Russia Kitchen Appliances Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Russia Kitchen Appliances Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Russian kitchen appliances market is growing reasonably well with stable demand due to rising consumer growth and the ongoing issuing of consumer credit in 2019. People are mostly unwilling to pay the extra amount for a well-known global brand name in small cooking appliances, opting instead for smaller brands at more affordable prices, with this category highly influenced by price rather than quality. This has, therefore, led to small economy brands performing more strongly than international heavyweights with the likes of Philips, Bosch (although it performed well in coffee machines), and Moulinex generally either losing share or stagnating. Coffee machines are the segment in which the global brands continued to perform quite well due to their higher perception amongst many affluent consumers. This category continued to be led by the De'Longhi, strengthening its position in 2019. They continued to record a robust performance in 2019 supported by the strongest retail volume growth of espresso coffee machines, followed by filter coffee machines.

Interestingly, espresso coffee machines have a much higher than the average unit price, which grew in 2019 compared to filter or pod coffee machines, with the latter two also continuing to decline in price. Polarizing trends had continued to impact the demand for kitchen appliances in Russia in 2019. Uncertainty over the lower real incomes for most of the average households has led to the continuous search for more affordable products with demand for economy appliances leading to declining unit prices in many categories, including dishwashers, food preparation appliances, and others.

Key Market TrendsSolid demand growth for small cooking appliances

The demand for smaller cooking appliances in Russia had remained steady in 2019 offering a wide assortment of different products that recorded mixed performances based on certain trends or functionality. While the kettles category been the largest and will remain so as it is an essential item in most local households, its lower than average declining unit price has led to undynamic value performance. Fryers remained a smaller category overall, recording an undynamic performance in 2019. The health and wellness trend poses a barrier to the stronger potential for the fryers despite some unhealthy eating habits amongst the common population, the chance to avoid deep-fried options restricts growth.

Stronger shift towards Internet retailing

Russia’s internet population is the sixth largest worldwide with more and more people using online shopping in different business sectors. It has embraced the e-commerce which is growing ten times faster than the real economy and traditional retail. Online sales account for nearly 4.5% of Russia’s total retail turnover, but that has been more or less doubling each year in the recent years and is on course to make up about 8% of the retail turnover by 2021.

Competitive Landscape

As kitchen appliances cover a wide range of different products offered in various price segments, the overall competitive landscape in Russia for this particular market had remained fairly fragmented with an increasing number of smaller players who are entering the category in 2019, gaining further retail volume share from more well-known brands. However, compared with many other types of consumer appliances, players that could offer more affordable appliances performed well.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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