Market Trends of Russia Home Appliances Industry
Online Sales are Witnessing a Major Share of the Market
In Russia, the shift to digital online shopping has continued, with E-commerce sales reaching about USD 27.67 billion in the first half of 2023, a 20% increase from last year. As a percentage of total Russian retail sales, e-commerce accounted for 12.7%. The market has seen a rise in e-commerce since 2020 due to the pandemic. This has resulted in an increase in online customers for small appliances, with the highest number of customers ordering small appliances online.
Numerous practices of online retailers can be considered as the primary reason for this shift, and it is expected to increase gradually in the future. Brand loyalty is comparatively high when it comes to the major appliances, and consumers are willing to experiment with brands and their features in the small appliances category, like coffee makers and toasters, only if the prices are not high. Consumers prefer products that have priority functionality and that bring convenience into their lives.
Demand for Turkish and Chinese Household Appliances in Russia is Driving the Market
Turkish household appliances are becoming increasingly popular in Russia due to their low prices and increasing variety. The demand for Turkish and Chinese household appliances in Russia has grown year-on-year. Chinese and Turkish household appliances replace electrical appliances from long-gone European brands in Russia. Year-on-year, sales of the top categories in Russia increased by around 20 percent. The increased focus on Chinese and Turkish domestic appliances is mainly due to their wide variety, consistent availability of products, including through manufacturing in Russia, and well-structured logistics. As a result, people started to spend more money on real estate and home improvements. Moreover, household appliances from China and Turkey can be repaired. There are official repair centers of manufacturers in Russia that offer the necessary guarantees. In the first six months of 2023, Russian consumers purchased over 40,000 Turkish household appliances on the Yandex market, with a market share of 7%.