THE TABLEWARE MARKET REVIEW
Most companies operating on the tableware market has managed to shift to the process of creation long-term competitive advantages, which could work in these new conditions.
The major event which threatens to change the situation on the tableware market is the Russian entry in WTO. Then all import and product sales procedures must be harmonized not only with Belarus and Kazakhstan, but also with WTO regulations. In addition, we will face new import tariffs and the competition between Russian companies and importers of tableware will come to a new stage.
The role of Internet sales has significantly increased in the process of distribution. Nowadays it is normal for many companies to pay attention to the development of Internet sales both through their own shops and through the collaboration with the existing ones. The constant development of Internet logistics gives great chance to every company which wants to begin on-line trade without considerable financial and organization costs.
The general state
Like most other goods, tableware is generally imported from China. The Chinese share in the tableware market is about 66%. The reduction of demand for tableware because of the general reduction of purchasing power has led to the decrease of the total import volume, including Chinese imports.
The market is presented by ceramic and porcelain tableware (27% of the whole volume of tableware in value terms), glass table decor items (23%), metal tableware including tableware from stainless steel and tableware with non-stick cover; cost-iron, aluminum, zinc-coated and enameled tableware; plastic tableware including silicon one (12%).
Glass tableware market is stable. In 2011 the glass tableware market size was $700 mln. in value terms, the porcelain tableware market size was about $867 mln. The positive dynamic of the increase in glass tableware production has been observed in Russia. The highest growth is watched in restaurant glass tableware segment. The sales of restaurant glass tableware have risen 15% in comparison with the previous year as a result of HoReCa market growth.
Both imported and Russian goods are presented on the market. In 2011 on the glass market the volumes of imported and Russian goods represent 45% and 55% respectively. The import predominance over export is explained by the narrow variety of Russian glass tableware, and also by its quality, which doesn’t meet international standards.
Metal tableware market includes both import and home produced goods. Home produced goods from stainless steel represent a small share of the tableware and kitchenware market. This situation is unlikely to change. But if we compare it with the situation on the porcelain and ceramic market, we will see that domestic stainless steel tableware producer market is more stable.
In 2011, the volume of home produced tableware with non-stick cover was about $18 mln., but taking into account the great demand for tableware with non-stick cover, the Russian plants don’t produce stainless steel tableware in needed volume.
The biggest supplier of stainless steel tableware in Russia is still China. The Chinese share is about 80% in the import supply of stainless steel tableware.
Totally, the decline of home production with the parallel increase in imports is observed on the stainless steel tableware market. The import increase was 6% in 2010. The import increase in 2011 was about 10% and in 2012 it will reach 15%.
Ceramic, porcelain, faience
The market growth rates are gradually going down. It proves that the porcelain and ceramic tableware market undergoes serious changes. New market player haven’t entered the market.
Moreover, a lot of plants have to close, the Russian production is loaded only in 10%. According to experts’ estimates, the volume of the Russian porcelain and ceramic tableware market is approximately $9 mln. in value terms.
The following tendencies are observed in the porcelain and ceramic market:
The plastic and silicone tableware market isn’t fully created yet in Russia because it is rather new and it doesn’t have clear boundaries. Experts note that the market is growing and nowadays the middle price segment attracts the greatest interest.
The Russian producers fulfill only 70% of the plastic market demand. 30% is imported from Turkey, Poland, Germany, Italy, China and Baltic countries. The Russian market of plastic goods is fragmented.
By 2012 the stage of the primary saturation of the Russian plastic tableware market should finish and it should shift to a new stage - tough competition. The major directions of the competition will be: production and equipment improvement, quality and modernity of shape, ecological safety of plastic tableware.