Giftware, Jewellery & Tableware

An Expert's View about Jewelry, Watches in Russia

Last updated: 28 Feb 2011

With a population of 142 million, Russia is the eighth largest retail market in the world and remains an attractive proposition for exporters and investors. It is also one of the fastest growing markets - Russia’s GDP growth in the first half of 2010 was 4.2%

Sector briefing Giftware, Jewellery & Tableware Opportunities in Russia Why Russia? With a population of 142 million, Russia is the eighth largest retail market in the world and remains an attractive proposition for exporters and investors. It is also one of the fastest growing markets - Russia?s GDP growth in the first half of 2010 was 4.2% which indicates recovery of the economy following the crisis period. Real income of the population grew at 4.8% in the same period. Russia has very strong tradition of gift giving. Each Muscovite gets about 10 presents a year. Apart from giving presents to relatives and friends on such major occasions as Imports dominate the market accounting birthday and New Year, it is common practice for 80% to 95% of the market share. Major to give presents to colleagues and business suppliers of mass market products are China contacts. and India. Upper market is dominated by European goods. Only 5% is taken by Russian Driven by the growing prosperity of the made products, mostly of ?national character?. population, the giftware market in Russia is in a state of active development. Experts Find general information on the Russian market estimate its growth potential at 15% a year. conditions on UKTI?s website. The Doing The market is far from saturation and major Business Guide for Russia gives an overview of players are planning retail expansion. The Russia?s economy, business culture, potential value of individual gifts is growing as well ? the opportunities and an introduction to other average gift purchase is now about USD100 relevant issues. while the upper end is going above USD1,000. UK Trade & Investment Sector briefing: Giftware, Jewellery & Tableware opportunities in Russia gift for business partners and for senior staff, Opportunities and is very popular among Russian officials and top managers. The boundaries of the giftware market are very blurred ? it covers everything from a car, Russian production of chinaware is not big - jewellery, cosmetics and flowers, to a pen. there are no more than a dozen plants, most of Opportunities exist across all sub-sectors ? which work at about 10% of their potential from tableware to precious jewellery and capacity. The production continues to fall every business souvenirs. British exporters can be year by about 2.5 thousand tons. More than particularly successful in the middle and top 95% of Russian manufacturers sell their end of the market. products in the low price segment, the exception being the Imperial Porcelain Factory, Tableware which produces luxury bone china. Driven by the growing income of the population and quick post-Soviet development of the Today practically all famous European brands hospitality sector the tableware market in are present in the Russian market. Leading Russia offers some of the biggest opportunities suppliers of glass tableware are ARC for European exporters, especially in the upper International (France), Bormioli Rocco (Italy), market sector. Pacabahce (Turkey) - with a production subsidiary in Russia, Bohemia Glass (Czech The tableware market in Russia is dominated Republic), Libbey (USA) and others. A lot of by imports. China is the leading tableware ceramics is imported from China, Poland, supplier to Russia and its import share has Czech Republic, Spain, Portugal, France and increased from 31% to 66% during 2004-2008. Brazil. Major porcelain suppliers are companies However, Chinese suppliers take up mostly from Germany, Czech Republic, Great Britain, cheap and low to middle level of the market. In Japan and China representing among others the upper level segment, the market is such elite brands as Herend, Meissen, Royal dominated by European suppliers: Czech Copenhagen, Spode and Wedgwood. Republic, Germany, France, Italy and the UK. Jewellery The size of the market in the middle of 2010 The market for jewellery and accessories in was USD 1.95 billion. It was showing 10-15% Russia has been growing by 30-40% during the growth during several consecutive years pre-recession period. It includes costume reaching USD billion 2.5 in 2008 until the jewellery and accessories (20%), gold and economic downturn started to show in Russia silver jewellery (50%), watches (20%) and in autumn 2008. After the drop to USD 1.7 luxury precious jewellery (10%). billion in 2009, the market is back to growth. ? Costume jewellery and accessories The Porcelain sub-sector of the market is The costume jewellery and accessories market dominated by imports even more. In 2008, grew at 22.4% in 2007 and was estimated at imports of porcelain tableware to Russia about USD 2 billion. 60% of that market totalled USD 663 million, in 2009 this figure belongs to costume jewellery and 40% to was reduced by about 35-40%, but in 2010, accessories such as scarves, hair accessories, the import again increased by 15-20%. key rings, belts, hats, etc. Initially, costume jewellery was taking the major part of the Market shares of imported and Russian market, however, recently, particularly with porcelain tableware: the appearance of international, specialised 2006 2007 2008 2009 retail networks, the habits of the Russian Import 77% 80% 83% 89% consumers changed and the share of Russian 23% 20% 17% 11% accessories increased. production Source: Local production of fashion jewellery is virtually non-existent in Russia. There is only one big Fine bone china from Europe has a particularly local manufacturer of jewellery ? Etalon-Jenavi strong position in Russia. Generally, high based in St. Petersburg. Its market share is quality chinaware has traditionally been a sign only 3%, hence imported goods dominate the of prestige and prosperity in Russia and this is market. still largely so. Apart from household use, porcelain sets are considered a good business UK Trade & Investment Sector briefing: Giftware, Jewellery & Tableware opportunities in Russia Branded jewellery has been rapidly increasing Leading importers are Italy, China and Taiwan. its market share in Russia. The first to come Other competitors are Turkey, India, Thailand were the British Accessorize and Italian Colours and other Middle East and South East Asian & Beauty that came to the market in 2004. The countries. Italy has a significant share of the British Diva and American Clairs followed them. Russian market being considered a world In May 2007 Guess Accessories (USA) entered leader in jewellery design. the market. This prompted Russian wholesalers to develop their chains of stores using Top end is represented by such traditionally franchising as an effective tool of developing in known and established brands as Leview, this market. Graff, Choppard, Bulgari, Carrera & Carrera, Van Cleef, as well as by designer jewellery Costume jewellery can be divided into three brands mentioned above. Middle market is main price categories: cheap, middle and represented by Russian and Italian expensive. Cheap products cost 100-500 RUR manufacturers, cheap end of the market ? (2-10 GBP). Usually these are Chinese, Afghan, mostly by Asian manufacturers. According to Syrian products sold in small outlets and kiosks various representatives of the retail industry, including ones in the Underground. 90% of sales fall in the middle and cheap ends of the market. Middle priced fashion jewellery is sold under its own name and costs between 500-1500 RUR The size of the jewellery market is estimated at (10-30 GBP). These are primarily products USD 6.1 billion in 2009 and it continues to from Russian, German, French, Italian grow. Its growth rate since 1994 has been companies, as well as some Chinese and exceeding GDP growth ? standing at 25-30% Korean ones. It is in this segment that every year. The market grew even through the franchising business model is actively used. recession period though much slower. The Nowadays every shopping mall has several crisis affected mostly top end of the market ? outlets of fashion jewellery and accessories. sales of products with diamonds first of all and Internet shops are also quite popular. partially middle-priced products decreased. It also led to change of the market shares of gold Upper middle market offering products worth and silver jewellery - silver jewellery RUR 3000-15000 (60-300 GBP) is represented production grew by 32% in 2009 replacing by various European brands, such as Andrea more expensive gold items production of which Mader, Dori Csegreri, Leetal Kalmanson, decreased accordingly. Phillipe Ferrandis, Carlo Zini, Martin Odvarka, Remeniecence, DAKINI, Jean-Paolo Maria, Business gifts Nakamol, Coeur de Lion, Myka, Karin Ravelli, Business souvenirs and gifts are another Malu, Ester Bijoix, etc. It is often referred to as opportunity area for British exporters. The ?elite? and ?exclusive? fashion jewellery. business souvenir market is considered to be one of the most dynamic ones in Russia Top market is represented by items up to RUR growing at 30%-35% every year. The size of 30,000 and more. Such products are offered by the market in Russia was estimated at USD the fashion houses like Yves Saint Laurent, 300 million in 2009 and this was still much Christian Dior, Ted Lapidus, Valentino, Kenzo, behind the level of European countries and the etc, as well as new designer brands like Loree USA (the size of this market in the USA is Rodkin, Robert Wa Tahiti, Steven Webster, etc. estimated at USD 20 billion). 95% of business These are sold by fashion boutiques to souvenirs are imported. supplement the clothing collections as well as by jewellery traders. This segment takes up to Business souvenirs are usually office 10% of the market. accessories ? from pens and note pads, which are still popular, to branded, exclusive and ? Precious jewellery original type of presents that are to be The precious (gold and silver) jewellery market remembered. Among the luxury presents are is more difficult to penetrate for European Swiss watches, precious jewellery, leather exporters due to traditionally high competition goods, cigars and other smoking accessories, from Russian manufacturers. Nevertheless, fine bone china sets, and others. The market is official imports account for approximately 15- very price sensitive, and products made in 20% of the Russian jewellery market. China and offered through European catalogues are very popular. British exporters can be UK Trade & Investment Sector briefing: Giftware, Jewellery & Tableware opportunities in Russia successful in the luxury segment where quality, Global (UK), Tom?s Drag (Germany), image and brand are more important than Pastelceramics (Italy), Kroemer (Germany), price. Zandbergen Decoreties (Holland), Coach House (UK), Meander (Holland), and many others. Corporate sector is a specific niche in Russia where big corporations, such as oil and gas companies, industrial holdings and government If you have any questions on the opportunities bodies such as Legislative Assemblies and above, contact the UKTI contacts named in this City/Regional administrations buy luxury report. Business opportunities aimed business gifts in bulk for their staff on Russian specifically at UK companies are added daily to holidays and corporate anniversaries and UKTI?s website. These leads are sourced by our events. staff overseas in British Embassies, High Commissions and Consulates, across all sectors Seasonal gifts and in over 100 markets. New Year is the major celebration in Russia seeing the top sales in the giftware market. You can be alerted to business opportunities on Russian consumers are spending about 50% of a regular basis by registering on the UKTI their yearly giftware budget. Companies enjoy website. More on UKTI?s business opportunities 50%-400% growth of monthly sales. Thematic service presents are always on demand (New Year trees, Snowmen, etc) as well as humour presents like singing dogs and dancing bears. Leading sales items are clocks, cups, umbrellas, USB-cards, key-rings, anti-stress toys, plastic New Year tree balls, bells and candles. Symbols of the Eastern calendar are always popular. The second major sales period rd of giftware in Russia is spring around 23 th February and 8 March, which are men?s and women?s days respectively. The preferences of Russian consumers vary. They are quite happy to give things of no practical value but of sentimental nature. Home Decorations There are strong opportunities for British companies offering home decorations and interior accessories as Russian consumers like to decorate their homes with ?nice little things? ? mirrors, photos in frames and pictures, little tables and cabinets, vanity cases, lamps, candlesticks, statuettes and figurines, vases, clocks and table souvenirs, decorative pillows, etc. This group of products being part of the wider giftware sector is also offered by many Russian furniture stores. It is particularly common for top market retailers selling expensive furniture of European brands to complement their range of furniture with accessories. Unlike in other sub-sectors there are many small independent retailers importing interior accessories direct rather than through big importers and distributors. Currently the following brands are available in the market: Steven Shell (UK), Old Java (Indonesia), PD UK Trade & Investment Sector briefing: Giftware, Jewellery & Tableware opportunities in Russia Major events and activities UKTI contacts Visit of international delegates and meet Yulya Alekseyeva the buyer event at Spring Fair Birmingham Sector Lead in Giftware, Jewellery & Tabelware Contact: Mike Josypenko, Export Services Senior Trade & Investment Adviser Manager, Brit British Consulate-General Ekaterinburg ish Jewellery & Giftware Exports Email: m Tel: +7 343 379 4931 Time: February 2011 Direct: +7 343 253 5604 Email: Consumexpo (major Russian exhibition in the consumer goods sector) Valeria Bocharnikova Senior Trade & Investment Adviser Contact: Valeria Bocharnikova British Embassy Moscow Email: Direct: +7 495 956 7394 Time: January 2011 / September 2011 Email: Gifts Expo (major Russian exhibition in the giftware sector) Svetlana Melnikova Trade & Investment Adviser Contact: Valeria Bocharnikova British Consulate-General St. Petersburg Email: Direct: +7 812 320 3209 Time: September 2010 / March 2011 Email: Please contact UKTI Russia team for more exhibitions in Russia specific to your product category. Find full details of all events in Russia in giftware, jewellery and tableware sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Giftware, Jewellery & Tableware opportunities in Russia Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organising seminars or other events for business in the Russian market are advised to you to meet contacts and promote your undertake as much market research and company in the market planning as possible in the UK. UKTI?s team in Russia, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) - a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Giftware, Jewellery & Tableware opportunities in Russia
Posted: 24 February 2011, last updated 28 February 2011

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Giftware, Jewellery & Tableware   By UK Trade & Investment
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