Russia has a vast interior finishes and DIY sector and it’s growing at a healthy 7.5% rate year-on-year.
It’s the largest country in the world, with a population of over 146 million and the 12th largest GDP globally, so it’s no wonder the Russian interiors sector is also a large one.
The DIY/home improvement trading sector grew 7.5% year-on-year in 2018, exceeding 1.5 trillion roubles ($23.3bn), according to InfoLine information agency.
This massively surpassed the 3% growth that was expected last year.
While several DIY chains in Russia have consolidated and withdrawn from the market in recent years, over 1,000 still operate in Russia, with the top 10 accounting for 40% of the market, and 21% occupied by market leader Leroy Merlin.
One significant market trend hitting the DIY sector in Russia is e-commerce. In 2018, online sales accounted for 9% of the market and this is predicted to rise to 13-14% by 2020, according to Info-Line.
The wider building sector in Russia
The market of interior finishes in Russia is largely dependent on the wider building industry.
Interiors did fare relatively better than the building sector during the 2014-17 financial crisis, as many people chose to remodel or redecorate rather than move to a new house, but the effects of the crisis were still felt by many suppliers and manufacturers.
After a couple of years of stability, the Russian building industry is now back on track for growth and bringing with it the interiors sector.
Construction work rose 5.3% in 2018 and amounted to 8.4 trillion roubles ($130bn), according to Rosstat, while the national economy rose 2.3%, the fastest rate in six years.
This growth for the building industry in Russia contributed in pushing the country up to the top 30 in the World Bank’s Ease of Doing Business Rating 2020. Russia ranked 28th out of 190 countries, showing a remarkable rise from 123rd in 2011.
To get a real insight into how Russia’s build and interiors industry is recovering however, you need to hear from those on the ground – the companies who meet developers, sign contracts and ship products to Russia throughout the year.
That’s why we created ‘The Russian build and interiors industry in 2019: market report’, after surveying a range of exhibitors at MosBuild 2019, Russia’s largest build and interiors exhibition.
The report demonstrates that 71% of market players surveyed said they are optimistic or very optimistic about the Russian market over the next few years. 100% reported they were either quite or very optimistic about the growth of their company over the next few years – an increase on two years ago when this figure was 85%.
The country’s economic difficulties were far more of a concern in recent years than they are now. The economic situation topped the leader board of challenges suppliers face in 2016 with 72%, dropping to half of respondents in 2017, and mentioned by only 14% in 2019.
This suggests the market has largely moved on from the crisis and is back focusing on growth.
MosBuild – the place to promote your interiors products
Want to boost your interiors business on the Russian and CIS markets? MosBuild is your chance.
From lighting and electrical products, wallpaper, paints and decorative plasters, flooring, curtains, textiles, curtain rods, and shutters, wall and ceiling panelling and moulding, the event is packed with exciting new products to inspire Russia’s buzzing interiors market.
MosBuild 2020 holds great opportunities for international manufacturers and suppliers of interiors products and finishing materials – it’s the best place to gain access to Russia’s enormous market.
Each year, the world’s very best manufacturers and suppliers come to showcase their brand and products to 77,300 of Russia’s top buyers, distributors and specifiers.
Book your stand today to secure your place
