Industry chief says Russian home appliance market facing challenges
(MENAFN) Russia's home appliance and electronics sector is experiencing its steepest downturn in decades as consumers prioritize saving over spending, according to Dmitry Alekseev, head of the major retail chain DNS.
In a Telegram post on Thursday, Alekseev described the current slump as unlike anything he’s seen in his 30-year career. Early estimates suggest a 15% drop in first-quarter sales.
“We’ve seen declines in units sold and in dollar terms before,” Alekseev wrote. “But a fall in ruble revenue, adjusted for inflation, on this scale is unprecedented.”
He attributed the decline largely to rising interest rates, which have made bank savings more attractive and led consumers to avoid large purchases. As a result, more Russians are opting to deposit their money and earn around 2% monthly interest instead of spending it.
The shift is also reflected in consumer credit trends. Where roughly 30% of electronics purchases were once made using loans, that figure has now dropped to under 5%, Alekseev said. Stricter lending regulations from the Central Bank and tighter bank approval criteria contributed to a 21% drop in consumer lending in 2024.
Alekseev emphasized that the demand drop isn’t just about price hikes or increased competition from online platforms. “The reality is that people now have a very real alternative: save and earn, or spend and risk,” he explained.
DNS, founded in 1998, is one of Russia’s leading electronics retailers, with over 2,000 stores across the country and operations in several CIS nations. It also manufactures products under its own in-house brands.
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