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In September Ikea published its own purchasing index, based on its Billy Bookshelf, obvious building on the Big Mac Index, published each year by The Economist. That has generated quite some publicity and - to be honest - at the WageIndicator we have also been tempted to discuss a similar initiative.
But do these indexes says that much about about the purchasing power or the economy of a certain country? Probably not. Because the Big Mac Index has been republished year after year, it is a good tool to see changes over the years.
That might happen also to the Billy Bookshelf Index, but who has been visiting Ikea stores in different continents knows that it says more about the level of competition in a region than about the economy itself.
In most west European countries Ikea offers relatively good-looking low-end furniture. In other countries, like China, they were forced to move into the higher segment, because they could not compete in the lower segments. And they raised their prices. Most certainly, you should not buy your Billy Bookshelf in Kuwait or Israel. Nice gadget, but it does not say that much.
Fons Tuinstra
Currency converted by Bloomberg
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Country Catalogue Local Index price (USD) Currency ======================================================== Average Price 60.09 60.09 USD 100.0 ======================================================== U.A.E. 47.64 175.00 AED 79.3 U.K. 49.34 29.90 GBP 82.1 Belgium 49.91 34.95 EUR 83.1 ======================================================== Country Catalogue Local Index price (USD) Currency ======================================================== Spain (mainland) 49.98 35.00 EUR 83.2 France 49.98 35.00 EUR 83.2 Netherlands 49.98 35.00 EUR 83.2 Portugal 49.98 35.00 EUR 83.2 Denmark 51.60 269.00 DKK 85.9 Poland 51.89 149.95 PLN 86.4 Malaysia 52.60 185.00 MYR 87.5 Hungary 52.79 9990.00 HUF 87.9 Germany 54.26 38.00 EUR 90.3 Taiwan 54.63 1795.00 TWD 90.9 Iceland 54.86 6950.00 ISK 91.3 Singapore 54.86 79.00 SGD 91.3 Sweden 55.11 395.00 SEK 91.7 Czech Republic 55.48 995.00 CZK 92.3 Ireland 55.69 39.00 EUR 92.7 Italy 55.69 39.00 EUR 92.7 Austria 55.69 39.00 EUR 92.7 ======================================================== Country Catalogue Local Index price (USD) Currency ======================================================== Finland 55.69 39.00 EUR 92.7 Switzerland 56.24 59.95 CHF 93.6 Russia 56.59 1790.00 RUB 94.2 Slovakia 57.05 39.95 EUR 94.9 U.S. 59.99 59.99 USA 99.8 Norway 60.15 365.00 NOK 100.1 Japan 62.50 5900.00 JPY 104.0 Greece 64.26 45.00 EUR 106.9 Cyprus 64.26 45.00 EUR 106.9 Canada 64.33 69.99 CAD 107.1 Hong Kong 64.38 499.00 HKD 107.1 China 65.72 449.00 CNY 109.4 Turkey 66.49 99.00 TRY 110.7 Romania 67.28 199.00 RON 112.0 Australia (2) 74.58 89.00 AUD 124.1 Saudi Arabia 78.67 295.00 SAR 130.9 Australia (1) 79.61 95.00 AUD 132.5 ======================================================== Country Catalogue Local Index price (USD) Currency ======================================================== Kuwait 90.28 26.00 KWD 150.2 Israel 103.48 395.00 ILS 172.2 ========================================================Related articles by Zemanta
- The Billy Instead Of The Big Macs (abcnews.go.com)
- The Big Mac Index: Globalization At Work [Burgernomics] (consumerist.com)