Major Appliances in Eastern Europe

Delivery

This report comes in PPT.

Key findings

Strong growth prior to 2020

Major appliances was recording strong growth up to 2020, with Russia having emerged from its 2015 economic crisis and the Ukrainian market also enjoying a positive development. Although growth slowed in Russia in 2019, it continued to benefit from delayed demand and the availability of consumer credit. It was also supported by an increasing number of consumers purchasing new homes, which required the installation of major appliances.

Pandemic impacts sales in 2020

Sales were falling across the region in 2020, when it was hit by the COVID-19 pandemic. The measures implemented to try and contain the spread of the virus hit sales directly in the shape of retail closures or lockdowns as well as indirectly in the form of falling disposable incomes. Shoppers also tend to be keen to examine major appliances before buying them, making the closure of bricks-and-mortar stores a particularly negative development.

E-commerce enjoys dynamic growth in 2020

In spite of consumers often wanting to see major appliances before buying them, e-commerce recorded strong share growth in the region in 2020. In Russia, e-commerce accounted for 44% of retail volume sales in this year, acting as an ideal solution for buying goods in lockdown or when looking to avoid going out in public. Shoppers also like the deals and discounts they can find by using online platforms and internet retailing.

Slow recovery expected for major appliances

With consumers still experiencing price sensitivity beyond 2020, major appliances will record an improved performance in 2021, albeit only seeing stagnating sales, partly because of Russia remaining in decline in this year. Growth rates will pick up from 2022, although pre-pandemic sales levels will only be reached again in 2024.