Apparel and Footwear Specialist Retailers in Croatia

PROSPECTS

Value sales seem to have peaked

Decades ago, hordes of Croatians would undertake pilgrimages to Western European countries (mostly to Trieste in Italy) to stock up on elaborate clothing and shoes. At the same time, most of the locally produced brands, while not so bad quality-wise, were simply lacking that brand tag to distinguish them from other names.

Discount mindset among consumers limits sales potential

Croatian consumers are big buyers of apparel and footwear, particularly apparel. In the attention they give to their external appearance, they are somewhat like their Western neighbours in Italy.

Growing e-commerce popularity requires omnichannel approach

Buyers of apparel and footwear are particularly keen on seeing the goods, feeling them and trying them on so as to find the perfect fit. It is risky to rely on written information about a garment because there is no unified measurements system or standardised sizes.

COMPETITIVE LANDSCAPE

Leading names strengthen

Due to the many competitors present in the category, there is a fairly high level of fragmentation. Like fragrances in beauty and personal care, the number of brands is so vast that it leads to a dissipation of consumer focus from the major brands.

Adapting to international influx sees local names take different routes

The avalanche of popular global brands and their decision to set up their own shops in Croatia has caught the formerly prevailing local retail operatives unprepared. Losing sales fast, they have had to find a way to survive under different, new circumstances.

Further low-cost brands anticipated

H&M and C&A were already suffering from strong competition from Inditex brands, especially overall leader Zara, with both their value shares falling in 2019, particularly H&M’s. This is set to be compounded by consumer demand rising for a series of Polish brands, namely Reserved, Sinsay, Mohito, House and Cropp, and Turkish brands, eg LC Waikiki.

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