Furniture industry in the Russian market

Furniture is one of Iran’s export goods. Production and exports in this industry can contribute significantly to the development of non-oil exports. Supporting furniture industries increases foreign exchange earnings and job creation in producing countries. Production and activities in the furniture industry, in addition to achieving appropriate added value in the short term, have a high return on job creation and should be considered, and this industry has contributed to the economic development of countries for many years.

The furniture industry in the Russian market has grown significantly in recent years. Russia has a large population and a growing middle class, which has contributed to the increase in demand for furniture products. This market offers a wide range of furniture options, including domestic Russian and imported brands.

The Russian furniture market is highly competitive, with domestic Russian and international players competing for market share. Domestic manufacturers have invested in modernizing their production facilities and improving product quality to meet evolving consumer preferences. In addition, international furniture brands have also entered the market, offering a diverse range of styles and designs.

E-commerce has also played a significant role in the growth of the furniture industry in Russia. Online platforms have made it easier for customers to browse and purchase furniture products, providing greater convenience and choice. This trend has intensified competition among furniture retailers.

However, it is important to note that the furniture industry in Russia has also faced challenges. Economic fluctuations, changing consumer preferences, and regulatory factors can affect market dynamics. Nevertheless, the overall outlook for the furniture industry in Russia is positive with opportunities for growth and innovation.

The analysis of furniture imports to Russia involves considering various factors such as volume, value, and sources of imports.

In 2021, the furniture market witnessed significant growth, driven on the one hand by the COVID-19 situation, as more people spent more time at home due to the outbreak of the disease, and hence showed a desire to improve and beautify their living spaces. However, as COVID-19 restrictions ease and inflation picks up, the furniture market faced significant challenges in 2022. However, we expect the market to recover and continue to grow in 2023. As consumer spending showed signs of resilience in the first quarter of this year, we believe this could lead to positive developments in the furniture market, enabling the industry to weather potential challenges and maintain its momentum.

Despite the challenges the furniture market faced in 2022, we believe the long-term outlook remains positive. Sustained demand for comfortable and functional living spaces, coupled with potential growth in the younger population, presents promising opportunities for furniture retailers. This opportunity is presented to those retailers who have the ability to adapt to changes in consumer preferences and offer high-quality products at competitive prices. These conditions allow companies to make the furniture market more attractive and expand their market by offering diverse and quality products. In addition, paying attention to young people and their needs in designing and presenting products can help the furniture industry grow and develop.

Market information and size:

The market size is determined using a top-down approach, based on a specific logic for each market segment. As a basis for assessing markets, we use national statistical offices, international institutions, domestic market research and resources from the Statista platform. Then, we use key market indicators and data from country-specific associations, such as consumer spending and GDP. This data helps us estimate the market size for each country separately.

Analysis of the Russian furniture market

According to operational data from the Russian Association of Furniture and Woodworking Enterprises, the volume of furniture production in Russia for 6 months of 2023 increased by 8.6% compared to the same period in 2022 and reached 26.8 million pieces. The volume of furniture reached 179.5 billion rubles, which is 4.7% more than the results of the previous half of the year.

In 2022, the furniture market in Russia faced a number of serious challenges and fundamental changes. Large foreign retailers left the domestic market, (including the Swedish giant IKEA), and the established supply chains were broken, and direct deliveries of fittings and parts from Western countries ceased, and in this situation, as a matter of urgency, furniture companies began to reorient themselves towards other suppliers. (In particular, interaction with manufacturers from Turkey and China). So, by the end of 2022, furniture production in Russia decreased by 3.3% to 356.2 billion rubles ($4.7 billion).

This indicator was primarily due to the contraction of the market for the manufacture of wooden furniture for dining rooms and living rooms, which decreased by 75.8% to 26.8 billion rubles ($353.1 million). At the same time, the production of wooden furniture for offices decreased by 5.5% to 29.9 billion rubles ($393.9 million) and kitchen furniture by 1.9% to 58.2 billion rubles.

Russian Furniture Industry Segmentation and Distribution Channels

The scope of the report is a complete background analysis of the Russian home furniture market, including an assessment of the parent market, emerging trends in segments and regional markets, and significant changes in market dynamics and market overview.

Distribution Channels

Chain Stores
Specialty Stores
Online

Another key driver fueling the market growth is the rising standard of living, which is leading to an increase in the introduction of premium products. Developed and developing regions of Russia are witnessing a growing population of people who are inclined towards a luxurious lifestyle. With increasing disposable income, consumers’ capacity and spending on luxury goods and services is increasing.

Over the past few years, the increase in demand for furniture has been stimulated by factors such as rising incomes, increased housing construction, and the introduction of mortgage and consumer loan schemes.

Russian Furniture Market Trends

This section covers the main market trends shaping the Russian home furniture market according to our research experts:

E-commerce in the Russian Furniture and Home Appliances Market

Russia has a large, fast-growing and open furniture market with a population of around 146 million. Revenue from the Russian furniture and home appliances market reached US$1 billion in 2020. By 2025, the segment’s revenue is estimated to reach US$1.5 billion. Growing by 16%, the Russian e-commerce market contributed to the global growth rate of 29% in 2021. E-commerce revenues continue to grow. New markets are emerging, and existing markets have the potential to expand further.

Rising consumer income drives the market
One of the key factors driving the market growth is the rising standard of living, which is leading to the provision of premium products. Developed and developing regions of the countries are witnessing an increasing population that is inclined towards a higher quality lifestyle. With the increase in disposable income, the demand and spending of consumers on luxury products and services is increasing. In 2020, the furniture market in Russia was valued at approximately $29.4 billion. According to the consumer market outlook, the market is expected to grow to around $41.8 billion by 2025.

Competitive Analysis of the Russian Furniture Market
This report covers the major international players operating in the Russian home furniture market. In terms of market share, a few major players dominate the market. However, with the advancement of technology and product innovation, medium to small companies are increasing their presence in the market by securing new contracts and exploiting new markets.
Russian Furniture Industry Overview
This report covers the major international players operating in the Russian home furniture market. In terms of market share, a few major players dominate the market. However, with the advancement of technology and product innovation, medium to small companies are increasing their presence in the market by securing new contracts and exploiting new markets.

Major Players in the Russian Furniture Industry

1. BOROVICHI-MEBEL CJSC
2. MIAS Furniture
3. IKEA
4. Furniture Factory Shatura OJSC
5. Stolplit-Rus OOO
6. Maria Furniture Factory
7. KARE Voronezh
8. Kuchenberg
9. Herman Miller
10. MK Shatura AO
11. Lazurit furniture

Top Furniture Manufacturers in Russia

“ZEBRANO LTD”

“ZEBRANO” is a Russian manufacturer of designer furniture and stylish interior decoration made of wood.

“ZEBRANO” is an exclusive furniture brand, all of whose products are made using the most advanced production technology and precious woods combined with luxurious designs and high-tech accessories.

The custom furniture manufacturing company “ZEBRANO” has created more than 500 unique and original designs over the 15 years of its existence. “ZEBRANO” creates elegant pieces and functional designs from high-quality wood. At the same time, its products combine advanced technologies and rich woodworking traditions.

“MEBELGRAD”

The company “Mebelgrad” was founded in 1997 and is one of the largest furniture companies in the Central region of Russia.

Over 23 years of intensive development, the plant has grown into a large industrial and trade association producing interior items and wooden furniture. Today, “Mebelgrad” has a design bureau, a glass processing department, furniture workshops, a wood processing workshop, a sewing workshop, a logistics service and regional warehouses.

The “Mebelgrad” brand has an extensive trading network operating in the Bryansk, Oryol, Kursk, Rostov, Volgograd, Leningrad, Novosibirsk regions, etc., as well as representative offices and sales offices in more than 100 cities of Russia.

“TPC FELIX LLC”

The company “TPC FELIX LLC” is a large manufacturer of office, hotel and home furniture on the Russian market. The company was founded in 1991.

Focusing on creating the best working environment and using the latest technologies in the production of office furniture, the company seeks to provide top models and excellent service while maintaining its reputable image in the Russian office furniture market.

Main features. Production facilities:

3 furniture factories equipped with the most modern German and Italian machinery.

The furniture factory uses particleboard (chipboard), medium density fiberboard (MDF), veneer and solid wood for its products.

In 2013, it established a specialized automated Italian line “Biesse” for the production of economy furniture.

It has a modern warehouse of more than 30,000 square meters, which allows it to simultaneously transport its products from 6 terminals.

“TPC FELIX LLC” has about 200 sales representatives in Russia and other countries.

“IGDESIGN.RU – SHORELINE, LLC”

“IGdesign.ru” is an international furniture company that entered the Russian market in 2017 and has branches all over the world.

It is one of the few companies in Russia and the CIS that produces designer furniture to order, in any size and for any interior. In addition, with its marketplace, it brings together the best brands and products of designer furniture and works with large and local furniture suppliers.

“IGdesign.ru” produces a wide range of modern Danish design furniture for living rooms, bedrooms, dining rooms and home offices. From stylishly designed sofas and armchairs to functional wardrobes.

“GEOMETRY FURNITURE”

The company “GEOMETRY FURNITURE” has been operating on the Russian market since 2005. The company has implemented more than 1,500 projects, from small products to the interiors of country houses. “GEOMETRY FURNITURE” furniture products have an excellent appearance and quality due to the following reasons:

Using modern production technologies and combining them with the manual work of professional specialists.

Using the best materials available on the market, and selecting the best accessories for production.

Russian timber industry
According to FEDSTAT data, in 2017 the Russian industry produced about 212 million cubic meters of logs, which were mainly used by domestic industries, while 19.4 million cubic meters (approximately 10%) of logs were directly exported. Russia remains one of the world’s largest exporters of softwood. More than half of the sawnwood, veneer and plywood produced in Russia is exported.
The Russian Federation is also one of the world’s largest producers and exporters of industrial roundwood, and the country also exports significant volumes of sawnwood, plywood and pulp and paper. While the Russian state (government) owns forest lands and forest resources (timber and non-timber), the Russian forest industry is today almost completely privatized.
Although forests occupy more than half of the country’s land, the economic role of the forestry sector for Russia is limited. The share of the forest sector in gross domestic product (GDP) is only 1.3%. in industrial production 3.7%; in employment, 1%; and in export earnings 2.4% percent (FAO, 2012).
Radioactive pollution
According to data from the Ministry of Civil Defense for 2016, the area of ​​forests affected by radioactive pollution of varying degrees in Russia, as a result of the Chernobyl accident in 1986, is about 1 million hectares. These forests are scattered across 12 regions, but the largest contaminated forest areas (with about 600 thousand hectares) are located in the Bryanskaya, Kaluzhskaya, Tulskaya and Orlovskaya regions, east of the nuclear power plant (forest management plans in each region for 2018-2029). ).
Government Resolution No. 1008 D. 25.12.1992 stipulates that all use of forest resources, including timber harvesting, is prohibited in the zone of radioactive contamination. It also regulates issues related to control and monitoring of radioactivity. The Ministry of Civil Defense, Emergencies and Disaster Relief of the Russian Federation is responsible for these tasks.
China has rapidly emerged as the world’s largest importer of wood products, with Russia as its most important supplier. While China’s imports of sawn timber from Russia increased rapidly until 2018 (while decreasing slightly in 2019, according to customs data), Russia remains primarily (albeit decreasingly) an exporter of roundwood to China, particularly in the form of conifer logs. Two main factors contributed to Russia’s emergence as China’s most important source of timber: price and similarity of species used. (WWF, 2007).

List of furniture wood importers in Russia
Siemens
Wooden parts for repair and maintenance of high-speed trains under the brand name velaro rus Company: siemens ag
Ltd. “Berkana PRIM”
Living room furniture convertible into a sofa bed. Packaging: wooden box (cargo space)
Ltd. “HORSE”
Living room furniture with a wooden frame, upholstered, does not convert into a bed, partially disassembled for easy transportation.
Ltd. “Fork”
Non-convertible sofa upholstered (textile, leather), wooden frame, half-exploded view
Ltd. “TRANSLOGISTIKA”
Wooden furniture screws made of iron or steel tm “Monsoon”, countersunk head without groove, without cutting on plating Art .: 14002.003 (“evrovint”) 7×50 mm, hexagon-500000sht; Art .: 14003.002 (“evrovint”) 7×50 mm cross-100000sht.

Final Words
Importing furniture to Russia requires careful planning and adherence to specific procedures, which we briefly mention here some of the things that the Fardad Group of Companies does in a complete and professional manner in this regard.
1. Market research: Identifying the demand for specific types of furniture in Russia and conducting professional and complete market research on entering the market and the competition of Iranian furniture products in the Russian market and analyzing data.
2. Product selection: Furniture products must be in line with the preferences and needs of Russian consumers. Factors such as design, quality, price, and compliance with local regulations are taken into account.
3. Supplier identification: Identifying and assessing the credibility of reliable furniture suppliers in Iran who are competitive due to their quality and price.
4. Customs regulations: Complete familiarity with Russian customs regulations and the requirements for importing furniture to Russia, including compliance with documents, labels, packaging, and safety standards.
5. Transportation and Logistics: We determine the most appropriate transportation method for importing your furniture, taking into account factors such as cost, transportation time, and the nature of the products.
6. Import Duties and Taxes: Full awareness of import duties, taxes, and fees for importing furniture into Russia, including customs duties, value-added tax (VAT), and other related fees.
7. Documentation and Clearance: Preparation of all necessary documents, including commercial invoices, packing lists, certificates of origin, and other required documents.
8. Distribution and Marketing: Having a distribution strategy to reach your target customers in the Russian market and partnering with local distributors, retailers, or e-commerce platforms to expand the market reach as well as effective marketing and promotional activities in this field.
Fardad Group of Companies has direct contracts with the best furniture shopping malls in Moscow, including ROOMER, Empire, and Kashira Yard, and our proposal for an active presence in this large and thriving market is to cooperate with large shopping malls and chains. It should be noted that these centers interact and cooperate with manufacturers on a trust basis and pay the contract amount after the goods are sold in stores.
Based on the volume of initial investment, we can select and introduce a suitable chain commercial complex for concluding a contract and operate the export of Iranian furniture in large Russian stores on a large scale.
 Key and important factors for the presence of Iranian manufacturers in the Russian market
According to the initial research conducted on the battery industry in the large Russian market and considering the key factors:
1. High and continuous quality of manufactured products
2. Preferential tariffs on import duties of Iranian goods to Russia
3. Low export costs of Iranian products to Russia compared to Western goods
4. Neighborhood and proximity of Iran and Russia as a logistical advantage and the possibility of exporting Iranian goods to Russia by various methods such as land, rail and sea transportation in the shortest time and low shipping prices
5. The absence of a large part of the market from famous Western brands
6. The possibility of rapid expansion of market share and access to the competitive and trade space in Russia
We can say that there is a high economic justification for Iranian manufacturers to enter the large Russian-Eurasian market, and the Fardad Group of Companies is proud to establish effective and successful joint cooperation in this direction.