Home / Knowledge / News / Apparel/Garments / Clothing retail market is set for steady growth
Clothing retail market is set for steady growth
Nov '11
After hitting hard times during the global economic crisis, the Russian clothing retail market is forecast to grow by 3-5% in 2011 and by about 6% per annum during 2012-13, according to a report in the latest issue of Global Apparel Markets, which is published quarterly by the business information company Textiles Intelligence.

Growth is spurring investment by foreign brands, which in recent years have come to dominate the market in Russia. Indeed, six of the world's ten largest apparel retailers—namely C&A Europe, Fast Retailing, Gap, H&M (Hennes & Mauritz), Inditex and Next—have entered the Russian clothing market and found success.

Although women's clothing has the largest share of the market, the most promising sector in terms of growth prospects is that of men's clothing. Indeed, this sector is forecast to grow at double digit growth rates until at least 2013. Russian men have become more selective in their clothing choices and are demanding higher quality products. Such demand grew when the economic situation in the country improved during 2000-08, and has grown again since.

Also promising is the children's clothing sector. The average amount of money spent on children's clothing in Russia has grown significantly since 2008, and the market is expected to grow by 10% per annum until 2013.

However, one of the most promising and fastest growing categories in the Russian clothing market is that of sportswear. Indeed, this is expected to grow at an average growth rate of 16-19% per annum during 2010-17. Recently, Adidas announced that it planned to increase the number of stores within the region during 2011-15.

While some companies are expanding into Russia through franchise agreements, a number of brands are entering the market independently. However, companies planning on entering and expanding in the market without a Russian partner could face serious problems when faced with political obstacles and widespread corruption within the industry's business practices.

Many analysts believe that the best way of developing foreign clothing brands further in Russia is to invest in the department store format, as this is relatively underdeveloped. A number of buildings are unoccupied and could potentially be renovated and developed as department stores.

New foreign brands are expected to focus on brand development in the provincial regions where rents are significantly lower and markets less saturated than in Moscow, St Petersburg and other large cities.

In an attempt to strengthen domestic producers and increase their competitiveness relative to imports and foreign brands, the Russian government has formed a Strategy for Development of Light Industry of Russia until 2020. Under the strategy, there are plans to modernise existing production facilities with a view to improving the quality of domestic manufacturing. The authorities hope, perhaps optimistically, that more than half of the clothing sold in Russia will be produced within the country by 2020.

In the meantime, the Russian market is expected to become more open once the country has joined the World Trade Organization (WTO). With WTO accession likely to take place before the end of 2011, the time is right for international brands to look at the potential of expanding into the Russian market.

Textiles Intelligence

Must ReadView All

Apparel/Garments | On 5th Dec 2016

EC proposes new tax rules to support e-commerce in EU

The European Commission (EC) has unveiled a series of measures to...

Apparel/Garments | On 5th Dec 2016

Traders to intensify adoption of digital payments

Adoption of digital payments in their existing business format would...

Textiles | On 5th Dec 2016

US textile & apparel exports down 6.44% in Jan-Sept ’16

The exports of textile and apparel from United States were down 6.44...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search