Children's goods (Russian market)

2023

Sales of clothing for young children in Russia increased by 5.1% to 82.8 million products

In 2023, sales of clothing for young children in Russia reached 82.8 million products. This is 5.1% more compared to 2022, when the volume of sales was estimated at 78.8 million units. The growth was recovery after a significant drop in sales amid a worsening geopolitical environment. Such data are provided in the BusinesStat review, published at the end of September 2024.

The study takes into account clothing for children in the younger age group up to 86 cm tall. Products made of fabrics, as well as knitted and knitted materials, are considered. Clothing made of non-woven materials, leather and fur is not taken into account. Among the significant players in the Russian market are named RTF April OJSC, Clover LLC, Batik TD LLC, Bangli LLC and MPSO Smena LLC.

According to estimates, in 2019, sales of children's clothing in the Russian Federation amounted to 89.3 million products. In 2020, there was an increase of 1.1% - up to 90.3 million units, and in 2021 there was an increase of another 15.6% with a final result of 104.4 million units. In 2022, a decline of 24.5% was recorded.

The report says that due to the situation, many Western companies have left the Russian market. In particular, sales were stopped by the British Mothercare, which had more than 110 retail stores in the Russian Federation. In addition, many versatile manufacturers of clothing for adults and children have closed their outlets, including H&M, Zara, Pull & Bear, Stradiwarius, Mango, Bershka, Mark & Spenser, Uniqlo, etc. In 2023, the market for clothing for young children in the Russian Federation reoriented from Western brands to domestic and to brands of eastern countries - China, Bangladesh, Uzbekistan. At the same time, opportunities and conditions for the development of new players appeared. As a result, the positive dynamics^[1]units.

Sales of children's games and toys in Russia increased by 3.2% to 1.78 billion units

In 2023, sales of children's games and toys in Russia amounted to about 1.78 billion units. This is 3.2% more compared to 2022, when the market volume was estimated at 1.73 billion units. The key factors affecting demand are a decrease in the birth rate in the country, an increase in prices for imported products, as well as the development of a secondary market for children's goods. This is stated in a study by BusinesStat, the results of which were released in early September 2024.

The review takes into account products such as puzzles, toy weapons, toy musical instruments and devices, toys in the form of animals, toys in sets or kits, toys and models with a built-in engine, design sets and kits for assembling models "at scale," dolls, tricycles, scooters, strollers for dolls, etc. Significant players in the Russian market are LLC, "Alternative Plastic Products Plant" LLC, Hatber-M LLC, "Hobby World" Production Cooperative Chemical Plant "Luch," LLC "TK Our Toy" , etc.

According to estimates, in 2019, approximately 1.95 billion children's games and toys were sold in the Russian Federation. In 2020, a decline of 7.2% followed - to 1.81 billion units. Amid the COVID-19 pandemic and economic uncertainties, many consumers have abandoned optional purchases, including some products for children. In 2021, demand began to recover: an increase of 5.1% was recorded with a final result of 1.9 billion toys sold. But in 2022 there was another decline - the volume of sales decreased by 9.1%. The rise in toy prices and general inflation, a decrease in consumer activity, the departure of some consumers from the country negatively affected the sales of children's goods.

The study says that the main buyers of children's toys in Russia are parents with children under 6 years old. Fewer toys are purchased for children aged 7 to 9 years. At the same time, there is a transformation of the market as a whole: the flow of sales to the online sector and the active development of marketplaces.^[2]

Market volume growth by 13% to 1.17 trillion rubles

The volume of the Russian market for children's goods in 2023 increased by 13% compared to 2022 and reached 1.17 trillion rubles. Such data from the Association of Enterprises of the Children's Goods Industry (AIDT) were released in mid-April 2024.

As Kommersant writes with reference to AIDT President Antonina Tsitsulina, children's goods of the departed brands remained on store shelves thanks to parallel imports, which, in turn, contributed to the preservation of competition in the market.

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As noted in the publication of the publication, after the refusal of Western manufacturers such as Hasbro, Mattel, Lego, to supply goods to Russia, they had to be replaced by domestic toy manufacturers. However, the share of local manufacturers of such products in 2023 accounted for no more than 10% of the market. Despite the fact that before the COVID-19 coronavirus pandemic, this figure was at the level of 12%, the AIDT emphasized.

The segment of games and toys at the end of 2023 occupied 20.5% of the Russian market for children's goods. However, at the end of 2023, growth in this segment exceeded 9%. For example, the revenue of three foreign manufacturers reached 29 billion rubles at the end of 2021. At the same time, during the same period, large Russian companies were able to earn no more than 7 billion rubles.

According to the newspaper in the Ministry of Industry and Trade, the production of children's games and toys in Russia at the end of 2023, including thanks to measures of state support for this market, including subsidies to compensate for part of the costs of research, loan servicing and preferential leasing.

According to Mikhail Burmistrov, CEO of Infoline Analytics, it is difficult for Russian manufacturers to compete with companies from China due to low prices, which remain due to an increase in production volumes. Also, Chinese implementers have an advantage over Russian ones in terms of manufacturability and production efficiency, the expert notes.^[3]

2022

Decrease in sales of children's toys by 8.8% to 1.73 billion units

The volume of the Russian market for children's toys in 2022 amounted to 1.73 billion units, which is 8.8% less than a year ago. This is evidenced by data from BusinesStat analysts, released in November 2023.

Experts linked the drop in sales of children's toys to:

• leaving the Russian market of a number of major global brands;
• supply interruptions due to disruption of supply chains;
• rising prices;
• the departure of some buyers from Russia.

According to experts, in addition to economic factors, the key factor negatively affecting the Russian market for children's toys in recent years is a decrease in the birth rate. The maximum age at which children play toys is also decreasing: if earlier it was 12 years, then in 2022 - no more than 10 years. According to market participants, the main buyers of children's toys are currently parents of children aged 0 to 6 years.

The 2022 study also notes that sales of children's toys in recent years have been supported by the development of marketplaces. Such sites are increasingly popular among Russians due to the large assortment of goods presented for sale, the wide geography of sales and the fast delivery time, analysts explain. When studying the market situation, they considered sales of the following toys:

• Puzzles
• Toy weapons
• Toy musical instruments and devices
• Animal toys
• Toys in sets or other sets
• Toys and models with a built-in engine
• Design Sets, Sets to Assemble Models at Scale
• Dolls
• Tricycles, scooters, puppet strollers^[4]

The production of children's diapers and diapers in Russia decreased after an increase of 16.3%

The production of children's diapers and diapers in Russia in 2022 decreased by 10.6% after an increase of 16.3% in 2021. Such data in July 2023 led to the research company BusinesStat.

According to her estimates, in 2022, 3.78 billion children's diapers and diapers were produced in the Russian Federation against 4.23 billion pieces a year earlier. The reason for the decline was the shortage of raw materials against the background of Western sanctions. In particular, fluffy cellulose and superabsorbent were included in the EU sanctions package, experts explain. In 2022, there were more than 20 manufacturers of children's diapers and disposable absorbent diapers in the country. At the same time, about 80% of the products sold were foreign brands that partially localized production in Russia.

The production of children's diapers and diapers in Russia decreased after an increase of 16.3%

According to analysts, in the context of the sanctions crisis, a number of enterprises (Essity, Procter & Gamble) announced the termination of investments in Russian business, but continued to produce children's hygiene products. Parallel imports could not be the solution for multinationals. They were forced to look for alternative suppliers domestically or in the Asian region and temporarily reduce output.

It also follows from the report that in 2022 the export of children's diapers and diapers from Russia decreased by 24% compared to 2021 - to 1.28 billion units. Due to a decrease in domestic production against the background of Western sanctions and a shortage of imported raw materials, supplies to Kazakhstan (-172.5 million units) and India (-71.3 million units) decreased, and supplies to Ukraine (-152.3 million units) practically stopped. In monetary terms, the volume of iport of these products in 2022 decreased by almost 10% compared to 2021 and amounted to $209.8 million.^[5]

2020: Online sales of children's products up 76% - Data Insight

Sales of children's goods via the Internet in Russia at the end of 2020 increased by 76% in monetary terms and by 112% in kind compared to 2019. This is evidenced by data from the Data Insight research agency.

According to Vedomosti, citing published statistics, online sales of goods for children have grown at a record. At the same time, the absolute figures in Data Insight were not specified. The publication recalled that in 2019 the volume of the market in question rose by 21%, and the number of orders increased by 39%.

Despite the fact that online sales during the COVID-19 coronavirus pandemic were actively developing in many other segments, it was the sale of products for children, according to retailers surveyed by Vedomosti, that contributed to the new format - Click & collect. It implies that the product is ordered online, but the customers pick up and pay for it in person in stores.

Online sales of children's goods for 2020 have grown record

Data Insight partner Fedor Virin notes that the active development of Click & collect in the segment of products for children is associated with the specifics of this market: the assortment here includes a large number of goods, ranging from food and hygiene items to clothing and bulky things.

According to him, it is important for the buyer to be able to get everything in the same store. Most of the order, such as food, are goods familiar to the buyer, which he quickly collects into a basket, and clothes, shoes and oversized things are categories that need to be tried on on a child. Ordering everything at home is immediately inconvenient, since it can take a lot of time to inspect goods and try on, which the courier does not have.

The surge in demand for goods for children was confirmed by the online retailer Wildberries. He registered the turnover of the corresponding category of 71 billion rubles at the end of 2020, which is 70% more than in 2019. At the same time, Russian-made goods in 2020 showed higher sales dynamics than the average in the category. The turnover of domestic products for children increased by 96% - to 39 million units, while on average in the category sales growth amounted to 88%.^[6]

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