Is IKEA Poland cheapest in Europe?
I’ll answer right at the very
Inspired with BEKANT desk controversy which hit polish web 2 years ago (same desk in IKEA Sweden was 600 zł cheaper than in IKEA Poland), I’ve decided to check the facts. Analysis available on the web compares only few products. This is definitely not enough. Let’s check whatever is possible.
IKEA’s product offer differs from country to country, to maximize the reach of analysis, I match the maximal number of matching products by product id (ie. 690.225.37) for prices in Poland and each country separately. Therefore, there are different numbers of compared products. I refer to country prices only to Poland, not to another country/countries (scope may but may not be different there). Prices have been scraped from IKEA online stores beginning of January 2019, and average FX rates from NBP’s Table A and Table B, dated 2nd of January 2019.
Before I get to the point, let me focus on BEKANT desk itself for a while. Let’s see how the price is shaped now.
(Click legend to switch price view to BEKANT PPP index)
The desk is a bit cheaper in Poland than it was in 2016 (still cheaper in Sweden, not that much though). But there are countries where it is much more expensive, as well as such where it is even cheaper than in Sweden.
Clicking yellow element on the legend, you can see how many BEKANT desks, a citizen can afford for the average net wage in the country (Wikipedia: average net wage). It is
Let’s move to full summary.
IKEA Price Map
As I’ve mentioned, numbers of compared products
There are obviously no Canada nor USA on the map, but you can find them on the bar chart, right-hand side.
Poland is indeed the country, where you can buy IKEA products for the lowest price. There are few countries which are only slightly more expensive, but the biggest surprise is Italy, with average price only 0.3% higher. Greece and Cyprus are on the other side of the spectrum,
I put onto the chart categories, where matching with IKEA Poland product offer is no less than 50 products.
Poland is the cheapest in the vast majority of categories. The big surprise is the living room equipment. The average price is nearly 25% lower than in Poland. Buy sofas only in Italy 🙂
IKEA PPP Index
IKEA PPP Index, which I present here, is nothing else than a number of average IKEA products you can buy for an average net wage in a country. Results are presented as a percentage, referenced to the analogous price index in Poland.
For example, 200% means, for an average wage you can buy twice more products from country and Poland common product offer.
With an average price difference of only 30%, this summary should not be a surprise. It is worth looking anyways.
Again, it is completely different picture if you look at products economical availability expressed through IKEA PPP Index. Which is not surprising as prices varies not that much in Europe (and North America), but average wages do.
Global price strategies have been described in multiple elaborations. Any thought’s on IKEA’s pricing?