6 Jun 2025
,Russia
The Russian furniture market is undergoing significant changes due to the exit of major international companies. The gradual withdrawal of IKEA and the Danish retailer Jysk has left a notable impact on the market, creating serious challenges for the remaining players.
Several large companies have left the Russian furniture market due to the economic crisis and imposed sanctions. Among them are giants like IKEA and Jysk. IKEA's decision to exit Russia after many years of operation came as an unexpected and significant event. The company not only influenced the furniture market but also shaped consumer culture in the country. IKEA invested around 4 billion euros in the Russian economy, creating jobs and supporting local industry. However, despite these substantial investments, on June 15, the company announced its final departure, planning to sell its factories and reduce its workforce.
The Danish company Jysk had made several attempts over the years to establish itself in the Russian market. However, after two unsuccessful efforts in 1996 and 2005, the third attempt also failed. Facing numerous challenges, Jysk ultimately abandoned the idea of operating in Russia. This has impacted the market with the loss of a significant competitor for Russian manufacturers.
The departure of major players like IKEA and Jysk not only reduces competition but also tasks local manufacturers with adapting to the changed conditions. Those companies that can seize the vacated niche will have a chance to strengthen their positions.
With the exit of significant players, the Russian furniture market faces tough challenges. Local manufacturers are now forced to deal with uncertainty and the potential loss of consumers accustomed to European-quality goods. The prospects for restoring stability in the market in the absence of major international players remain highly uncertain.
The industry as a whole requires government support and active marketing assistance to attract new players and ensure a smooth transition for the remaining companies. Creating a favorable environment for local manufacturers could also help strengthen their presence in the domestic market and expand internationally.
To maintain consumer interest today, not only product quality but also affordability matters. Russian companies must consider changing consumer preferences and develop strategies that offer both premium-segment products and affordable solutions for the mass market.
Thus, despite the current circumstances, the Russian furniture market has the potential for recovery. However, achieving this will require joint efforts from government bodies, businesses, and investors to create a sustainable and competitive industry.
