Euroset predicts a crisis
“People have less money“: based on the sales figures of mobile electronics, the head of Euroset, Alexander Malis, reports on the beginning of the consumer crisis in Russia.
While Svyaznoy cheerfully reports an increase in sales of smartphones and tablets in 2013 by 51% and 125%, respectively, Euroset assesses the state of the consumer market as unfavorable.
“Sales growth is slowing down. And the situation will not be better. According to preliminary analysis, the market volume of phones and smartphones may decrease in 2014 to 38-39 million pieces of mobile devices, which in monetary terms will be equivalent to about 200-210 billion rubles. According to the first indicator, the market may roll back to a level below 2011 for the first time. And for the first time since the 2008 crisis, it will decrease in both unit and monetary terms, in general, by 6-8% on both indicators compared to 2013,” the company’s report says.
At the same time, the market assessment for 2013 turned out to be more positive for Euroset in a number of figures than for Svyaznoy.
Number of mobile phones sold, including smartphonesIn pieces:
- Euroset: 41.6 million
- Svyaznoy: 39 million
In money:
- Euroset: 225 billion rubles
- Svyaznoy: 215 billion rubles
As a percentage
- Euroset: in physical volumes, sales decreased by 1%, and in monetary terms increased by 10%
- Svyaznoy: in physical volumes, sales decreased by 1%, and in monetary terms increased by 12%
The growth of financial indicators was due to an increase in smartphone sales, which occurred against the background of a decrease in their average cost.
- Euroset: the share of smartphones in quantitative terms increased to 47% with a share of sales in monetary terms of 82%
- Svyaznoy: the share of smartphones in quantitative terms has grown to 48%
Yes, the average cost of a smartphone now is 9.5 thousand rubles.
Despite these positive figures, Euroset believes that the market is not expecting anything good this year and retail chains should tighten their belts.
“This year will be the last for many regional and local networks. The remaining players who manage to go beyond zero can consider it a great success. People have less money, we see this in the market figures, as well as analyzing consumer behavior. Can this be considered a new consumer crisis? Yes. Whether it will be more painful than 2008 is not yet clear. But the fact that this year will be sanitary for the entire trade industry is absolutely obvious,” said the head of Euroset, Alexander Malis.
Will the decline in the penetration rate of mobile devices affect software manufacturers? What do you think?
The retailer’s share in the Russian market of cell phones and smartphones, according to the network itself, is about 30%. The company is represented by more than five thousand salons operating in about 1,500 cities and towns on the territory of Russia and the Republic of Belarus. More than 50 million customers visit the company’s salons every month.
