Headlong growth for furniture market in Russia

The furniture market in Russia is recording annual growth rates of up to 20 per cent. A figure of US $ two bn (€ 1.6 bn) is currently being put on the volume of sales. Experts are forecasting that the saturation point will not be reached until between six and eight times the current figure has been achieved. “Measured against western standards, Russian consumers still have a lot of catching up to do when it comes to the furnishing and equipment of their homes,” is the comment contained in a report by the BFAI (Federal German Agency for External Trade). The annual spend on furniture per head of population amounts to just ten US $ (eight €) at the present time.
However, consumers’ purchasing power is increasing. According to information from Goskomstat (the National Statistics Committee), real disposable income grew by 13.9 per cent between January and October 2003.
Not the least important reason behind this demand for furniture is the dynamism of the housing construction sector. It is above all foreign suppliers who are profiting from this situation. The value of imports has been increasing steadily since 1999. Foreign furniture had achieved a market share of 50 per cent in terms of value by the end of 2003. The previous year’s figure was 47 per cent. Currently a figure of up to 70 per cent is put on the share achieved in Moscow and St Petersburg. Imports dominate the product offer in the middle and upper price segments in particular.