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Homeshopping in Russia

Russia homeshopping market: 2% CAGR growth forecast between 2012-17

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2014-02-14 03:47:01 - Homeshopping in Russia - a new market research report on

Na Dom mail order business, which mainly sells home care products, cosmetics and healthcare products via catalogues, was the leader in the Russia homeshopping market during 2012 with 7% value share of homeshopping; it declined from 8% value share in 2011. In 2009 Otto acquired a 90% share of Na Dom and acquired it from Arcandor AG. Beside these two acquisitions, in Russia Otto also sells clothing, accessories and home care goods through Otto, Bonprix and Witt catalogues. Otto catalogues gained the second position in homeshopping with 5% value share in 2012 and had almost the same result as in 2011. Although the company had a strong performance in Russia in recent years, Otto mostly focused on developing its internet



retailing presence, accounting for its decline in share in homeshopping.

Homeshopping in Russia was mostly represented by apparel and media homeshopping subcategories. While media products are mostly consisted from local journals and books, apparel are introduced by globally famous brands like Otto, Bonprix and La Redoute. Together the two subcategories registered 55% of value sales of the channel in 2012, 17% for apparel and 37% for media products. Catalogue shopping was mostly demanded by females who remained the key consumer for both segments along with cosmetics. According to data from the National Distance Trade Association, 80% of mail order catalogue clients are women.

Homeshopping is expected to show moderate growth with constant value 2% CAGR over the forecast period due to intense entry of internet sales. However, trade sources predict that by 2015 most retailers will be of hybrid form with multi distribution format rather than offline sales to compete with online or other non-store sales. Most retailers prefer to sell their products via different types of distribution channels with the aim of reaching different customers and contacting as many customers as possible. So, most retailers will choose not to drop homeshopping and launch catalogues as well as other types of distribution. This will allow homeshopping to retain its share and compete with other types of distribution channels in Russia.

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