According to Vedomosti, Russian sellers of household appliances and electronics increased sales of goods under their own brands by 1.5 times in 2021 compared to 2020.
Market experts explained that in 2021 retailers, for example, M.video-Eldorado and DNS, have significantly expanded the range of products produced under their own brands. They were also able to add hundreds of new model names of large and small household appliances and electronics to their showcases. According to experts, the number of smart TVs, laptops, smartphones and tablets, smart watches and e-books, which are on the shelves less than similar products of well-known brands, has significantly increased in Russian networks.
The representative of retail chains explained that by 2023 they plan to further increase the volume of production of goods under their own trademarks, so that there are at least 50% of them on the market.
Merlion told the publication that the company has 10 own brands (iRU, Ippon, Jetbalance, Oklick, Digma and others), which cover almost the entire electronics market - from kettles and chargers for smartphones to laptops and smart TVs. A Merlion spokesperson confirmed that in 2021 the company recorded a 20% increase in sales of its equipment.
Market participants from well-known brands Bosch and Siemens specified that cheap brands are popular only in the economy segment, which really grew in 2021. They insist that consumers still try to choose well-known brands with a guarantee and good reviews from other buyers as products to buy from the middle and premium price range.
The publication's experts recalled that expanding the range under its own brands is a global practice. For example, Walmart sells products under 100 of its own brands, and Amazon has more than 40 such brands. Moreover, the share of their products in the sales of companies in some categories can reach 80% or more, which significantly increases the company's marginality by reducing part of the promotion costs and savings on the supply chain.
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