Electronics market analysis. Types of coffee machines and their market shares

The main factors for the growth in the turnover of the household appliances market in Russia in recent years have been the rapid growth in the well-being of the population and favorable
macroeconomic situation. According to DISCOVERY Research Group, the volume of the household appliances market in Russia in 2008 amounted to $10.8 billion.
However, the world financial crisis, the acceleration of inflation in the consumer market and the slowdown in the growth rate of household income led to a decrease in the turnover of the household appliances market already in the second half of 2008. As a result, in 2009 the market fell by 25% to $8.1 billion. Currently, the market has begun to recover, but according to research by GfK in Russia, it is unlikely to show rapid growth this year: in 2010, about 5% is expected growth of this market (based on materials from http://marketing.rbc.ru/news_research/22/03/2010/562949977996081.shtml and http://planovik.ru/research/2010/03/22/3672.html)).
The market volume of household appliances is about 60% of total volume market of household appliances and electronics. Nevertheless, the Russian market of household appliances continues to be considered the most promising and fastest growing in Europe.
Despite the fact that retailers are making every effort to reduce costs and optimize expenses, prices for household appliances are rising and there is a slight decline in consumer activity. Experts believe that if the ruble falls further against leading world currencies, this could lead to an increase in prices for household appliances. At the same time, buyers are still limited to the most necessary and inexpensive purchases, thoughtfully choose and continue to postpone large purchases in anticipation of sales and more favorable loans (based on materials from http://marketing.rbc.ru/news_research/22/03/2010/ 562949977996081.shtml and http://www.e-o.ru/publisher/45817.htm).
In value terms, in the structure of the Russian market of household appliances and electronics, the largest share belongs to the audio-video equipment segment (38.1%), with a slightly smaller share of large household appliances – 36.4%. The shares of small household appliances and photographic equipment are 17.4 and 8.1%, respectively (Figure 1).
Figure 1.
Structure of the Russian market of household appliances and electronics*

Key findings:
The household appliances market has been growing steadily over recent years. However, the global financial crisis, the acceleration of inflation in the consumer market and the slowdown in the growth rate of household incomes have led to a decrease in the turnover of the household appliances and electronics market.
Consumer demand is characterized by the most necessary and inexpensive purchases, careful selection and postponing large purchases in anticipation of sales and more favorable loans.
In the structure of the Russian market of household appliances and electronics, about a third belongs to the audio-video equipment segment, almost the same share of large household appliances. The share of small household appliances and photographic equipment in the overall structure is much smaller. The largest reduction in sales was observed in the 2nd quarter of 2009. In 2010, stable dynamics are observed: pre-New Year sales of household appliances are traditionally high, and the February-March holidays made it possible not to slow down the pace of sales. Retail players in the home appliance market have also been hit significantly. Almost everyone has foreign debts. The main anti-crisis measures were optimization of the assortment, focus on the mid-price segment, release of new products, and promotions to attract and retain customers.
According to expert forecasts, the household appliances market will only be able to reach pre-crisis volumes by 2012.

In Russia, almost the entire range of household electrical appliances and radio electronics is currently produced, but predominantly production involves only the assembly of products from imported components.

Formally, the bulk of refrigerators, washing machines, televisions, gas and electric stoves consumed in Russia are currently produced by domestic enterprises. However, most of the factories belong to foreign companies or carries out for them contract manufacturing certain models.

Every year domestic producers are increasingly moving into the shadows, losing their market share to imported brands. In addition, there is no attempt to support domestic production, as is the case with telecommunications equipment manufacturers, where companies can count on tax breaks. The government's weak interest in the industry is explained by the fact that household appliances and electronics are difficult to classify as the most high-tech industry, and the number of jobs created by manufacturers in the country is not so large.

If in 2009 the share of domestic production was 4% of the entire household appliances market, now the share is about zero. Below are data on the Russian household appliances market in 2014: Unified Interdepartmental Information and Statistical System [Electronic resource]

• - Computers and computer components, network, multimedia, audiovisual and photographic equipment. Imports account for about 95%; localization of foreign companies with production in Russia is small. The share of national products is about zero.
• - Large-sized household appliances- import 35-40%, the rest are foreign brands with production in Russia (60-65%). The share of national products is about zero.
• - Television equipment - import 65-70%, localization 30-35%.
• - Small household and kitchen appliances - import 80%, localization 15%, domestic production about zero.

According to DISCOVERY Research Group, consider the size of the household appliances market for the following products:

Volume of the refrigerator market in Russia in 2013-2014. on average amounted to 4.25 million units. or $2160.6 million. Market volume of chest freezers for 2013-2014. V in kind was 661.9 thousand units, in value terms - $327.7 million. In the segment of freezers, the average volume for 2 years amounted to 661.9 thousand units. (in physical terms) or $327.7 million (in value terms).

The volume of imports of refrigerators to Russia in 2013 amounted to 1.31 million units. or $432.8 million, and in 2014 1.09 million units. in the amount of $362.6 million. The volume of exports of refrigerators from Russia in 2013 amounted to 367.3 thousand units. or $87 million, but decreased in 2014 -268.8 thousand units. for the amount of $63.6 million.

• - The volume of the dishwasher market in value terms in 2013 amounted to $255.4 million, and in 2014 - $295.43 million. In 2014, the import volume amounted to $295.5 million, which is 46% of the total import volume. dishwashers from Germany, 21% from Poland, and 11% each from Italy and China. The volume of dishwashers exported from Russia is less than the volume of imports to Russia. According to the Federal Customs Service of the Russian Federation, in 2014, 127 dishwashers were exported from Russia with a total value of $63,507.
• - The volume of the steam oven market in Russia in 2013 was about 1.5 million units. in kind. The volume of imports of steamers to Russia in 2013 amounted to more than 500 thousand units, and in the first half of 2014 - more than 200 thousand units. Based on the results of 2013, the leading positions in the import of steamers to Russia belong to trademark BRAND.

The import of steamers to Russia is dominated by Chinese-made products, which account for about 65% of the import volume of this product in value terms. The second place in imports is occupied by products from Thailand, followed by products made in Germany.

In 2014, about 2.37 million tablets were delivered to Russia. This is 1.4% less than for the same period in 2013. IN in monetary terms the market decreased by 33.4% compared to the third quarter of 2013.

At the end of 2014 first place in the leaderboard on Russian market Tablet PCs are occupied by Samsung (16.9%), followed by Lenovo (15.5%), Apple (9.1%), ASUS (9%) and Digma (6.8%) (Figure 2.2).

Figure 2.2 - Leading imported manufacturers of Tablet PCs in Russia, %, 2014

In 2014, 4.219 million laptops were sold in Russia, which is 32% less than in 2013. The segment of the Russian laptop market decreased by 26.9% compared to 2013, and deliveries themselves amounted to 4.87 million pieces

At the end of 2014, weighted average prices for laptops in rubles rose by 13% compared to October, which is even more than the growth of the dollar during this period, and in such a situation it was difficult to achieve truly large sales volumes. There was a “hurried drain into the channel” of all available stocks in warehouses due to the devaluation of the ruble; shipments of laptops already in January 2015 decreased year-on-year by approximately 60%.

All retail trading enterprises, specializing in the sale of household appliances and electronics, can be divided into 3 groups: mono-brand retail chains, multi-brand retail chains and private stores. In turn, retail chains and individual retail enterprises are divided into specialized and universal (Figure 2.3).

Figure 2.3 - Classification of trading enterprises in the market of household appliances and electronics

Monobrand retail chains are retail chains that sell goods produced under only one trademark or brand. Its owner can be either the manufacturer of this product directly (he is also the owner of the brand), or a company that owns only the rights to sell. Monobrand is usually sold using various options franchising systems. A mono-brand store is a boutique (or network of boutiques), the design of which is made taking into account the style of the brand and is reproduced regardless of the country in which trade is organized.

Multi-brand retail chains are retail chains whose assortment is not limited to one brand, but is represented by several famous brands. Non-chain trading enterprises of household appliances and electronics are all trading enterprises that are not included in the first and second groups.

Get acquainted with large manufacturing enterprises in Russia (Table 2.3).

Table 2.3

Main enterprises producing household appliances in Russia, 2015.

Product groups	Large manufacturing enterprises
Household refrigerators	CJSC ZH Stinol Lipetsk (According to 2009 data, 40% of all refrigerators and freezers produced in Russia); OJSC Krasnoyarsk Refrigerator Plant Biryusa, Saratov Electric Unit Production Association, OJSC "Moscow Home Refrigerator Plant" OJSC "Orsk Mechanical Plant" PA "Plant named after Sergo" in Zelenodolsk in Tatarstan, OJSC "Iceberg" Smolensk Refrigerator Plant, "Velikoluksky Household Appliances Plant" JSC "Yuryuzan Mechanical Plant" Chelyabinsk region, Vestel (Türkiye) Alexandrov, Vladimir region, BSH Bosch und Siemens Hausgerate GmbH in Strelna, Snaige (Lithuania) Baltic Kaliningrad, "VEKO" (Türkiye), Kirzhach, “Helkama Forste Viipuri” (Finland), Vyborg
Washing machines	PA "Votkinsky Plant" (Republic of Udmurtia) "Fairy", SE "Plant named after. Sverdlov" ( Nizhny Novgorod region), "OKA", Vysokogorsk Mechanical Plant (Nizhny Tagil), "Ural", UE "Omsk Washing Machine Plant" SE PO "Polet" (Omsk), "Siberia", CJSC "EVGO Group" (Khabarovsk Territory), EVGO, Okean Plant LLC, Primorsky Krai, Ussuriysk, DAEWOO and OCEAN PTF Vesta LLP (Kirov), Merloni Elettrodomestici SpA., Candy, Vyatka-Avtomat, LLC "Aviamatika" Moscow, EVRI, "Polar" Moscow, Kaliningrad, Polar; Plant for the production of washing machines, Electrolux (Sweden), St. Petersburg; Electrolux, Russian branch of LG Electronics, Ruza, Moscow region. LG;
South Korean company Rolsen (in Fryazino);
Washing machine plant Merloni Elettrodomestici SpA., Lipetsk, “Indesit”, “Ariston”, "VEKO" (Türkiye), Kirzhach, Vestel (Türkiye) Alexandrov, Vladimir region, Whirlpool.
TVs	"Radio import"; Kaliningrad "Sokol" (M.Video company) Telebalt LLC, Kaliningrad, Kaliningrad region Samsung, Erisson, Akai Russian branch of Samsung Electronics Industrial Park "Vorsino" Borovsky district, Kaluga region; Russian branch of LG Electronics, Ruza, Moscow region; "VEKO" (Türkiye), Kirzhach, Factory of the Turkish company Vestel, based on “Rekord” Aleksandrov, Vladimir region; South Korean company Rolsen (in Fryazin, Kaliningrad); Thomson Multimedia (France) Kaliningrad, Krasnoyarsk, St. Petersburg, Thomson; BMS (previously existed under the name “Baltmixt”) two factories in Kaliningrad, assembly of LCD TVs under the Philips, Sony and Panasonic brands; Arsenal plant in Aleksandrov, Syscom; The Kvant plant in Zelenograd, owned by AFK Sistema, Sitronics; St. Petersburg “Plant named after N. Kozitsky”, Raduga; Factory "Kvant" Veliky Novgorod, Sadko; OJSC "Red Banner" plant, Ryazan, Sapphire; "Polar-TV" Moscow, Kaliningrad, Polar; OJSC Moscow Television Plant "Rubin". The OJSC includes a television production enterprise in Voronezh "Videophone"; State Unitary Enterprise "Radiozavod" Penza, Volna; Korean company LG, Zelenogorsk Electrochemical Plant (Krasnoyarsk-45), Plant "Electrosignal" Voronezh, VELS; V-Lazer Company, Ussuriysk, Primorsky Territory, Coral, Ocean; State Unitary Enterprise Far Eastern Radioelectronic Plant "Avest" Komsomolsk-on-Amur, Khabarovsk Territory LG, Avest; Company "EVGO" Khabarovsk, Evgo.

In the first quarter of 2015, the Russian market of household appliances and electronics showed a decrease in turnover by 14.5% compared to the same period last year after sales soared at the end of 2014.

Dynamics of the market volume of electrical household appliances and electronics in Russia:

Audio and video equipment: decline in sales of basic products

The first quarter of 2015 was marked by a decrease in demand for consumer electronics compared to the same period in 2014. Sales of televisions and navigators for cars fell especially sharply to 50%. However, consumers continue to show interest in UHD technology and, in March 2015, the share of UHD in TV sales exceeded 9% of all sales. Digital signal receivers and soundbars without a drive are the only market segments whose cash turnover in rubles increased in the first quarter of 2015.

Large household appliances: tougher competition

Demand for large household appliances at the beginning of 2015 is characterized by instability. After a sales boom and demand growth of 70% at the end of 2014, demand has now decreased. January's turnover was only 7% lower than last year's, and March's turnover was already more than 40%. However, with the strengthening of the ruble in recent weeks, there has been a slight decline in retail prices, which may, if this process continues, have a positive effect on demand.

Small household appliances: demand for beauty and health products continues

At the end of the first quarter of 2015, the small household appliances market showed a decrease in turnover by 11.8% and a decrease in demand by -27% in units. This discrepancy is observed due to a significant increase in prices by more than 20%. The most stable demand is for beauty and health products and coffee machines - turnover is almost at the level of the 1st quarter of 2014 (20%). Despite the general decline in sales in the small household appliances market, the Internet still shows positive growth rates, which greatly supports the MBT sector as a whole.

Information technology: decline and degradation

After changes in the ruble exchange rate at the end of 2014 almost doubled prices in the Russian IT market, two main trends remained in it: a reduction in demand and a transition from mid-range models to entry-level models in the main product groups. The ruble sales volume of the IT market decreased by only 20% in the first quarter, but in physical terms, computers were sold by 40% less, as well as monitors. In the first quarter of 2015, about 1 million desktop and laptop PCs were delivered to Russia. This is 43.6% less than in the first quarter of 2014. Companies are leaders in the PC market based on the results of the first quarter: Lenovo - 22.2%, Hewlett-Packard - 16.8%, Acer - 10.5%, ASUS - 8.7%, DNS - 6.3% (Fig. 2.4).

Figure 2.4 - Leading imported manufacturers of desktop and laptop PCs in Russia, %, 2015

Telecommunications: new reality, new prices

In the first quarter of 2015, the telecommunications equipment market suffered a noticeable drop in demand (almost -15%), which is much less than in other sectors, but remained the only one that showed an increase in turnover (+3.7%) due to an increase in prices almost for all models. The facts speak for themselves - buyers still pay more for the same models, not to mention new ones.

Following changes in the ruble exchange rate at the end of 2014, prices for electrical appliances increased by 15% to 40% depending on the sector. All buyers who did not have time or were unable to make a purchase in December last year are now looking for the necessary equipment, not only focusing on characteristics, but also on the price level. There is no shortage of retail goods that buyers feared. The decrease in demand rather depends on the family budget, which has not become larger GfK - source o consumer markets and consumer [Electronic resource].

In Russia, the number of household appliance stores, hypermarkets and electronics supermarkets is growing every year. With the advent of specialized hypermarkets in cities, many small household appliance stores were forced to cease to exist. With the arrival of federal-level companies on the market, big changes began for regional networks, and competition in the industry increased significantly.

The change occurs not only at the level of the store format; the buyer himself, his needs and requirements, also change. According to marketing research, for Russians, the cost of household appliances still comes first. Today, consumers are not willing to overpay for goods, and hypermarket chains, as a rule, offer their customers reasonable prices, holiday discounts and other discount programs.

During the study, 10 federal and 35 regional networks operating in 100 cities of the Russian Federation were analyzed. The total retail space of household appliances and electronics stores located in the cities under study is divided between five main market players. The leader is the M. Video network, which occupies 24%. Slightly less is Eldorado, which accounts for 21% of the area. In third place is Tekhnosila (11%), followed by Media-Markt (7%) and Expert (6%). Thus, the share of the five largest retailers in total accounts for 69% retail space occupied by household appliances and electronics stores. Other market players, including local chains, occupy 31%.

The variety of household appliances presented in our country can satisfy the tastes of even the most demanding consumer. The geography of the products supplied is very diverse, and the number of famous brands is equally large.

Analysis of the development of the Russian household appliances market allowed us to identify a number of trends in its development:

• – dependence on import supplies;
• – an increase in the number of Western enterprises operating in Russia;
• – decrease in sales growth rates in the market of household appliances and electronics;
• – reduction in sales of phones and smartphones to 38-39 million units (which is 20-25% lower than the same indicator in 2014);
• – transition from price competition to non-price.

To further change the situation, major players have developed and are implementing anti-crisis measures:

• – optimization of the assortment, increasing the share of the mid-price segment in the assortment, etc.;
• – there is an increase in sales of household appliances through online trading;
• – further promotion of major retail chains household appliances on regional markets;
• – further growth of basic and additional services;
• – growth in sales of household appliances through mobile applications;
• – further development multichannel sales;
• – there is stagnation in the segment cell phones and smartphones.

Forecast for the development of the Russian household appliances market for 2015:

• – the economic downturn and a decrease in consumer activity will affect the dynamics of the development of the household appliances market; a decrease in the growth rate of sales as a whole in the Russian household appliances market is predicted;
• – further decline in the growth rate of profits of trading companies in this market;
• – decrease in sales in the cell phone segment by 17-18% compared to 2014;
• – reduction in sales of phones and smartphones to 38-39 million units (which is 20-25% lower than the same indicator in 2014);
• – switching consumer preferences to cheaper models in all categories of household appliances;
• – further strengthening of competition in all segments of the household appliances market;

Russian specialists retail network"M.Video" prepared analytical review Russian market of household appliances and electronics based on the results of 2015. According to the results of the study, sales in the sector fell by 19.6% and amounted to 1.1 trillion rubles.

Sales at M.Video also showed negative dynamics, decreasing by 5.5% to 191.9 billion rubles. The company notes that in 2015, M.Video’s share in the Russian electronics and household appliances market increased by 2.4% and reached 16.1%.

Cash payment is gradually losing popularity, giving way to more modern methods. In 2015, the share of buyers choosing cashless payment increased from 35% to 39%. M.Video analysts attribute this to the active penetration of plastic cards into the regions.

According to the report, last year the most popular items were large household appliances, audio and video equipment, computers, mobile devices, and small household appliances. At the same time, smartphones entered the Top 5 product categories for the first time. The average bill in retail stores was 6,760 rubles, and the average purchase on credit was 29,000 rubles.

The share of online sales in M.Video’s turnover increased from 9% in 2014 to 11% in 2015. The company's clients increasingly prefer courier delivery pickup, the share of which increased from 66% to 69%. The average bill for pick-up from the store was 11,013 rubles, and for home delivery – 21,345 rubles.

Grow and mobile sales: in 2015, 38% of purchases in the retailer’s online store were made from mobile devices (the increase by 2014 was 40%). Of these, 27% are from smartphones, and 11% are from tablets.

Internet traffic in the regions was distributed as follows: the most active online users are from Moscow and Moscow Region (31%), from St. Petersburg and Leningrad region(7%), as well as from Krasnodar region (5%).

The market volume of “smart” phones increased by 9% in monetary terms and amounted to 267 billion rubles, but sales in units decreased by 5% – to 26.2 million devices. The growth dynamics of smartphone sales at M.Video in monetary terms amounted to 51%, and in quantitative terms – 7.5%. Analysts emphasize that the devaluation of the ruble significantly affected the average cost of a smartphone: the figure increased by 14% and reached 10,190 rubles.

The position of Android mobile devices has strengthened due to wide range B-brand smartphones in the middle and low price segment.

According to the report for the first quarter of 2016, Android devices continue to have the largest market share (87%). iOS remains in second place (10%), and Windows remains in third place (2%). In monetary terms, Android fell by 3%, iOS grew by 27%, and the share of Windows decreased by 3%.

The headphone market increased by 18% – to 9.9 billion rubles. M.Video's share in the segment is estimated at 13.5%, while sales of headphones and headsets in chain stores increased by 40% in monetary terms. Most often, products are purchased in the price category up to 1,000 rubles, and the Top 3 manufacturers in monetary terms included Sony (21.3%), Sennheiser (13.1%) and Philips (12.9%).

In parallel with the dynamic development of the smartphone market, the segment of smart devices that are easily synchronized with mobile devices. The most popular products in this group are smart bracelets and fitness trackers. In 2015, sales of such devices increased by 43% in monetary terms and by 51% in unit terms – up to RUB 300 million. and 62,000 pieces respectively. Jawbone remains the market leader, accounting for up to 70% of sales.

The laptop market continues to show negative dynamics. Compared to 2014, sales decreased from 105.3 billion to 81 billion (23%). In quantitative terms, the figures fell from 4.9 million units. up to 2.9 million units (by 60%).

Internet sales share in the laptop market increased: from 20% in 2014 to 24% in 2015. However, the volume of online sales decreased by 8% and reached 19.5 billion. Most often, buyers purchase devices under the Lenovo (29.3%), Asus (22.9%) and Acer (16.5%) brands.

Tablets are becoming less and less popular among Russians. Sales in the segment fell by 31% - to 54.3 billion rubles, and in units decreased by 30% - to 6.6 million devices. Despite the general decline in the tablet market, sales at M.Video in unit terms increased year-on-year by almost 17%, and the company’s share reached 13.5%. Tablets with a diagonal of 7” were in greatest demand on the market, and the top three were Samsung with a market share of 20.3%, Apple – 19.8% and Lenovo – 14.9%.

Sales of tablet computers fell 33% in 2015, according to a study conducted by the company. Last year, 6.2 million tablets were sold on the Russian market, while in 2014 – 9.3 million devices.

The home console market fell by 40% in unit terms and by 18% in monetary terms. In 2015, the market volume was estimated at 8.6 billion rubles. and 435,000 pieces. Average market price consoles increased from 15,800 to 21,000 rubles, and the PlayStation 4 became the undoubted sales leader.

Sales of gaming accessories have increased over the past year. In particular, online sales of gaming mice increased by 50% in monetary terms, gaming keyboards by 92%, and gaming headphones by 82%. Online share in total sales categories were 18%, 23% and 21%, respectively.

In 2015, the photographic equipment market showed a significant decline in both monetary and quantitative terms. The volume of the segment in money amounted to 18 billion rubles (a decrease of 39.4%), and in units – 1.3 million devices (a decrease of 52.7%). In the category " DSLR cameras" And " Compact cameras"Nikon is in the lead with a share of 48% and 37%, respectively, and in the "System Camera" category - Sony (59%).

Despite the decline in the photographic equipment market in 2015, the action camera category showed significant growth. The market volume increased by 68% and amounted to 1.5 billion rubles. The number of cameras sold increased by 59% to 116 million units. M.Video expects continued growth in sales of action cameras, which will be associated with the release of new devices by already well-known and new market players.

Over the past few years, DVRs have grown from a small segment into a sought-after category. Even despite the decline in direction in 2015, the technique remains promising due to its impartiality in identifying those responsible for incidents on the road. In 2015 active development received the category of combi-devices - a radar detector and a video recorder in one device.

In 2015, demand for televisions in Russia fell by 47%, to 130.5 billion rubles, and turnover decreased by 33%, to 5.3 million units. The share of Ultra HD TV in the market was 15.2%: sales of such TVs increased by almost 50% in unit terms and by 37% in monetary terms, with the average price falling by 8%. The share of TVs with curved screens has doubled (to 6.2%).

According to the report, in 2015, portable devices – All-In-One and Network Media System (network audio solutions, or multiroom) – showed positive dynamics in the Audio Systems category. The leading players in the home audio market remain Sony and LG, whose combined share is close to 70%.

In the market of large household appliances, there was approximately the same decline in sales of free-standing stoves and built-in ovens in unit terms, but due to more strong growth average price for built-in ovens the decline in monetary terms for them was almost 10% less than for slabs. The Top 3 manufacturers by turnover included Bosch, Siemens (14%), Gorenje (13%) and Hansa (12%).

In 2015, the market for small household appliances decreased by 13% in monetary terms. The drop in demand had the greatest impact on kitchen appliances, and the most resistant to market changes was equipment for making coffee.

Sales of automatic coffee machines remained at the level of 2014, while buyers prefer to invest in more advanced solutions, despite the increase in average prices: more than half of the market (55%) accounts for automatic coffee machines and coffee makers, 20% for capsules and 14% for carob coffee machines . Top brands include Delonghi, Saeco and Bosch.

Other small household appliances:

Experts note the development of the Russian drone market. The main growth drivers are inexpensive amateur models. In 2015, the average price of a drone was 17,000 rubles, a quadcopter – 5,500 rubles, and a radio-controlled toy – 3,500 rubles. In addition, M.Video predicts continued growth in sales in the professional drone category in 2016.

December 2014 turned out to be not just nervous, but somehow explosive; each next day heated up the atmosphere more and more, increasing rumors, fears and uncertainty about the future. What will the exchange rate be, how much will the equipment cost tomorrow, how will sellers and buyers behave?This concentration of events and market fluctuations led to the fact that the heads of many of the world's largest companies visited Moscow in November-December. We tried to talk to everyone. Almost everyone willingly shared with us their views on what was happening. Whether it’s a coincidence or not, Italian manufacturers of household appliances have become the most outspoken. Their balanced view of the problem and deep understanding of the ongoing processes allowed us to go through this period of time more calmly and look forward with a certain optimism.

Interviewed by Galina SIZIKOVA.

Paolo LIOI, General Director for Eastern Europe and Central Asia by Whirlpool.

Marco FALASCHETTI, Marketing Director of Indesit Company in Russia.

Marco GARBUGLIA, Marketing Director of Elica in Russia.

Kirill BURMISTROV, head of marketing department at Faber.

Daniel MARTINEZ, Director of Business Development at Smeg.

Tatiana PECHALINA, head of marketing department at Candy HooverGroup.

Ilya KOMARTSOV, director of Zigmund&Shtain.

Vladimir ELISEEV, director wholesale department company Mie.

WHAT DOES THIS YEAR TAKE AWAY?

“BT”: What are the results of 2014 in your company: were you able to implement all your plans? Does the volume of equipment sales in the Russian Federation correspond to the expected volume?

P. LIOY, Whirlpool: Globally, the year ended positively for corporations around the world. In North America, Whirlpool is traditionally the #1 brand in the major appliance category. In Europe, the situation is somewhat different for us, the competition is tougher, however, our positions in the TOP-3 have been retained. In Russia, compared to last year, we are seeing an increase in sales volumes. Of course, this does not mean that we have achieved all our goals. But overall the year went well. As before, we rely on the quality and functionality of our products, for which the buyer appreciates our brand.

M. GARBUGLIA, Elica: 2014 was not an easy year for the market, which suffered key changes not without the participation of geopolitical events, which certainly influenced companies that import 100% of their products. In any case, for Elica in Russia it was very interesting year. We have a team with new business ideas that have already allowed us to achieve positive results, despite the period of instability experienced by the market.

K. BURMISTROV, Faber:On current moment we can say that we have implemented almost all the plans that were outlined. Sales volume is slightly different from our expectations at the beginning of the year. But, firstly, forecasts very rarely coincide 100% with the real situation. And secondly, the result is different for the better.

M. FALASCHETTI,Indesit: 2014 was a transitional stage for us. We have become part of a large corporation - Whirlpool, which undoubtedly opens up new opportunities for us and, it seems to us, will strengthen our position in the market. The company underwent some organizational changes and throughout the year we worked to maintain the profitability of the business, which was under attack due to the unstable economic situation. We achieved our goal and maintained our leading position. Today we are ready for large-scale launch new products in 2015. Their development was another ambitious task, which, it seems to us, we accomplished “perfectly.” We are proud of the results of our work and are confident in the success of our new products in the coming year.

T. PECHALINA, Candy: In general, we can say that this year was not bad for us. There are some minor difficulties in some segments, but we are working on them. Considering that the market for large household appliances as a whole is showing negative dynamics, our results against this background allow us to make optimistic forecasts for the next year.

I. KOMARTSOV, Zigmund & Shtain: We managed to implement most of the tasks. The range has been significantly expanded, becoming more modern. We expect the full effect of this work in 2015. There are several more interesting projects in the pipeline in certain categories of equipment.

D. MARTINETS, Smeg: Under the circumstances presented, on the whole we are pleased with how things are going. Of course, not everything that was planned has been implemented, but the results are positive. Sometimes we had to change our plans due to changes in the market situation, especially with regard to sales in regions where it became more difficult to work. There is a certain slowdown in growth rates, but in Moscow our sales have increased noticeably.

V. ELISEEV, Mie: We have not yet summed up the final results for the year, but on the whole I can say that they are positive. Firstly, we have significantly expanded our product line, as planned last year. Secondly, we have made improvements to equipment models that have been on sale for a long time, expanded the network service centers. Today, our appliances can be seen in almost all large chain stores of household appliances, and they are presented in a wider range compared to previous years. This year we opened three MIE brand stores, and pre-crisis plans included opening ten more stores next year. Sales volume in 2014 generally met our expectations, which cannot be said about exchange rates.

“BT”: Have prices for equipment changed significantly this year and how has this affected its sales?

T. PECHALINA, Candy: Yes, we adjusted the prices, but not much. We always try to be in the middle price segment with a price index of 100%.

K. BURMISTROV, Faber: Prices for our products, of course, changed throughout the year. I would like to note that not only in the direction of increase. We managed to reduce prices for some models thanks to production optimization and the use of new materials. On average, prices in euros for our equipment have increased by 4% this year. This change did not have a negative effect on sales, which allowed us to achieve our goals.

M. FALASCHETTI,Indesit: Pricing, of course, strongly depends on the economic situation in the country. Due to the instability of exchange rates, we increased prices throughout the year - to a lesser extent for local production, and to a greater extent for imported products.

D. MARTINETS, Smeg: As for prices, we have them in euros, so, of course, the price tag in rubles depends on the exchange rate.

P. LIOY, Whirlpool: As a rule, we define our pricing policy once a year, but in 2014, and this was the same for most players in the market, the price tag was updated several times. The cost of our products depends 60-70% on what is produced outside the Russian market, because all of it (with the exception of microwave ovens) is assembled in Europe. Therefore, in conditions of volatility and instability of exchange rates, we must be more flexible and able to quickly respond to changes in the external environment.

I. KOMARTSOV, Zigmund&Shtain: Prices change in accordance with the euro exchange rate, because... We are a European company that carries out procurement activities abroad and is forced to follow changes in exchange rates.

V. ELISEEV, Mie: We sell Italian equipment, and Italy is the European Union. Of course, the rise in the euro exchange rate cannot but affect the price of our equipment.

WHAT ARE RUSSIANS BUYING?

“BT”: Which equipment from your range was in high demand this year?

What is this connected with, in your opinion?

T. PECHALINA,Candy: Built-in appliances sold well. This year we expanded model range, improved distribution and made competent price positioning. And this market segment is also showing growth. Washing machines showed negative dynamics at the beginning of the year, but thanks to our efforts, growth in this segment has been observed since August. Sales of vacuum cleaners that we produce under the Hoover brand also showed good results.

P. LIOY, Whirlpool: There are three product segments that have seen strong sales growth this year. The first category is top-load washing machines, where we are the traditional global market leader. The second large segment for which demand is growing in the industry as a whole is built-in technology. And the third segment of Whirlpool products, which sells well in Russia, is a solution for small apartments and young families - compact front-loading washing machines.

K. BURMISTROV, Faber: Considering that our company produces only kitchen hoods, it is not difficult to answer your question. If we delve a little deeper into the details, the most popular were built-in models in the middle price segment. This is due both to the general interest of consumers in built-in household appliances, and to the fact that we really offer interesting solutions for integration into kitchen furniture at an affordable price.

M. GARBUGLIA, Elica: The best-selling products are still built-in hoods, which are intended mainly for kitchen manufacturers. The Elica brand icon, the OM hood, is undoubtedly popular, but other design innovations do not go unnoticed. Sales volumes of products in the low and mid-price categories have reached good levels this year, while sales of premium segment hoods, in turn, remain stable.

M. FALASCHETTI,Indesit: The balance of sales was maintained among all categories of equipment without serious fluctuations. The only thing worth mentioning separately is the new series of Indesit Innex washing machines. The new product quickly gained recognition among both our partners and customers. We managed to achieve amazing results, exceeding the planned sales targets for this line of washing machines, even without any advertising investments.

D. MARTINETS, Smeg: This year, in the market as a whole, and not only in our country, the market for built-in appliances has grown, but sales of free-standing washing machines, refrigerators, and dishwashers have decreased. Our strong point has always been and remains retro-style technology. Russians especially love this style, as it allows you to create a truly cozy kitchen. In addition, our devices match well with each other in color, style, and fittings. The choice is large. For example, our popular retro-style refrigerators can be combined with built-in or free-standing appliances so that you get a single ensemble from the set of items that you need.

I. KOMARTSOV, Zigmund&Shtain: Firstly, this is the “slimline” line with a width of 45 cm, in which we specialize. We are known as a serious player in this segment. In addition, our “classic” line has a number of unique positions, and accordingly, it is extremely in demand. Next year we expect a surge in demand for other new products that we will introduce at the end of the year.

V. ELISEEV, Mie: We have three clear leaders in sales in each product category. Among steamers, this is definitely MIE Deluxe; the next “successful” model, I would call a vacuum cleaner with an aqua filter and separator MIE Ecologico. Among ironing systems I would like to highlight MIE Milano. I can’t call it a hit, after all, this is not a product for the general consumer, but in the luxury segment Milano is indeed a very popular ironing system. The demand for multifunctional products has increased sharply. Nowadays, everyone is more willing to buy a steamer with the function of a steam cleaner and a steam generator than just a steamer and a steam cleaner separately. I think this is not only due to the crisis, although buying a multifunctional device will cost much less than two devices separately. This is due to both saving space in the apartment and the reluctance to spend a lot of time searching and purchasing.

AND WHAT WAITS FOR US?

“BT”: Have your company’s plans for the next year been adjusted during 2014? Do you plan to introduce new products to the Russian market next year? What price range will they be in?

M. FALASCHETTI, Indesit: We are planning a large-scale update of products in the Hotpoint-Ariston line of washing machines and refrigerators with the No Frost system. Our company will present innovative products with an updated design and a set of unique characteristics. We believe that this will strengthen the brand image. It is worth noting that the Indesit brand will also introduce new products in the refrigeration category next year.

K. BURMISTROV, Faber: Of course, our plans were adjusted. The situation not only in the world, but also in the consumer goods market is changing quite quickly. We must comply with the changes taking place. The coming year does not promise to be easy. Only active work, including on yourself, can lead to success even in the most difficult conditions. We presented new products this year and are going to launch new models next year. Since our assortment includes all price categories of products, from budget models to premium ones, new products will be presented evenly in all categories.

T. PECHALINA, Candy: Yes, we are planning. There will be many new products. In addition to regular appliance models, next year we plan to sell a new line of large household appliances that can be controlled via Wi-Fi. This is a complete line, and not just one model - washing machine, dishwasher, oven, hob, extractor hood, refrigerator. That is, all kitchen appliances can be controlled remotely. At the same time, the price for these models will be in the middle segment, and, accordingly, the equipment will be accessible to everyone.

D. MARTINETS, Smeg: We plan to present a number of new products, some of which we have already shown at the FURNITURE 2014 exhibition, which was held at the Expocenter in November. Our new models represent not only a retro style, but also a slightly different concept: they fit into lighter kitchens, compared to the Baroque style - kitchens that are more of a Victorian style. And the technology will therefore be more voluminous. At the same time, we will offer our consumers new compact devices in almost all series. In March we will present wine refrigerators 45 and 60 cm wide, made in classic aesthetics. Side-by-side refrigerators with two and four doors, 70 and 90 cm wide will also be available for sale. In April, we plan to enter the market of our premium small appliances: toasters, which are already on sale, will be added to kettles, blenders and planetary mixers.

I. KOMARTSOV, Zigmund&Shtain: We are a flexible company and do not make rigid plans. There is a general line that we follow, adapting to the market. Our strategy has always been adaptive, unlike the clumsy monsters. We plan to present new products both in the mass segment to conquer the market, given the not-so-good market situation, and in the “boutique” segment, which is native to us and shows the level of “advancement” of the brand.

P. LIOY, Whirlpool: Yes, we are planning a number of new products: an updated line of built-in appliances, a fundamentally new range of refrigerators, as well as the next generation of washing machines and dryers. In addition, since December 2014, the Indesit and Hotpoint-Ariston brands began to belong to Whirlpool. We are now legally one company, although in 2015 there will be new products from all these brands on store shelves, which means that the buyer will find something for himself the right solution at the right price and functionality.

M. GARBUGLIA, Elica: In April of this year, Elica presented a completely new range of products on the occasion of the Eurocucina exhibition. Today we work in Russia with three catalogues, one of which is presented only in the kitchen segment. You can find all Premium line products there. This approach best allows us to control the distribution system and maintain stable margins for our partners.

Elica is already actively working on restyling its product range for next year. The segment of decorative hoods continues to grow, primarily in the mid-low price category. We plan to introduce new models both under the JetAir brand and under the Elica brand. And for the first time in Russia, Elica will launch new induction panels for the kitchen, which will be connected to kitchen hoods via the Wi-Fi system. These products will contribute to a significant expansion of the company’s field of activity and are designed exclusively for the premium consumer segment.

V. ELISEEV, Mie: Now everyone who sells foreign products on the Russian market has taken a wait-and-see attitude. And we are no exception. Some plans may have to be postponed, but it’s too early to talk about it. If the purchasing power of Russians continues to fall, we will be forced to expand the range of models in the middle segment, but if the market stabilizes, we will be true to our long-standing strategy and will continue to increase the range in all promising directions with an emphasis on premium class.

GREAT RUSSIA

“BT”: At the moment, where are sales more active: in Moscow and St. Petersburg or in the regions? Is there a decline in purchasing power among the population?

P. LIOY, Whirlpool: Over the past 20 years, the market in Russia has been developing according to a sinusoid, but nevertheless it is growing every year by an average of 10-15%, the dynamics are positive. Of course, Moscow and St. Petersburg are engines of growth, but the consumer is equally important to us everywhere: both in the center and in the regions of the Russian Federation. And if we talk about the purchasing power of Russians in the current situation, we understand that the overall positive trend may change. But we are optimistic about the future, also thanks to the acquisition of Indesit.

M. GARBUGLIA, Elica: Moscow and St. Petersburg are undoubtedly the key ones, here there are clients not only with higher purchasing power than in the regions, but also with constantly changing tastes and preferences. However, Russia is not only Moscow and million-plus cities. Elica invests in agency and distribution networks through which we are represented in the regions. But this task is not an easy one, especially during periods of fluctuating demand that is observed in the market.

K. BURMISTROV, Faber: Moscow and St. Petersburg are still in first place. At the same time, in some regions there is a noticeable trend towards an increase in the share of sales. For example, the southern federal district may soon emerge, if not in first place, then in the top three. No, there is no decline in purchasing power among the population. On the contrary, people began to spend more. This is due to various factors, starting from the seasonality of demand and ending with the high volatility of the ruble exchange rate. This will not last long, and next year purchasing power will decrease, but it is too early to talk about this.

M. FALASCHETTI, Indesit: On average, the purchasing power of the population is the same throughout the country. Russian consumers are demanding and, as a rule, give their preference to modern and high-tech products, and, of course, there is an obvious tendency to develop sales in big cities, however, there is a good indicator in the regions. The structure of our company allows us to cover the entire territory of Russia. If we talk about a decrease in purchasing power, then, as you understand, this very much depends on the situation in the economy. Separately, I would like to say about the growth trend in online sales. We pay special attention This seems to us to be an attractive distribution channel.

D. MARTINETS, Smeg: Our main task is not large sales volumes, but a careful selection of partners. It is important for us that our partners match the quality of their services with the quality of the brand, present our products well and understand our pricing policy well. This applies not only to furniture showrooms, but also to boutiques, as well as chain stores. We are also opening our own mono-brand stores. They are already operating in St. Petersburg, Makhachkala, and Syktyvkar. There are plans to open such retail outlets in other cities.

T. PECHALINA, Sandy: Moscow and St. Petersburg - a large share in sales. But people are also buying in the regions. Especially now, online sales are growing strongly in the regions. Due to the current economic situation, many are trying to spend money to avoid its depreciation.

I. KOMARTSOV, Zigmund & Shtain: Of course, we do not live on another planet and receive “reports from the front” every day, i.e. feedback from clients and news from partners. Therefore, we are well aware of what is happening in our market and understand what we will have to work with in the near future. We are represented in almost all regions of the Russian Federation, as well as in Belarus and Kazakhstan, so fluctuations in demand in one region are covered by opposite waves in other regions. Essentially, Russia is a set of local markets with its own rules of the game and factors influencing the market, therefore, if you completely cover the territory, the risk is reduced.

V. ELISEEV, Mie: Moscow is still in the lead, but every year the regions are increasingly showing interest in our technology. As a result, we have already opened a number of branded stores in the regions. Regarding the second question, the dilemma is that with the growth of foreign currencies, the salaries of our consumers in rubles remain the same and, accordingly, their purchasing power does not correlate with these changes in the market. The decline in sales is already being felt in comparison with last year, but it is difficult to call it a disaster yet. I think that those who need our equipment will still buy it, especially since tomorrow it will be even more expensive.

WE ARE ALL IN THE ONE BOAT

"BT": Do you plan to increase prices for your products? What will the growth be like? Could it happen that technology will become “unaffordable” for most Russians?

P. LIOY, Whirlpool: I repeat, as for all market participants, a lot now depends on the cost of production and the dynamics of exchange rates. Therefore, objectively, in the current situation, price adjustments occur more often than before, under more stable external conditions. But all equipment manufacturers are now in this situation. We are all in the same boat, including our customers. Just like them, every day we open the news and look at exchange rates. Nevertheless, we are confident that Russian consumers will always be able to find a solution in our assortment that they can afford.

T. PECHALINA,Candy: We plan to be in the market. PositioningCandy is a middle price segment, so in any case, we will have a price index of 100%. Most likely, the average price of equipment on the market will increase, and prices for our products will rise. But, despite this, our models will always be affordable for most Russians.

M. FALASCHETTI, Indesit: Yes, now all suppliers are increasing prices for products and, starting in January, this will become noticeable for end buyers. In general, this difficult moment opens up interesting opportunities and prospects for us. The Indesit brand will be able to offer best price on the market, while providing high standards quality, and Hotpoint-Ariston will offer the most advanced design solutions and the latest technology, but definitely at very competitive prices.

M. GARBUGLIA, Elica: Elica’s prices in Russia have always been set in rubles, and it will remain so, despite the instability of the ruble against the euro. Over the past 12 months, the ruble exchange rate has weakened significantly against the European currency, but at the same time we have changed our prices once and minimally. Currently, we are planning to increase prices in December 2014 - January 2015, but we are not talking about monthly price changes to cover the fall in the ruble exchange rate.

K. BURMISTROV, Faber: Like most manufacturers, the cost of our products is significantly affected by the euro exchange rate. Therefore, prices will definitely have to increase. For our part, we will try to minimize this increase so that it does not scare away consumers. It is difficult to imagine a situation where technology is “unaffordable” for most Russians. The advantage of a wide range is that a buyer with any income level can choose an option that suits his pocket and suits him functionally and aesthetically.

D. MARTINETS, Smeg: The price in rubles depends on the euro exchange rate in the Russian Federation. As for the development itself, we are definitely not going to make the equipment cheaper; on the contrary, we want to make it more technologically advanced and premium. For example, most of our ovens will have a Pizza function.

Our strategy is to go up and produce premium equipment. That's why we add a variety of accessories to our new home appliance models and increase their functionality, while ensuring, of course, an excellent appearance.

I. KOMARTSOV, Zigmund & Shtain: As already mentioned, if the ruble weakens, we are forced to increase prices to ensure uninterrupted supply. Everything will depend on exchange rates. If they fall against the ruble, then the prices for our equipment will go down. The market for household appliances is adjacent to both the real estate market and the kitchen furniture market. We see the situation happening in these markets and can guess what we will face in the near future. Of course, demand may decrease, but it will never drop to zero. The market does not die completely, so there is always the opportunity to fight for your place in it, convincing the buyer.

V. ELISEEV, Mie: Yes, we are forced to increase prices for products, but we are trying to minimize this increase by optimizing work. As I already said, we will adapt to the consumer capabilities of our customers; with our mobility this will not be so difficult.

WILL THE FACTORIES BE BUILT?

BT: Are you going to expand/open production in Russia to minimize costs?

P. LIOY, Whirlpool: Next year we will be ready to talk about localizing production. There are such plans, but we are not disclosing them yet. In addition to this, as I already said, the acquisition of Indesit automatically gives us localization of production in Russia, ready-made operating factories.

M. FALASCHETTI,Indesit: Not now best time for investment, especially in production capacity, as the home appliance market is likely to contract in 2015. But perhaps this will be important to talk about in the future.

T. PECHALINA, Candy: We have own production washing machines and refrigerators in Kirov. That's enough for now.

M. GARBUGLIA, Elica: On at the moment Elica sells hoods in Russia produced by our factories in Italy, Germany, Poland and China. We do not plan to change our production structure, but we do not exclude the possibility of cooperation with local enterprises for special product categories.

K. BURMISTROV, Faber: Faber factories are located in eight countries on three continents. We currently have no plans to expand production. Minimizing costs in our company occurs through the use of new materials and new production technologies.

D. MARTINETS, Smeg: We have no plans to open our own production in Russia. Made in Italy is ours distinctive feature, our credo. We received offers, for example, to produce washing machines in Russia, but we did not dare. Although it is possible to produce high-quality goods in both China and the Russian Federation, and in these countries many manufacturers make high-quality equipment, we did not change the place of production.

I. KOMARTSOV, Zigmund&Shtain: Local production (as well as production in general) does not always mean minimizing costs. There are other ways to do this best offer on the market. Therefore, in the near future we are considering Russian production only in the category of kitchen sinks, a project for which started quite recently.

V. ELISEEV, Mie: We exclusively trading company. If manufacturers of high-quality modern ironing equipment appear in Russia, we will be happy to consider the possibility of cooperation with them.

ARE DARK TIMES COMING?

"BT": Do you think in business related Will 2015 be an easier and more fruitful year than 2014, or will we face more difficult times?

T. PECHALINA, Candy: 2015 will definitely not be an easier year. The CBT market will not grow, except for certain segments. Accordingly, efforts will have to be made in order to maintain positions, and, moreover, improve them. This is what we will be working on next year.

M. GARBUGLIA, Elica: Now it is difficult to make any forecasts. Of course, we expect demand on the market to decline in the first half of the coming year, but it will recover by the second half. Obviously, much will depend on the economic situation in the country. For Elica, 2014 was a year of great change. Positive feedback from our clients gives us hope that 2015 will not only reinforce them, but also increase them.

K. BURMISTROV, Faber: As they say, times are always difficult, and 2015 will be no exception. Given the slowdown in economic growth and the challenging political climate for business, next year will be more challenging. But fruitfulness directly depends on our work with you. It is possible to work unproductively in greenhouse conditions. Difficulties, in turn, encourage more active work, which ultimately leads to a positive result.

M. FALASCHETTI,Indesit: 2015 will be a difficult year for all manufacturers of household appliances. I don’t remember easy times in this industry; usually every year is characterized by certain difficulties and trials. However, as already mentioned, we believe that the main opportunities open up precisely during a crisis, and only for those who know how to act correctly and react quickly.

P. LIOY, Whirlpool: Of course, this will be a difficult and poorly predictable year for the market as a whole. But complicated macroeconomic environment is the same for all competitors. If we work well and offer solutions that are the best in terms of functional and technical indicators, then they will definitely find their buyer. In each of our new lines, we make sure to show new technological capabilities - not only the discoveries of marketers (which in itself is secondary), but the best-in-class functionality and build quality. All of our products planned for 2015 feature improved technologies compared to previous generations. For more than a hundred years of existence on the market, having survived different times and crises, Whirlpool invariably relies on itself and its strengths. This is probably why we always look into the future with optimism, because we try to create the necessary prerequisites for it today.

D. MARTINETS, Smeg: Of course, we want and hope that the company's sales plans will be fulfilled and the market situation will be favorable.

I. KOMARTSOV, Zigmund & Shtain: Everything speaks of difficulties. But we are not afraid of them; This is not the first crisis we have experienced, so we know what we need to do. In addition, the Chinese character for “crisis” has two meanings, the second of which means “opportunity.” A crisis is always a time to reassess tactical and strategic plans and search for new development opportunities, which is what we are going to do in the near future. Speed ​​of response to change and adaptability are now at the forefront of achieving success.

V. ELISEEV, Mie: It doesn’t depend on us, but we can already say that this year is unlikely to be easy. You need to be optimistic and believe that every cloud has a silver lining. Difficulties make us stronger and force us to work better and more efficiently.