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Russian electronics brands accounted for a third of sales in 2023
Source:Vedomosti From:Taiwan Trade Center, Moscow Update Time:2024/07/22

The total share of electronics brands (computer equipment, consumer electronics, large and small household appliances) from Russia and the CIS in 2023 was 32%, said Alexey Melnikov, managing partner of the Fplus IT holding, during the conference “Russian electronics: in anticipation of the mass consumer” , organized by the Vedomosti newspaper. In total, 332 million products were sold, including 106.2 million brands from Russia and the CIS, he specified. This number also included private labels of distributors and retail chains.

In 2024, the growth of goods of Russian brands and private labels in the market of household appliances and electronics continues, a representative of the M.video-Eldorado group confirmed. According to his estimates, in the first half of 2024 the share of such goods was about 18%, and the total number of such equipment increased by 70% compared to the same period last year (the absolute number is not given).

The share of brands from the Russian Federation and CIS countries and private labels in consumer electronics (TVs, game consoles, etc.) is higher, according to Fplus statistics. In total, 27 million products were sold in the segment in 2023, brands produced in Russia and the CIS countries account for 35%, and private labels account for 13%.

Then there are small household appliances (for example, hair dryers and toasters), where 37% are goods from Russia and the CIS, 8% are STM (77 million units were sold in total in the segment). In large household appliances (for example, washing machines and refrigerators), 16% of the 22 million goods sold in Russia and the CIS accounted for, and 22% for STM. There are fewer domestic brands and STMs in telecom (smartphones) and computer equipment (laptops, PCs and tablets). Russian and esengash brands accounted for 20% of 114 million units of goods in telecom and 30% of 93 million units in computer technology.  

Sales of equipment of the Russian brands in 2023 in million pieces

 

 Products 

 

 

Volume in million units

Telecom 

114

Computer equipment

93

Small household appliances

77

Consumer electronics 

27

Large household appliances

21

The share of Russian/CIS brands and STM ( own brands) at the market in % 

Products  

Share of  Russian and CIS brands 

 

Share of STM (own) brands 

Telecom

14

6

Computer equipment

22

8

Consumer electronics

35

13

Large household appliances

16

22

Small household appliances

37

8

Source: Fplus statistics. 

In consumer electronics, brands from Russia and CIS countries Irbis, Vityaz, Yandex, Sber and VK and STM from Tricolor, Dexp, Novex, Hartens stand out, lists the representative of Fplus. Vitek, Polaris and STM Redmond are best known in small household appliances, while Kitfort, Biryusa and STM Dexp are best known in large household appliances. In the category of computer equipment, the brands Aquarius, Fplus, iRu and STM Dexp and Lunnen are being bought. Telecom sells the brands Fplus, BQ, Inoi, and STM – Megafon and Dexp.

The most popular among Russian consumers are the Hi STM brand from M.Video-Eldorado, as well as brands such as Polaris, Yandex, Redmond, Sber, Weissgauff and MARUSYA, the representative of M.video-Eldorado lists. "In the segment of large and small household appliances, the representation of Russian brands and STM is more than 1.5 times higher than in the telecom sector," he noted. The interlocutor believes that this is influenced, among other things, by the "high availability of high-tech components (microprocessors, high-quality displays, etc.)" in Asia, namely these components are "most needed" in telecom.

Yandex Market has its own brands of household appliances and electronics Tuvio, as well as accessories for smartphones Commo, which appeared in 2022 and are showing steady growth, said a representative of the online platform. In February of this year, Yandex Market also launched the Lunnen brand of computer equipment, which aroused the interest of customers at the start, he added.

According to Wildberries Digital, there is indeed a growing trend in the share of Russian brands and STM. According to the marketplace, since the beginning of 2024, the share has doubled compared to the first half of 2023. Brands such as Scarlett, Red, BQ, Bork are in demand on the site, a company representative said. Among all brands, by the number of orders, more than 25% are occupied by Merlion STM brands, said Evgeny Zakhodnov, director of the SM division of the Merlion Group. Digma and Starwind became the most popular in the first half of 2024, he added.

The Russian market is really transforming towards an increase in the share of a local manufacturer, Alexander Onishchuk, president of the RATEK Association (unites Russian and foreign manufacturers of household and computer equipment), said during the Vedomosti conference "Russian Electronics: Waiting for the mass consumer". In addition, retail chains, as the main conductors of goods, are interested in having constantly updated products with service support, he noted.

The volume of sales of Russian and own brands is growing, but not their number, says an independent analyst, the author Vilianov.com Sergey Villanov. A surge of new brands was observed in 2022, but successful launches can be counted on one hand, he pointed out. Mostly well-known brands have remained on the Russian market for a long time, volumes have simply increased and the nomenclature has expanded, Villanov drew attention.

Russian and STM (own brand name) brands have the strongest positions in the segments of televisions and computer peripherals, the editor-in-chief Ferra.ru (part of Rambler&Co.) Evgeny Kharitonov notes. According to him, Sberbank, Yandex, and less notable players made their own versions on the free version of Android AOSP (Android Open Source Project is a freely distributable free-of–change  version of Android) without Google services instead of Android TV, that has accelerated the transition of Russian citizens to Russian TV. In addition, the departure of market leaders Samsung and LG has inflated the prices of their products, which are imported into Russia by parallel imports, the expert said.

After the rise in price of Chinese monitors due to difficulties with financial settlements of marketplaces with Chinese banks, the popularity of STM and Russian brands, such as Hartens or Digma, began to grow, Kharitonov says. Similarly, there was a "democratization" of prices for mechanical keyboards and SSDs – from the attributes of medium- and high-end computers, they came to the budget segment mainly thanks to STM and Russian brands, the expert points out. The situation is similar in other categories of devices that are not at the "peak of manufacturability": push-button phones, batteries (batteries, accumulators), microwave ovens, air conditioners, cooktops, etc., he gives examples.

Source: https://www.vedomosti.ru/business/articles/2024/06/27/1046441-na-rossiiskie-marki-elektroniki-prishlas-uzhe-tret-prodazh?utm_campaign=newspaper_27_6_2024&utm_medium=email&utm_source=vedomosti