Unraveling the Situation: Exploring the Details
The Pricey Tote Bag
Design is more than just fancy packaging; it's a blend of technical and structural characteristics that make a product handy, purposeful, ergonomic, cost-effective, and competitive. In essence, a top-notch marketing tool. In the USSR, the term "marketing" was never uttered, but there was a clear understanding that a product should be recognizable and accessible within everyday life. Russia's industrial boom, GOST, and VKhUTEMAS had their say: a beer mug, a tote bag, a "Moskvich" car, hydrofoils, ekranoplans, the Kalashnikov assault rifle, the lunar rover, or the "Kuzkinskaia mat" atomic bomb - each resonating with every Soviet citizen. However, the designers, then called artist-constructors, weren't household names.
In a market-driven economy, the concept has changed. If in the Soviet era, the mantra was "simpler production, cheaper sales, catering to the masses", today it sounds like "cut production costs, sell at a premium, target the well-off".
"In the Soviet era, there was a planned economy with no competition," opines Sergei Smirnov, founder of Smirnov Design. "But design is a tool for competition and competitiveness. The average Soviet citizen gazed enviously at Western goods; our designers crafted them to be outstanding. Their motivation for design was lacking in the Soviet era, although VNIITE, the institute of technical aesthetics, was active, conducting research in ergonomics and design. Serious individuals frequently worked 'under the radar', and industrial designers' work was occasionally sabotaged at the production line. Times have changed, and without design, there will be no competitive product."
"Not much has fundamentally changed since then," counters Dmitry Mareev, head of FORMA Industrial Design. "They just stopped hiding the real objective - boosting added value by improving consumer qualities. Only the way demand is managed has shifted: there was scarcity, now there's pricing."
A business's primary goal is to generate profit, a fact that remains unchanged according to Darja Topilskaya, general manager of 2050.LAB. Designers work according to the client's technical specifications, but adapting to production capabilities and strict GOST standards can prove difficult. But a designer also considers the end-user, ensuring the product is comfortable, functional, and aesthetically pleasing, as consumers are willing to spend up to 15% more for such products.
According to the Russian Union of Industrialists and Entrepreneurs, 65% of companies with an annual turnover over 10 billion rubles consider the input of industrial design as a competitive advantage, propelling their growth by at least double. Smaller businesses might not prioritize this due to expenses or preference.
Market demands or the final customer's preferences propel producers to introduce competitive products, believes Alexei Sharashkov, chief designer of 2050.LAB. Consumers value not just functionality but also the emotional aspect of owning or using a product. For example, traveling can be accomplished via a cart, carriage, or limousine, each delivering a distinct experience.
According to Rosstat data, the local market for industrial design was valued at 750 million rubles ($10 million) in 2020. In comparison, South Korea's industrial design sector was handling around $30 billion at the time. By 2023, the Russian market for external industrial design services was estimated to be approximately one billion rubles, according to Dmitry Mareev. Despite various challenges, this market is expanding and outpacing many other sectors, though absolute numbers remain modest.
Targeted support for industrial design began in 2013 with the opening of engineering centers, competitions, and awards. The establishment of the Laboratory of Engineering Design "Karfidov Lab" by co-founder Alexei Karfidov was also significant, stimulating demand for industrial design services in the face of Western sanctions.
For Two Homes
A talented designer should not only be familiar with innovative materials but also be in tune with societal needs and the obsolescence of once groundbreaking solutions. For instance, carbon fiber, once revolutionary in fields like instrument making, machine tooling, medical industry, and high-performance sports, is no longer groundbreaking, despite industry players predicting the advent of the "carbon era."
"Up until February 2022, our designers often collaborated with foreign design studios," recalls Dmitry Mareev. "Large, successful Russian companies, both private and state-owned, favored ordering designs from Italy or the UK."
Nowadays, in Mareev's view, a considerable portion of foreign clients have left Russian firms due to payment difficulties, high reputational risks, and minimal legal protection of deals. "There needs to be a compelling incentive for a client to work with such a suddenly complex contractor," explains Mareev. Even dozens of successful joint projects, low cost, and stable quality may not outweigh the risks."
According to Mareev, South Korean designers are at the forefront of the global scene. They are being caught up by the Chinese, who are investing vast sums in transport, industrial, and other types of design, bringing in specialists from around the world to work and learn there.
While China manufactures Kitfort's equipment, the brand tends to partner with Russian companies - 2050.LAB and the studio of Artemy Lebedev - for rebranding and design work.
"We are a brand that was founded in Russia and has always focused on human resources and executing companies within our country," says Sergey Semin, Marketing and Advertising Director at Kitfort. "Our subsequent experience working with design studios has shown us that this approach is effective, and we consistently receive high-quality products. It's simpler to control and influence the work process with Russian studios."
For designer Sergey Smirnov, the last two years haven't observed much change. "In 2022, orders dried up in the spring and summer, but the market then recovered and grew. There were tense moments related to software, but studios managed to find solutions. For example, we bought an expensive license for the automated design system CATIA just six months before the SVO, planning to pay for its renewal each year. But then it became clear that we didn't need to pay anymore and could continue working peacefully."
The relationship between clients and designers in Russia and the West varies. The stereotype is that a European product designer is more of a meticulous translator of ideas into production language, rather than a creator, and thus doesn't argue with clients. In contrast, Russian designers are ready to aggressively impose their opinions.
"The main value of a good product designer in our region is the ability to find an optimal compromise between numerous factors: cost, usability, safety, trend compliance, repairability, good proportions, number of assembly operations, and create a product that suits most requests, brings joy to users, and generates profit for the manufacturer," says Dmitry Mareev.
European designers can indeed argue, but they choose diplomatic phrasing, believes Alexey Karfidov. In his opinion, Russian designers are stronger than foreign ones in terms of their involvement in construction and technology, but they may lack quality in material presentation. They can delve deeper and make ideas more interesting, but present them less effectively.
The Price Tag of a Concept
Some producers hire designers in-house, some work with studios and agencies, and some do both. "Headhunters" follow the "bright minds," understanding the connection between a designer's salary expectations and their actual skills.
Sometimes, a client may prefer to keep a designer on a low salary who can't generate good ideas but can implement them with a constructor and engineer. Much depends on the company's tasks, says Alexei Karfidov. Typically, idea generators are in demand among startups and business incubators, while in larger companies, where salaries are higher, it's often necessary to help develop existing ideas.
Multidisciplinary design is at the intersection of technology, engineering, aesthetics, analytics, and science, notes 2050.LAB. "People often imagine it as a bohemian profession, expecting everyone to adore every designer's idea and await their muse to strike, says Alexei Sharashkov. Meanwhile, clients dream of finding a 'Swiss Army knife' who can ideate, model, visualize, select materials, create presentations, and present them beautifully."
A designer's work includes design concept, internal element construction, material selection, sketching and drafting, and 3D modeling. All these are deemed intellectual property, so the designer owns the copyrights, although exclusive rights can be transferred to others. In this regard, the law is more flexible today than it was in the USSR.
"Generally, professionals transfer all rights (except authorship, which is inalienable by law) to the client who paid for the work," says Dmitry Mareev. "In my experience, there hasn't been a project where the embedded idea with royalties (a percentage of sales to the author) has brought a significant sum to an industrial designer."
Mareev believes people overvalue the significance of raw ideas. What's more important is what happens to the idea next.
"The value of design grows exponentially: from a formalized technical task, to a drawing, to a 3D model, to blueprints, to a sample, to a functioning production line - with each step, the idea gains its true value with the investment of effort and resources," explains Mareev. "The concept transforms, expands, deepens. The value of the proposition to create a 'phone without buttons,' or iPhone, was not great on its own. But the significance of developing a completely new interface, selecting all components, especially the touchscreen, researching user experience, and testing hundreds of prototypes - that's where the value lies."
For Smirnov, even the most brilliant designer is not obliged to be the originator of ideas. "Ideas are generated by the entrepreneur, and the designer, based on those, produces the design. They engage in quite dull work, form presentations, compile reports, 3D-model complex surfaces, communicate with engineers, constructors, and consult them. A designer should know everything, and it the person who solves business tasks who is a highly paid professional. But if one simply generates ideas without turning them into a product, such individuals are not very useful".
"In our practice, we encounter situations where designers create beautiful designs for products, but implementing them in mass production is not always possible, - recalls Elena Solodovnikova, the general director of LLC "Plastic Republic" (trademark Spin&Clean, which released a line of cleaning products in collaboration with 2050.LAB studio). - During the adaptation of the design to production equipment, technological processes, and materials, constructors and engineers have to change the style-defining forms, and we end up with something that has been on the shelf for a long time. Thinking outside the box at this stage, proposing new solutions while working with the peculiarities of materials and in close collaboration with engineers - that is the true mastery. At this stage of project work, many designers either abandon the original idea and simplify the form to what can be produced, or the design remains only in the renders."
Career Path
Industrial design as a profession is gaining traction among youth, but universities often struggle to adapt their educational programs to the ever-changing market demands. Employers often lack a clear understanding of what exactly an industrial designer should do and how to evaluate their professionalism. As a result, both parties cannot agree due to differing views on the set of competencies.
"Everyone wants something different," believes Dmitry Mareev. "Employers want top-notch specialists with minimal salary expectations. University rectors want to lead prestigious rankings with minimal effort. Teachers want reduced bureaucratic workload, engaged students, and high salaries. Students want easy learning and guaranteed placement in leading global companies. To change anything, long-term investment is needed."
According to data from the hh.ru platform, from January to June 2023, while the number of industrial designer vacancies increased by 31%, the number of active resumes rose by less than 7%. Compared to 2022, average salaries increased by a quarter to 80,000 rubles, but this is still not enough to fully fill vacancies.
"Many universities cannot prepare top-notch specialists due to the mismatch between educational standards and the needs of the real sector, leaving employers to train them further," says Sergei Smirnov. "We constantly have a vacancy open, with thousands of people applying, but 90% don't understand what industrial design is, and we don't even give them test assignments. Of the remaining 10%, only 5% have a chance of getting a job with us. Educational programs are very conservative, sometimes even archaic. However, there are universities that have made significant progress, such as the Stieglitz Academy in St. Petersburg, the Ural State Academy of Architecture and Arts, and the Stroganov Academy's strong furniture department. Thanks to specific individuals working on these departments, we see progress, and I'm very grateful to the department heads who create good programs in these challenging conditions."
Studio 2050.LAB is also involved in preparing talent for the industry. "We've created a master's program in 'Industrial Design and Engineering' at NITU MISiS, where students work on real business projects and obtain patents for industrial designs," says Darja Topilskaya. "We also have our own licensed educational center, organizing courses and workshops, inviting talented students for internships and preparing a research project called 'Rules of Industrial Design' - a visionary film set to premiere in the fall."
"As employers, we look at portfolios first," says Sergei Smirnov. "Sometimes people ask for salaries of 300-350,000 rubles, but they have nothing to show for it. It's not about the money. We look at how they present their work, their product culture, their ability to design complex forms, visualize, and, of course, their sense of taste."
- In the Soviet Union, industrial design was present in various products, such as hydrofoils and the Kalashnikov assault rifle, each resonating with the masses.
- Today, in a market-driven economy, designers strive to boost added value by improving consumer qualities, often selling at a premium to target the well-off.
- The involvement of industrial design is considered a competitive advantage, propelling the growth of businesses, with 65% of companies with an annual turnover over 10 billion rubles acknowledging this.
- In the luxury lifestyle market, consumers are willing to spend up to 15% more for products that are comfortable, functional, and aesthetically pleasing.
- According to Rosstat data, the Russian market for industrial design was valued at 750 million rubles ($10 million) in 2020, lagging behind South Korea's industrial design sector, which was handling around $30 billion at the time.
