Russian Market
Country information
- Surface (kmq): 17,125,191
- Inhabitants (mln 2018): 144.4
- Capital city: Moscow
- Language: Russian
- Currency: RUB
- Time zone: GMT + 3 h / GMT + 11 h
- PIL (bln $, 2018): 1,657.5
- PIL growth (2018): +2.3%
- Superficie (kmq): 17.125.191
Source: World Bank Group
Market information
Russia continued to face economic uncertainty despite some improvements.
This was reflected in a cautious approach to spending with consumers increasingly looking for the best value and limiting purchases of home and garden products that are not considered to be essential.
Nevertheless, on a more positive note, there remained a keen interest in design with consumers becoming increasingly conscious not just of a product’s function but also its look.
Although the overall population continued to decline there was an ongoing rise in the number of households, although many of these were single-person or two-person households with less space.
This supported ongoing spending on important homewares and home furnishings such as cutlery, dinnerware, bedroom and kitchen furniture, but also products which provide greater flexibility such as sofa beds.
On the flipside, some products such as other sitting furniture, home office furniture and wardrobes struggled for growth with consumers unable to find space for these products in their homes.
Another key trend in 2019 included the growing demand for convenience which benefited products such as decorative paint and cordless power tools, while consumers also increasingly shopped online as a way to save time and money.
Gardening emerged as a major trend amongst local consumers during the review period, with it being the most dynamic category in home and garden in 2019.
With Russian purchasing power under threat for many, summer houses or dachas continued to gain in popularity as locations for socialising, taking a holiday and as a place for Russians to grow their own produce.
Dachas saw newfound popularity after the recession impacted Russia in 2015.
Rather than growing from the popularity of more sophisticated products with higher than average prices, the category benefited mostly from rising interest in gardening as a leisure activity and as an alternative food source.
Consumers in Russia are becoming increasingly confident about shopping online, including for home and garden products, with platforms such as Alibaba, Amazon and local retail giant Wildberries continuing to make big strides in the market.
These platforms offer benefits such as free home delivery, access to price promotions and a huge variety of brands.
Furthermore, e-commerce has also made it possible for smaller, niche companies to gain a foothold in the market offering premium products to higher-income consumers, or eco-friendly options to those who are more concerned about sustainability and the environment.
There is no sign of the momentum slowing with e-commerce likely to further challenge the dominance of home and garden specialist retailers over the forecast period.
Contents courtesy from Euromonitor International Ltd, read more at: www.euromonitor.com.
