CONTINUED GROWTH FOR RUSSIAN DIY MARKET IN 2018
The global DIY/home improvement market has seen constant growth over the past few years, rising at around 3% annually, and the Russian market is no different
Russia’s DIY sector is showing positive signs across the country. Last year, wholesale and retail trade of DIY products and materials grew 3% year-on-year, and a further 3% growth is expected from 2018-19, according to Info-Line information agency.
The growth has been having a huge effect on building materials suppliers. Info-Line reports that in 2017 the 10 largest DIY market players showed revenue growth of 14%, with total revenue reaching 436bn roubles.
The outlook for Russia’s DIY market
Optimism remains high, with 80% of DIY market players expecting sales to grow in 2018, according to Info-Line’s report presented at MosBuild 2018’s DIY Forum.
Indeed, with Russia’s mortgage market rising – an impressive 30% in 2017 – as well as forecasted increases in consumer spending, it’s positive news for the DIY sector.
Market research firm PMR predicts the Russian DIY market to increase yearly by about 5% on average by the end of 2022.
PMR reports that the DIY retail market accounted for 44% of the total DIY market value in 2016 but this is expected to rise over the coming years alongside renovations and a revival in the residential construction market.
Top market players in Russia
In terms of market players, the largest on the Russian market is Leroy Merlin, with an estimated market share of nearly 11%. The firm’s expansion plans – 200 stores by 2024 – are set to keep Leroy Merlin in top position over the coming years and to overtake Stroitelny Dvor as the leading DIY chain by number of stores.
More and more DIY chains have opened online stores to better serve their customers: Leroy Merlin, OBI, K-Rauta, Petrovich, Baucentr, Maxidom, and Castorama. In addition, there is growth potential for smaller-format stores on Russia’s DIY market suitable for smaller towns or shopping centres.
Petrovich has already launched several smaller hybrid stores combining offline and online elements, while Stroitelny Dvor, Vimos, OBI and Leroy Merlin are also developing a chain of smaller stores.
This continued market growth and new retail formats are excellent news for international manufacturers and suppliers of building and finishing materials looking to grow exports to Russia.
Interested in growing your sales on the Russian market?
Boost your presence in Russia by exhibiting at the country’s leading trade exhibition – MosBuild 2019.
Every year, the show attracts over 65,000 industry professionals looking to source new building and finishing materials – 17,000 of whom are wholesalers and 14,000 are retailers.
Make sure the market knows about your brand and latest products by exhibiting at MosBuild 2019.
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