Everything you need to know about the Russian market of tools and fasteners
We will talk about the dynamics and trends of the Russian market of fasteners and tools, the most popular and scarce categories of these goods
At the moment, the Russian market of fasteners and tools opens wide prospects for international manufacturers and suppliers. However, before entering the market, it is important to study the specifics of the market and the consumer preferences of the target audience. Learn the dynamics and trends of the Russian market of fasteners and tools, the most popular and scarce categories of these goods.
Demand recovery
Experts from one of the largest online construction hypermarkets VseInstrumenty.ru in Russia provide interesting statistics in their report of results 2022 of work with corporate clients: in 2022, the demand for fasteners increased by 102% compared to 2021. And this trend continues this year: according to VseInstrumenty.ru, in May 2023, the demand for building materials (including fasteners) increased by 103% compared to the performances of the same month last year.
Self-tapping screws, bolts, washers, nuts, anchors, dowels, and studs are most in demand on the Russian market. Moreover, the demand for relatively small volumes of supplies is the least satisfied: a number of large fastener manufacturers are not ready to discuss the sale of their products in small batches, but only consider large-scale orders from chain stores and construction companies. Therefore, one of the promising niches for manufacturers and suppliers of fasteners is customers with small volumes of supplies.
The share of imported products on the fastener market was 65-70% in 2021-2022. However, this indicator fluctuated depending on the segment. About 66% of imported products are complex hardware (self-tapping screws, washers, nuts), or non-alternative (or with insufficient output of analogues) products. It is worth noting that some of the products from European or American fastener manufacturers have been replaced by Chinese, Turkish and Indian products.
The Russian power tool market is characterized by relative stability: taking into account several waves of the crisis since 2014, sales volumes have declined only periodically, even despite a significant increase in the cost of products (up to 20% - domestic and up to 50% - imported). At the same time, until February 2022, the Russian power tool market was one of the largest in the world and showed good (up to 25%) annual growth rates. However, the departure of a number of foreign manufacturers somewhat reduced the growth of the market. At the same time, sales volume is already gradually returning to the level of 2021, when the market began to recover after the pandemic.
The list of the most popular power tools has remained virtually unchanged since pre-pandemic times. As before, the "gentleman's set" includes a drill, a screwdriver, an angle grinder (aka "grinder"), a jigsaw. For an advanced summer resident, this set is supplemented with a circular saw and a chainsaw, and for a professional builder, with a puncher and a level.
The share of imported power tools on the Russian market at the end of last year remained almost unchanged compared to 2021 - about 30%. At the same time, it has undergone serious structural changes: the departure of a number of European, American and Japanese brands led to an increase in the share of Chinese manufacturers. Another interesting trend is the unification of the efforts of Russian customer companies and Chinese factories to produce products that best meet the market demand: not very expensive, but at the same time high-quality and functional. However, there is still a certain shortage of supply, primarily analogues of European, American and Japanese brands that left Russia? in the segment of professional tools.
If we consider the general trends of the Russian market of goods for construction and repair, then at the end of 2022, the analysts of the Chek Index portal discovered two interesting trends. Last year, not only the share of domestic products for construction and repair increased, but the share of supply in the economy segment also increased. The fact is that fasteners and tools from departed European manufacturers are mostly in the middle and high price category, while a significant part of new suppliers belong to more affordable classes. At the same time, as demand recovers, we should also expect a number of manufacturers to enter the Russian market with products in their product lines that are comparable in characteristics to European and Asian companies that left it.
Now, when a number of companies have suspended their work, new players have an excellent chance not only to enter the Russian market of goods for construction and repair, but also to secure promising and fast-growing segments. Participation in the Fastenex International Exhibition of Fasteners, Fittings and Tools is a valuable opportunity not only to get acquainted with the latest industry trends and gain valuable insights, but also to personally agree on cooperation with purchasing decision makers. According to expert estimates, personal contacts increase sales conversions by at least 75%.
