Report provides profiles of top retailers, and forecasts for development up to 2015
Russia’s C&F retail market has spent recent years under the influence of a variety of powerful trends. Macroeconomic conditions, shifts in the country’s demographic makeup, the introduction of new products, changing consumer preferences and a growing assortment of retailers specializing in luxury merchandise have dictated the direction of market growth and change within the country’s clothing and footwear retail distribution network.
Clothing and footwear retail market in Russia 2013. Luxury market insight and development forecasts for 2013-2015 has been published as a support for executives, sales and marketing managers and a host of other readers interested in the potential and prospects for business ventures in this huge and complex market. The report makes locating and digesting relevant data, analysis and forecasts simpler and less time consuming.
This document contains listings of active retailers on the C&F market in Russia, and delivers in-depth corporate profiles of the largest and most prominent retail companies. Readers will learn about the current financial conditions of these businesses and gain insight into their plans for upcoming growth and expansion across the country. Domestic and international retail companies are examined, and key chain retailers and recent variations in market share are discussed.
Precise market information and updates are provided within the publication, including sales data and analysis for each of the market’s main segments, total numbers and locations of retail outlets, and plans for new shopping centre construction and development. The report offers information about the overall value of Russia’s clothing and footwear market, including the ever-expanding luxury market, which offers consumers a growing selection of high-end merchandise.
The report analyses the trends currently exerting the most influence in the Russian C&F market, from demographic changes to shifting macroeconomic circumstances. It explores the effects of consumer preferences for new types of merchandise and the results of changes in everyday spending habits. It takes a look at the country’s main distribution channels and ranks them in terms of volume and market share. Current market statistics and trends are compared against information from earlier editions of this document to clarify changing conditions in Russian C&F retail and serve as a foundation for the detailed forecasts for market development during the period 2013-2015.
Retail sales and marketing professionals, manufacturing companies, businesses that supply support products and services for retail establishments, financial services and consulting professionals and other government, research and academic specialists interested in the progress and potential of this market find this report valuable when conducting essential operations. They use it when beginning or building a new C&F retail business, targeting sites for new stores, evaluating new investment opportunities and keeping tabs on activity and conditions in the commercial real estate market in Russia.
II. EXECUTIVE SUMMARY
III. ECONOMIC AND DEMOGRAPHIC SITUATION IN RUSSIA
IV. CLOTHING AND FOOTWEAR MARKET OVERVIEW
V. DISTRIBUTION CHANNELS
VI. OVERVIEW OF SELECTED C&F SEGMENTS
VII. LUXURY CLOTHING AND FOOTWEAR MARKET
VIII. SHOPPING CENTRE DEVELOPMENT
IX. PROFILES OF KEY CLOTHING AND FOOTWEAR MARKET PLAYERS
X. LIST OF GRAPHS
XI. LIST OF TABLES
XII. ABOUT PMR
Russian Sportmaster consistently remains the largest player on the clothing and footwear market in Russia. The retailer’s share of the C&F market is increasing year on year. In 2012 it accounted for 3.5%, according to PMR’s latest report “Clothing and footwear retail market in Russia 2013. Luxury market insight and development forecasts for 2013-2015”.
The clothing and footwear market in Russia is very competitive. Although a large number of domestic retailers dominate the market, PMR does include in its ranking several international giants such as Adidas Group (Germany), Inditex Group (Spain), H&M (Sweden), Ecco (Denmark) and Benetton (Italy).
Russian Sportmaster consistently ranks as the largest player on the clothing and footwear market in Russia. The retailer owns such brands as Sportmaster, O’Stin, as well as the franchises Sportlandia, Columbia, FootTerra and O’Neill. The company’s revenue in Russia grew by 35% in 2012, reaching PLN 64.8bn ($2.1bn), which accounts for a 3.5% share of the C&F market. Second place, with almost half as much revenue as Sportmaster, is held by German Adidas Group, which was slightly ahead of Russian CentrObuv last year.
According to PMR estimates, in 2012 the combined revenues reported by the top 20 clothing and footwear companies in Russia amounted to about RUB 295bn ($9.5bn), representing an increase of 25% compared with the previous year. The leading 20 C&F retailers in Russia capture a combined 16% share of the analysed market, which means that the industry is still highly fragmented. As of the end of last year, these chains operated a total of 6,220 stores.
Largest Clothing And Footwear Retailers In Russia, 2012
Despite high rents for retail property and various difficulties with human resources management in the country, Russia is becoming increasingly attractive for foreign players, as it boasts more active growth in consumer demand for C&F in comparison with the mature markets of Western Europe and the United States.
One of the newcomers is the German-based clothing retailer Takko Fashion. The chain’s first store in Russia was opened in April 2013 in Moscow (at the Zolotoy Babylon shopping mall). In May 2013, Takko Fashion entered the St. Petersburg market by launching a store at the Leto shopping mall. By H2 2014, the company plans to increase its store count in Russia to 40. The company not only intends to develop in Moscow and Moscow province, but in large regional cities as well.
Mamas & Papas, a British retailer of children’s goods, is another company that entered the market within the last year. In June 2012, the first store, with an area of about 650 m², was opened in the Yevropeysky shopping centre in Moscow. At about the same time, it launched an online store. The operator of the brand is the Russian company Ideas4retail. As of June 2013, there were seven Mamas & Papas stores open in the country in such cities as Moscow, St. Petersburg, Yekaterinburg and Krasnodar. By 2015, the retailer plans to have 25 stores in Russia.
The Columbia-based Mario Hernandez brand, which is represented in the majority of markets in South America, entered the Russian market in November 2012. The brand offers accessories, women’s clothing and men’s clothing, and footwear.
No large well-known brands of clothing and footwear entered the market last year. In addition to the brands mentioned above, newcomers include: Scotch & Soda, Mohito, OVS, Jeanswest, Maria Grazia Severi and Micheal by Michael Kors. At the same time, the market saw some returners, such as Debenhams and Stefanel, which had previously entered the Russian market: Debenhams in 2006 and Stefanel in 2004 and 2006.
In 2013, at least seven clothing retailers are expected to begin development in the Russian market. These include Humanic, Bimba & Lola, Jack Wolfskin, Eurelia, Collezioni fashion, Ferre (the second line of Gianfranco Ferre), Nissa and Pink Woman. Besides these, the Humanic’s footwear retail chain will be introduced to Russia in 2013, as will several accessories chains: Meli Melo Paris, Funky Fish and Stella’s Accessories.
It must be noted that the Russian market not only retains its attractiveness to retailers from Western Europe and the United States but also for C&F companies from the CIS countries.
Thus, Intertop, the largest footwear retail operator in Ukraine, made the decision to enter the Russian market. The company has established an office in Russia. Intertop not only plans to open stores in Moscow but in Russia’s regions as well.
The Belarus-based Belwest footwear company boasts a store count in Russia that surpasses the number of stores in its native market. Thus, as of 2013, the company operates more than 250 stores in Russia, more than 40 stores in Belarus, and 7 stores in Latvia. On the whole, the company plans in 2013 to open about 80 stores in Russia and 5 stores in Belarus.
The Mimioriki retail chain run by Textiline, one of the leading producers of children’s wear in Kazakhstan, entered the Russian market by establishing a store in Novokuznetsk (Kemerovo Province). It must be noted that the scale of the chain’s operations is not large in its native market, Kazakhstan, as it only has 14 stores there.
The material was prepared in September, 2013.