russian market research: facts and trends 19 march 2007
TRANSCRIPT
Russian Market Research: Facts and Trends
19 March 2007
Russian toy market turnover vs related industries
Sports goodsStationery
ToysInfant food
Sectors
2000
1500
650
410
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
USD million
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Russian share in global market.Just 0.43% of USD 150 billion
Global market
Russia
Global market
Russia
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Russian market: financial growth history
20012002
20032004
20052006
Years
200260 345
425575
650
0
100
200
300
400
500
600
700
800
900
1000
USD million
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Growth criteria and factors
1. Great potential 2. Improvement of
social and economic conditions
3. Demographic improvement
4. General growth in spending for toys
5. Increased focus on development of children aged 0-4 (this is the fastest-growing segment)
6. Minimum state regulation
Growth in spending for toys, million USD (СOMCON))
229
319 324
395
2004-II H 2005-I H 2005-II H 2006-I H
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Industry trends1. Rapid market
development and niche filling
2. Oligopoly in the wholesale segment, which is controlled by a limited number of suppliers
3. Nationwide expansion of retail chains
4. Global leaders entering the market
Specialized stores vs marketplaces, % (СOMCON)
19,822
14,6
60,362,8
71,1
0
20
40
60
80
100
2005-I 2005-II 2006-I
Specialized stores Marketplaces
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Price segmentation of Russian toy market
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22%11,6%
10%
8%20%
28,4%
dolls soft toys construction sets
video games vehicles board games & puzzles
Soft toy – market leader
The soft toy segment (28.4%) is the most fast-growing.Needs thorough research.
Russian Soft Toy Marketis an independent research conducted by Igroprom Marketing & Communications Agency in September 2006and is our gift to business program participants.
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Challenges of the market
1. High demand for capital and modernization (extremely low domestic output of multimedia and interactive toys)
2. Shortage of skilled personnel
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Challenges of the market
3. Dependence on Chinese producers
4. The accession to WTO may result in increased competition (there is a risk of aggressive market entry by foreign companies)
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Responses to challenges
1. Improved climate for foreign investment
2. Growth of innovation activities
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Responses to challenges
3. Branding. Development of own trademarks as a competitive advantage
4. National patents
5. Product licensing
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Russian kid product market surveys
The market is highly sensitive to demographic factors.
Market models should be based on variable birth rate.
An important task is to calculate a “demographic wave” in allow companies develop a long-term strategy!
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Demographic marketing
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Number of children and teenagers in Russian regions (thousand people)
Igroprom’s Research Databank
1. Monitoring and classification of all surveys of the Russian market
2. Independent and syndicated research
3. Task-oriented data selection
4. Coming soon: monthly reviews of the children’s goods / toy market.
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Thank you for your time!Thank you for your time!
Vladimir Izotov Vladimir Izotov Head of Information Analysis DepartmentHead of Information Analysis Department
5/3 Ulitsa Vavilova, Office 116, Moscow 119334 Russia5/3 Ulitsa Vavilova, Office 116, Moscow 119334 Russia(495) 231-1293(495) 231-1293
www.igroprom.ru
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