diy direction. DIY networks - building stores for "self-taught"

For the majority of modern people, DIY (do it yourself, “do it yourself”) is a product for needlework and the actual products of this needlework. But in fact, the DIY market is a huge thriving segment of modern eCommerce. It includes stores selling goods for construction and renovation, gardening, summer cottages, as well as home decor, furniture, tools, plumbing and much more. Andconstruction and repair- the most extensive niche, and we'll talk about it.

Consider this niche as a starting point for a new online store and answer the question: is it worth it? And if so, what should you pay attention to?

50% are goods for construction and repair

The DIY market can even include, for example, the production and sale of craft beer, or the sewing of designer wallets. That's just the share of this type of product will be microscopic. Still, half of the total sales are made by goods for construction and repair - this is about 22 billion rubles according to Data Insight for 2015.

By the way, in Europe, the heyday of DIY stores for the first time fell on the post-war period, in the mid-forties - everyone needed building materials to restore damaged homes. The war enriched not only fuel suppliers and gunsmiths.

So, one of the most demanded goods is building materials, plumbing and tools for repair and construction.

The market is getting crowded

DIY has become one of the most fast growing segments, “household goods” even entered the top 5 according to InSales for 2015, showing an increase of 60% (“building materials” is slightly less, 44%).

Growth occurred mainly due to the release of large networks in the online. Therefore, you should not think that it will be easy to open a store and replenish the ratings of successful ones. Moreover, it should be taken into account that only about half of all well-known networks have opened their online stores - which means that competition will intensify.

Big players rule the market (but only in big cities)

Leroy Merlin, Castorama, Megastroy and other hypermarkets that everyone is talking about are offline chains that decided it would be nice to go online too.

Competing with them is incredibly difficult, even if you have an investor - these retailers have poured billions into the development and promotion of their online stores.

However, there is such a small but pleasant feature - big players do not enter cities with a small population. The exception is Leroy Merlin, which has begun expanding into cities with 200+ thousand inhabitants and is introducing a new format of its stores there.

Otherwise, competition in small cities is much less, and you can try to bite off your part of the market.

Scheme: chose on the Internet, bought in a store

In DIY, the following scheme works: people choose goods and compare prices online, and go to buy in an offline hypermarket.

This behavior can be explained by two factors:

Buyers want to inspect many goods personally on the spot, to study the texture, material, quality.
One of the important segments of buyers is professional builders who buy goods and deliver them to the place on their own.

Thus, you will most likely need an offline point. However, the same scheme does not work with all products - the behavior of customers and their preferences to buy on the Internet or in a store differ from category to category.

Differences exist even within the same category, some products are more likely to be bought online, others in the physical department.

For this reason, DIY stores should pay special attention to the possibilities of multi-channel sales, a seamless shopping experience. CRM costs and should be included in your business plan.

Bad economic situation is not so bad for DIY

This segment of e-commerce suffers less during the crisis - which cannot be said about many other industries (the same electronics or clothing). This is due to several factors:

People are postponing the purchase of new housing until better times, instead they make repairs.
Many do not go on an expensive vacation abroad, they spend it in the country.
It becomes more profitable to do it yourself, and not buy it in a store - therefore, various raw materials (fabrics, furniture fittings, etc.) are in demand.

It cannot be said that DIY is flourishing in a crisis - many networks have significantly cut the number of their branches, Metrica turned out in a difficult financial situation. However, the decrease in the solvency of the population does not hurt DIY so much - for example, "Petrovich" after the crisisdemonstrated sales growth by 20% (the share of online sales also increased from 14 to 23%).

DIY is sensitive to changes in the housing market

Since half of all movements in this segment are sales of goods for construction and renovation, it is not surprising that fluctuations in the residential and commercial real estate market are also rocking DIY sales.

“In connection with the prevailing realities, 53% of Russians surveyed in the third quarter of 2016 consider the current conditions for making large purchases to be unfavorable. At the same time, only 9.2% of Russians hold the opposite opinion.” ( Retailer.ru )

At the same time, the volume of housing put into operation and the volume of mortgage loans issued are declining.

Data: Retailer.ru

All this is expected to lead to problems in the DIY market, sales are falling:

Data: Retailer.ru

Buyers have become very price sensitive

The low solvency of the population, the desire to save on repairs, doing it on their own - these prerequisites are pushing stores towards a policy of discounts and sales.

“Demand has shifted towards goods of medium and low price segments and consumers have become very sensitive to various promotions and sales. In addition, today the buyer is increasingly choosing domestic goods: their prices are more stable” -Maria Evnevich, Maksidom network.

For online, this means: the store must maximize its presence in the information space of the buyer, report profitable offers quickly, with a high percentage of "hit" in the audience.

We remember that in DIY the shopping chain often starts online - therefore, communication tools are the priority tools for online stores in this segment - they help to deliver a message about a discount to the buyer on time:

It is also worth paying attention to the automation of all communications (trigger emails and web pushes), this will allow the online store to significantly save the budget.

Every customer is worth their weight in gold

Despite the fact that most buyers will look for cheaper places without giving preference to any particular store, retailers should make every effort to retain a customer.

Loyalty programs for offline and online, and for online - these tools will help not only to "squeeze the maximum" out of each buyer, but also to intercept an almost lost client on the way to a competitor's website.

Two groups of buyers

DIY is also interesting because two large groups of buyers make purchases here, and their behavior is radically different.

Professionals.Builders, remodelers - this group of customers is the core of buyers in any DIY store. Goods they are interested in - power tools, building materials (used at all stages of repair, from roughing to finishing). Also, the peculiarity of this group is that they do not have much experience of shopping on the Internet.
Households.Residents prefer to buy in the categories "household goods" and "plumbing". This segment of the audience is much younger, they buy online, often from mobile devices.

In the DIY industry, as in any other, it is important to consider the specifics of purchases. You can’t make mistakes and target offers to the “wrong” audience. Therefore, for example, product personalization in an online store should work taking into account .

Conclusion

Experts predict that the DIY segment will “get up off its knees” no earlier than 2019. However, a growing market that is gradually recovering from a crisis is always a good opportunity for start-up stores.

If you are betting on an online service, do not forget about the recommendations that we have given in this article. Use multi-channel marketing, industry-specific (progressive) product personalization and modern tools to inform customers about promotions and other events of interest to them.

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 chains: in 2015, the share of the 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, Metrika and others 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 the financial performance of companies,” Ivan Fedyakov explained.

Among the factors hindering 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.

During the 3 years of the crisis in the Russian economy, consumers have formed a new strategy, which the analyst called "lean consumption", - the population has returned to shopping, but behaves extremely 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.

Mortgages and changing consumer behavior affect the construction market in terms of housing quality - 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. Petersburg district and the 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 a 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 Amendments to the Federal Law “On the Promotion of Housing Construction” and Certain Legislative Acts of the Russian Federation” .

The document abolishes the concept of "economic class housing", 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 mortgage loans,” Ivan Fedyakov said.

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 the 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 incomes 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, in 2018, incomes decreased by 0.3%, and the level of RTO is stagnating (in 2018, the RTO increased by 2.6%, and according to the 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 INFOLine CEO.

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, building materials, finishing materials, leroy merlin, petrovich https://www.site https://www.site/articles/chto-proiskodit-na-rynke-diy/ 2020-02-14 2020-02-14

Both 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 of 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 unites 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 the Russian DIY market, having opened 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 the following 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 the 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 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.

The first professional "Do-it-yourself" shops in Russia appeared in 2003. It was then, with the advent of the German companies Marktkauf (which combined a food hypermarket with a construction market and a garden center) and especially OBI, that DIY stores firmly entered the life of Russian consumers.

At the time when the first European retail leaders entered Russia, more than 80% of DIY in the country was concentrated in the hands of the construction markets. But the difference in the ratio of price-quality-comfort for consumers turned out to be so significant that instant success was ensured for professional DIY chains, and the market began to grow in double digits annually and attract more and more new players.

As of 2015, the total volume of the DIY market in Russia exceeded 1 trillion rubles. According to RBC, there are more than 600 networks on the market today, more than 75% of them are modern trading formats. As for the market-leading companies, their share in the total turnover of the Russian market is about 30%.

In recent years, against the backdrop of a decrease in consumer activity and a fall in the market as a whole, analysts note an acceleration of market consolidation. The largest companies are actively opening new stores in the regions, pushing small companies out of the market. According to the InfoLine agency, in 2015 the share of the top 10 players in the DIY market increased by another 4.7% and reached 27.5%. Malls.Ru analyzed the data and compared the performance of the most successful companies in the market...

OBI

To date, the company owns 25 full-size hypermarkets in Russia: 8 in Moscow, 5 in St. Petersburg, 2 stores each in Nizhny Novgorod and Yekaterinburg, and one each in Kazan, Omsk, Volgograd, Krasnodar, Saratov, Ryazan, Bryansk and Surgut. In 2016-2017, the company planned to open at least 15 more hypermarkets, including 4 stores to be put into operation this year.

The number of employees of the Russian division of the network today exceeds 5,500 people. The largest chain store with an area of more than 15,000 sq.m. has been opened in Omsk. The total area of OBI stores in Russia exceeds 250,000 sq.m. About 1/4 of each OBI store is in the "Garden Center".

The company serves 50 million customers annually and generates 200 million checks. The assortment includes more than 50 articles, 38% of which are made in Russia, 50% are foreign-made products, and 12% are products under OBI's own trademarks. The stores operate the OBI Club loyalty program, which entitles customers to personal discounts on goods, bonuses from each purchase and free services. An online store operates in all cities where the network operates, with the delivery of all goods presented in the network's hypermarkets.

Leroy Merlin

In Russia, despite a belated start, Leroy Merlin also managed to win a leading position. Today, the company manages 47 hypermarkets and the widest network on the market, covering 26 cities of the country. The company operates in the hypermarket format from 8,000 to 20,000 sq.m. By the way, it is in Russia, in Krasnogorsk, that the largest network store in the world in terms of turnover and the number of customers is located. Leroy Merlin often opens in the same space as Auchan hypermarkets, sharing high customer traffic. By the way, the retailers signed a partnership agreement back in 1979.

According to expert data, in Russia the company also leads the market in terms of such an important indicator as revenue per 1 sq.m of retail space (about $5,500). The portfolio of Leroy Merlin includes 16 own brands in all major product groups. The company's online store operates only in Moscow and the Moscow region. There is no loyalty program.

The market leader's plans for further expansion in a declining market are striking: within five years, Leroy Merlin is preparing to open about 150 more new stores in Russia. If the company's plans are put into practice, small regional chains will almost completely disappear from the market in the coming years.

Castorama

Kingfisher's worldwide chain of brands B&Q, Castorama, Brico Depot and Screwfix now has 1,200 stores in 10 countries with an annual turnover of £11 billion. The Castorama network in Russia includes 20 full-size hypermarkets located in Moscow, St. Petersburg and 13 other major cities of the country, as well as an online store. Data on plans for the further development of the network in Russia in the coming years did not appear.

Castorama operates in a format of 10,000 sq.m and presents more than 30,000 items in each store, as well as a set of additional services for customers. There is no loyalty program. The company serves 3 million customers every month. The staff of the Russian division of Castorama has 3 thousand people.

K-Rauta

In April, it became known that Kesko was preparing a new deal to take over one of the existing players in the market in order to accelerate the development of the K-Rauta network. The company is considering the possibility of buying a business as a DIY or Household chain, as well as a non-food chain as a whole. At the beginning of the year, the company has already acquired one of the hypermarkets of Metrika, which is losing the market, for 1 billion rubles. The network operates in the format of a classic hypermarket. Today, the monthly number of buyers of the Russian network "K-Rauta" is 700,000 people.

K-Raut stores have a K Plus loyalty program that provides a cumulative discount system, special offers for services, a 7% discount for newcomers, as well as special offers in K-Ruoka and Intersport stores. All K-Raut hypermarkets provide a set of additional services for customers, including the delivery of goods ordered through the company's online store.

Maksidom

Maksidom operates a network of stores in St. Petersburg, where 7 hypermarkets are open, as well as in Kazan, Samara, Yekaterinburg and Nizhny Novgorod. In the future, the company planned to enter the Moscow market and open up to five stores there, but the exact timing of the program was not called.

The Maksidom chain, like other leading players in the DIY market, operates in the hypermarket format. A feature of the format is an expanded assortment, which also includes goods for summer cottages and gardens, auto products, children's toys and household appliances. The stores also open seasonal fairs: “school”, “New Year's”, etc. There is a loyalty program that allows regular customers to receive discounts on all goods from the catalog. The maximum discount for a savings card is 7%. There is an online store with delivery in St. Petersburg.

Petrovich

Petrovich is the fourth largest DIY player in Russia and the largest Russian company in the sector. The company plans for the next five years to open 8-10 stores in Moscow.

The company positions itself as a multi-channel retailer, which distinguishes it from most competitors in the market. E-commerce is the company's most dynamic sales channel, accounting for almost a quarter of the network's sales turnover. The assortment of Petrovich stores includes 15,000 items.

Petrovich stores operate a loyalty program that brings together more than 200,000 active members. In addition, the club program offers maximum discounts for legal entities. Return of goods (including surplus) for club members is possible up to 120 days.

baucenter

The average area of the Baucenter hypermarket is about 14,000 sq.m. Each hypermarket of the network presents about 35,000 goods for construction and repair, as well as garden improvement. Baucenter has a bonus program (40 bonuses for 1000 rubles in a check), which allows you to pay up to 30% of the purchase price, and there are also discounts for professional clients. Among the unusual services for buyers is a daily rental of tools.

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 goods for home and repair has been steadily growing, providing DIY with the fastest recovery after the crisis compared to other retail segments, comments Ivan Fedyakov, CEO of INFOLine information and analytical agency. Thus, in 2010 the market increased by a quarter, but at the end of 2014 the growth slowed down to 9%, and by the end of 2015 the DIY&Household retail trade turnover again went negative (the fall 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 growth rates of 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 the retail space of objects. 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 legal entity (group of companies)	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 direction. DIY networks - building stores for "self-taught"

50% are goods for construction and repair

The market is getting crowded

Big players rule the market (but only in big cities)

Scheme: chose on the Internet, bought in a store

Bad economic situation is not so bad for DIY

DIY is sensitive to changes in the housing market

Buyers have become very price sensitive

Every customer is worth their weight in gold

Two groups of buyers

Conclusion

New trends in the DIY market

Yana Morozova, site

New trends in the DIY market

Trend 1: The transition of buyers to a lean consumption strategy.

Trend 2. Growth in mortgage lending.

Trend 3. Decline in the average area of ​​apartments in new buildings, but an increase in the area of ​​individual housing construction.

Trend 4. Growth in the share of apartments with finishing.

Trend 5. Possible introduction of criteria for the classification of standard housing.

Trend 6. Russians intend to improve their living conditions.

Incomes fall but consumption rises

Yana Morozova, site

What is DIY segment

DIY segment

DIY network

OBI

Leroy Merlin

Castorama

K-Rauta

Maksidom

Petrovich

baucenter

DIY goods

OBI

Leroy Merlin

Castorama

K-Rauta

Maksidom

Petrovich

baucenter

Trend 3. Decline in the average area of apartments in new buildings, but an increase in the area of individual housing construction.