Home / Knowledge / News / Apparel/Garments / Clothing retail market is set for steady growth
Clothing retail market is set for steady growth
10
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 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search