The Russian economy has continued to shrink with negative GDP in the current year. But the longer term prospects are more optimistic with positive growth forecast for the country’ economy by 2017. Nevertheless international trade sanctions and geopolitical factors are still retarding development. The construction industry is also in recession with lack of investment in housing and the commercial sector, although there are long-term plans to put more resources into the refurbishment of public buildings and create some 728,000 m2 of quality office space. For the air conditioner industry, there is the possibility of a new market emerging in replacement of aging installations which have long been neglected.
Leading brands in the air conditioning industry include Ballu, Haier, Samsung, and Mitsubishi Electric. Price tends to be the main factor for home owners and there is a trend to buy Chinese products if the specification is right rather than going for the brand name. Russian OEMs have also benefited from this swing in loyalties.