Home Improvement in Russia - New Market Report

From: Fast Market Research, Inc.
Published: Mon Aug 24 2015

Home improvement is perceived as a do-it-yourself job by the majority of the Russian citizens. This is explained by the small space of accommodations and relatively low income level of the main part of the Russian population. To hire a brigade or to refer to construction companies for home improvement jobs is more widespread in Moscow and St Petersburg, where flats are bigger and earnings of the owners are higher than average in Russia. Thus 30% of the population of the biggest Russian cities are ready to pay for repairs. It is also popular to hire a worker who is not officially registered as a company or self-employed person and who provides repair services unofficially, as in that case people economise on tax paying. Usually such services are offered by immigrants. With declining economic conditions, the share of consumers who do small repairs by own means will grow.

Full Report Details at
- http://www.fastmr.com/prod/1036440_home_improvement_russia.aspx?afid=301

Competitive Landscape

Tarkett ZAO has been for many years the leader in home improvement, with 5% retail value share reached in 2014. The company’s competitive advantages are its "glocal" business approach, high standards of social responsibility, constant launch of new designs, wide net of points of sale, promotional campaigns – for instance Tarkett Design Academy working with designers – partnerships with other organisations, such as the Russian Association of Mini Football, and other activity stimulating high awareness in the Russian market. In the circumstances of the local currency decline, Russia-based production was another beneficial factor for the company in 2014 when importers had to increase prices. Interskol ZAO held the second position; it reached 3% retail value share in 2014 due to production expansion.

Industry Prospects

In the forecast period home improvement’s value sales decline will be mainly affected by construction decline as a result of tightening investment. Purchasing power decline and restrictive measures in respect to mortgage supply will lead to a significant decrease of real estate purchasing deals. This will lead to lower demand for repair work. In the case of necessary maintenance, consumers will switch to cheaper repair materials and economise on decorating sundries and power tools. Although Russian craftsmen prefer high-quality and branded tools, in the short term these will be mainly acquired by building companies or brigades, whilst amateur repairers will prefer to buy cheaper analogues or unbranded products, imported from Asia. In these circumstances the counterfeit hand and power tools demand will grow and have an additional negative impact on home improvement demand in Russia.

Home Improvement Market Research

Analyse key trends and developments in Russia for all product categories, competitors and channels.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)

You may also be interested in these related reports:

- Home Improvement in Romania
- Home Improvement in China
- Home Improvement in Turkey
- Home Improvement in Sweden
- Home Improvement in Canada

Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

Visit website »