Luxury Portable Consumer Electronics in Russia

2020 IMPACT

Already weak category sees additional downwards pressure as a result of reduced consumer spending power and fewer on-the-go requirements

Luxury portable consumer electronics was already a weak category in Russia, having seen declines in sales over the review period (for luxury mobile phones), with luxury wearables showing small growth due to it being a relatively new category in the country. Luxury smartphones do not differ much from regular smartphones in the user experience, rather, they are simply provided with specific packages of data and apps et al, at a higher price; along with the perceived status factor of having a luxury phone with regards to the design.

Limited consumer audience sees declines in salaries and lower spending power, placing additional negative pressure on sales

The consumer audience for luxury portable consumer electronics is also affected by the declining salaries in the middle class of Russian consumers, who are the key audience for the category. The real disposable incomes of Russian consumers have been in decline since 2015 and the event of COVID-19 has placed further downwards pressure on this depressed economic situation.

Citizen Watch Co maintains leading place thanks to Frederique Constant brand winning shares from other players

Citizen Watch Co Ltd maintained its strong lead in luxury portable consumer electronics in 2019, beyond which the largest shares are held by smaller players in “others”. Citizen Watch Co owes its success to its Frederique Constant brand, with its closest competitor being Apple Watch Hermès (Apple Inc), albeit with much smaller shares.

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