openPR Logo
Press release

Clothing, footwear and accessories market in Russia increases its value by 5% in 2009

08-09-2010 05:29 PM CET | Fashion, Lifestyle, Trends

Press release from: PMR Publications

PMR

PMR

Despite economic turbulences, the value of the clothing and footwear market in Russia increased after a stagnant 2008, positively influenced by the clothing sector. Nevertheless, the forecasts for the current year are less optimistic and the market is expected to struggle, while a more optimistic scenario is not expected before 2011.

The value of the clothing, footwear and accessories (CFA) market in Russia increased by 5% in 2009, to reach RUB 1,525bn ($48.1bn), according to the recent report “Clothing and footwear market in Russia 2010,” published by PMR, a research and consulting firm. The CFA market appeared relatively resistant to the economic conditions and the main factor behind this growth was an improvement of the clothing segment, which reported a considerable increase of its value in contrast to the drop noted in 2008. However, according to forecasts by PMR, the market value is expected to decrease by over 4% in 2010, influenced by negative development on the footwear market. Apart from the increase in tariffs for imported footwear, the negative impact from the weak economic environment and only slow increase of disposable incomes will continue as one of the factors limiting potential for market growth.
As in the previous years, CFA chains sustained their leading position as the distribution channel, maintaining their share of around a third of the market value. On the other hand, open-air markets increased their share, after years of consecutive downward trends, as they attracted more customers during the more challenging economic times due to lower prices. This was at the cost of independent CFA stores, whose share decreased in comparison to 2008, as, among other things, the owners of such stores lack financial resources for the purchase of new CFA collections.

Struggling market still provides opportunities
Despite the weak economic situation in the country, foreign CFA retailers tend to continue their expansion and increase the level of market penetration. For example, since March 2009, Swedish clothing retailer H&M has opened five stores in the country. A new Japanese clothing retailer, Uniqlo, opened its first store in Moscow in spring 2010. In addition, one of the largest footwear chains in the US, Payless, owned by Collective Brands Inc., also announced its plans for entering Russia in 2010. Nevertheless, the Russian market retains difficulties for foreign companies’ expansion. In addition to such difficulties as significant administrative barriers, market non-transparency, weak logistics and poor legislation, the market offers also smaller return on investment in the CFA retailing than in some other emerging markets.
Moreover, the penetration of foreign CFA companies in Russia is partially influenced by the lack of department stores and poor development of multi-brand retailing. The fiercest competitors among foreign operators are represented by retail chains which have established a strong presence in Russia and have gained popularity among Russian consumers. Such chains include Inditex, Mango, Motivi and Sixty Group. These companies are acquiring stores from their franchisees and gradually increasing the number of their own stores.
At the same time, some Russian CFA manufacturers plan to invest in development of their own retail chains as well. Sela, one of the leading retailers on the market, has managed to increase its storecount in Russia, although the company closed some units in other countries and in Russia as well. The other company operating on the market, Gloria Jeans, one of the leading clothing producers in Russia, decided to withdraw from the loss-generating wholesale business and focus on its own store chain. However, worsening economic conditions had a negative impact on the company, which was forced to take some measures in order to reduce costs and postpone its expansion until the financial situation has improved.

This press release is based on information contained in the latest PMR report entitled “Clothing and footwear retail market in Russia 2010. Luxury market insights and development forecasts for 2010-2012”.

For more information on the report please contact:
Marketing Department:
tel. /48/ 12 618 90 00
e-mail: marketing@pmrcorporate.com

About PMR

PMR (www.pmrcorporate.com) is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR's key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). Being present on the market since 1995, employing highly skilled staff, offering high international standards in projects and publications, providing one of most frequently visited and top-ranked websites, PMR is one of the largest companies of its type in the region.

PMR
ul. Supniewskiego 9, 31-527 Krakow, Poland
tel. /48/ 12 618 90 00, fax /48/ 12 618 90 08
www.pmrcorporate.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Clothing, footwear and accessories market in Russia increases its value by 5% in 2009 here

News-ID: 140905 • Views: 817

More Releases from PMR Publications

Russian retail market recovered after the economic slowdown
Retail markets in all Russian Federal Districts increased in 2010 by total $80bn In 2010, Russian retail market recovered after the economic slowdown observed in the previous year and increased by 12.6% to RUB 16.4tr ($541bn). However, the latest PMR report „Retail in Russia 2011 – Regional focus. Market analysis and development forecasts for 2011-2013” shows that particular regional retail markets still reveal differences in their development due to their unique
Construction output in Poland up by 10% in 2011
The forthcoming year 2011 can be a breakthrough year for the construction industry in terms of construction output. Provided that the winter weather conditions are relatively favourable, the 2011 average annual growth rate can be up to 10%, driven by large civil engineering projects and major improvement in the building construction sector. According to a report prepared by research company PMR, which is entitled "Construction sector in Poland, H2 2010 -
Russian construction industry recovers after the downturn
For the first time this decade, in 2009 the construction industry in Russia, which was severely affected by the global economic downturn, shrank in comparison with the preceding year. In the current year, a recovery has begun, prompted by the numerous projects supported or directly funded by the government. In the next few months, growth in the construction industry will be driven by the civil engineering and residential construction subdivisions
Retail market in Russia to grow by almost 10% in 2010
The growth rate of the Russian retail sector dropped severely last year due to worsening economic conditions, weakening purchasing power growth and the depreciating rouble. As a result, the retail market's value increased by only 5% in 2009 after several years of roughly 25% annual growth. Nevertheless, the situation has improved this year, and the retail market is expected to once again reach double-digit growth rates in subsequent years. According to

All 5 Releases


More Releases for Russia

Packaged Water in Russia
ReportsWorldwide has announced the addition of a new report title Packaged Water in Russia to its growing collection of premium market research reports. Packaged Water in Russia industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2011-15, and forecast to 2020). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Synopsis: Essential resource
Medium & Heavy Trucks in Russia
ReportsWorldwide has announced the addition of a new report title Medium & Heavy Trucks in Russia to its growing collection of premium market research reports. Medium & Heavy Trucks in Russia industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2012-16, and forecast to 2021). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the
Energy Drinks in Russia
ReportsWorldwide has announced the addition of a new report title Energy Drinks in Russia to its growing collection of premium market research reports. Energy Drinks in Russia industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2011-15, and forecast to 2020). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Synopsis: Essential resource
Consumer Electronics in Russia
Summary After the collapse of retail volume sales of consumer electronics in 2015, the negative trend continued in 2016. Although prices of oil were partly restored, business investments and the real income of Russians continued to decline, making a fast recovery of Russia’s economy questionable. As a result, consumers in Russia became very cautious when making their purchasing decisions. Despite the strong overall decline in retail volume sales, the performances of
Consumer Health in Russia
Summary Russian consumers are becoming more restrained in terms of spending money on consumer health products. The trend towards economising has become more widespread due to an economic slowdown in Russia and the consequent decrease in consumers’ disposable incomes. Russians are showing a greater preference for cheaper remedies or refusing to purchase any in the case of mild ailments that can be cured by traditional medicines. This is particularly so for
Russia Hotels – Best Hotels Available in Russia
Are you tired of searching for best hotels in Russia through search engines, now there is no need to waste your valuable time digging search engines, because we proudly announce besthotelsrussia.com here you get all details about hotels available in Russia. Russia is the largest country in the world this place covers almost the whole of Asia and 40% of Europe. It also has huge population ranking in ninth position