Russian Market Of Power Tools And Garden Equipment

How the Russian market for power tools and garden equipment has changed over the past decade

Over the past ten years, the market for power tools and garden equipment in Russia has experienced both falls and rises. In 2013, sales in the power tool market amounted to 23 million units, and in the garden equipment market - 6.5 million units. In 2014, there was a decline that lasted three years, as a result of which, by the end of 2016, the power tool market amounted to 10.4 million units, and the garden equipment market - 3.7 million units. But in 2017, the industry's growth resumed, and in 2021, sales of power tools reached 20.6 million units, and garden equipment - 8.6 million units, thereby overtaking the 2013 figure.

From high competition to the departure of Western brands

The market for power tools and garden equipment in Russia was considered quite highly competitive. According to estimates by the Association of Trading Companies and Manufacturers of Power Tools and Small Mechanization Equipment (RATPE), in 2021, the Russian market in the power tool category alone featured products from more than 100 brands, including both well-known global brands and small, little-known brands that manufacture their products for Russian companies at factories in China.

By the beginning of 2022, about 30% of the domestic market was occupied by Western manufacturers. Despite the fact that their products were more expensive than goods of Russian and Chinese brands, consumers often still chose European equipment due to its popularity, good quality and the guarantees provided.

But since February 2022, some foreign companies have either completely left the Russian market or suspended supplies of tools and components to Russia and announced a temporary freeze on funding for the development of local production lines. And if in the first months the departure of large Western brands was not felt so much, since a certain share of products still remained in warehouses, then later the market began to feel a shortage of high-quality product lines. According to the results of 2022, the power tool market fell by 13% - its volume amounted to 17.8 million units, and the garden equipment market fell by 16% to 7.2 million units.

A window of opportunity for Russian and Asian manufacturers

Due to the departure or suspension of activities of a number of European companies, a unique opportunity has opened up for Russian and Asian manufacturers to occupy the vacated niches. As for Asian brands, particularly Chinese ones, they have long been increasing their share of the Russian market due to the optimal price-quality ratio. Over the past few years, many Russians have gained experience in purchasing goods from Chinese manufacturers in a variety of segments, thanks to which consumers have been able to verify the reliability of products from China. In particular, Russian citizens' trust in Chinese manufacturers of power tools and garden equipment has grown.

Among the main advantages of Asian power tools on the Russian market are affordable prices, excellent product quality, no interruptions in supplies, and an extensive network of dealer and service centers. In addition, the manufacturer provides guarantees for officially imported equipment from China, Turkey, Uzbekistan, and a number of other countries, and also provides favorable delivery terms. The main feature of partnership with suppliers, for example, of Chinese power tools, is that their own production allows them to create exclusive customized products for a specific request of a Russian client.

According to experts in the market of electric tools and small mechanization tools, the competitiveness of domestically produced electric tools in comparison with Chinese ones is comparable, although the price of Russian products in some cases may be higher. In Russia, for example, motor blocks and cultivators are produced at a high level. However, Russian equipment is often equipped with imported engines, in particular Chinese ones.

A new round of growth

The Russian market was able to overcome the turbulent period. This happened, among other things, due to the adjustment of logistics: some companies established supply chains through China and the Middle East. According to RATPE, the import of power tools in the first quarter of 2023 increased by 9% compared to the same period in 2022.

Overall, in the first six months of 2023, sales in the power tool market increased by 62% compared to the first half of 2022 and reached 12.6 million units. Over the same period, sales in the garden equipment market increased by 29% to 6.4 million units. According to the RATPE forecast presented in November 2023, the sales volume of power tools by the end of 2023 amounted to 23.1 million units, which is 30% more than the relative figure for 2022, and the sales volume of garden equipment was 9 million units, i.e. 25% more than a year earlier. Thus, in terms of sales dynamics - a key indicator of the state of the power tools and garden equipment market - the industry shows growing potential.

The domestic market is likely to continue to grow due to the development of the construction industry, increasing demand for equipment in the DIY segment, and the growing use of more mobile, flexible, and compact cordless power tools. However, high maintenance and tooling costs, as well as fluctuating raw material prices, may hinder the development of the industry.

You can declare the presence of your brand on the Russian market of power tools and garden equipment and present your products to specialists of dealer and retail chains, as well as end consumers from various industries, by becoming a participant in the International Exhibition of Equipment and Tools ToolMash.

ToolMash 2024 will be held on October 8–11 at the Crocus Expo IEC. The exhibition will be held on the same site as the International Exhibition of Welding Materials, Equipment and Technologies Weldex and the International Exhibition of Fasteners and Tooling Fastenex.