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- Loading concerns: in the Russian Federation there were interruptions in the supply of household appliances of bygone brands
Loading concerns: in the Russian Federation there were interruptions in the supply of household appliances of bygone brands
The delivery time for household appliances of bygone European brands — Siemens, Bosch, AEG and others — to Russia has increased 1.5–3 times since the end of February, and the cost of logistics has increased by the same amount, Izvestia learned. The situation was affected by the conflict in the Persian Gulf: previously, up to 60-70% of such products were shipped through the UAE. If alternative and less expensive routes are not found in the near future, European household appliances may rise in price by 10-15% in the spring, market participants do not exclude.
Interruptions in the supply of household appliances
Due to the Gulf War, the supply of household appliances of European brands — Siemens, Bosch, AEG, Miele and others — in the Russian Federation began to fail, and its range also decreased. A source close to one of its distributors told Izvestia about this, and another source in the electrical goods market confirmed the information.
— Dubai is a huge logistics hub: a significant part of goods, including supplies to Russia, were redistributed through it. For parallel imports, up to 60-70% of European household appliances were imported through this direction. After this direction was closed, the delivery time and cost of these devices in the Russian Federation increased 1.5–3 times, — says one of the sources of Izvestia.
The timing of shipments of such equipment has become unpredictable, he added.
According to another Izvestia source in the electrical goods market, sellers are looking for alternative Middle Eastern supply channels for equipment to our country. At the same time, an increase in logistical leverage and an increase in the cost of fuel, according to his assessment, will contribute to higher prices.
While retailers are selling off existing stocks of European household appliances, however, in the absence of stable supplies by the end of spring, it may rise in price by 10-15%, a source close to one of the distributors did not rule out. The increase in cost, according to him, will be associated with the lengthening of supply routes and the emergence of additional intermediaries in logistics chains.
The parallel import of household appliances from manufacturers who left the Russian Federation, passing through the Persian Gulf countries, has now practically stopped, and it takes many times longer and more expensive to transport goods by roundabouts, confirmed an interlocutor of Izvestia, who is close to another electronics distributor. Increased logistics prices may have an impact on retail prices by the end of spring, he agrees.
The RATEK Association of Manufacturers and Sellers is also talking about problems with supplies to the Russian Federation for the parallel import of household appliances.
— Due to the war in the Middle East, logistics are severely disrupted, and sanctions pressure also remains. This has a negative impact on the supply of household appliances to Russia. It is unknown how long these logistical problems will last. The situation with the end of the conflict and the opening of transport communications is not yet clear," said Anton Guskov, a representative of the organization.
According to Eldar Murtazin, a leading analyst at Mobile Research Group, there are difficulties with the supply of Miele products: the equipment of this premium brand is usually delivered to Russia on order. In the segment of more massive brands such as Siemens or Electrolux, distributors are currently building alternative logistics chains, including using routes through Turkey, the expert noted.
Is there an alternative to the Middle Eastern transport corridors
The United Arab Emirates was involved as a hub for the supply of household appliances to Russia, including European ones, said Sergey Polovnikov, head of the Content-Review project. In his opinion, due to the malfunction of this hub, if it does not improve, prices may rise up to 20%. For example, almost all Dyson equipment was supplied to Russia through the UAE.
— The logistical costs for shipments through the UAE were lower than through other channels, for example through Turkey. In the case of parallel imports, this is an important component of the final price," he said.
According to him, not only household appliances, but also electronics, such as the iPhone, were sent through the UAE. In general, in his opinion, the delivery of goods to Russia will become more expensive regardless of which route their importers choose: the transportation of goods, including electronics, requires fuel, the prices of which are now rising.
— As a result of the aggravation of the situation in the Middle East, we faced certain logistical difficulties at the very beginning of the conflict. The delivery of imported machinery and electronics from the UAE is associated with air transportation from these countries, so at first there were really short—term delays due to the need to adjust routes and strengthen security measures," said Lyudmila Semushina, a representative of Inventive Retail Group. — However, due to the flexibility of our logistics service and the availability of alternative supply channels through other countries, the situation has been stabilized. All key product flows are operating on a regular basis, and we do not observe any systemic supply disruptions.
According to Denis Kuskov, CEO of TelecomDaily, there are channels for the supply of premium equipment through the EAEU countries, although this is longer and more expensive than through the UAE. In his opinion, the price increase for these devices will not stop their buyers: such equipment has always been purchased by wealthy people focused on European brands. This audience, as a rule, retains both the interest and the financial capacity to purchase such equipment.
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