2.2% of all employed people in the country, which is considerably below the average level in the European Union – 3.7%. Romania and Greece are the only two EU member states in which the number of ICT specialists is below Latvia’s, according to European Commission’s DESI index.

Hungary adopts prison sentence for helping migrants

Hungarian National Assembly has passed a set of laws criminalising with prison terms some help provided to illegal immigrants by non-governmental organisations.

Harmony plans turning to Constitutional Court to prevent transition to Latvian language in schools

«Why should this reform stay unrealized? It is because schools are not prepared for cardinal changes coming from dozens of other reforms that have already shocked the country’s entire general education system,» says chairman of National Minority School Parents Forum and member of Harmony’s work group in Konstantīns Čekušins.

Deputies detained in KPV LV criminal case not declared suspects yet

Saeima deputy Artuss Kaimiņš and businessman Viesturs Tamužs detained in the criminal process regarding possibly illegal funding of KPV LV party have not yet been declared suspects. Both are currently in police custody. It is likely Kaimiņš will be released later today, 21 June.

Production of mines and grenades planned in Estonia

As the Estonian parliament has adopted new rules on military arms and ammunition production in the country, local defence firm Eesti Arsenal has voiced its plan to build a factory in Estonia to make military explosives.

Total tax debts in Latvia reached EUR 1.224 billion in June

At the beginning of June, total tax debts in Latvia, including topical, halted debts and extended repayment terms were equal to EUR 1.233 billion, which is 0.6% less compared to May, as reported by State Revenue Service.

Switch off internet nationwide during exams – Algerian approach

In an attempt to prevent cheating during secondary school exams, the north African nation Algeria, has turned off internet in its whole territory.

Control Service proposes kicking out shell companies as intensely as offshore companies

Shell companies in Latvia should be combated with the same intensity once shown to offshore companies, says chief of Anti-Money Laundering Service Ilze Znotiņa.

EU imposes tariffs on blue jeans, motorcycles and other U.S. export goods

The European Union will introduce retaliatory tariffs against U.S. exports on Friday, EU Trade Commissioner has stated a top official has stated in the bloc's reaction to Washington imposing steep duties on steel and aluminium earlier in June.

Latvia’s Saeima proposes improving job-combining rules for state officials

On Wednesday, 20 June, Latvian parliament’s Public Administration and Local Government Committee decided to submit for review amendments to the Law on Prevention of Conflict of Interest in Activities of Public Officials.

Newest comments