IKEA was not in favour of sourcing raw material and labour from local market. (Developing and positioning the retail proposition in Russia, IKEA in Russia, Coursework, Page 4, para 1 and, Page 6, para 1). (Reference). They recruited local people to handle marketing and sales, leaving senior positions IKEA executives. Setting up independent sales outlets without aligning itself native business houses didn't help their cause either. Their aim to attract and influence customers through their well-known and trusted products at cheap price did not pay-off. Additional tariff, labour, transportation and distribution, and unstable foreign exchange fluctuations only added to their misery (Developing and positioning the retail proposition in Russia, IKEA in Russia, Coursework, Page 5, para 4).(Reference). The 1998 revaluation of the local currency and the fall of the Russian economy came as a blessing in disguise. While most multinationals left fearing a backlash, IKEA stood firmly behind the Russian establishment. The move was seen as a show of solidarity and faith, and in the bargain gained the Russian's trust and friendship. Russia presented a challenge that IKEA overcame with time (Developing and positioning the retail proposition in Russia, IKEA in Russia, Coursework, Page 6, para 1) (Reference). The IKEA ideology of attracting customers to their premises began to show results.