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Apparel in Russia

Russia apparel market: Growth of internet retailing to aid industry during 2013

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2014-01-24 23:42:03 - Apparel in Russia - a new market research report on

Both clothing and footwear in Russia continues to grow rapidly ahead of European countries. In terms of recovered demand, 2012 was rewarding for retailers and enabled them to maintain sales revenues for their future development and investment. The average unit price, however, has not risen as much as it did prior to the economic downturn as consumers continued to monitor their spending. Despite the overall slower pace of growth, the leading players are not planning to slow down their activities and expect to register strong performances, gaining shares not from competitors but from non-chained outlets, open markets and pavilions.

Sales and promotional activities were the key marketing activities in 2012. Specialised retailers widely used discounting to attract consumers into their



stores. A number of new outlets opened offering clothing only on discount, often as much as 30-70%, although the number of these stores remained much lower than in Western Europe. Pricing competition is strong among average-priced brands, both local and international. Overall, predictions for unit price movements are in line with inflation due to consumer expectations and competition among brands, which were previously bought in open markets.

Internet retailing is expected to grow over the forecast period to reach sales in line with most developed countries. Both local and international retailers invest in online shopping in the belief that there is a huge potential for growth and also to increase recognition of their brands. Open markets continue to lose share in line with governmental strategy, increased activities among developers and rising living standards and disposable income in Russia.

The growth in childrenswear is due to increases in disposable income and a growing number of children. Both factors have led to this continuing upward trend. The socio-demographic situation has improved and birth rates have become slightly higher supported by Russian government policy. All retailers tend to have comprehensive children´s collections and new players continue to enter the category. As a result, childrenswear has become more differentiated and segmented, much like apparel for adults.

The popularity of sporting activities rose during the review period. As Russian consumers reached a certain level of household income, they started to devote more time and attention to sports and living healthier lifestyles. The popularity of indoor sports and winter sports continues to grow, as changing weather conditions are enabling participation in these types of sports in many areas. Moreover the wearing of winter sports jackets and warm trousers is common casual wear for many men and young people. Many types of sports apparel are purchased for everyday wear due to the influence of fashion trends. In general, the market focuses on average-income demographics, which contributes to the expansion of product ranges. The sportswear retail channels have also been changing over the last decade and during 2012 consumer incomes led to a gradual shift of buyers from open markets to sports goods stores.

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