digital signage in russia: observation and trends
DESCRIPTION
The presentation I made in Berlin at Digital Signage Europe 2013. It covers some results of the research we carried out in AUVIX on DS market in Russia.TRANSCRIPT
Digital Signage in Russia:Observations and Trends
Alexander PivovarovCenter of Excellence of Digital Signage
13.06.2013 (updated)
About AUVIX
• Leading Russian pro-AV distributor and System Integrator
• 20 years on the Russian market• 40 brands and over 20 distribution contracts• 1500 dealers over the entire Russia• over 3000 cities in Russia and CIS• over 200 implemented projects• 150+ employees
Russia: Basic Facts
17 075 400 sq. km. ≈ 3 Europes
The largest country in the world, 1/8 of inhabited land area
9 time zones
143 mln. people - 9th nation
Russia: 8th World Economy
USA$16.2
Japan$5.1
China$9.0
Germany$3.6 France
$2.7Brazil$2.5
UK$2.4
Russia$2.2
Italy$2.1
India$2.0
GDP in trillions of U.S. dollars
Source: IMF, World Economy Outlook
Russia: Economy Slowdown
GDP slowdown (2.4% by end of 2013, 1/2 of expected)
Capital outflow Retailers observes slowdown in the
growth of sales Decrease in inflation Increase of tax burden on the small
business Growth of NPL (nonperforming loans)
The Russian Economy is not-so-bad, but there are fears of crisis among business society
Digital Signage in Russia
Our observations
•Low penetration of Digital Signage - Russia is behind Europe few years•Potential capacity is HUGE •Digital Signage is a must-have tool for Russian retail chains •Lot of interest among AUVIX’s partners on Digital Signage•Lack of knowledge and expertise among partners•Lack of understanding how to use Digital Signage among end-users
DS Russia Research 2013
Participating companies
•Panasonic•NEC•LG•Samsung
•MMD Philips •Dismart•Increditech•Adissy
•Auvix•Digisky•Hoist Group•Cardo Media
H1‘2013 Results
Source: AUVIX Research, June 2013
Q: Russian DS market in 5 months of 2013 compared to 2012
The market showed some growth, but it was rather slow. Higher growth rate for newcomers and aggressive players.
Moderate decline11 %
No change33 %
Moderate growth 33 %
Significant growth22 %
Q1‘2013 Results
Number of units: 6750
Volume (MUSD): 24.30
+0,7%
-1,7%
Flat Panel Displays Market in Russia, Q1’2013
Source: Quarterly Flat Panel Market Report, Q1’2013
Short Term Forecast
Source: AUVIX Research, June 2013
Q: What’s your forecast on Digital Signage market for next 6-12 months in Russia?
It’s expected that the market will grow faster in the future.
Despite of crisis fear nobody said that the market will decline.
No answer11 %
Moderate growth 56 %
Significant growth33 %
Long Term Forecast
Source: AUVIX Research, June 2013
Q: What’s your forecast on Digital Signage market on long term (3-5 years) in Russia?
In a long term perspective, it’s expected that the market will grow significantly.
No answer11 %
Moderate growth 22 %
Significant growth67 %
Top Segments
Source: AUVIX Research, June 2013
Top Segments in Russia
Advertising and QSR segments have got a significant boost.
PQMedia: Russia was the fastest-growing DOOH market in 2012, rising 26.9%,
QSR
Advertising
Retail
Corporate
Hospitality
Banking 6 %
6 %
13 %
19 %
25 %
31 %
Success Story
Megafon Retail by DISMART, 1500 locations
Alexander PivovarovCenter of Excellence of Digital Signage
AUVIX
Email: [email protected]: +7 (916) 214-0255
Skype: a.pivovarov