Designer Apparel and Footwear (Ready-To-Wear) in Russia

2020 IMPACT

Store closures and a depressed economy as a result of COVID-19 place negative pressure on designer apparel and footwear (ready-to-wear)

All apparel and footwear stores were closed from 30 March to 1 June 2020, in accordance with government orders to stop the spread of COVID-19. As a result, designer apparel and footwear (ready-to-wear) is negatively impacted in 2020.

Weakened Russian ruble places additional downwards pressure on imported luxury goods

Players operating in designer apparel and footwear (ready-to-wear) are under the pressure of a weakened Russian ruble in 2020. The majority of designer apparel and footwear (ready-to-wear) is imported, so unit prices are directly dependent on currency exchange rates.

Mercury Group maintains its unchallenged lead, thanks to myriad designer brands

Mercury Group maintained its unchallenged lead in designer apparel and footwear (ready-to-wear) in 2019, thanks to the player’s myriad designer brands which it distributes in Russia. Brands include leading luxury names, such as: Dolce & Gabbana; Gucci; Burberry; Armani Jeans; Bottega Veneta; Giorgio Armani; Ralph Lauren; and more.

RECOVERY AND OPPORTUNITIES

Slow recovery of real disposable incomes set to continue to place negative pressure on the category over the forecast period

There are no prerequisites for the rapid restoration of real disposable incomes of Russian consumers over the short-term forecast period. As a result, low consumer disposable incomes will continue to negatively impact consumer demand in designer apparel and footwear (ready-to-wear) in 2021-2022, undermining its performance.

Players set to focus on enhancing their online presence to boost sales

Players are set to continue developing e-commerce channels over the forecast period, enhancing search engine optimisation for their online stores, as well as improving delivery services and simplifying merchandise returns.

Both in-country and global control of COVID-19 required before the category can recover to any notable degree

The recovery of designer apparel or footwear (ready-to-wear) depends strongly on the epidemiological situation in both Russia and the rest of the world, due to the myriad factors negatively impacting the category due to the event of COVID-19. Factors to recovery will need to include the emergence of a safe and effective vaccine, along with special measures implemented by the state to control the spread of the mutating strains of COVID-19.