Refrigeration Appliances in Russia

PROSPECTS

Demand for locally assembled products grows

The economic uncertainty in 2018 and unclear future due to sanctions strengthened domestic production of refrigeration appliances, as international companies found it difficult to compete due to their high-priced goods. This is why global brands such as Indesit, LG and Beko have branches and factories located in Russia to reduce costs on production and logistics.

Lifestyle trends benefit sales of freezers

Changing lifestyles have resulted in increasing consumption of frozen and fast food, as well as keeping seasonal products for winter, therefore leading to growing demand for long-lasting food preservation, for which freezers are the best and easiest solution. In 2018, freezers recorded one of the fastest retail volume growth rates within refrigeration appliances.

Average unit price declines together with demand for less sophistication

The average unit price demonstrated a downwards trend in the main categories of freezers, fridge freezers and fridges in 2018. With a tense economic situation in the country and uncertain disposable incomes, consumers displayed a tendency to purchase a greater number of basic, less sophisticated products.

COMPETITIVE LANDSCAPE

Global brands lead sales

International brands led sales of refrigeration appliances in 2018. The companies benefit from consumer knowledge and awareness.

Domestic brands are gaining ground

Although international brands occupy a greater share of retail volume share within refrigeration appliances, domestic brands are slowly but steadily gaining ground. Brands such as Pozis have invested in product development and marketing, resulting in good sales results during times of economic uncertainty.

Local manufacturers are followers, not innovators

Although the quality and design of locally-manufactured refrigeration appliances improved over the review period, in general, local brands such as Pozis or Birusa tend to target the economy price segment. Therefore, they mainly concentrate on improvements to the major parameters of products, such as power saving, lower noise level, no frost – features developed by the major global brands during the review period.

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