Russians rush to buy out electronics

While the ruble is hanging around historic lows against the dollar, Russians are rushing to take out loans for major purchase of home appliances and electronics
Russians rush to buy out electronics
25 January 10:57 2016 Print This Article

The beginning of 2016 in Russia starts with atypical consumer behavior. Taking into account the recent economic difficulties in the country, banking sector specialists reports the increase number of loans taken in January to buy home appliances and electronics, reports the Kommersant newspaper.

While January is usually the least popular month for retail loans, Home Credit Bank has already issued retail loans worth 7 billion rubles ($88 million) and Renaissance Credit Bank issued loans worth 3 billion rubles ($38 million). These are the same amount as in November 2015, which is traditionally the most popular month for taking retail loans, the newspaper reported.

According to Kommersant, the majority of those loans were taken for purchase home appliances and electronics. The ever growing demand for these items has also been noted by retailers.

This unusual behavior of consumers might have several reasons. According to the Chairman of the Board of HCF-Bank Alexander Antonenko, as electronics and home appliances are mostly imported and due to the rising exchange rates, the prices for them are rising faster than other goods, such as furniture or clothing. That what fuels the demand. There are some retailers that have already raised prices by 30-40%. As a result, many citizens in anticipation of the next round of growth of prices decided to buy goods in advance.

 

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Cecilia Valentini
Cecilia Valentini

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