For the whole of 2015, the TCG market in Russia recorded a decline of 14.4%, compared to 2014. Two sectors reported a small positive annual performance: telecommunications did not surprise with a growth of 1.1%, but stable value for the Office equipment and consumables sector (up by 0.3%) was a great result in an unstable market. All other sectors reported negative performances, including major domestic appliances and small domestic appliances. Here are the details published by GfK Temax Russia.
Major domestic appliances
In 2015, the total value of the MDA sector was almost 15% below that for 2014. Even a rather successful December 2015 did not eclipse the results achieved in December 2014. Built-in appliances maintained a strong position in Q4 2015, but were down by almost 12% compared to the same period in 2014. Consumers looked for more affordable products – especially in the cooling products and washing machines segments. The average spend in the MDA sector increased by over 30% in rubles. Online channels became more important and are gaining in market share.
Small domestic appliances
In Q4 2015, the SDA market registered moderate recovery, being just 4% below the results for Q4 2014. In Q2 2015, results were 10% lower than in the same period in 2014. The slowing of the negative trend was influenced by price increases. Traditional sales stagnated while the online segments performed very well with over 10% growth, compared to 2014. While turnover in the core SDA categories did not recover discernibly, small niche segments maintained double-digit growth rates.
Consumer electronics
In 2015, the market for Consumer electronics in Russia declined by 30%, both in value and in units, compared to the previous year’s results. This was mostly caused by a slowing in demand for TVs which declined by almost a half. Nevertheless, 4K TV continued to gain in popularity among Russian consumers, and turnover in the segment increased by over 30%, gaining almost 15% of the Russian market in 2015. Another growing but rather small segment is curved TVs which became more important when combined with 4K TV.
Photography
The overall situation in Russia affected spending, and even the holiday season did not help in the last quarter of the year. In Q4 2015, value was below the results for Q3 by 3%, and below Q4 2014 by 46%. Online sales were more positive (down by 39% in value) than the traditional sales channel (down by over 45%). The online sales share reached 25% in Q4 2015. One of the segments with promising sales prospects was compact system cameras. They declined in value by 27% in Q4 2015, compared to Q4 2014, but the value share amounted to 12%, an increase of 3%.
Information Technology
The Russian IT market continued to shrink in line with the falling ruble ex-change rate. Market value decreased by around 18%, compared to 2014. Increasing prices inhibited demand in the IT market and the anticipation of price growth (together with import costs) kept consumers away from the shops, even during the Christmas season. The only factor to counter the downward movement in the IT sector was the shift in demand towards less powerful and less expensive computers. Sales of entry-level Intel Celeron processor-based compact PCs increased by almost 10% compared to 2014. Keyboard-enabled computer tablets were also welcomed by the market as an alternative to other computers.
Telecommunications
In 2015, and despite ever-growing financial pressure, consumers in Russia did not give up their gadgets, with 26 million smartphones sold, a drop of 5%, compared to 2014. Nevertheless, habits and preferences are changing. Growth in demand for 4G-compatible smartphones exceeded 60%, as these devices became more affordable and widely advertised. Smartphones with larger screens (5 inches and more) also gained in popularity among consumers and now make up almost 40% of value turnover.
Office equipment and consumables
2015 was defined by prices markedly higher than those in 2014 and, consequently, buyers looked for ways to save money. Business and private consumers shifted to the “counterfeit” cartridges segment, increasing its value by 55%, as the average price of original consumables increased by over 40% in 2015. This growth affected sales of original cartridges with a subsequent impact on demand. Sales of Office equipment also offered few surprises, selling the most in the pre-holiday quarter. As a result, sales in 2015 ended with a positive result (+0.3%).
