In the last few years, however, IKEA has repositioned itself as a brand targeting segments with annual household incomes above ¥40,000 ($5,857). Thanks to achievements in localization, the company has been able to cut prices by an average of 54 percent in more than 1,000 categories since 2005. IKEA broke the bottleneck and succeeded in China because it recognized that middle class consumers wanted and would pay for high-quality products, but not at the same premiums as the affluent class.