The furniture industry in Russia is setting records
Furniture production in Russia is demonstrating record-breaking figures both in monetary and natural terms. Buyers are showing interest in the assortment of kitchens, wardrobes, and other interior items. They browse websites and visit showrooms.
What furniture is in highest demand, what models are planned to be launched this year, and what is the situation with production equipment, was investigated by GORUS.
Thank You for the Sanctions!
The furniture industry of our country thanks foreign countries for the sanctions and continues to increase production volumes. Thus, while the indicator in monetary terms increased by 15% according to the results of 2022, 2023 turned out to be even more successful. As reported to GORUS by the Association of Enterprises of the Furniture and Woodworking Industry of Russia, the production volume in terms of value grew by 25% compared to the previous year and reached 496.8 billion rubles.
“This is a record value in the entire history of observations. And in natural terms, the growth amounted to 34%, which is also a maximum since 2019. We expect that the positive dynamics in the industry will be maintained this year,” said Timur Irtuganov, the General Director of the Association of Enterprises of the Furniture and Woodworking Industry of Russia.
The Association notes that sales of kitchen furniture increased by 84%; mattresses ranked second in popularity, with a production increase of 39%. Demand for wooden office furniture also increased, with production growing by 33%.
Similar indicators were recorded by analysts from “Avito Goods”. According to experts, last year, the highest growth in sales was demonstrated by interior items – 28%, and kitchen sets – 26%.
Manufacturers are seeing very high demand for modular solutions. For example, kitchens consisting of as many as 30 modules have appeared on sale. This means that the buyer can select and order the necessary set specifically for their interior. The St. Petersburg-based “First Furniture Factory” sold almost 90 million rubles worth of such modular kitchens last year.
Modular storage systems are also in great demand
“This is due to customers’ demands for ready-made solutions and quality furniture at an affordable price. Like with IKEA, the buyer can assemble such a wardrobe from modules of the required size and determine its content,” noted Alexander Shestakov, the General Director of the “First Furniture Factory” and the President of the Association of Enterprises of the Furniture and Woodworking Industry of Russia.
Other regions’ enterprises are also actively introducing new models into production. According to the press service of the Tver-based company “Felix”, in 2024, the emphasis will be on modular multifunctional solutions. Designers will also continue to develop non-standard products in the segment of home office furniture.
It can be noticed that Russian furniture manufacturers are starting to collaborate more actively with construction companies. In Tver, for example, an agreement was reached with one of the developers on supplying kitchen facades with fittings – they will be equipped in new apartments.
The most significant production growth was recorded in the modular kitchen segment
Stable demand growth for solid wood furniture with original decor is recorded by the creator of the Ural brand Amari, Julia Ustyugova. In March, this manufacturer won the All-Russian competition of growing brands “Know Our Own!”
“The furniture market in Russia is actively shifting towards natural materials. We work a lot with solid wood: people love the texture of wood and consistently order such products. This furniture is fashionable and popular because it offers interesting color combinations. For example, if previously solid wood was mainly dyed in brown tones, now white, gray, and colorful ones are in trend,” Ustyugova told GORUS.
Julia primarily creates children’s furniture. Each of her products is distinguished by a touch of decorativeness. According to the brand’s author, the demand for winged rocking chairs for the home, winged armchairs, beautiful beds, and sofas for princesses only grows with each passing year. This is largely because people have begun to appreciate the warmth of natural materials.
“Right now, there are many opportunities for us, Russians, who are very talented and creative, to implement everything that European brands did not allow us to do before. I believe that the sanctions are only benefiting us!” Ustyugova is confident.
The demand for winged swings for the home, eared chairs, beautiful beds and sofas for princesses is growing
Machinery Changes Direction
Even stronger stimulation for the industry, according to manufacturers, can be provided by government support.
“Like other market participants, we expect amendments to Federal Law No. 214, allowing the inclusion of furnished apartments in mortgage loans. This bill is in the final stage of coordination, and its implementation is estimated to ensure growth of the entire furniture market by at least 10%,” believes Alexander Shestakov.
To ensure that industrial growth does not stall, it is important to establish stable operation of equipment. As Timur Irtuganov notes, a large part of it is manufactured in the West.
“Approximately 70% of the equipment is produced in Italy and Germany, so companies have become somewhat dependent on supplies of spare parts. Machines gradually become obsolete, require repairs, and this problem becomes more acute with each passing year,” explains the expert.
For now, equipment repairs are carried out by their own forces, as well as with the assistance of partners in friendly countries through their service departments. In addition, manufacturers are starting to develop their own repair bases and produce spare parts at domestic engineering and metallurgical enterprises.
According to Irtuganov, solving the problem would be helped by creating an engineering center similar to those in other industries. This center would be responsible for repairing and manufacturing components for European production lines.
As for the actual modernization of production, enterprises have begun to switch from European equipment to Chinese equipment. This reorientation began even before the sanctions were imposed and was primarily due to cost. However, over the past ten years, the quality of Chinese machines has greatly improved and practically does not yield to European counterparts, emphasizes Irtuganov. At the same time, equipment from China is half the price.
Manufacturers began to purchase Chinese machines, which are cheaper than European equipment and easier to maintain.
Fair Duties Are Needed
To strengthen the rise of the domestic furniture industry, manufacturers propose to introduce additional duties on imported furniture into the country.
“Already in the summer of 2023, the Association sent an appeal to the Ministry of Economic Development to introduce additional duties on imported furniture from friendly countries and deterrent ones from unfriendly ones, because currently we are in unequal conditions with foreign companies,” says Irtuganov.
The expert notes that Russian manufacturers, when supplying furniture to the Turkish market, must pay a duty of 30% to 60%, while our duty for Turkish companies is only 9-12%. As a result, foreign manufacturers continue to freely supply furniture to Russia, while the European market has been closed for domestic factories.
The Association proposes to set duties for unfriendly countries at 60%, and to keep them around 10% for all others.
By Ksenia Stetsenko