Ib demo russia - acrylic sanitary ware market_july 2012

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Demo-Version

Russia: Market of

Acrylic Sanitary Ware

Analysis and Forecast to 2017

July 2012

Marketing Research

http://www.russianmarketreport.com

Page 2 from 20 IndexBox Marketing © 2012 www.indexbox.ru

Market Research Russia: Market of Acrylic Sanitary Ware. July 2012 (Demo-version)

Brief Overview

The report on acrylic sanitary ware market contains:

Analysis and forecast of market dynamics

The structure of consumption by region

Analysis of domestic production, market shares of the main participants

Analysis of exports and imports

Assessment and forecast of market development

Methodology:

Expert interviews with top managers of the largest players

Analysis of submissions from market participants

Analysis of statistical information, Rosstat, FEA.

The report will allow you to:

1. Identify key indicators of the market, build your own business forecasts on the basis

of market

2. Evaluate the growth potential and threats in the market

Key figures presented in the report of market research acrylic sanitary ware

The volume of production, exports and imports

Indicators of market

Consumption

The report contains the consensus market forecast based on the averaged value of forecasts

of market participants. Market experts are: manufacturers, importers, wholesale distribution

link, high volume consumers, professional associations and unions, and trade publications.

The experts participating in the survey are provided special conditions on the acquisition of

reports.




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Study Design

The purpose of the study is to analyze the state of the Russian acrylic sanitary ware market

and build a forecast of the industry in the medium term.

Geography Research: Russia

Methodology

1. Analysis of secondary market information

Secondary information refers to data found online (industry portals, sites of competitors,

shopping sites, articles and reviews, reference materials), specialized publications, public

and private media companies, marketing agencies, commercial databases, as well as

previous research uncovered by IndexBox.

2. Analysis of materials from the market participants (price lists, brochures, etc.)

Collecting data from market participants needed to analyze the specifics of the market

participants, their pricing and assortment policy. This data then goes through the analysis of

secondary information, as well as by sending a request for price lists and other promotional

materials.

3. Expert survey of market participants

The analysis of secondary data is supplemented by expert interviews with representatives of

the companies, participants of the market, producers and trading companies.

Our approach to the estimation

The consensus forecast is the average value of forecasts overseen by market experts.

Experts

Market experts are: Manufacturers, importers, wholesale distribution link, high volume

consumers, professional associations and unions and trade publications. Expert opinions are

collected during telephone interviews conducted by IndexBox on a regular basis (the

standard is every six months, but can be more often based on a special request or under

conditions of high volatility in the market). IndexBox has created an extensive database of

experts within key industries. The experts participating in the survey are provided special

conditions on the acquisition of reports.

Accuracy of forecasts

The accuracy of forecasts are verified by experts in a given industry based on the historical

period (3 years), and in accordance with this accuracy, each expert weighs out the forecasts

to create the overall average forecast




Indicators

1. Consumption: Consumption is the main index estimated by our experts and features

the dynamics of consumption in real terms in the short to medium term. Experts give

an estimate of the potential volume of consumption in accordance with their

expectations and production plans (for manufacturers).

2. Internal production: Is based on the projected volume of consumption and production

capacity in any given industry, assessing, of course, and factoring in the dynamics of

domestic production.

3. Import and Export: Takes into account the retrospective dynamics of export-import

operations, strengths and weaknesses of the domestic production, changes in

legislation, the macroeconomic situation in the countries of the supplier (beneficiary) of

a product, an assessment of the dynamics of imports and exports.




Table of Contents

About IndexBox

1. Summary

2. Study Design

3. Product Description

3.1. The classification of acrylic sanitary ware

4. Characterization of raw materials

5. Characteristics of the Russian market of sanitary acrylic

5.1. Characteristics of the Russian market of acrylic sanitary ware from 2008-2011

and forecast to 2017

5.2. The structure of the Russian market of acrylic sanitary ware: production, imports,

exports

6. Characteristics of imports of plastic plumbing on the Russian market

6.1. The volume and dynamics of imports of plastic plumbing

6.2. Producing countries, leading suppliers of plastic plumbing into the territory of the

Russian Federation

6.2.1. Producing countries, leading suppliers of plastic plumbing into the territory

of the Russian Federation for 2009





6.2.4. Producing countries, leading suppliers of plastic plumbing to Russia in

January-May 2012

6.3. Foreign manufacturers of plastic sanitary ware, imported to Russia

6.4. Russian companies, recipients of imported plastic plumbing

6.4.1. Russian companies, recipients of imported plastic plumbing in 2009



6.4.4. Russian companies, recipients of imported plastic plumbing in January-

May 2012

7. Characteristics of Russian exports of plastic plumbing

7.1. The volume and dynamics of exports of plastic plumbing

7.2.1. Countries - recipients of Russian exports of plastic plumbing in 2009



7.2.4. Countries - recipients of Russian exports of plastic plumbing in January-

May 2012

7.3. Russian manufacturers of plastic sanitary wares, exported from Russia

8. Factors affecting the development of the market of plastic plumbing

8.1. Socio-economic situation in Russia from 2009 - I quarter 2012




8.2. The level of welfare and consumer spending

8.3. The situation in the construction industry

8.4. Status of construction firms

9. Market forecast of acrylic sanitary ware in the medium term

9.1. Background of the Russian economy

9.2. Scenarios for the world economy

9.3. Scenarios of acrylic sanitary ware market

10. Description and forecast of consumption of acrylic sanitary ware

10.1. Characteristics of the consumption of plastic plumbing

10.2. The balance of production and consumption of acrylic sanitary ware




List of Tables

Table 1. The classification of acrylic sanitary ware

Table 2. Production volumes and market shares of leading Russian manufacturers of acrylic

sanitary ware

Table 3. Volumes of production of the Russian manufacturers of plastic plumbing, thousand

pieces

Table 4. Volume, dynamics and structure of acrylic sanitary ware market from 2008-2011

and forecast up to 2017, thousand pieces

Table 5. Imports of plastic plumbing in 2009

Table 6. Imports of plastic plumbing countries in 2010

Table 7. Imports of plastic plumbing countries in 2011

Table 8. Imports of plastic plumbing countries from January-May 2012

Table 9. Imports of plastic plumbing to producers for 2011

Table 10. Imports of plastic plumbing by producers from January-May 2012

Table 11. The volume of imports by the recipients for 2009



Table 14. The volume of imports of recipients from January-May 2012

Table 15. The volume of Russian exports by country for 2009

Table 16. The volume of exports by country for 2010

Table 17. The volume of exports by country for 2011

Table 18. The volume of exports by country from January-May 2012

Table 19. The volume of Russian exports by producers in 2011

Table 20. The volume of Russian exports by producers from January-May 2012

Table 21. The profitability of production and the dynamics of net financial results of

organizations by kinds of economic activity in 2008 and January 2012

Table 22. Forecast production and consumption balance in the market of acrylic sanitary

ware for 2009-2015, thousand pieces




List of Figures

Figure 1. The structure of the Russian market of sanitary ware in 2011 in real terms

Figure 2. The market volume of acrylic sanitary ware from 2008-2011 and forecast for

2012-2017 years, in kind

Figure 3. The structure of the Russian market of plastic plumbing in 2011 in real terms

Figure 4. Structure of Russian baths market in 2011 in real terms

Figure 5. The market structure of acrylic sanitary ware from 2008-2011 and forecast for

2012-2017 years, thousand pieces

Figure 6. The market volume of acrylic sanitary ware from 2009-2012, in terms of value

Figure 7. The volume of imports of plastic plumbing products in 2009 - January-May 2012,

millions of U.S. dollars

Figure 8. Dynamics of imports of plastic plumbing products from January-December 2011 in

value terms

Figure 9. Dynamics of imports of plastic plumbing products from January-May 2012 in value

terms

Figure 10. Structure of imports by producing countries for 2009 in terms of value

Figure 11. Structure of imports by producers in 2010 in value terms


Figure 13. Structure of imports by producers from January-May 2012 in value terms


Figure 15. Structure of imports by producers from January-May 2012 in value terms

Figure 16. Structure of imports by the recipients for 2009 in terms of value



Figure 19. Structure of imports by the recipients from January-May 2012 in value terms

Figure 20. Dynamics of export of plastic plumbing in 2009 - January-May 2012 in value

terms

Figure 21. Dynamics of export of plastic plumbing from January-December 2011 in value

terms

Figure 22. Dynamics of export of plastic plumbing from January-May 2012 in value terms

Figure 23. The structure of Russian exports by country recipients for 2009 in terms of value

Figure 24. The structure of Russian exports to countries - recipients for 2010 in value terms

Figure 25. The structure of Russian exports to countries - recipients for 2011 in value terms

Figure 26. The structure of Russian exports to countries - recipients from January to May

2012 in value terms

Figure 27. The structure of Russian exports of companies - producers for 2011 in value

terms

Figure 28. The structure of Russian exports of companies - producers from January-May

2012 in value terms

Figure 29. Quarterly changes in Russia's GDP from 2007-2011 in the prices of 2008, trillion

rubles, with the exception of the seasonal factor

Figure 30. Dynamics of Russia's GDP in 2005-2011 years, in 2008 prices, billion rubles

Figure 31. Dynamics of real incomes, real wages, real pensions in 2005-2013 years. In%




Figure 32. Quarterly changes in real disposable incomes of the Russian Federation,

percentage of corresponding period of previous year

Figure 33. The structure of real spending from 2009-2011, in percentage

Figure 34. The dynamics of the debt on loans to individuals from January 2009 to November

2011, growth rate percentage

Figure 35. The total volume of construction of buildings introduced in Russia from 2005-

2011 years, million cubic meters

Figure 36. The structure imposed by buildings in the 2005-2011 years, million cubic meters

Figure 37. The total volume of construction of residential buildings in Russia from 2005-

2011 years, million cubic meters

Figure 38. The total construction volume of non-residential buildings introduced in Russia

from 2005-2011 years, million cubic meters

Figure 39. The volume of multi-family housing in the 2005-2011 years, thousand meters

Figure 40. Volume I of individual houses in the 2005-2011 years, thousand meters

Figure 41. Number of months that should be allotted for buying housing, the primary

market

Figure 42. Dynamics of production in certain sectors of the economy from 2008-2011

Figure 43. The dynamics of investment in fixed capital at constant prices (volume index)

from 2005-2011, percentage of previous year

Figure 44. Investments in fixed capital by sources of financing in the Russian Federation

from 2007-2011

Figure 45. Forecast of consumption of acrylic sanitary ware market for 2012-2017, baseline

scenario

Figure 46. Forecast of consumption of acrylic sanitary ware market for 2012-2017,

conservative scenario

Figure 47. Forecast of consumption of acrylic sanitary ware market for 2012-2017,

pessimistic scenario

Figure 48. The medium-term forecast of consumption of acrylic sanitary ware

Figure49. Forecast of the balance of production of acrylic sanitary ware from 2008-2017




Summary

…

In 2011, the market volume of acrylic sanitary ware was at ... million units, totaling ...

million U.S. dollars. The increase amounted to about 10% in volume and 13% in value. The

year 2012 was marked by continued growth in this market segment and by year-end is

expected to increase by 6% in volume and 26% in value, which is associated with an

increase in prices and the transition of customers to a more expensive price range of

sanitary products. If the current trends continues, ... million units will be sold by the end of

2012, which can be attributed to the external factors affecting the industry, such as housing

construction, the frequency of repairs and renovations of apartments and private homes, as

well as the gradual public acceptance of sanitary acrylic as a worthwhile product.

The volume of imports into Russia of plastic plumbing in 2011 was approximately ... million

units, which was 10% more than in 2010. From January-May 2012 there was an increase of

imports in value terms by 20%. Over the last two years (2011-2012), domestic producers

have accounted for only about 40% of products in physical terms. In the time slice from

2009-2012, the volume of exports has shown an increase in value and reached ... million

U.S. dollars by the end of 2011.

While there has been a slight decrease in the construction industry these last few years,

there has been, as noted above, moderate increases in the plastic plumbing market, largely

attributable to the growing public acceptance of acrylic sanitary ware. In fact, in the first

half of 2012 there was a reverse trend with people buying more expensive, high-quality

acrylic sanitary ware and its more complex products.

…

Key figures and

conclusions

about the market




3. Product Description

...

3.1. The classification of acrylic sanitary ware

...

The market of sanitary products is very diverse, but it can be classified by major commodity

groups, such as sanitary ware, bath tubs, faucets, fittings and more. Currently, the

production of household plumbing are most commonly produced in: cast iron, steel, various

plastics and ceramics.

Source: Experts Opinion, Analysis: IndexBox

Fig. 1. The structure of the Russian market of sanitary ware in 2011 in real

terms

...

Baths

Shower Enclosures

Other

Multiple classifiers

- The types of economic activity (for

Russian-made)

- The Commodity Code (for exports

and imports)

- The consumer properties (for the

description of use)

- In terms of composition (for a

description of the resource base)




4. Characteristics of the raw

materials’ base

…

The advantages of acrylic baths were made apparent more than 30 years ago in the

European HVAC market. Only recently, within the last ten years, has this product type

entered the Russian market, but it is now prevalent and readily available.

Acrylic (acrylic glass, PMMA, polymethylmethacrylate) is one of the many types of plastic,

under the category of thermoplastic, which are materials capable of heating to a certain

temperature to soften and take the form given to them, and upon cooling maintain this

form (based on the technology used in the manufacture of plastic plumbing).

Plumbing fixtures are made of different types of acrylic. The main raw materials are

plumbing acrylic (PMMA) and sanitary ABS-acrylic (two-layer plastic).

The two-layer plastic is used to produce assorted fittings and in the manufacture of acrylic

baths. A thinner version of this is used in the production of shower units, side panels and

decorative tubs and trays. The thickness of the two-layer plastic ranges from 5 to 11 mm,

depending on its purpose and models of plumbing products. Plumbing plastic ABS-acrylics

are also called "Acrylic", a well-established term; the phrase "two-layer ABS / acrylic" is not

very commonly used (this interpretation is given usually in the documentation).

Another use for dual-layer ABS-acrylic plastic is in the repair of cast iron bathtubs. When

the bathtub shows signs of wear (cracks in the enamel, rust, etc.), a molded acrylic (ABS /

acrylic) liner is inserted to bring it back to life. Simple sanitary acrylic, in this case, is less

reliable due to its fragility during assembly.

…




5. Characteristics of the Russian

Market of Sanitary Acrylic

5.1. Characteristics of the Russian Market of Acrylic Sanitary

Ware in 2008-2011 and Forecast to 2017

…

Source: Data (“Rosstat, “FTS”, And Expert Opinion), Analysis: IndexBox

Fig. 2. The market volume of acrylic sanitary ware in 2008-2011. and forecast for

2012-2017 years. in kind

Despite a slight decrease in the construction industry these last few years, there has been

moderate increases in the plastic plumbing market, largely attributable to the growing

public acceptance of acrylic sanitary ware. In fact, in the first half of 2012 there was a

reverse trend with people buying more expensive, high-quality acrylic sanitary ware.

107% 117%

110%

106% 105% 107%

105%

109% 108%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F

тыс.шт. в % к предыдущему году

We consider the annual

and monthly dynamics in

retrospect, the monthly

dynamics of the current

year




5.2. The structure of the Russian market of acrylic sanitary

ware: production, imports, exports

…

In the medium term, the market ... by ...% compared to 2011 year, and the volume of

Russian-made by ...% ... at ...% of the total market.

Source: Data (“Rosstat”, “FTS”, Expert Opinion), Analysis: IndexBox

Fig. 3. The market structure of acrylic sanitary ware in 2008-2011. and

forecast for 2012-2017 years., thousand pieces.

…

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F

Производство Потребление

Экспорт Импорт

A complete picture

of the market

retrospective and

forecast up to

2017




6. Characteristics of Imports of Plastic

Plumbing on the Russian Market

6.1. The volume and dynamics of imports of plastic plumbing

…

During January-May 2012, imports amounted to ... million U.S. dollars. In the Russian

Federation, from 2009-2012, the following types of sanitary ware products were made of

plastic ... and combination showers in the form of ... ... for showers, kitchen sinks, etc.

Source: Data (“FTS”, Expert Opinion), Analysis: IndexBox

Fig. 4. The volume of imports of plastic plumbing products in 2009 - January-May

2012., millions of U.S. dollars

…

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

0

20

40

60

80

100

120

140

160

180

200

2009 2010 2011 January-May

2012

cost millions of U.S. dollars % of prev. year

A detailed

analysis of

imports on the

basis of the FCS




7. Characteristics of Russian Exports

of Plastic Plumbing

7.1. The volume and dynamics of exports of plastic plumbing

…

Source: Data (“FTS”), Analysis: IndexBox

Fig. 5. Dynamics of export of plastic plumbing in January-May 2012 in value terms

…

0%

50%

100%

150%

200%

250%

300%

350%

0

100

200

300

400

500

600

700

800

January February March April May

cost millions of U.S. dollars % of prev. year

A detailed

analysis of

exports on the

basis of the FCS




10. Description and Forecast of

Consumption of Acrylic Sanitary Ware

10.1. Characteristics of the consumption of plastic plumbing

…

It has become more common in Russia that when repairing or renovating an apartment

more expensive plumbing products are chosen. These higher quality products are attractive

in appearance, occasionally even brand driven, which is very important for the modern

consumer, especially in larger cities. It is also worth noting that in most new high and low

rise private investment building projects, the plumbing installed by the builder is more often

than not higher end and foreign-made.

…

Source: Data (“FTS”), Expert Opinio, Analysis: IndexBox

Fig. 6. The medium-term forecast of consumption of acrylic sanitary ware

…

98%

100%

102%

104%

106%

108%

110%

112%

114%

116%

118%

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F

thousands of pieces % of prev. year




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