The Fashion Market Is Gaining Momentum
According to Altera Invest's forecast for 2019-2022, the clothing and footwear market in Russia is likely to grow but may not reach the pre-crisis level of turnover recorded in 2014. To grow further, retailers need to pay special attention to their product range and reduce operating expenditure, including logistic costs.
Currently, the Russian market is awash with goods made by Western manufacturers, Russian factories and Chinese producers. The latter tend to push the competition out of the market, due in large part to the fact that many designer brands have their collections made in Asia.
Since purchasing power continues to decline in Russia, price often becomes the main purchasing factor. Moreover, many consumers spend less on new clothes and footwear given that their salary expectations have not been met. In 2019, real household income is still below that of 2009.
In 2019, consumer interests remain unchanged in the industry: more than 50% of purchases are made by women. Men, who are usually more conservative and less likely to follow fashion trends, account for 20-25% of purchases. Sportswear and sports footwear account for up to 15% of total clothing and footwear sales. The share of children's clothing is estimated at just 8-10 % of the market although retailers believe there is some growth potential in this segment. Generally speaking, The year 2019 differs from the previous period in that it has seen a slight shift towards more practical and inexpensive "everyday" clothing.
In terms of sales volume, the lowest price segment nearly reached 60 %, the lion's share of the entire market. Medium-priced clothing and footwear total 30 %, and the remaining 10 % is made up of luxury and premium clothing.
Local retailers do not expect consumer incomes to grow in the foreseeable future. Since retailers are not willing to cut their sales, they will have to focus on reducing costs. As a result, we are likely to see a thorough review of product ranges, the quality of consumer goods, the levels of retail prices and delivery costs.
ART Delivery is prepared to help retailers to reduce their logistic costs and cut delivery times by offering new ART-Import all-inclusive rates on customs clearance and delivery services.
Read more about the new rates
Currently, the Russian market is awash with goods made by Western manufacturers, Russian factories and Chinese producers. The latter tend to push the competition out of the market, due in large part to the fact that many designer brands have their collections made in Asia.
Since purchasing power continues to decline in Russia, price often becomes the main purchasing factor. Moreover, many consumers spend less on new clothes and footwear given that their salary expectations have not been met. In 2019, real household income is still below that of 2009.
In 2019, consumer interests remain unchanged in the industry: more than 50% of purchases are made by women. Men, who are usually more conservative and less likely to follow fashion trends, account for 20-25% of purchases. Sportswear and sports footwear account for up to 15% of total clothing and footwear sales. The share of children's clothing is estimated at just 8-10 % of the market although retailers believe there is some growth potential in this segment. Generally speaking, The year 2019 differs from the previous period in that it has seen a slight shift towards more practical and inexpensive "everyday" clothing.
In terms of sales volume, the lowest price segment nearly reached 60 %, the lion's share of the entire market. Medium-priced clothing and footwear total 30 %, and the remaining 10 % is made up of luxury and premium clothing.
Local retailers do not expect consumer incomes to grow in the foreseeable future. Since retailers are not willing to cut their sales, they will have to focus on reducing costs. As a result, we are likely to see a thorough review of product ranges, the quality of consumer goods, the levels of retail prices and delivery costs.
ART Delivery is prepared to help retailers to reduce their logistic costs and cut delivery times by offering new ART-Import all-inclusive rates on customs clearance and delivery services.
Read more about the new rates
© Copyright 2006-2020 АRT Delivery
TOOLS
- Shipping calculator
- Track your cargo
- My Profile