In line with PMR estimates, the Russian clothing, footwear and accessories (CFA) market really amounted to RUB 1,704bn ($56.1bn), demonstrating a 11% increase when compared to previous year. Every one of the segments noticeably recovered once the decline (or slowdown) suffered on account of the financial crisis. Clothing made up two-thirds on the total CFA market in 2010, whereas footwear and accessories constituted around 32% and 2%, respectively.
Reviving middle-price segment among key market drivers
PMR forecasts that more than your next four years, how big is the Russian CFA market will expand, although for a decreasing pace, to reach around RUB 2.3tr ($75bn) in 2013, and all main CFA segments are predicted to nurture. Clothing and footwear might be driven by children's wear, along with the reviving middle-price segment, PMR analysts indicate. Sportswear scarpe mercurial and casual wear will also contribute significantly to your expected CFA market growth. Normally, the accessories market is definately not saturated yet, this means the further development of this category. It must be also underlined that in Russia, the need for retail sales at current prices continues to be boosted by rising prices.
Prior to a economic, growing purchasing power stimulated a requirement shift from cheap to higher priced products. However, the economic instability has ended in modifications to demand as Russian consumers began to reduce their shelling out for clothing and footwear. The low-price segment expanded with the worth of the center one. This year, the industry did start to recover while using restoration of price segment positions in the CFA market. Thus, within the post-crisis CFA market, the middle-price segment is forecast to possess most dynamic development.
The CFA market remains specific with regard to its distribution channels. In comparison to other categories (for instance food or technology), open-air markets try a significant share of sales from the CFA sector. Although legislative changes negatively impacted the introduction of open-air markets, they can be still extremely popular among Russians, add PMR analysts. However, it's CFA retail chains, and also on the internet catalogue sales, which can be predicted growing most dynamically in Russia, while using latter retaining a marginal share. Currently, CFA retail chains, including globally known brands, hold a fifth in the CFA market. The post-crisis climate finds the CFA chains stronger, modernised, restyled with verified assortment, therefore ready for more expansion. Independent shops scattered throughout Russia remain frequent places for CFA shopping, regardless of the declining share in this channel available in the market.
Luxury clothing and footwear market increasing again
Rapidly financial crisis, Russia still proves to be an alternative market, including for luxury business. Many luxury retailers, such as Ritter Group, want to center on regional expansion with large cities of Russia beyond Moscow and St. Petersburg. Some luxury CFA brands are likely to establish his or her distribution channels, terminating their contracts with distributors in Russia, in an effort to streamline and accelerate their territorial growth. Among brands which christian louboutin pas cher have recently made a decision to develop independent operations in Russia are Hermes Group and Prada. On the flip side, Hugo Boss, that will also operate on its own, to use possibly the Russian regions wants to continue cooperation with all the franchisees.
The Russian sector is also attractive for new players offering luxury CFA. The British designer Stella McCartney re-entered the Russian market following 2010, while the London-based Jimmy Choo announced the outlet of the first monobrand boutique in the country by September 2011.
In the year 2011, the competitive landscape has undergone considerable change as a result of Crocus Group's decision to exit luxury retailing as you concentrate on development projects. The business, that's opened nearly 60 boutiques in Russia since 1991, is closing its stores and passing the rights to produce its luxury brands back in people and market rivals. To perform . gives strategy to additional luxury players, including four management: Bosco di Ciliegi, JamilCo, Mercury Group, and Podium Fashion Group.