IKEA - Santo Domingo

Kenny.rivero

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Aug 9, 2010
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So IKEA is setting up shop in the Dominican Republic. Don't get me wrong, I'm all for cheap ass furniture that looks good, but not in a country with an unstable economy in need of an industrial shift that improves the condition of its population and not foreign investors. The island is already being raped by the tourism industry and now that IKEA is in the mix, small enterprise furniture manufactures on the island will become endangered. 100,000 families in the Dominican Republic rely on the country?s furniture industry for its livelihood so I spit on the 500 new staff positions IKEA plans to bring to the country. Foreign investing can work. President Fernandez should create incentives that attract better companies. Companies that will use the country?s resources and its artisans to establish a strong export industry that will generate foreign income for Dominican business owners. Ikea might give the impression that Dominican Republic is developing into a more modern economic state but it?s a false hope that doesn?t do enough to improve the economic condition of its people. The Swedes don?t need Dominican pesos, the one third Dominicans living below the poverty line do. The 20% of Dominicans living in extreme poverty do. The extremely poor Dominicans of Haitian decent and migrant seasonal workers from Haiti need pesos. Not Mikael Ohlsson (president IKEA) and Hans Gydell (President Inter IKEA Group).
 

Hillbilly

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Jan 1, 2002
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Might be a little harsh for some readers, but I think you are quite right. Now if some of their furniture were to be made here by local artisans using IKEA patterns, then we might have a better basis to like IKEA...Just like most of the hotels and chains, they take a lot and give little.

HB
 

Robert

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Jan 2, 1999
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Might be a little harsh for some readers, but I think you are quite right. Now if some of their furniture were to be made here by local artisans using IKEA patterns, then we might have a better basis to like IKEA...Just like most of the hotels and chains, they take a lot and give little.

HB
This is never going to happen.

Welcome to the reality of capitalism, adapt or die.
 
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cobraboy

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Might be a little harsh for some readers, but I think you are quite right. Now if some of their furniture were to be made here by local artisans using IKEA patterns, then we might have a better basis to like IKEA...Just like most of the hotels and chains, they take a lot and give little.

HB
No economies of scale and efficiencies.
 

bienamor

Kansas redneck an proud of it
Apr 23, 2004
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Well for me

Went through IKEA the other day, and was not that impressed. probably won't be going back. A few things I might have bought but for the majority I can find made or sold local.

To expensive, and don't like the OSB an particle board. Just my position
 

belgiank

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Jun 13, 2009
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Might be a little harsh for some readers, but I think you are quite right. Now if some of their furniture were to be made here by local artisans using IKEA patterns, then we might have a better basis to like IKEA...Just like most of the hotels and chains, they take a lot and give little.

HB
IKEA is one of the companies which does care about economic problems and the people around it... so to compare them to some of the hotels... is, in my opinion a cheap shot...

Sure, they are here to make money... which seems quite logical to me... but if local producers here can prove to them they can provide their quality standards (which are low for me), at a good price... they will hire them...

so why crucify Ikea... this is one of the better foreign investors here... in my humble opinion
 

cobraboy

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I've been in three Ikea stores, two in the states and one on The Capital.

They are all almost identical. Certainly the furniture is.

Seems one reason for success is cost and distribution, not too dissimilar from Wal Mart. Unless some outfit can make several thousand widgets per month and deliver them to central warehousing absolutely, positively within minutes as scheduled, and do so at miniscule margins, you ain't gonna get their business. That kinda sorta leaves the DR out.

And for the impression they are great employers, that may be true. But they are harshly criticized, as several other mega-retailers with prominent names are, as having their goods manufactured in "sweatshop" conditions.

And here's a most interesting factoid I didn't know: they pay no corporate tax on most of their holdings. Seems their structure is a labyrinth of holding corporations, most being owned by a non-profit corporation for which there are no public records. One prominent corporation is owned by a corporation in Luxembourg, where getting corporate information is almost impossible. All that is available shows that in '04 IKEA paid a little over E19 million in taxes on overall sales of E15+billion. Not much.

Overall, IKEA offers consumers goods bought in abundance, store employees are treated well, and they promote the heck out of the greenie-eco thingy. But behind that public appearance beats the heart of pure capitalists who strive to squeeze every nickle out of every sale at all costs, and avoid taxes using a gaggle of lawyers and accountants with structures that would make Pablo Escobar jealous.

There are two IKEAS: one you see at the store and the one behind the curtain.
 

JFD

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100,000 families in the Dominican Republic rely on the country?s furniture industry for its livelihood
I wonder where you get those numbers. Seems a little high to me.

Ikea is a logical move in a country where when you needed furnitures you had to choose between very poorly made local stuff or highly priced imported stuff, generally made in south east Asia and imported by local dominican-arab families.

After Ikea opening, prices went down in most furnitures sellers here (Arbaje Soni, Ilumel, Conforama, etc...), so i think it is a positive aspect.

Local furniture makers just have to raise their quality and their design, get together, create a label, promote the hand made aspect of their product. The only quality furniture maker in the country is Von, the rest is half ass job.
 

Chirimoya

Moderator - East Coast & Headline News
Dec 9, 2002
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Is Von still there? I looked recently and found no trace.

There are some other good furniture makers but not on a large scale.
 

JFD

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Is Von still there? I looked recently and found no trace.

There are some other good furniture makers but not on a large scale.
Von had a crisis, i guess because of a weak management, they have a smaller shop now on Diamond Mall.

I keep searching other good furniture makers and i don't find them. They don't know how to work the material and they don't try to know, which is worse. The joinery is poor, the hardware is terrible, they always cut corners on the finishing.
Contrary to what everyone is thinking, i believe Ikea is their salvation because the hand made stuff will get more value but they have to lift their standards.
 
May 24, 2009
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www.swellsurfcamp.com
A general observation about Ikea SDQ's pricing.

When we built Swell, we imported much of our furniture from Ikea in Miami, as last Autumn, Ikea SDQ was not open. (We also used local trades to construct all our beds - they did a great job).

Anyway, last week, a friend asked me if I needed anything from Ikea SDQ. We needed some spare shower curtain wires; IKEA | Search result bought from Ikea Miami for $5.99 each, less the 7% Florida sales tax refund (refunded by Ikea once proof of export is provided).

My friend bought me 4 of the exact same shower wires - and a receipt for 1,900 pesos. Let me do the math for you; 1,900 / 36.85 = $51.56, or $12.89 each......

The ones we imported from Miami, cost $5.99, less 7% (FLA sales tax) (42c) = $5.57 + Dominican customs duty and importation costs of 27% - grand total of $7.07 each.

Now, I was just about to go to SDQ and buy some furniture for my home from Ikea, which would involve driving to the stinky capital and risking life and limb on the roads - but now, I'm going to buy online and have it delivered to a freight forwarder in Miami and save myself a small fortune.

Ikea SDQ maybe a nice addition to the Capital or not, but for sure, if you buy from them, you will be paying too much with regards to regular Ikea prices.
 

JFD

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Dominican customs duty and importation costs of 27%
I think it's more than 27%. Not sure but i guess it's 20% custom plus 10% selectivo plus 16% ITBI.
And guess what, it doesn't come to 46%, they add them so they can bring it to 53%.

But yes it's more expensive than Ikea US, but you can still make a good deal on certain things.
 
May 24, 2009
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www.swellsurfcamp.com
I think it's more than 27%. Not sure but i guess it's 20% custom plus 10% selectivo plus 16% ITBI.
And guess what, it doesn't come to 46%, they add them so they can bring it to 53%.

But yes it's more expensive than Ikea US, but you can still make a good deal on certain things.
If you are bringing just one item in for example, a flat screen TV, depending on what size it is, you can pay more - the average for a small importation is 29% but we paid 27% on about $35,000 USD worth of furniture and electrical goods like oven, fridge etc.
 

Anastacio

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I think it's more than 27%. Not sure but i guess it's 20% custom plus 10% selectivo plus 16% ITBI.
And guess what, it doesn't come to 46%, they add them so they can bring it to 53%.
.
This news has saddened me. I have been checking out the prices and range/quality of IKEA products while I'm back in the UK, ready to return and completely furnish my new home in a kind of IKEA showroom stylie. This will have put plans back and we may now have to revert to buying little by little at the end of each month. :tired:
 

pedrochemical

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Aug 22, 2008
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Why buy the Ikea chip board (MDF) stuff which when by the beach, the laminate will seperate within a year, when you can buy very sturdy, locally made, designed by yourself indestructible mahogany furniture for a quarter of the price?

Copy some Ikea crap in solid wood for cheap!

Swell, did any of your laminate separate yet?
If not then maybe they are getting better.
 

Acira

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Sep 20, 2009
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Why buy the Ikea chip board (MDF) stuff which when by the beach, the laminate will seperate within a year, when you can buy very sturdy, locally made, designed by yourself indestructible mahogany furniture for a quarter of the price?

Copy some Ikea crap in solid wood for cheap!

Swell, did any of your laminate separate yet?
If not then maybe they are getting better.
If some good carpenters here would learn the business of making solid, descent laminate of mahogany wood, I would LOVE to buy from them some counter tops or flooring. Its less heavy, pretty, well to maintain and...yeah, you go somewhat "green" with it.
 

cobraboy

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Isn't the use of caoba cut from non-"fincas forestales" was illegal, yet most of the mahogany furniture here does not come from the legitimate tree farms?

And isn't there some official gubmint designation that determines the difference between the two?

Isn't the DR one of the largest importers of "illegal" mahogany from the Brazilian rainforests?
 
May 29, 2006
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I would be a lot more likely to buy kitchen wares and accesseries at an IKEA than furniture. I don't see it as a significant threat to Dominican industries since Dominicans do not(and should not) make furniture out of laminated particle board. They might have an impact on mattress/bed sales, but Dominican mattresses in my experience could do with some improvement. What it may have a big impact on is all of the cheap imports coming in from China that is really poor quality.
 

Acira

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I would be a lot more likely to buy kitchen wares and accesseries at an IKEA than furniture. I don't see it as a significant threat to Dominican industries since Dominicans do not(and should not) make furniture out of laminated particle board. They might have an impact on mattress/bed sales, but Dominican mattresses in my experience could do with some improvement. What it may have a big impact on is all of the cheap imports coming in from China that is really poor quality.

Absolutely for improvement, my back is killing me :(
Maybe still have a look at the beds in Ikea since they are European style made.