A business breakfast "DIY Market — Rise and Fall in a Pandemic Era"
The business breakfast was held on November 25th at Red October Start Hub. The organizers are MosBuild international exhibition of building and finishing materials and INFOLine information agency.
Preliminary results of the DIY market development in 2021 were presented and the event became a starting point towards the major event in the Do It Yourself market of building and finishing materials — DIY Forum that will be held as part of МosBuild 2022.
Yakov Syromyatnikov, MosBuild Event Director, addressed the business breakfast guests with a welcoming speech: “We do our utmost to make the official off-line event on 29 March — 1 April 2022 happen. You are all invited and welcome!”
- Igor Kolynin, Marketing Director, Petrovich Trade House;
- Marina Fytova, Deputy Director General, Leroy Merlin;
- Aleksey Kuteinikov, CEO, ForumHouse;
- Tatiana Umryaeva, Director of Service, Yandex.Market, Home Decor Manager;
- Ivan Bugay, Durable Goods business-group Manager in SberMegaMarket.
Ivan Fedyakov, the Moderator and INFOLine Director General, introduced the analytical report on DIY market dynamics and NFOLine DIY Retail Russia TOP rating in the first half of 2021. The speaker highlighted that despite the challenges they faced this year the majority of the companies are pleased with their results.
Key subjects for the DIY market in this year are rising prices, boost of e-commerce and single-family dwelling development prospects.
Ivan Fedyakov stated that the increase in demand in the new home market that was supported by the privileged mortgage launch encourages demand for building and finishing materials. According to INFOLine, Russian DIY market recorded 17.5% growth in the first half of 2021 taking into account the sales of building materials, household goods and furniture. By the end of this year, an unprecedented growth in the DIY, Household and furniture market is anticipated to exceed 16%.
Along with the high demand for building and finishing materials, dynamic rise in prices is observed. Despite of this, for example, Leroy Merlin strategy Low Prices Every Day remains in force, according to Marina Fytova, yet the focus has shifted a little bit: “We have worked hard to guarantee goods availability in the first place. We focused on this and basically it turned out to be a winning strategy as we understand that in choosing between lack of low priced goods on the shelf and availability of goods on the shelf we always prefer goods availability.
The numbers for the first half of 2021 show that TOP 10 DIY retailers account for approximately 49% of the market, according to INFOLine. The sector is actively consolidating.
Besides, there was an increase in the DIY online trade via marketplaces that widely expanded the range and significantly increased the DIY sales: in 2020 OZON tripled the range of “home, dacha, garden” category and Wildberries more than doubled its “goods for home and dacha” category range.
INFOLine Director General also noted that investment activity of DIY major networks has increased in the first half of 2021.
Another important aspect for the DIY market is the overall boost of e-commerce. According to the last year results, e-commerce sales grew by 44% in our country, according to INFOLine, and this is the most speedy dynamics in the Russian e-commerce history. Russian online sales at present account for approximately 7-8% and will reach 20% in 2025 as analysts forecast. It is noted that e-commerce consolidation is higher as opposed to that in off-line.
Ivan Fedyakov highlighted the importance of partnership in the DIY Forum project: “We make a very good tandem. INFOLine and MosBuild have been elaborating this project for 10 years already. We arrange the forum, invite the sector representatives before the start of construction season to discussing the existing trends. The Exhibition brings together Russian specialists from all over the country and the DIY Forum offers an excellent opportunity for the market players to share opinions and latest sector-related information.