News Flash

Lingerie market will continue to grow by 20% until 2011

20 Jun '08

6 min read

Regional Retail Chains Springing up:
The new study also sets a focus on identification of regionally operating independent multi-brand lingerie chains, like, for example, "Le Pantalon", Volgograd, "Parizhanka", Samara, "Magia", "Corset", "Lu-Lu" in Nishnij- Novgorod, "Bon Dimanche", Novosibirsk or "Golfstream" in St. Petersburg.

As far as wholesale distribution of lingerie in Russia is concerned, the study describes the most common patterns of sales mediation in relationship between foreign suppliers and the retail trade.

Forty import distributors and wholesalers are identified specializing in lingerie, based in Moscow and the Regions. The study concludes that such import distributors still play the most important role steering the supply chain in the medium-to-upper-medium priced market segment.

However, as the study also says, the ongoing verticalisation of the lingerie market in Russia puts pressure on import distributors. To save their margins, many of such wholesalers have started to build their own multi-brand lingerie chains and to multiply their concepts to provincial cities.

Survival of the traditional wholesale dealerships in Russia is put at risk, because more and more of the market leaders, offering complete and fully diversified lingerie ranges, like, for instance, Triumph International, have started operating their own Russian distribution subsidiaries, incorporating stock supply facilities from which retailers are served, but directly.

In parallel, Triumph International keeps introducing retail space management systems to its customership under franchising schemes, or stores under own management are being multiplied at provincial shopping centres.

Further Growth expected at 20 per Cent annually:
According to insiders like Alexander Fedorov, president of Wild Orchid Holding, the uncontested key player of the lingerie retail trade in Russia, the Russian lingerie market will continue to grow at an average annual rate of 20 per cent until 2011.

This projection is suggested to apply to the medium-to-upper-medium priced market segment, in particular, driven by provincial demand. Instead, lingerie belonging to the premium-to-luxury segment is said to increase at much lower rates, averaging 7 per cent, similar to its growth over the past two years.

As it is further assessed in the new study, exports of men's underwear from the Western member states of the European Union (EU-15) increased at 25 per cent in 2007 against 2006, equivalent to a purchasing value at ex-works terms of Euro 38 mn.

Intimate apparel for female consumption saw rising sales to Russia last year at a rate of 9 percent, representing a purchasing value of Euro 200 mn.

CPM LINGERIE: Gateway to the Russian Lingerie Market According to Frank Hartmann, Managing Director of Igedo Company, the majority of European lingerie and underwear suppliers keep depending on orders from a few or just one single Russian lingerie chain and do not show active initiative to participate in the fast deepening and widening market prospects offered by regionally operating chains or independent retailers connected to import distributors and wholesalers.

"There is obviously something going wrong with suppliers not retailing their collections in at least 64 Russian cities", said Hartmann. "Igedo Company offers the lingerie industry twice a year a strong performing showcase on the basis of which successful entries in the Russian lingerie market result".

Hartmann also confirmed that Igedo has reserved the right for all exhibitors, participating in the next two consecutive editions of CPM LINGERIE in September 2008 and February 2009 to receive a free copy of the new study.

This consists of a text section comprising 138 pages, together with a vast database in Excel format, listing selected lingerie retailers, key importers and wholesalers on 74 pages.

Igedo Company

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