Russia Consumer Electronics Report Q3 2012

Projects that Russian consumer electronics spending will grow by about 13% in US dollar
terms in 2012, after Russian retailers such as M.video and Euroset reported another year of strong
growth in sales of consumer electronics devices in 2011. The Russian consumer electronics market is
expected to increase at a double-digit CAGR over BMI’s five-year forecast period, driven by the growing
popularity of digital lifestyle products like digital TV sets, notebook PCs, digital cameras and portable
audio devices. The planned roll-out of digital TV broadcasting to 95% of Russian citizens by 2015 and
investment in 3G and 4G mobile communications infrastructure will boost spending. Growth will be
slower in our forecast period, compared with the preceding five years, but rising computer penetration,
higher incomes and immense potential for spending by Russia''s more remote regions all provide longterm
grounds for optimism.

Headline Expenditure Projections

• Computer hardware sales: US$10.4bn in 2011 to US$11.8bn in 2012, +14.0% in US dollar terms. Forecast in US dollar terms was upwardly revised due to strong sales growth in Q112.
• AV sales: US$7.6bn in 2011 to US$8.2bn in 2012, +8% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV set sales the main growth area.
• Handset sales: US$6.0bn in 2011 to US$7.0bn in 2012, +18% in US dollar terms. Forecast in US dollar terms unchanged, but there is a large digital divide between urban centres such as Moscow, where mobile penetration is more than 200%, and rural regions, where penetration is far lower.
• Risk/Reward Rating: Russia’s score was 52.8 out of 100.0 and it was in third place in our latest CE RRR table. Given its undoubted market growth potential, Russia is expected to rise to a higher position in our tablet over time.

Key Trends & Developments

• The flat-screen TV set market still is far from saturated, particularly in remote areas. In the major cities of European Russia, rising incomes, new house builds and interest in luxury items will ensure growing demand for digital. The government has set a target for every Russian citizen to have access to at least 24 digital TV channels by 2015, with the amount of funding for digitalisation reportedly RUB76.3bn.Russia is expected to roll out digital services gradually starting from Russia’s Far East and South Siberian regions, followed eventually by all populated localities. Russia Consumer Electronics Report Q3 2012 © Business Monitor International Ltd Page 6
• Demand for smartphone and higher end feature phones will help prevent stagnation in the handset market, despite the slowing subscriber growth rate. In Q112, smartphones accounted for 28% of all handsets sold at cellular provider MTS’s retail chain and 64.8% of sales in monetary terms. By the end of 2011, smartphones accounted for around 18% of Russian handset sales by volume.
• Tablets will offer a growth area in 2012, with a boost from sales in Q112 of around 1.5mn tablets. Around 70% of tablets sold in the Russian market in 2011 were imports. Mobile PCs remain the main PC sales driver, although most of the growth in Q112 was in less expensive units priced below US$800. Household purchases of second notebooks for family use was one factor contributing to this trend.

Russia Consumer Electronics Industry 2012

Published: August 2012                No. of Pages: 70                     Price: US $ 1175 

Table of Contents

Executive Summary . 5
SWOT Analysis 7
Russia Consumer Electronics Market SWOT 7
Russia Political SWOT . 8
Russia Economic SWOT. 8
Russia Business Environment SWOT 9
CEE Risk/Reward Ratings. 10
CEE Consumer Electronics Risk/Reward Ratings, Q312 12
Consumer Electronics Market 13
Computers 14
Table: PC Sales, 2008-2016 14
AV 17
Table: AV Sales, 2009-2016 . 17
Mobile Handsets 21
Table: Mobile Communications, 2008-2016 . 21
Three Most Popular Models In Different Pricing Categories In MTS Retail Network Q311, % Of Total Units Sold 23
Electronics Industry 27
Table: Russia Electronics Industry, Key Metrics . 27
Table: Electronics Output, 2009-2016 27
Table: Russia''s Technology Park Expenditure, 2006-2010 (US$mn) 29
Table: Diverse Private Tech Firm Investment Boosts Silicon Skolkovo Dream . 31
Table: Electronics Output By Segment, 2009-2016 . 33
Table: FDI Of LCD TV Set Manufacturers In Russia, 2006-2009 . 35
Table: Russia Electronics Components Industry – Development Plan 2008-2025 36
Industry Forecast Scenario 37
Consumer Electronics Market 37
Table: Consumer Electronics Overview, 2008-2016 37
Industry Developments 40
Macroeconomic Forecast 44
Table: Russia - Economic Activity, 2011-2016 48
Competitive Landscape 49
Computers 49
Handsets 51
AV 55
Company Profiles 57
Depo Computer 57
Kraftway 59
National Computer Corporation (NCC) 60
Sitronics . 62
Russia Consumer Electronics Report Q3 2012
© Business Monitor International Ltd Page 4
Demographic Data . 64
Table: Russia''s Population By Age Group, 1990-2020 (''000) . 65
Table: Russia''s Population By Age Group, 1990-2020 (% of total) 66
Table: Russia''s Key Population Ratios, 1990-2020 67
Table: Russia''s Rural And Urban Population, 1990-2020 67
BMI Methodology . 68
How We Generate Our Industry Forecasts 68
Electronics Industry 69
Sources 69Table: PC Sales
Table: AV Sales
Table: Mobile Communications
Table: Russia Electronics Industry Key Metrics
Table: Electronics Output
Table: Russia''s Technology Park Expenditure (US$mn)
Table: Diverse Private Tech Firm Investment Boosts Silicon Skolkovo Dream
Table: Electronics Output By Segment
Table: FDI Of LCD TV Set Manufacturers In Russia
Table: Russia Electronics Components Industry – Development Plan
Table: Consumer Electronics Overview
Table: Russia Economic Activity
Table: Russia''s Population By Age Group ('')
Table: Russia''s Population By Age Group (% of total)
Table: Russia''s Key Population Ratios
Table: Russia''s Rural And Urban Population