Giftware, Jewellery and Tableware sector

An Expert's View about Textiles, Apparel and Accessories in Russia

Posted on: 26 May 2012

With a population of 142 million, Russia is the eighth largest retail market in the world.

Giftware, Jewellery and Tableware sector in 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 2011 was 4.3%. Market overview Driven by the growing prosperity of the population, the giftware market in Russia continues to grow across all sub-sectors. Pre-recession growth rates vary from 10% in tableware sector to 30% in fine jewellery. The latter continues to grow event during recession. The market is far from saturation and major players are planning retail expansion. The value of individual gifts is growing – the average gift purchase is now about £50 while the upper end is going above £500. Imports dominate the market accounting for 80% to 95% of the market share. Major suppliers of mass market products are China and India. Upper market is dominated by European goods. Only 5% is taken by Russian made products, mostly of “national character”. ‘Made in the UK’ is perceived as high quality and enjoys popularity among Russian consumers. Key opportunities ξ Tableware High quality tableware has traditionally been a sign of prestige and prosperity in Russia. Today practically all famous European brands are present in the Russian market - Herend, Meissen, Royal Copenhagen, Spode and Wedgwood, etc. However, newcomers are welcome. Distributors working in sectors such as household appliances or souvenirs keep expanding their range and enter the tableware market. British companies can particularly succeed in the high end of the market, that is dominated by European import from Czech Republic, Germany, France, Italy, Japan and the UK. 90% of the porcelain products are imported. ξ Fine jewellery Fine jewellery has traditionally been very popular with Russian women; however, due to very strong competition from plenty of local manufacturers and high import duties this market is more difficult to penetrate. Nevertheless, official imports account for approximately 15-20% of the Russian fine jewellery market. Major opportunities exist in the fashion/designer jewellery. Well established fashion brands (Yves Saint Laurent, Christian Dior, etc.) as well as new designer brands (Loree Rodkin, Robert Wa Tahiti, Steven Webster, etc.) are successful in the market. ξ Costume jewellery and accessories Costume jewellery and accessories is a growing opportunity in Russia. If before costume jewellery was considered as low end products or something for young generation only, now more and more Russian women tend to buy costume jewellery across all price levels. Local production of costume jewellery is virtually non-existent. Another opportunity is branded jewellery chains developed on a franchise basis. ξ Home Decorations ‘Made in the UK’ interior accessories enjoy big popularity in Russia and are sold in interior salons alongside furniture. Steven Shell (UK), Old Java (Indonesia), PD Global (UK), Tom’s Drag (Germany), Kroemer (Germany), Coach House (UK), and many others are in the market already. ξ Business gifts The business souvenir market is considered to be one of the most dynamic ones in Russia growing at 30%-35% every year. 95% of business souvenirs are imported. British exporters can be successful in the luxury segment where quality, image and brand are more important than price. Latest export opportunities – Giftware, Jewellery and Tableware Latest export opportunities – Russia Getting into the market More about doing business in Russia Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Yulya Alekseyeva, Sector Lead, UKTI Russia, British Consulate Ekaterinburg. Tel: +7 (343) 253 5604 or email: ξ Shaun Earl, Team Leader, UKTI Russia, British Embassy Moscow. Tel: +7 (495) 956 7475 or email: Contact your local international trade team Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Meet-the-Buyer event at Spring Fair Birmingham Date: Feb 2013 Website address: Consumexpo (major consumer goods exhibition) Date: Sep 2012 / Jan 2013 Website address: Gifts Expo (major gifts, costume jewellery and tableware exhibition) Date: Sep 2012 / Mar 2013 Website address: Latest events – Giftware, Jewellery and Tableware Useful links More about OMIS and other UKTI services for exporters
Posted: 26 May 2012

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Giftware, Jewellery and Tableware sector   By UK Trade & Investment