DIY And Gardening in Russia
Euromonitor International's DIY And Gardening in Russia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 39 | Publication date: Oct 2009
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- Get insight into trends in market performance
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Executive summary
Negative influence of financial crisis on the DIY and gardening market performance
At the end of the review period, the growth in the DIY and gardening sectors was much lower than in previous years. This was a result of the financial difficulties in the Russian economy. Growth in the DIY sector depends on the growth of block of flats and increases in disposable incomes. The end of 2008 showed that the growth of the block of flats were lower because of the decreasing level of investments by investors, as a result, many buildings were not finished and are ‘frozen’ for the next two to three years. Another reason of the lower growth is the decreasing demand for block of flats, which has been caused by the decrease of disposable incomes of Russian consumers. The decrease of these two factors negatively influenced the market performance in 2008. As a result of this influence, key market players of the DIY sector stopped developing but paid bigger attention to the maintaining their market positions. The growth in the gardening sector depends on the disposable incomes. Due to the fact that incomes decreased at the end of 2008, Russian consumers spent less money on gardening products. The most affected areas were barbecues and gardening equipment.
Income increase is the market performance driver
The most important influencing market performance factor was the increase of income. Due to this, Russian consumers have had the opportunity to buy new houses, flats or summerhouses. Unlike Western building organisations, Russian building organisations build houses without inside furnishings. Therefore, consumers need building materials such as wallpaper and other DIY products. This fact has had a positive influence on the market performance. At the same time, the Russian government introduced new legislation regarding increasing of flat and house owners - it introduced a special mortgage system, which stimulated Russian consumers to buy properties.
Lifestyle changes influence the growth of different DIY and gardening subsectors
In the DIY sector the fastest growing product categories are building materials, kitchen and bath products, power tools and accessories. In the gardening sector the fastest growing categories are barbecues and garden equipment. The reason for growth is the high demand for these products because of the changes in the lifestyles of Russian consumers. According to Russian traditions, the house is the main place for living and it has to be cosy and nice. So Russians have an opportunity to improve the interiors of their houses and in doing so improve their lifestyles. More and more Russians are also considering their summer houses not only as place to grow fruit and vegetables but also as place for leisure, so more Russian are buying barbecues and garden equipment.
Ten main companies have a 21% share of the market
The level of competition is not very high. Ten key market players are developing through taking part in the open markets. In five years, the key players will control 80% of the market. Another reason for the low level of competition is that demand is much higher than supply, which means that the number of specialised DIY shops is low. This fact is increasing the market attractiveness for foreign investors.
The growth will be slower than in previous years
The market will continue growing but at a slower rate than in previous years. Some sectors will even show a decrease. High demand and a lack of some DIY materials increased prices in some DIY sectors. As consumers become increasingly price sensitive, this could affect the market performance negatively. Due to the financial crisis, large companies are projected to continue their discount policies putting pressure on their profit margins. A number of small companies could become bankrupt or could be forced to merge with larger companies.
Table of contents
DIY AND GARDENING IN RUSSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Negative influence of financial crisis on the DIY and gardening market performance
Income increase is the market performance driver
Lifestyle changes influence the growth of different DIY and gardening subsectors
Ten main companies have a 21% share of the market
The growth will be slower than in previous years
KEY TRENDS AND DEVELOPMENTS
An increasing number of women as DIY and gardening consumers positively influence market development
Regional expansion is improving market development
Russian retailers develop multi-format shops because of the lack of the trade areas
Financial crisis forces companies to revise their expansion strategies
Consolidation on the rise as a result of the credit crunch
MARKET DATA
Table 1 Sales of DIY and Gardening by Sector: Value 2003-2008
Table 2 Sales of DIY and Gardening by Sector: % Value Growth 2003-2008
Table 3 Sales of DIY and Gardening by Sector: Value 2003-2008
Table 4 Sales of DIY and Gardening by Sector: % Value Growth 2003-2008
Table 5 DIY and Gardening Company Shares 2004-2008
Table 6 DIY and Gardening Brand Shares 2005-2008
Table 7 Sales of DIY and Gardening by Distribution Format: % Analysis 2003-2008
Table 8 Forecast Sales of DIY and Gardening by Sector: Value 2008-2013
Table 9 Forecast Sales of DIY and Gardening by Sector: % Value Growth 2008-2013
DEFINITIONS
DIY and gardening
DIY
Building materials
Hardware
Electrical supplies
Hand tools and accessories
Power tools and accessories
Paint/home decorating
Wall/floor/window coverings
Plumbing/heating/cooling
Millwork/doors/windows
Kitchen and bath products
Other DIY
Gardening
Horticultural goods
Garden structures
Gardening equipment
Garden care
Other gardening
Barbecues
Summary 1 Research Sources
LOCAL COMPANY PROFILES - RUSSIA
BELAYA DACHA ZAO - DIY AND GARDENING - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Belaya Dacha ZAO: Key Facts
Summary 3 Belaya Dacha ZAO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Belaya Dacha ZAO: Competitive Position 2008
KIROV STROYFARFOR ZAO - DIY AND GARDENING - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Kirov Stroyfarfor ZAO: Key Facts
Summary 6 Kirov Stroyfarfor: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Kirov Stroyfarfor ZAO: Competitive Position 2008
LEROY MERLIN RUSSIA - DIY AND GARDENING - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Leroy Merlin: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Leroy Merlin: Competitive Position 2008
RUSSKIE KRASKI OAO - DIY AND GARDENING - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Russkie Kraski OAO: Key Facts
Summary 11 Russkie Kraski OAO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Russkie Kraski OAO: Competitive Position 2008
STARIK KHOTTABYCH OAO - DIY AND GARDENING - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Starik Hottabych: Key Facts
Summary 14 Starik Hottabych: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Staryk Hottabych: Competitive Position 2008
DIY IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
New Product Developments
Summary 16 New Product Launches 2008
SECTOR DATA
Table 10 Sales of DIY by Subsector: Value 2003-2008
Table 11 Sales of DIY by Subsector: % Value Growth 2003-2008
Table 12 DIY Company Shares 2004-2008
Table 13 DIY Brand Shares 2005-2008
Table 14 Sales of DIY by Distribution Format: % Analysis 2003-2008
Table 15 Forecast Sales of DIY by Subsector: Value 2008-2013
Table 16 Forecast Sales of DIY by Subsector: % Value Growth 2008-2013
GARDENING IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
New Product Developments
Summary 17 New Product Launches 2008
SECTOR DATA
Table 17 Sales of Gardening by Subsector: Value 2003-2008
Table 18 Sales of Gardening by Subsector: % Value Growth 2003-2008
Table 19 Gardening Company Shares 2004-2008
Table 20 Sales of Gardening by Distribution Format: % Analysis 2003-2008
Table 21 Forecast Sales of Gardening by Subsector: Value 2008-2013
Table 22 Forecast Sales of Gardening by Subsector: % Value Growth 2008-2013