Despite the global pandemic, sales in Russia's DIY (Do It Yourself) and construction material sectors are continuing to grow. This is due in part to the legacy of government co-financed mortgage deals and high street lockdowns. Online home improvement stores are seeing a particular surge in popularity, as consumers look for ways to improve their homes without having to leave their neighborhoods. Hardware stores are also doing well, as people stock up on supplies for do-it-yourself projects. Overall, the Russian DIY market is forecast to grow by 5% this year. Thanks for reading! We hope you found this press release interesting and useful.

Contrary to such understandable sentiments, however, related purchases were up by 12.2% overall with e‑commerce sales accounting for a commanding proportion. In the wake of such an unexpectedly robust performance, it is now thought that a number of associated sectors – most notably, lighting, household goods and home decoration items – are set to enjoy considerable volume as a result.  In order to take advantage of this burgeoning growth opportunity in Russia's DIY sector - which has been largely fuelled by online retailers' ability to offer competitive pricing on both low-end and high-end products alike - suppliers should consider adopting more agile production processes that allow them to react quickly and flexibly when market demands

As of early 2020, only some 10-15% of businesses are estimated to have invested in proactive development their e-commerce channels. With many operators deterred from developing their own digital solutions - largely on account of perceived complications stemming from vast investment into physical retail operations - it would seem that Russian shoppers will continue to enjoy a predominantly brick‑and‑mortar experience for the foreseeable future.   Nevertheless, there are indications that this situation may change as new players enter or expand existing activity levels across certain segments and regions.

Growth in Russian DIY sector triggers online stores hardware construction e‑commerce

The growth of the DIY sector in Russia has triggered a surge in online stores for hardware and construction materials. This is due to the government co-financing arrangements put in place across the country which have led to a 50% year-on-year spike in secured mortgages. With a concurrent 40% surge in completed real estate transactions, domestic DIY suppliers are having to find new digital routes to reach their customers. As a result, there has been an increase in e-commerce platforms specializing in hardware and construction materials. These platforms offer competitive prices and a wide range of products, making them an attractive option for consumers.

Russian DIY chains lead online construction hardware stores growth

A recent study has shown that the Russian DIY sector is growing at a fast pace, with many chains moving their operations online. Some of the first movers in this area include Russian chain Petrovitch and the French Leroy Merlin. These companies have been able to grow due to their strong e-commerce presence and willingness to take on incumbent heavyweights. The UK's Castorama and Germany's OBI are just some of the competitors that these companies have managed to outperform. As Russia's economy continues to strengthen, it is likely that even more DIY chains will emerge and thrive.A little later to the party, Leroy Merlin’s e‑channel sales account for just 10% of its turnover compared to more than 70% of Petrovitch’s.

Proprietary ventures aside, Russia’s core online marketplaces have also benefitted hugely from the rapid national growth in demand for DIY products.

Russian online stores see growth in DIY & Household Goods

Russia's online stores are seeing a surge in sales for DIY and household goods. Ozon, the country's second largest marketplace, has seen a 315% growth in inventory for these products and a 250% increase in sales. This is part of a larger trend of Russians becoming more self-sufficient and interested in home improvement projects. The strong demand for DIY supplies is causing some online stores to expand their offerings to include new categories such as tools, construction materials, and appliances. With the increasing popularity of e-commerce in Russia, it is likely that this trend will continue into 2021 and beyond.

DIY sector growth in Russia

The Russian DIY market has grown by 6% in the past year to reach $1.3 billion USD. This is largely due to an increase in e-commerce activity, with offline promotion decreasing significantly.  E-commerce platforms are accessible at any time of day and provide customers with a broad range of products that can be ordered online, delivered directly to their doorstep or picked up from the store itself. With this type of convenience available there is not much incentive for customers to visit physical stores - making it difficult for brick and mortar shops compete with e‑commerce giants like Amazon who offer same day delivery services throughout Moscow.

The number of consumers purchasing goods online for use in their homes is growing exponentially. This has been true not just in the US, but also across Europe and now it seems that this trend has finally hit Russia too. Over the past two years, more and more people have begun buying DIY products online, with some estimating that over 60% of all Russian online purchases are currently made by consumers looking for items they can use at home.  Despite a sharp decline in Covid cases throughout Russia (which was directly related to an economic crisis), this new trend does not seem to be slowing down any time soon. Indeed, many who bought property during the covid period.

DIY and construction suppliers look to Russia for growth

A recent study has found that the Russian DIY sector is growing rapidly, presenting a great opportunity for suppliers of DIY and construction products. The study found that demand for these products is high, particularly in the e‑commerce market. To capitalize on this trend, suppliers are looking for local distributors and agents who are familiar with the Russian market and can help them grow their business there.

The Russian DIY sector is booming, presenting a great opportunity for suppliers of DIY and construction products. The study found that demand for these products is high, particularly in the e‑commerce market. To capitalize on this trend, suppliers are looking for local distributors and agents who are familiar with the local market are always the best Business Partners for DIY for the Russian market.