DIY retail chain. Do It Yourself or "Do It Yourself"
Store format in Russia DIY(Do It Yourself, "Do It Yourself"), appeared quite recently - less than 10 years ago, however, large international network operators are represented in this segment: OBI(18 hypermarkets), Leroy Merlin(17, part of the Adeo group of companies), K-Rauta(12, owned by Kesko Corporation), Castorama(14, part of the Kingfisher group), Home center(4, is part of the Fishman Group).
Operate and Russian companies: Wimos (30), Metrics (30), SuperStroy (28), Domocenter (23), Stroylandia (14), Brownie (12), Maxi house(9) and others. Each region has local players.
In the West, the DIY market was formed under the slogan Do it yourself. The main idea of these stores was that people should not be afraid to do repairs themselves, without resorting to the help of specialists (since their services are very expensive there). All chain communications are aimed at this, especially BTL promotions inside stores: customers are explained in detail how to replace plumbing and carry out other repairs on their own. In Russia, the cost of repair services is relatively low, large projects are usually carried out by specialists, so it would be more correct to call this market Do it for me.
Classic DIY is a large format store, which, on the one hand, depends on the size of the goods (the goods are large - boards, pipes, plumbing, etc.), and on the other hand, on the operator’s desire to provide the consumer with the opportunity to purchase everything they need in one place - from nails and cement to showers and kitchens. Often such hypermarkets are called "category killers", as they present the widest range of goods for construction, repair and home, which attracts a large number of visitors.
So, Castorama on a total area of more than 11.5 thousand m2 offers more than 35 thousand items of goods, OBI opens stores with a total area of over 12 thousand m2, Leroy Merlin works in the range retail space from 8 to 20 thousand m2. hypermarket "Our house"(3 stores, GC "Tashir") for 10 thousand m2 holds about 100 thousand items of goods. "Metrics" has a total area of 13.5 thousand m2, the range of goods offered exceeds 50 thousand units, and cabinet furniture and household appliances are sold in this network.
Inside DIY, there are several categories - goods for construction and "draft" repairs (starting from bricks and ending with various types of plaster), for "finishing" finishes (wallpaper, coatings) and home decoration. In different stores, these categories are mixed in different proportions. It is believed that DIY is a network in which purchases are mainly made by men. But experts say that recently there has been a slight shift towards the weaker sex - women began to visit such stores more often. Perhaps because of the departments offering goods for the garden and interior.
Average investment in one leased store, according to the company OBI, is 3-4 million euros. If a retailer builds a building, then the amount of investment increases and can reach approximately 8 million euros. Therefore, it is not surprising that DIY is probably the only segment of Russian retail where there is a clear and strong predominance of Western players. All leading players in the Russian DIY market are Western companies: the market leader is Leroy Merlin, In second place - OBI, following them Castorama, catches up with them Kesko.
Only forward!
The market for household goods and repairs during the acute period of the crisis - in 2009, according to RBC, decreased by 26-28% in dollar terms and by 10% in ruble terms, which is explained not only by a drop in consumer incomes, but also by a reduction in housing construction(-7% in 2009) and mortgage lending (more than 4 times).
For comparison: before the crisis, the DIY market grew by 20-25% annually. However, in 2010 the volume of sales began to gradually recover, although many experts note that the market has not yet returned to pre-crisis levels. Most likely the market will grow, although the pace will not be the same as before the crisis. The trend of market consolidation will continue, while there will be further intensification of competition with foreign chains. Many networks will continue to develop in the regions. The main consumer driver for the development of the DIY market is the trend associated with dacha and suburban construction, a shift in focus towards Soft DIY.
Many players have big plans for 2011. For example network OBI in 2011-2012 plans to open four hypermarkets annually. Priority will be Moscow and the Moscow region. In 2012, the company is considering the possibility of entering Rostov, expansion in Kazan and plans to develop in million-plus cities.
However, he considers Moscow and the Moscow region for preferential development and Castorama, which will open three stores in 2011 (further plans are being specified). A company Leroy Merlin in early February, she already opened a store in Khimki. In April "Home Center" with a retail area of about 9 thousand m2 will open its doors to buyers in the Central District of Moscow. Market leaders will continue to develop quite aggressively, Castorama, apparently, will continue to catch up. From Russian networks most actively developing "Start" and "Metrics". In particular, in early March, a message appeared that the company that manages the hypermarket chain of the same name for home and repair "Start" acquires a chain of supermarkets "Brownie". Until the end of March 2011, the chain's stores will be under the control of CJSC Start.
The decision on regional expansion was made in the company "Metrics". Sites are selected in the cities of the Central and Southern federal districts: in Sochi, Novorossiysk, Belgorod, Voronezh and others. According to the development strategy, the company intends to open one or two outlets per month. In general, the DIY market is becoming increasingly competitive. And Russian regional networks have now begun to feel this especially. In their region, local networks are accustomed to "press" competitors in price and scale: "we are the largest in the region, we have the best assortment and price". And in other regions this is no longer enough - they have their own local leaders. Need to stand out. The new trend will be to look for a certain face of their own in these networks. We can already observe this process in Retaility projects, regional DIY chains are increasingly coming up with this problem.
Another trend is the emergence of new store formats. In particular, the network OBI opened an unusually small point in the Moscow shopping and entertainment center "Filion" - a trading area of about 4.5 thousand m2. Respectively "corrected" a range of 28,000 positions dominated by decoration and decoration products with ready-made solutions for decor and home design. Castorama I started with large hypermarkets for 8-10 thousand m2. Last year, she tried to bring out a small format in order to actively promote in cities near Moscow. "K-Rauta" goes in a smaller format, compared to the bulk of the networks, and to smaller cities (with a population of 300-500 thousand) - and they feel confident enough and become one of the market leaders.
In assortment
In the flooring segment, DIY hypermarkets offer a comprehensive range of hard floor coverings (laminate, solid board, parquet board, cork board), soft floor coverings (linoleum, carpets, PVC tiles, carpets, rugs, carpet runners, decorative and utilitarian rugs, anti-splash and door mats, as well as flooring accessories, laying products, laying tools, adhesives and sealants, repair and care products.Accordingly, they have hundreds of suppliers in this segment alone.
For example, "Home Center" cooperates with almost all major dealers supplying the Russian market. Tarkett, Balterio, Klassen, Kronostar and Kronospan laminate and parquet boards are widely represented. In Moscow stores - more than 120 laminate decors to order. The offer for DIY must meet certain price specifics. The larger the area of the store, the more mass audience he is oriented, which means that price positioning becomes more important for him. Whatever product we take - parquet, tile or linoleum - goods are sold here in price gradations from average and below, expensive goods you can't buy it in DIY. This is an important specificity of DIY stores. The main requirements that networks impose on suppliers are a competitive price, uninterrupted supply (the goods must be available from the supplier) and a deferred payment equal to the product turnover.
At the beginning of 2016, the volume of DIY retail (construction and finishing materials) amounted to 1.46 trillion rubles. This is almost 5% less than it was at the beginning of 2015, when sales of household goods and repairs reached 1.54 trillion rubles. The record decline in the market of building and finishing materials and household goods in recent years was no exception on the scale of the entire retail sector, and especially for the non-food segment. But even in these conditions, the market for household goods and repairs does not feel so bad compared to other segments - if, in general, non-grocery retail “dipped” by 10% in 2015, then DIY was marked by a fall of only 5%, according to research of the information and analytical agency INFOLine
Who fell the hardest?
According to INFOLine, the last time the decline in sales in the DIY market was recorded in 2009. Then its volume decreased by 12.52%, to 727 billion rubles. However, since then, the turnover of household goods and repairs has grown steadily, providing DIY with the fastest recovery from the crisis compared to other retail segments, comments CEO information and analytical agency INFOLine Ivan Fedyakov. Thus, in 2010 the market increased by a quarter, but at the end of 2014, growth slowed down to 9%, and by the end of 2015, the turnover retail DIY&Household went into the red again (the drop reached 5%).
DIY&Household retail turnover dynamics in Russia in 2005-2015 and forecast until 2017
Source: INFOLine information
In 2015, the Hard DIY market (materials for construction and rough finishing) turned out to be the most vulnerable to the crisis, the drop in sales in this segment reached 16.7% in 2015. Soft DIY (finishing materials) felt much better last year - compared to 2014, the drop in sales on the market in 2015 was only 0.3%.
In 2015, 83.8 million sq. m of living space, and in the first half of 2016 31.5 million sq. m. The phenomenon is accompanied by high rates growth in mortgage lending. At the end of 2015, 707 thousand apartments in Russia were purchased on a mortgage. All this suggests that in 2015-2016. people who purchased housing continue to make repairs in their apartments, which, of course, is reflected in the relatively stable situation in the market of finishing materials.
DIY in crisis: expansion of leaders
According to the calculations of the information and analytical agency INFOLine, in 2016, despite the crisis, large retail chains operating in the DIY segment practically did not slow down the pace of construction and commissioning of new hypermarkets and continued to increase their retail space. Last year, 27 new hypermarkets were opened in Russia, and the total increase in selling space amounted to about 225 thousand square meters. m. In the first half of 2016, 14 hypermarkets were opened, and 6 were closed.
In 2016, as part of its ambitious plans to triple the number of hypermarkets in 5 years, Leroy Merlin opened 5 hypermarkets in Kazan, Kemerovo, Novokuznetsk, Yaroslavl and Moscow in the first half of the year, and the 48th hypermarket of the chain opened in St. Petersburg at the beginning of the second half of the year . Until the end of 2016, the retailer plans to open another 9-11 hypermarkets. In the first half of 2016, OBI opened 2 hypermarkets in Moscow and Tula.
But, it should be noted that not all international retailers increase the number of facilities in Russia: for example, Castorama closed one unprofitable hypermarket in Moscow in the Capitol shopping center, with an area of more than 6 thousand square meters. m.
Dynamics of the number of open and closed DIY hypermarkets in Russia in 2011-I half. 2016, units
Source: IA calculations INFOLine
Among Russian retailers, the only competition for the “Big Three” is provided by STD “Petrovich”, according to INFOLine research data.
“The company is the undisputed leader in the B2B segment and the most efficient multi-channel retailer, demonstrating phenomenally high rates of growth in online sales and the share of online sales in revenue,” says Ivan Fedyakov, emphasizing that while maintaining and increasing indicators, the chain can enter the top three TOP DIY retailers in Russia.
According to the INFOLine study, major regional players also continue to increase their retail space. Significant openings at the beginning of 2016 include the opening of two MEGASTROY hypermarkets of the Agava company, with a total trading area of 20.5 thousand square meters. m (in the Republic of Bashkortostan and the Ulyanovsk region). Also, Maksidom, Dobrostroy (Elko Group of Companies) and Metr (Desyatka Group of Companies) launched two hypermarkets each, and Baucenter and OBI launched one each.
TOP-10 largest DIY operators
At the beginning of 2016, the key players in the Russian DIY market, included in the top ten of the INFOLine DIY Retail Russia TOP rating, despite the crisis in the industry, managed to maintain their positions. At the same time, STD Petrovich, the leader among Russian chains, has maintained high growth rates by entering the market of Moscow and the Moscow Region, expanding its assortment and increasing the share of online sales, approaching the ambitious goal of entering the TOP- 3 largest DIY operators.
| № | Main operating entity(company group) | Brand | Revenue source | 2014 | Early 2016 | Growth rate, % |
| 1 | Leroy Merlin Vostok, OOO | Leroy Merlin | grade | 118,60 | 143,00 | 20,6% |
| 2 | OBI Russia | OBI | grade | 43,43 | 39,00 | -10,2% |
| 3 | Castorama Rus, OOO | Castorama | INFOLine recalculation based on IFRS | 26,16 | 30,39 | 16,2% |
| 4 | STD Petrovich, OOO | Petrovich | UO | 21,31 | 25,28 | 18,6% |
| 5 | Saturn, CJSC | SaturnStroyMarket | grade | 22,03 | 23,73 | 7,7% |
| 6 | MAXIDOM, OOO | Maksidom | UO | 17,18 | 17,03 | -0,9% |
| 7 | Baucenter Rus, OOO (GK "Baucenter") | Baucenter, BSM | UO | 12,23 | 14,94 | 22,2% |
| 8 | K-rauta Rus, OOO | K-rout | UO | 12,69 | 13,02 | 2,6% |
| 9 | Stroitelny Dvor, LLC (GK "Construction Yard") | Construction Yard, Heat Dissipation, Doormat | UO | 12,56 | 12,46 | -0,8% |
| 10 | Arsenal Trade, LLC (GK "Trest SKM") | SuperStroy, StroyArsenal | grade | 11,00 | 10,00 | -9,1% |
DIY, home goods, furniture
E-commerce, online stores
DIY Forum.
change of CEO
New trends in the DIY market
B2B
Yana Morozova, site
At the end of 2018, the DIY market grows by 5.5% in monetary terms and reaches the level of the pre-crisis 2014. However, the structure of the market itself is changing: an increasing share of the “pie” falls on the TOP-10 universal DIY networks: in 2015, the share of tops was 27.3%, and in 2018 - already 40%. How metamorphoses in the economy have changed the industry, Ivan Fedyakov, CEO of the INFOLine news agency, told the DIY Forum.
The largest retailers are also growing in revenue (+17% in 2018) and selling space (+8% in 2018). This distribution of forces is primarily due to the consolidation of the market (such players as K-Rauta, SuperStroy, Metrica, etc. left, Castorama announced the departure) and the rapid development of the industry leader, Leroy Merlin, which 4 years doubled its market share (from 12.1% in 2015 to 21.4% in 2018) and increased revenue by 20.7% compared to 2017. It accounts for just over half of all new retail space openings in 2018.
By the end of 2019, Leroy Merlin plans to reconcept 50 of the 70 previously opened stores.
We have developed a new concept for our hypermarkets, according to which the store is divided into several functional areas. In the project sales area, you can, for example, create a layout for a kitchen or dressing room. Also there will be zones of inspiration, processing and issuance of client orders, client zones.
Also in 2019, we will open another 19 new stores, including in 6 new cities - in Izhevsk, Vladivostok, Novorossiysk, Vladikavkaz, Belgorod, Ivanovo.
The Leroy Merlin company refused to buy Castorama stores. To be honest, today the departure of Castorama is a DIY Brexit: no one knows how it will play out. It is unlikely that Castorama will be able to sell the entire chain in Russia, selling in parts is not very interesting, since some objects will still remain. And in general, in connection with the change of the CEO of Kingfisher, it is not known whether the company's plans will change in principle.
As for the manufacturers of building and finishing materials, which are direct participants in the market, the INFOLine agency found out what factors are particularly hindering their development today. According to a survey of 700 leading companies in the market, it turned out that the No. 1 problem for manufacturers was an increase in production costs - 65% of companies in the DIY segment think so (15% growth since 2017).
“This is a serious challenge! Suppliers are moaning, because they got into the "scissors": last year, inflation in the industry is more than 10%, and consumer price inflation is much lower than this level. Now we see how this negatively affects financial indicators companies,” Ivan Fedyakov explained.
Among the factors impeding development, suppliers also noted insufficient demand (39% of respondents), "gray" schemes of competitors (38%), market monopolization (37%), shortage of personnel (25%), high interest rates of banks (20%).
Despite this, suppliers of construction and finishing materials are optimistic in their financial forecasts for 2019: 90% of them said they expect revenue growth, 7% of respondents expect figures similar to 2018, and 2% are less positive and believe that their revenue will shrink.
New trends in the DIY market
Trend 1: The transition of buyers to a lean consumption strategy.
Over the 3 years of the crisis in the Russian economy, consumers have formed new strategy, which the analyst called "lean consumption", - the population has returned to shopping, but behaves exclusively rationally, buys only what is necessary, actively responds to various special offers and promotions.
“Please note that in Europe the standard of living is much higher than ours, but people there behave rationally, they buy economical goods. This consumer strategy has also come to Russia, we have become somewhat similar to Europeans,” explains Ivan Fedyakov.
This trend needs to be taken into account by DIY market participants in their marketing strategy.
Trend 2. Growth in mortgage lending.
In 2015, the state supported the construction sector with comfortable mortgage rates, so in 2018 the share of mortgage lending in the portfolio of Russian banks increased by 2.5 times compared to 2014.
Despite the seemingly difficult situation in the economy and the wallets of buyers, in 2017 a record was set in terms of the number of loans issued and their amounts - the population purchased 1.92 million mortgage apartments in the amount of 2 trillion rubles. In 2018, the Russians more than exceeded these figures with a new record - they purchased 1.47 million apartments on a mortgage in the amount of 3 trillion rubles.
Skeptics argue that the growth in the share of mortgage lending was affected by refinancing, but its level is only about 11% of the total number of mortgage loans. At the same time, the population continued to actively buy housing at the beginning of 2019, which will have a positive impact on the financial performance of DIY market participants.
We thought about why we are doing omnichannel, and realized that at the heart of all this is a person with his troubles and needs. They began to explore the purchase process, its components: selection, consultations, purchase, payment, delivery. It turned out that this is not a linear process. People jump from stage to stage and do it in completely different channels. We realized that our goal is to enable people to carry out all stages of the purchase in a way that is convenient for them. And for this, we developed 8 sales channels, namely: a store, sales offices, consultant managers, a website and an application, a call center and social networks.
But the point is not the number of channels, but the fact that you need to provide customers with an easy transition from one channel to another. This is what we are doing and in this we see the difference between omnichannel and multichannel.
How to measure success in an omnichannel model? In it, all channels should work in synergy. And we also set growth goals for each of the 3 groups of channels (we grouped them).
All this together gives a synergistic effect and allows the growth of Petrovich as a whole - by 30.5% in 2018.
Trend 3. Decline in the average area of apartments in new buildings, but an increase in the area of individual housing construction.
Over the past 10 years, the average area of rented housing in new buildings has decreased by 20% and amounted to 50 square meters. m. An analysis of construction projects shows that the trend towards a decrease in the average area of housing will continue and in the near future it will be 47 square meters. m. Also in Russia is rapidly growing market for small studio apartments with an average area of 25 square meters. m, which were not previously relevant for Russia.
A positive trend is observed in the market of individual housing construction - an increase in the average area of \u200b\u200bprivate houses is recorded, while mortgages practically do not work here, people build their own houses exclusively at their own expense.
Trend 4. Growth in the share of apartments with finishing.
Mortgage and change consumer behavior influence the construction market in terms of the quality of housing - the share of apartments with finishing is growing. In the Moscow region, the share of apartments with full or partial finishing in 2018 increased by 31% and amounted to 51%, and in the St. Leningrad region by 35% and reached 67% compared to 2012. This changes the sales channels for building and finishing materials.
At the same time, DIY networks do not notice these changes, and this is due to the fact that 91% of people who bought apartments with finishing, partially or completely redid the repair in a new home.
In the course of a survey conducted by Kashirsky Dvor (a market in Moscow), 96% of respondents admitted that the decoration of apartments in a new building does not correspond to the declared one, and 94% of respondents are completely dissatisfied with the quality of repairs from the developer.
“It is not surprising that the market is not changing so much yet: when buying apartments with finishing, people are forced to continue to make repairs. The construction industry is not yet ready to offer consumers fully finished product”, Ivan Fedyakov explained.
Trend 5. Possible introduction of criteria for the classification of standard housing.
At the beginning of 2018, the President of the Russian Federation signed the Federal Law “On Amending the Federal Law “On the Promotion of Housing Construction” and Certain Legislative Acts of the Russian Federation” .
The document abolishes the concept of "housing economy class", now such housing is officially called "standard".
In 2019, a discussion began on the introduction of a criterion for standard housing with finishing. Perhaps in the near future only housing that includes a certain set of finishing works will be called standard housing.
“They want to consolidate such an initiative at the legislative level, it is supported by the Ministry of Construction, construction companies, banks that are interested in increasing cash flows and the amounts of mortgage loans,” Ivan Fedyakov noted.
Trend 6. Russians intend to improve their living conditions.
The share of Russians who plan to make repairs and purchase housing is growing from year to year. In 2018, 23% of respondents planned to make repairs in the apartment and purchase furniture, 19% of the respondents implemented their plans. 10% of respondents planned to spend money on purchasing residential real estate, but 6% actually purchased it.
“Not everyone who planned to make repairs did it. I believe that this delta is a task for market participants, we need to help the Russians spend money on repairs, they really want it,” Ivan Fedyakov said.
At the same time, in 2019, 26% of Russians are planning repairs, and 10% are planning to buy an apartment or house.
We were lucky: Castorama stores closed in the cities of our presence - in Krasnodar and Omsk. And we see a huge increase in sales in these cities: more than 40% in Omsk in the first quarter.
This suggests that we rebranded in time and formed the right assortment and ended up in right place at the right time.
The impressive growth at the end of last year without opening new stores also helped us to achieve the active development of the B2B channel and services for customers.
In the future, we again focus on the development of B2B-sentiment and online sales.
In fact, it is very difficult to answer the question of what customers need today. I want to focus on one thing, but it's impossible. Today, everything is important: cleanliness, cafes, assortment, and much more.
Incomes fall but consumption rises
The main changes in the economy were brought by the currency crisis, when in 2015-2016 the RTO level fell by a serious 14.6%. Today, despite Rosstat data on record GDP growth over the past 6 years (2.3% in 2018), buyers are in no hurry to empty store shelves.
There are several reasons for this: real cash income of the population have been demonstrating negative dynamics for 5 years in a row: a decline of 5.8% in 2016, 1.2% in 2017, at the end of 2018, incomes decreased by 0.3%, and the level of RTO is stagnating (in 2018, RTO increased by 2.6%, and according to data for January - February 2019, it fell to 1.8%.
The volume of opened deposits is also stagnating: analysts observe a 9% increase in these indicators at the end of 2018, which approximately corresponds to the level of capitalization of deposits.
The consumer lending sector has somewhat recovered from the “double whammy” in 2015, when banks stopped issuing new loans, and people began to actively close previously received loans. As a result, from the second half of 2017, the average amount of an application for a consumer loan began to grow; at the end of 2018, it increased by an average of 70% compared to 2015.
“This trend is not connected with rising inflation and the need to buy goods more expensive, but with the willingness of the population to buy and consume new goods,” Ivan Fedyakov believes.
The government is trying to stabilize the situation in the economy, but the actions that are being taken (increasing VAT, raising the retirement age, the decision of Rosstat to revise the methodology for calculating real incomes of the population) are not always obvious to the market and rather make it necessary to tighten their belts.
“I would like to believe that the government will find a solution to the problem of increasing the income of the population, because this directly affects the dynamics of the growth of RTO and the production of products,” summed up the CEO of INFOLine.
The material uses INFOLine research:
- Calculations according to the data of the Central Bank of the Russian Federation, open data of the Savings Bank of Russia.
- Survey for assessing the quality of finishing of economy and comfort class apartments in 2018 in the Moscow region.
- Research of the Moscow region commissioned by Kashirsky Dvor.
Yana Morozova, site
diy, household, research, Construction Materials, finishing materials, Leroy Merlin, Petrovich https://www.site https://www.site/articles/chto-proiskodit-na-rynke-diy/ 2020-02-14 2020-02-14Both the area of these stores and the commodity matrix have increased. We will talk about what DIY sales are in this article.
What is DIY segment
DIY (do it yourself) - translated as do it yourself, this is a fairly well-known English expression, meaning what a person does on his own at home. Now the DIY segment refers to hardware stores that sell goods for the home and garden. Due to the boom in suburban construction and repairs, the demand for these goods has grown tremendously.
DIY is not just a market segment, initially it is a whole subculture. It is interesting that it developed in the USSR and in the West a little differently. If in the Soviet Union, people strove to create things with their own hands because of the small choice and often Low quality products. Then in the West, DIY is a protest against capitalism and an unwillingness to pay for something that you can do yourself. So the DIY movement promotes the development of individuality and rejects the consumption of the same product.
DIY received a significant development boost with the spread of the Internet. Anyone can watch the training video and make repairs (and not only repairs) at home. In the past, all knowledge was passed down by word of mouth. Literature for a wide range of readers has become available relatively recently. And if you were born in the family of a carpenter, then the chances of becoming a blacksmith on your own were very small. Now everything is much simpler, the consumer has a choice whether to do the work himself or hire a specialist.
DIY segment
Until the 2000s, small shops and markets operated in the DIY segment of Russia. There was no question of any convenience for the consumer. At the same time, the active construction of new houses and the development of suburban construction began. Against this background, the first DIY hypermarket stores appeared in Russia. The success of such stores was enormous, within a few years the DIY market grew by double digits. Well-known Western chains quickly pulled up, now there are about 600 chains on the market. The area of modern Russian DIY shops exceeds 10000 sq.m.
DIY network
INFOLine DIY RETAIL RUSSIA TOP is an annual rating of major construction companies in Russia.
OBI
The German OBI was the first in the super-promising market in Russia and in the early years was actively expanding regionally, which was facilitated by a strategic partnership with Ikea Centers Russia, which simultaneously launched a network of MEGA shopping and entertainment centers in the largest cities.
Leroy Merlin
The French Leroy Merlin, which is part of Groupe Adeo and manages 400 stores in 12 countries, entered the Russian market in 2004, and began active development in 2005. Today, the group combines 9 different formats in the DIY segment, and the Leroy Merlin network itself is the first in Europe and the third in the world in terms of sales.
Castorama
Another major international player, the British chain Castorama, which is part of the Kingfisher DIY holding, came to Russia only in 2006, which did not prevent it from quickly taking its market share and a stable third place among all operators operating in the country. It is noteworthy that the company did not start conquering the market from Moscow, opening its first store in Samara.
K-Rauta
Finnish K-Rauta became the fourth foreign player on Russian market DIY, opening its first store in St. Petersburg in autumn 2006. Unlike its main competitors, the Kesko-controlled retailer began to develop the market through the purchase of the Stroymaster chain that existed in Russia. However, in next years The network did not develop as actively as planned. As of 2016, K-Rauta operates in St. Petersburg (7 hypermarkets), Moscow (3), Yaroslavl, Kaluga and Tula. The Kesko Group also operates in the Scandinavian and Baltic countries and operates a network of 2,000 stores.
Maksidom
Maksidom is one of oldest companies in the Russian market of hypermarkets for construction and repair. The first retail chain store in St. Petersburg was opened in 1997. Today the company operates a network of 11 full-size hypermarkets with a total area of more than 100,000 sq.m. and is one of the largest players in the DIY market.
Petrovich
Trading house "Petrovich", specializing in the sale of building materials, was founded in 1995. Today it is one of the leading companies in the market, operating a network of fifteen hypermarkets in St. Petersburg and the region, Petrozavodsk, Moscow and Tver.
baucenter
The Baucenter company began its activity in the Russian building materials market in 1994 with the opening of a 200 sq.m store in Kaliningrad. Today the network unites 9 hypermarkets located in Kaliningrad, Krasnodar, Novorossiysk and Omsk. The total area of Baucenter stores is more than 120,000 sq.m.
DIY goods
DIY stores offer the widest range of products. Among them:
- goods intended for interior decoration and holding repair work. This includes wallpapers, paints, fittings, roofing, drywall, flooring and carpeting, grouts, dry mixes, nails, cement, insulation, adhesives, sealants, solvents and much more;
- entrance and interior doors;
- work clothes, gloves, rubber shoes;
- wood products: panels, lining, plywood and other types of goods;
- security systems, intercoms and alarms;
- electrical engineering: lighting fixtures, bulbs, cables, transformers and other electrical appliances;
- water supply systems, including plastic pipes, various valves and so on;
- tools, manual and electric;
- furniture - kitchens, tables, chairs and so on;
- plumbing - bathtubs, sinks, showers, faucets, faucets and the like.
Some features of the Russian DIY segment are interesting. So in our country, such stores are visited more often by women, although in Western countries this is mainly a male format. In addition, residents of developed countries prefer to do repairs either completely on their own, or completely trust specialists. Construction services in the EU are very expensive and are available only to very wealthy people. In our DIY stores, residents buy goods, and professionals from Central Asia are trusted to do complex repairs.
News Online stores will be required to install a new ... April 19, at 13:41 News Goods.ru opened "Supermarket" April 19, at 09:45
In 2017 retail market DIY and home goods grew by 1.8%, amounting to 1.4 trillion rubles. Such data are provided in INFOLine study "Russian DIY market. Results of 2017. Trends in 2018. Forecast until 2020".
General figures and trends
The dynamics of the second half of the year shows that the market has finally overcome the protracted crisis. Recall that since 2015 there has been a decrease in sales turnover. First of all, experts attribute this to a reduction in real incomes of the population and a decrease in consumer lending.
INFOLine experts note that buyers continued to adhere to the rational consumption model: they more often compared the cost of goods on the Internet and in stores, actively responded to special offers and increased the share of their own goods. trademarks networks in the check. There is a general increase in online and omnichannel sales.
The main DIY market trends in 2017 were:
ongoing consolidation
· weakening of positions of regional networks
Sharp increase in price competition
The lack of growth in indicators of the market for building and finishing materials and DIY trade for two and a half years has led to a significant tightening of competition among retail chains operating in this segment. A number of regional DIY chains were forced to cease to exist.
Another trend was the introduction of new formats of retail facilities to the market. In particular, small format stores are in vogue. In particular, at the beginning of December 2017, plans to develop in Russia outlets with a reduced area, said the leader of the DIY market "Leroy Merlin".
According to Ivan Fedyakov, General Director of INFOLine, the reduction in retail space is due to three factors at once: "Firstly, online trading and a multi-channel sales model are developing, and secondly, networks are entering the markets of cities with a smaller population. In addition, large-format objects are not always suitable for placement in shopping centers."
Main market players
The most active player in the DIY market in 2017 was Leroy Merlin. The company opened 16 hypermarkets and entered the markets 9 new regions. Also in 2017-2018. the company stepped up development within the framework of the omnichannel model: the geography was expanded online store and launched the delivery of small-sized goods to post office network .
Continues active development and STD "Petrovich". The company maintained strong revenue growth rates and ranked second place in 2017 in the ranking ahead of OBI, whose revenue has been declining for three years in a row.
STD "Petrovich" actively introduces and uses the technology of making purchases, exclusive for the DIY market - Touch&Beep contactless shopping technology.
"The format turned out to be very successful, we will definitely develop it and introduce contactless shopping technology in all stores of the chain. Touch&Beep technology is a "brilliant" of our omnichannel model, which allows us to blur the boundaries between offline and online shopping. We want the purchase of large-sized building materials to become easy and pleasant for our customers in the truest sense of the word. They can purchase any building materials by scanning NFC tags or product barcodes using their own gadgets or tablets in the store.", - noted in the press service of STD "Petrovich".