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August, 2006

Avdasheva, Svetlana
RUSSIAN FURNITURE INDUSTRY: ENTERPRISE´S UPGRADING FROM THE VALUE-CHAIN THEORY PERSPECTIVES
Electronic Publications of
PanEuropean Institute, 8/2006

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Abstract

Russian furniture market is demonstrating fast and stable growth and is both attractive and promising. At the same time, many Russian furniture enterprises exhibit insufficient and inconsistent restructuring. On the basis of in-depth semi-structured interviews with different types of furniture market participants (furniture producers, including downstream integrated and specialized, retailers and suppliers of raw materials), the paper tries to explain restructuring strategies of domestic furniture producers in the framework of value chain theory. Particularly, the article is aimed at explaining the obstacles for Russian enterprises to upgrade as a supplier of specialized products (parts of products), in spite of the experience that fragmentation of production became a way for successful restructuring in furniture industry of former socialist countries in Eastern Europe.

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