其他服務業Business News

The output of furniture in monetary terms in Russia in 2023 amounted to 444.9 billion rubles, which is 37% more than in 2022 (356.2 billion rubles), follows from the report of the Association of Furniture and Woodworking Enterprises of Russia (AMDPR), which was reviewed by Vedomosti. Production volumes in physical terms increased by 43% to 67.5 million units (in 2022, the figure was 50.3 million units). The largest increase, according to the operational data of the association, was shown by the segments of kitchen furniture (+84%, up to 15.2 million units), mattresses (+39%, 17 million units), wooden office furniture (+33%, 8 million units). 

In value terms, the highest increase in production was shown by metal office furniture (+42%, up to 54.7 billion rubles), wooden furniture for the dining room and living room (+27%, 34.1 billion rubles), as well as wooden office furniture (+26%, 37.8 billion rubles), the report says. For comparison: in 2021, 51.7 million pieces of furniture worth 309.3 billion rubles were produced in Russia.   

According to forecasts of Roslesinforg (the forestry agency of the Federal Forestry Agency), in 2024, the volume of production of children's furniture made of wood will grow by 10% in relation to the results of 2023 and exceed 1.1 million pieces. "We are talking about wooden headsets and sets of children's furniture, cabinets, racks, playpens, boxes for children's toys. Among the main reasons are the expansion of preferential mortgage conditions and, as a result, the growth of housing construction, as well as an increase in furniture production in general," the press service of Roslesinforg reports.

At the same time, according to AMDPR, in 2022, compared with 2021, the volume of imports decreased by 42% (in value terms from 184 billion to 106 billion rubles). Since the end of February 2022, the Federal Customs Service (FCS) has temporarily suspended the publication of foreign trade statistics, a representative of the FCS told Vedomosti.

The growth of furniture production in Russia in 2022-2023

	Volume of furniture production in bn rubles	% of growth	Volume of  furniture production in mn pieces	% of growth
2022	324,7	37	47,2	43
2023	444,9		67,2

Source: Association of producers of furniture and wood processing industry  

The noticeable growth of domestic goods is primarily due to active import substitution, experts interviewed by Vedomosti say. "The trend is associated with a sharp decrease in competition amid the departure of international companies. Retail showed unprecedented activity last year, and precisely at the expense of Russian market participants," says Dmitry Tomilin, CEO of Eterna. Imports also declined due to the withdrawal of Western companies. For example, in March 2022 IKEA announced the suspension of work in Russia and Belarus, in June of the same year the company announced its complete withdrawal from the Russian Federation. First of all, imports from Western countries – Germany, Italy, Sweden, France, etc. - decreased, said Ruslan Syrtsov, Managing Director of Metrium.

In addition to domestic manufacturers, Asian concerns, primarily Chinese ones, are actively involved in replacing the products of Western holdings, says Syrtsov. In addition, according to him, products of companies from neighboring countries – Belarus, Kazakhstan, etc. - began to be imported to Russia more often.

The first furniture factory increased sales by 38%, said Alexander Shestakov, CEO of the company, without giving absolute figures. And the main driver of retail sales for the company are custom kitchens: in 2023 they were sold by 20% more than in 2022.

The popularity of kitchens and bedroom products (including mattresses) Maxim Valetsky, co-founder of the interior company Mr.Doors, explains that they are needed first of all when moving into a new apartment. "The market of new buildings showed positive dynamics back in 2021-2022 thanks to preferential mortgages, and, as a result, in 2023, Russians began to equip the received apartments (the construction of the house lasts about three years. – Vedomosti)," he says. A kitchen set is rarely included in the decoration of apartments from the developer, says Syrtsov. Large furniture retailers try to keep prices down as long as possible, and also regularly launch promotions and discounts, says Denis Egorov, CEO of Lazurit furniture company. "But we cannot influence some factors, for example, the rise in price of fittings or an increase in electricity tariffs – the cost is still growing," he says. In 2024, the cost growth will continue, Valetsky predicts, there are no prerequisites for an obvious decrease now.

In 2024, the growth of the furniture market in Russia will be at least 15% more, as the demand for furniture remains high, Egorov believes. More than 100 million square meters are commissioned annually in Russia. Buyers of apartments and houses need a lot of furniture, agrees Syrtsov.

According to Valetsky, no new major changes are expected in the Russian furniture market so far. Over the past two years, Russian manufacturers have been able to take a very serious step forward and have learned how to develop truly competitive products, this trend will continue in the coming years, he predicts. In the next few years, the industry will add about 5-20% annually, says AMDPR CEO Timur Irtuganov. But the Russian market, no matter how big it is, has its own capacity: at some point, manufacturers will reach a plateau, i.e. they will add in kind not so much anymore.

Source: https://www.vedomosti.ru/business/articles/2024/02/28/1022572-proizvodstvo-mebeli-v-rossii-viroslo?utm_campaign=newspaper_28_2_2024&utm_medium=email&utm_source=vedomosti