M.Video-Eldorado Group, Russia’s leading e-commerce and consumer electronics retailer (MOEX: MVID) analyzed customer preferences in 2021 and identified key consumer trends in the Russian market. The segments with the most notable year-over-year growth include smartphones, household goods, remote entertainment and lifestyle products – due to the pandemic – as well as innovative categories such as smart home, which are developing above the market average. Most product categories are dominated by higher price segments, as Russian consumers prefer to spend their money on more expensive and efficient devices. About 55% of the turnover in the CE market was generated by conventional sales, with the remaining 45% being sold online. This percentage is practically unchanged from the previous year.
The 10 most popular brands in Russia are Apple, Samsung, LG, Redmi, HP, Bosch, Mi, Asus, Haier and Lenovo.
Smartphones are becoming more and more important and even essential as the primary means of communication, shopping, entertainment and a whole host of other daily activities. The growing presence of smartphones in our lives also affects the decisions of the Russian consumer. When buying a smartphone, they are now more inclined to choose a device with a longer lifespan. By the end of 2021, sales of this category are expected to increase by more than 25% in value to reach 720 billion rubles. Smartphones priced at RUB 50,000+ show the strongest momentum: by the end of the year, sales could increase by 70% and 75% year-on-year in volume and value, respectively. For the first time in a decade, multifunction phones have shown volume growth (with an expected increase of some 4% to 6.8 million items) driven by demand from migrant workers, seniors, children , people who use them instead of the landline. phones and those concerned with data security.
Smartphones are driving demand for wireless headphones, with their share surpassing half for the first time, while True Wireless models have generated over a third of total sales (demand soared by around 80% in volume) . Wearable devices have become even more important amid the pandemic (with expected growth of around 12% in volume and 38% in value), as they help to exercise more mindfully, track sleep and to monitor health. Functional smartwatches demonstrate the best performance. Mains and wireless chargers are expected to grow by around 50% due to more frequent use of smartphones and manufacturers excluding chargers from the packaging.
Focus on the house
Amid the pandemic, consumers continue to actively invest in the comforts of home. Major household appliances (refrigerators, washing machines, cooktops, range hoods, ovens, etc., including built-in models) are expected to grow by around 15% year over year. By the end of the year, the following small household appliances will rise above the market average in terms of volume: robot vacuum cleaners (2x), stick vacuum cleaners (1.5x), coffee machines ( + 20%), blenders (+ 17%), microwave ovens, irons and kettles (adding about 15%). Personal care products also rose in popularity, with shaving accessories and hair clippers increasing by more than 30%, while hairdryers and styling tools increased by 25% and 20% respectively. The home office ecosystem remains in the spotlight with powerful, high-performance gaming laptops (growing by over a third), all-in-one PCs, and network hardware expected to add around 10% in terms of volume. Some devices and printers are still in demand.
Invest in technology and comfort
Smart and 4K TVs continued to enter the TV segment and accounted for over 70% and 40% of devices sold as customers sought to enjoy content in new ways. The contrast in CE sales continued to grow, with products in the middle and upper price segments increasingly popular. In terms of value, these items generated more than half of the total demand for laptops, tablets, MDAs, etc. They are likely to last and stay relevant longer, while making the user’s life easier, more convenient and streamlined through better performance and functionality.
Some relatively new product categories remained on a solid growth path. For example, sales of smart home devices at Video-Eldorado nearly tripled as their supply expanded and affordability increased and Russians invested more in their households, purchasing items that would provide more. of comfort in their daily life. The demand in this category has been driven by products such as voice assistant smart speakers, which can be used to control smart home or other internet connected devices (kettles, vacuum cleaners, washing machines, refrigerators, etc. etc.). Mr Video-Eldorado increased his sales by 2.5 times. Electric vehicles, dishwashers and instant cameras also posted strong sales growth.
Recent technological and functional improvements have stimulated the demand for the respective products, leading them to wide use. Design and side-by-side modular refrigerators, ovens with steam cooking and pre-set cooking programs, washer-dryers and sous-vide appliances have all gained traction, while steam irons and steam solutions. Steam ironing have advanced the entire segment of irons.
Increasingly, customers were looking for deep personalization at every touchpoint. M.Video is committed to building long-term customer relationships and has rolled out a number of data-driven products, including personalized pricing and relevant product offerings. In 9M 2021, M.Video and Eldorado mobile app downloads topped 21 million, an increase of 4.3 times in one year. Our advice app helps sellers authorize the customer, access their profile, cart, purchase history, bonus points and personal offers, add items to the cart and send them the payment link by line.
All customer communication channels – the consultant and client website and mobile apps – offer recommendation services that make it easier to find the best deal among popular and newly added products and to choose accessories and complementary items. . Product recommendations represent 20% of revenue generated by the mobile application and are responsible for a quarter of purchases. One in three app users interacts with items suggested by our smart algorithms. The consultant’s online client platform and mobile application are also offered with personalized prices. A guaranteed discount based on past purchases and user bonus points is displayed shortly after authorization on the website or in the app.