Clothing And Footwear in Russia
Euromonitor International's Clothing And Footwear in Russia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 52 | Publication date: Oct 2009
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Executive summary
Negative impact of economic crisis on the market performance
The main factor exerting a negative influence on the market’s performance in 2008 was the economic crisis. The first negative trend appeared in August–September 2008. In the Russian national statistics, clothing and footwear are classified as non-essential goods, and 42% of Russians reported spending less money on clothing and footwear products. This product category was the first to be affected when Russian consumers reduced their expenses in response to the economic crisis.
Market structure changes as a result of economic crisis
The market structure is changing in response to the developing economic crisis. In 2007, the mid-price segment accounted for 55% of the market, the mass market for 30% and the premium segment for 15%. In 2008, however, the market started to change and premium-segment consumers moved towards the middle market, and the so the consumer demand for luxury clothing and footwear decreased. Sales of the new collection for 2009 will be lower by some 30–40%. These market changes represent the effects of Russian consumers’ reallocation of their household budgets in response to the difficult economic situation.
Sports and kids’ products are fast-growing product categories
Sports products are the fastest-growing product category. The pattern of consumer demand is changing, as more Russians are attending sports clubs, and changing their lifestyles. About 10% of the Russian population actively participates in sports.
Kids’ products are another fast-growing category, on account of the rise in the birth rate. The government provides incentives to the Russian people to have second and third children by providing them with additional financial support.
Russian market highly fragmented
The Russian market is not at all consolidated, and even some major producers and retailers hold market shares of about 1% of the whole market. The market shares of the Russian producers are very low, and some have their own production in China.
Until the current financial crisis, the Russian market was very attractive to foreign retailers. Companies such as Japanese Fast Retailing Co. and The Gap, for example, were planning to launch in Russia, although some of the foreign companies have now refrained from doing so.
Temporary stagnation because of consumers’ and retailers’ financial difficulties
According to various studies, the market’s performance will decrease because of the current financial difficulties faced by both consumers and retailers.
Consumers’ incomes will decrease, which will automatically lead to declines in consumer demand for some products. The clothing market is the first sector in which Russians are cutting back on consumer spending money. Prices increases will also have a negative influence on consumer behaviour.
Retailers will find it difficult to attract investment, and their difficulties in gaining credits for future business development will have a negative influence on the business sector, which will lead in turn to a narrowing of their assortments and increases in their prices. In addition, the number of shops may also decline, and this will mainly affect small retailers and premium shops.
Table of contents
CLOTHING AND FOOTWEAR IN RUSSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Negative impact of economic crisis on the market performance
Market structure changes as a result of economic crisis
Sports and kids’ products are fast-growing product categories
Russian market highly fragmented
Temporary stagnation because of consumers’ and retailers’ financial difficulties
KEY TRENDS AND DEVELOPMENTS
Local players leading in the youth market segment
Central markets more developed than regional ones
Sports products developing faster than other categories
Increasing popularity of foreign brands
Middle-class consumers have positive influence on market performance
MARKET DATA
Table 1 Sales of Clothing and Footwear by Sector: Volume 2003-2008
Table 2 Sales of Clothing and Footwear by Sector: Value 2003-2008
Table 3 Sales of Clothing and Footwear by Sector: % Volume Growth 2003-2008
Table 4 Sales of Clothing and Footwear by Sector: % Value Growth 2003-2008
Table 5 Clothing and Footwear Company Shares 2004-2008
Table 6 Clothing and Footwear Brand Shares 2005-2008
Table 7 Sales of Clothing and Footwear by Distribution Format: % Analysis 2003-2008
Table 8 Forecast Sales of Clothing and Footwear by Sector: Volume 2008-2013
Table 9 Forecast Sales of Clothing and Footwear by Sector: Value 2008-2013
Table 10 Forecast Sales of Clothing and Footwear by Sector: % Volume Growth 2008-2013
Table 11 Forecast Sales of Clothing and Footwear by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - RUSSIA
DETSKIY MIR GROUP - CLOTHING AND FOOTWEAR - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Detskiy Mir Group: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Detskiy Mir Group: Competitive Position 2008
EKONIKA - CLOTHING AND FOOTWEAR - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Ekonika : Key Facts
Summary 5 Ekonika: Operational Indicators (2007–2008)
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Ekonika: Competitive Position 2008
GLORIA JEANS CORP - CLOTHING AND FOOTWEAR - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Gloria Jeans Corp: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Gloria Jeans Corp: Competitive Position 2008
OBUV ROSSII OOO - CLOTHING AND FOOTWEAR - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Obuv Rossii OOO: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 10 Obuv Rossii OOO: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 11 Obuv Rossii OOO: Competitive Position 2008
SELA FASHION DESIGN LTD - CLOTHING AND FOOTWEAR - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Sela Fashion Design Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Sela Fashion Design Ltd: Competitive Position 2008
CLOTHING IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
New Product Developments
Summary 14 New Product Launches 2008
SECTOR DATA
Table 12 Sales of Clothing by Subsector: Volume 2003-2008
Table 13 Sales of Clothing by Subsector: Value 2003-2008
Table 14 Sales of Clothing by Subsector: % Volume Growth 2003-2008
Table 15 Sales of Clothing by Subsector: % Value Growth 2003-2008
Table 16 Sales of Men’s Outerwear by Type 2003-2008
Table 17 Sales of Women’s Outerwear by Type 2003-2008
Table 18 Sales of Childrenswear by Type 2003-2008
Table 19 Clothing Company Shares 2004-2008
Table 20 Clothing Brand Shares 2005-2008
Table 21 Sales of Clothing by Distribution Format: % Analysis 2003-2008
Table 22 Forecast Sales of Clothing by Subsector: Volume 2008-2013
Table 23 Forecast Sales of Clothing by Subsector: Value 2008-2013
Table 24 Forecast Sales of Clothing by Subsector: % Volume Growth 2008-2013
Table 25 Forecast Sales of Clothing by Subsector: % Value Growth 2008-2013
FOOTWEAR IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
New Product Developments
Summary 15 New Product Launches 2008
SECTOR DATA
Table 26 Sales of Footwear by Subsector: Volume 2003-2008
Table 27 Sales of Footwear by Subsector: Value 2003-2008
Table 28 Sales of Footwear by Subsector: % Volume Growth 2003-2008
Table 29 Sales of Footwear by Subsector: % Value Growth 2003-2008
Table 30 Sales of Footwear by Type 2003-2008
Table 31 Footwear Company Shares 2004-2008
Table 32 Footwear Brand Shares 2005-2008
Table 33 Sales of Footwear by Distribution Format: % Analysis 2003-2008
Table 34 Forecast Sales of Footwear by Subsector: Volume 2008-2013
Table 35 Forecast Sales of Footwear by Subsector: Value 2008-2013
Table 36 Forecast Sales of Footwear by Subsector: % Volume Growth 2008-2013
Table 37 Forecast Sales of Footwear by Subsector: % Value Growth 2008-2013