In the first quarter of this year, the Russian furniture market for kitchen, office, and retail pieces saw an approximate 7 percent drop in selling prices. This softening occurred amid a shrinking producer base and weakened consumer demand, according to AMDPR analysis reported by Kommersant. The data signal a contraction across several categories as manufacturers adjust to shifting cost structures and demand dynamics in the domestic market.
Analysts note that price reductions affected kitchen, retail, and office furniture, as well as metal items. The trend reflects broader market pressures, where manufacturers seek to maintain volume in the face of slower consumption. The reported 7 percent year-over-year decline aligns with lower input costs and a shrinking catalog of competitive offerings as the sector recalibrates to evolving consumer preferences and macroeconomic conditions.
AMDPR highlights that the price falls are linked to a substantial drop in raw materials costs, notably plywood which tumbled around 49 percent year over year, along with significant declines in engineered wood products such as fiberboard and MDF in the 26 to 39 percent range. These input cost reductions have helped cushion manufacturers from sharper price erosion, though the overall pricing climate remains softer than in prior periods.
Looking beyond the domestic market, several large Russian furniture manufacturers are actively pursuing growth in East Asian and near-international markets. Angstrem plans to inaugurate its first showroom in Mongolia and to explore entry into Azerbaijan. Divan.ru is slated to open stores in Uzbekistan and multiple Kazakh cities during 2023, signaling a strategic shift toward new distribution channels and regional diversification. This expansion pattern mirrors a broader push by the sector to reduce reliance on the domestic market and to tap into evolving consumer demand in neighboring regions, a move that could influence pricing strategies and competitive dynamics across Russia and its trade partners (Kommersant, AMDPR reports).