Apparel and Footwear Specialist Retailers in Belarus

PROSPECTS

Improving economic situation leads to stable single-digit value growth

Apparel and footwear specialist retailers continued to record strong double-digit growth in 2018 thanks in the main to a stable economic performance and growth in disposable incomes. As local consumers continue paying greater attention to convenience, the development of shopping centres is gathering a large number of apparel and footwear specialist retailers in single locations, which is improving the shopping experience for consumers and is stimulating value sales growth.

Entrance of new players positively impacts apparel and footwear development

In 2017-2018, the entrance of a large number of new players positively affected apparel and footwear specialist retailers’ value growth. In 2017, Inditex with its six brands, Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho finally came to Dana Mall in Minsk City.

Fast-fashion and online sales on the rise

In 2018, more Belarusians began following fashion trends in apparel and footwear in line with global trends, purchasing more products on a seasonal basis. As local consumers continue giving up their habit of wearing the same apparel and footwear for many years, fast-fashion continues to rise.

COMPETITIVE LANDSCAPE

Intensive competition grows due to new foreign entrants

Competition in the apparel and footwear specialist retailers channel was significantly affected by the entry of Inditex as well as other popular foreign brands and their active development in 2017-2018. In terms of outlets, the leading share continues to be owned by Mark Formelle in apparel and Upravlyayushchaya Kompaniya Holdinga Kozhevenno-Obuvnaya Kompaniya Marko OOO (Marko OOO) in footwear.

Ongoing competition based on price

Despite slight growth in disposable income during 2018, local consumers remain price sensitive, thus continue focusing heavily on unit prices. Moreover, the appearance of new brands makes local consumers more selective.

Self-expression and emotion play an important role in the competitive environment

In 2018, it became more difficult to attract and retain consumers as a wide variety of offers and promotions encourage Belarusians to switch from brand to brand. Thus, retailers are using different tools to create associations.

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