Dachas have potential

The Russian answer to the west European domestic garden is the dacha. Everyone who possibly can manage it has his little plot in the country where the family gets together. The dacha represents considerable potential for the DIY market. By no means is there any regularly organised retailing in this area. The proportion of modern trading formats is correspondingly minimal. A great deal still continues to be sold through plant nurseries and markets, and now through online shops and mail-order businesses as well. The DIY stores have captured a relatively large share, making up to 20 per cent of their sales in this area. According to an up-to-date survey by Rosbusinessconsulting, the garden departments of DIY stores were the favourite places for purchasing garden products in 2010. Around half of all respondents did their shopping there, while around one third of respondents said that they bought plants and garden articles in garden centres or garden hypermarkets. Although Russia, together with other countries such as China for example, is regarded as a rapidly growing market, the 2009 financial crisis hit the green sector in Russia hard. Whereas the market had seen growth at times in double digits from 2003 to 2008, sales of garden products dropped sharply in 2009. Although there was a rise of 24 per cent (in US $) in 2010, according to Rosbusinessconsulting, the pre-crisis level was not reached again.