The production of household appliances in Russia has declined sharply: if in 2021 the dynamics was positive – plus 12%, then in 2022 production fell by 40%. This is stated in a study by the Institute for the Development of Entrepreneurship and Economics (IRPE), which Izvestia got acquainted with on February 8.
The organization clarified that they made estimates based on official statistics.
As the head of the IRPE Natalia Nazarova explained to the publication, the fall in the industry is due to the fact that foreign brands that have located their factories in Russia have stopped work. Plus, companies had problems with the supply of foreign components – this limited the ability to manufacture new products.
According to experts, the top five largest manufacturers of large household appliances and electronics, which are localized in the Russian Federation, include LG, Electrolux, Indesit, Bosch and Samsung. In March 2022, all of them announced either a suspension of supplies or that they would slow down work in Russia. The products of these brands in the Russian Federation accounted for about 30-40% of sales of large household appliances in monetary and physical terms, depending on the category.
At the moment, Electrolux has sold the business to local management, the company will continue to service the equipment remaining in the country and launch the production of goods under the Vard brand, the IRPE emphasized. In June 2022, Samsung re-launched part of the production, however, according to media reports, products are supplied to neighboring countries, and not to the Russian market. Bosch did not make statements that it stopped deliveries to Russia, but the company does not import components from the EU due to export restrictions. LG also slowed down the import of parts, the media reported that the company plans to move production to Uzbekistan or Kazakhstan. As for Indesit, in June last year, the Turkish Arcelik signed an agreement with Whirlpool EMEA SpA on the purchase of its Russian assets – Indesit International JSC and Whirlpool Rus LLC.
On January 27, Izvestia found out that in 2022, sales of electrical goods sold by retailers and distributors under their own brands increased manifold in Russia.
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