Success Story of DEKO in Russia

DEKO is a scaled producer of power tools, tool kits, welding equipment, and measuring tools serving homeowners, DIYers and professionals. Russians are no strangers to the DEKO brand. DEKO Tools first entered the Russian market by working with its local exclusive distributor in 2013. And DEKO is the top 5 tool brand in Russia at the moment.

DEKO Tools in South Africa-Group picture

Discover business opportunities in Russia

We believe that international business can bring more opportunities and scale up our business really fast. We are aware that the Chinese market of power tools and hand tools for homeowners and DIYers at that time was not sophisticated enough for us to take our niche. While in Russia, it’s normal for every family to have a set of tools at home to fix, repair, build furniture, basically be a handyman. In China, majority people will delegate this job to repairmen. In this case, the international market is much more mature than the local one. Cost is another reason for the popularity of DIY in Russia. DIY in most cases will be much more cost-effective than the actual item from the retail store. With the help of our power tools and hand tools which are affordable for masses, we make it possible for those people who are excited to build or fix something with tools without spending too much money. So, we target these DIYers and general homeowners, who will be rest assured to repair their house or automobile with great quality, safe and cost-effective power tools and hand tools like DEKO. That’s what DEKO brand image is about. We want to inspire people to create and build with their own hands, bringing joy and happy moments to their families.

Challenges and solutions

As power tools are supplied worldwide to various industries power tool product safety, and regulatory compliance are critical issues for manufacturers. Domestic and international distribution channels, as well as end users, demand safety, reliability, and rigorous compliance with existing and emerging safety standards. Thus, it is important for power tool and hand tool manufacturers to comply with these safety regulations. In addition to mandatory regulations, manufacturers must address important concerns from retailers and consumers regarding quality and environmental sustainability. Depending on the specific type of equipment, additional regulations may address physical safety requirements, electromagnetic interference, operating noise levels, material chemical composition, and product recycling issues. In addition to mandatory requirements, additional product testing results in the increased cost of power tools. Thus, to comply with existing trade policies and support, safety regulations are the major challenges for power tools manufacturers.

Work with the local distributor

In a world that features so many competitions, selling power tools and hardware tools in only one method can be regarded as self-destruction. Up-to-date companies are aware of this and innovate with the help of local tool distributors or wholesalers. So does DEKO. Transforming from only running online tool retail shops into working with local tool distributors and wholesalers is a bold move for DEKO Tools. However, local tool distributors and wholesalers are more familiar with the local markets and they have more credibility among local people. And we made the change because of that.

Influencer marketing in Russia

We partner with influencers who fit with our brand and vision and share our brand values. When we find the right influencers, the synergy is great as it benefits both sides. Russians are very fond of DIY, especially for the last 5 years. Social platforms like YouTube and Instagram really inspired a lot of people to start or master their DIY skills. DIY is even becoming like a culture. People want to create something with their own hands because it’s fun and they can create something unique like a piece of furniture or some wooden crafts. DIY is a satisfying hobby and it may unite families. You may be working on some project with your partner or even fixing something with your children. We are happy to serve those families bringing happy moments to their lives.

How does DEKO Russia team look today

After 5 years of hard work, DEKO has become the top 5 tool brand in Russia. As a matter of fact, it was a combination of hard work and the right market wave. We have seen the trend of rising e-commerce in 2013 in the global market and grabbed that opportunity to work with our local exclusive tool distributor. We have decided to stay focused on this business trend instead of doing the traditional OEM business model that most Chinese companies pursue.

Future development

In 2020, Russia's power tools market size was estimated at nearly 678 million U.S. dollars. By 2027, the power tools market in the country was forecast to exceed 873 million U.S. dollars. The countries with the highest volumes of power tool consumption in 2021 were the United States, China and Russia, with a combined 48% share of global consumption. In value terms, China constituted the largest supplier of power tool to Russia, comprising 75% of total imports. In the future, DEKO will continue to work with its local exclusive distributor to grow the business together.

If you’re looking for a Chinese power tool supplier, DEKO should be your number one choice as the most reliable electric tool and equipment supplier. Email to sales@dekotools.com to keep in touch with DEKO.

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