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Tag: russia

  • LCD-TV Market Growing Fast in Russia

    Defying hard economic times, the Russian LCD-TV market is set for strong growth this year, with shipments rising by 13.6 percent in 2009, according to iSuppli.

    Shipments of LCD-TVs in Russia will rise to about 5 million units in 2009, up from 4.4 million in 2008. By 2013, shipments will nearly double from the 2009 level, increasing to 9.6 million units.

    Revenue will increase to $5.7 billion by 2013, up from $3.1 billion in 2008.

    The research shows LCD-TVs are the only segment of the Russian TV market that is expanding, with shipments of Plasma Display Panel-Televisions (PDP-TVs) and Cathode Ray Tube-Televisions (CRT-TVs) decreasing in 2009 and beyond.

    “One of the main reasons for the switch to LCD-TVs in Russia is that they have become a status symbol. Consumers in Russia are very image conscious and prefer to own televisions that they can show off to neighbors and family members,” said Riddhi Patel, principal analyst for television systems for iSuppli.

    While the 32-inch size dominates shipments as an ideal upgrade or first television, the larger-sized TVs are becoming trendier.

    Among brands in Russia, South Korean OEMs are in a winning position because of their strong brand recognition. Furthermore, the South Korean OEMs also have domestic production capabilities and vertical integration—factors that allow them to have better control over their costs and prices.

    According to Patel, as far domestic Russian brands go, they are suffering from a lack of financial strength as well as the absence of branding. However, with a strong marketing strategy and the capability to be price competitive, Russian brands could challenge global OEMs in the domestic market.

  • Handset Vendors Eye Russian Smartphone-based Navigation Market


    More than a third of Russian consumers are interested in a smartphone-based navigation device – while nearly 63 per cent are willing to pay more than euro 4 per month for a vehicle tracking service based on a GPS-enabled smartphone.

    These are among the findings of research by Frost & Sullivan which also showed that global positioning system (GPS)-enabled smartphone technology is gaining ground over traditional portable navigation devices (PND) in the Russian navigation and telematics market.

    So much so that in 2009, the smartphone-based navigation market has already exceeded 350,000 units sold in Russia, while the PND market has failed to register even half that amount.

    The analysts conclude that the results indicate that firms must define a clear strategy – positioning products, services and business models around the ever-converging GPS-enabled mobile handsets market in order to expand telematics and navigation into the Russian market.

    The report says that Russian consumers’ desirability and willingness to pay for connected navigation, location-based services and features, finds that the Russian navigation market saw unit sales of 0.45 million in 2008, and will likely reach 2.0 million in 2012.

    This shift is attributable to exponential growth in the GPS-enabled, smartphone-based navigation market and to steady growth in the PND market.

    Praveen Chandrasekar, Frost & Sullivan programme manager, said: "Handset vendors like HTC, Nokia, and Apple are propelling the navigation market in a new direction by pushing more GPS-enabled smartphones into the Russian market.

    "In 2008 the balance shifted more towards the handsets-enabled navigation market rather than PNDs."

    Chandrasekar said this trend clearly shows that this market needs to be addressed with a smartphone-based portfolio in order to succeed.

    Eight out of ten current owners of navigation systems in Russia want to purchase another navigation system within six months.

    Of these, 49 per cent still prefer a PND, but a growing 30 per cent favour a smartphone-based navigation system.

    Russian consumers are willing to pay upwards of euro 100 for a smartphone-based navigation solution.

    In light of the current recession, this solution could clearly prove to be the low-cost killer alternative.

    The economic crisis has put a damper in consumer spending habits in Russia. Although Russian consumers indicate that they are willing to pay upwards of euro 300 for a navigation device, they might not necessarily be ready to do so in this economic climate.

    Chandrasekar said the recession has come at the "wrong time".

    "The navigation market, driven by GPS- enabled smartphones and PND, was on an upswing.

    "However, consumers are increasingly cautious and this might slowdown market development."