Retailers, restaurateurs, service and entertainment companies are switching to Chinese and Russian audio equipment

Russian retailers and restaurateurs, service and entertainment companies have felt a shortage of professional audio equipment: the consequences of a serious increase in prices last year have been exacerbated by new US sanctions. Partially vacated niches are occupied by Russian manufacturers, the number of orders for some has increased by 70-100%. However, market participants admit that it is becoming increasingly difficult for them to compete with Chinese equipment, which is worse in quality, but much cheaper.

Suppliers of audio systems for businesses (supermarkets, restaurants, shopping malls, organizers of commercial and government events) told Kommersant that demand for sound systems from premium foreign brands that replace Chinese and Russian products has decreased among customers. Thus, according to Cubic Media, from 2020 to the first half of 2023 in the Russian Federation, the demand for Bose and Sonance equipment, which is used to broadcast background music and commercials at points of sale and at events, has fallen by almost seven times. We are talking about built-in acoustic systems, ceiling acoustics, speakers, amplifiers, etc.

According to a study by Music Trades, the Russian market for audio equipment is now about 30 billion rubles, according to Cubic Media, the share of professional equipment is about 40%. Equipment, as in other markets, began to rise in price almost immediately after the outbreak of hostilities in Ukraine, and since then prices have increased by 50-70%, the company specifies. The situation worsened after the introduction of another package of US sanctions in February, says a Kommersant source in the industry (see Kommersant on February 25). Suppliers cannot deliver goods to Russia, in Europe they impose an arrest on any export, there are problems with the transfer of payment, adds Olivia Chistova, vice president of the Association of Event DJs.

There is no serious shortage in the market yet. According to Ms. Chistova, fresh used equipment is still in circulation, and cafes and restaurants “can get by with semi-professional sound systems.” Inessa Samokhvalova, managing partner of the ITD Properties fund, clarifies that her company has not yet purchased new sound equipment, but has encountered difficulties in repairing the existing one due to a lack of components.

An interlocutor of Kommersant in one of the largest distributors of acoustic equipment for events, the service sector, says that the demand for Chinese equipment is growing: “Over the past year, it has increased by about 20–25%. This technique is cheaper, but there is a question about the quality.” Olivia Chistova adds that distributors are also refocusing on Russian manufacturers: Universal Acoustics, TDA Audio, Senzar Acoustics, ProTone, ASR Acoustic.

A significant increase in the number of orders for equipment against the backdrop of a shortage of European and American equipment is confirmed by Vladislav Azarov, director of Senzar Acoustics: “The demand is mainly from installation companies that are engaged in integration in the equipment of stadiums, halls, and in the construction of private restaurants. By the end of 2023, we expect growth of 100%.”

At ProTone, the number of orders increased by 70% in the first quarter of 2023 compared to the first quarter of 2021, says Andrey Smirnov, the company’s design manager. According to him, the company’s equipment is supplied to cultural centers, sports palaces, entertainment venues and theaters. In the Unvis-Pro Group (ASR Acoustic), the growth in demand for equipment in the first quarter year-on-year was 120%: “Cheap Chinese speakers, such as Kara, have poor sound quality without amplification, but we have amplification and processing systems.” However, by the end of 2023, the company does not predict significant growth due to increased competition from China.

Julia Yurasova