RUSSIA THE MARKET OF CONSUMER ELECTRONICS
Dec 24, 2015
MARKET DYNAMICS 2000 + 35% 2001 + 30% 2002 + 30% 2003 + 30% 2004 + 30% 2005 + 25% 2006 + 15% 2007 + 15% 2008 + 12 %
2009 - 25 % forecast
-30
-20
-10
0
10
20
30
40
2001 2002 2003 2004 2005 2006 2007 2008 2009
MARKET DYNAMICS
2004 – USD 8,5 bl 2005 – USD 10,5 bl 2006 – USD 12,5 bl 2007 – USD 14,4 bl 2008 – USD 16,5 bl 2009 – USD 12,4 bl
(forecast)
2004 2005 2006 2007 2008 2009
THE LARGEST RETAIL CHAINS
2007 2008 2009
# of Stores
Net Retail Sales
(USD bl)
# of Stores
Net Retail Sales
(USD bl)
# of Stores
ELDORADO 1100 6,0 1000 5,0 770
M. VIDEO 122 ? 157 2,7 171
TEKHNOSILA 201 1,5 242 1,9 198
MIR 65 0,7 75 0,77 56
DOMO 199 0,7 256 0,78 240
MEDIAMARKT 17
HISTORY, PHASE 1
1990 - 2000 high customs duties (25 % - 30 %),
high VAT (23%). no direct contracts between international
manufacturers and Russian dealers
INDEX OF LEGALITY OF IMPORT 5 %
HISTORY, PHASE 2
2000 - 2005 Foundation of Association RATEK (2000) In 2005 RATEK launched the “DIRECT
IMPORT” project Direct Import fully supported by authorities Decrease of customs duties (10 -15 %)
INDEX OF LEGALITY OF IMPORT 35 %
HISTORY, PHASE 3
2005 - 2006 expansion of retail chains direct import-contracts legal import increasing growth of a tax transparency of retailers decrease of offshore import
INDEX OF LEGALITY OF IMPORT 60 %
HISTORY, PHASE 4
2007
DIRECT IMPORT
SAMSUNG, SONY, NOKIA, PANASONIC, LG, Group SEB, TOSHIBA, CANON, PHILIPS, SHARP, PIONEER, SonyEricsson, WHIRLPOOL, JVC
INDEX OF LEGALITY OF IMPORT 80 %
LEGAL IMPORT
LEGAL IMPORT IS:
competitive equalityeffective control of goods circulation and financeno tax and customs risk
INDEX OF LEGALITY OF IMPORT
2004 2005 2006 2007
1. Mobile phones 9,74 78,4 100 90
2. Notebooks 23,2 45,5 48 50
3. LCD-TV 29,1 90,2 70 70
4. PDP-TV 39,6 50,5 94 100
5. Photo/video cameras 12,8 8,5 21 95
6. Fridges 93,8 98,5 81 100
7. Washing machines 89,1 92,4 99,7 100
HISTORY, PHASE 5
Localization of manufacture in Russia
Large international manufacturers have opened factories in Russia
INDEX OF LEGALITY OF IMPORT 95 %
HISTORY, PHASE 5
Localization of manufacture in Russia
Samsung – LCD-TV, LED-TV
LG – MDA, TV
MERLONI – MDA
BEKO – MDA
VESTEL – MDA, LCD-TV (forecast)
BSH – MDA
DeLonghi – SDACANDY – washing machines
CRISIS
QII 08 vs. QII 09, % Net Retail Sales: - 43,1% OE: - 66,7% TELECOM: - 47,2% A/V: - 44% IT: - 39,6% PHOTO: - 38,8% SDA: -36,9% MDA: - 28,8%
C.News, GfK
OUR SUCCESS
LEGALIZATION (90 %) LOCALIZATION (MDA – 80 %, TV – 70 %) LEGAL DIRECT IMPORT PROTECTION OF CONSUMERS MODERN MARKET STRUCTURE ASSOCIATION RATEK
RATEK ASSOCIATION
Association RATEK was founded in 2000 membership is more than 60 members,
including federal retail chains, major wholesale companies, manufacturers of electronics (INTEL,
Samsung, Vestel, Motorola, Sony, Olympus, Microsoft, Hewlett Packard, Foxconn),
service companies
RATEK ASSOCIATION
GOALS: protection of collective interests of the members of
the Association by way of representation of their interests in international non-governmental organizations, Russian governmental bodies and other organizations;
contribution to the creation of equal competitive and favorable financial and economic conditions for faithful members of the market of electric household and computer goods;
RATEK ASSOCIATION
MAIN PROJECTS Tariff regulation Radio frequencies reform Legalization of import Copyright levy Protection of consumers’ rights Service Power effectiveness Sanitary and technical rules and norms
THANK YOU FOR ATTENTION
ALEKSANDER ONISHCHUKPRESIDENT OF RATEK ASSICIATION,Russia, Moscowwww.ratek.org,[email protected] 985 769 2049