All the conditions have been created for new brands to enter the Russian market.
The Central Bank released the report “Regional Economy” for the first half of 2022. The document analyzes key trends, one of which is the reduction of household spending, including on non-food products and the transition to low-price goods. So, sellers of electronics and household appliances note that buyers have become more likely to refuse to buy products of expensive brands in favor of little-known ones, writes “Russian newspaper“.
The document analyzes key trends, one of which is the reduction of household spending, including on non-food products and the transition to low-price goods. Thus, sellers of electronics and household appliances note that buyers have begun to refuse to buy products of expensive brands more often in favor of little-known ones.
All the conditions have been created for new brands to enter the Russian market, and young brands provide a guarantee, unlike those who have recently left the country, experts say.
“On the one hand, the retailer is interested in diversifying the assortment and providing the customer with a wide choice, so today market players are actively looking for new brands with the most convenient supply chains. On the other hand, they are guided by purchasing power, which, according to research, is adjusted downwards,” notes Ksenia Kasyanova, Research and Development Director at KROS.
“In the 90s, the lower segment was a mixture of products under unknown brands and outright fakes for Western brands, and the consumer’s choice was made solely on the basis of the price criterion,” the expert notes. – Today, brands unknown to the buyer will fall into all segments – from the top, premium level, to the mass market. At the same time, the choice in favor of even a cheaper product today is made much more consciously and according to a whole range of factors, which ultimately leads to an increase in marketing costs for both manufacturers and suppliers, and retailers.
According to the expert, systemic changes in the home appliances and electronics market will undoubtedly affect all market participants – retailers will need to look for new approaches to the buyer, presenting a wide new range, and buyers will need to form new habits and criteria for evaluating unfamiliar brands.