Based on the information analysis from external sources and in-house marketing research, TELS Group of companies Analytics Department reported a number of concepts related to the Russian clothing retail market. Generally, the research results reflect overall development trends of the world market and Russian market, while some figures are likely to surprise.
Russian clothing retail market on a global scale
The Russian clothing market has entered top 6 largest retail markets in Europe, competing with France, the UK, Italy, Spain and Germany. The share of Russian retail franchise (clothing, footwear and accessories) comprises 46%. As a result, Russians tend to spend on clothing more than Europeans.
The Russian retail market has shown stable and sustainable growth over the past 5 years. As experts say, the retail market has announced a 10% rate increase for the last year.
Generally, Russia is supplied with clothing and accessories for the value of €3-5 billion per year. Italy is the leading retail exporter with market share of €1,3 billion (that comprises approximately 10% of world import). The second largest suppliers of brand clothing are Germany (nearly 7%) and France.
Inland market development trends
Over 53% of the Russian retail market is accounted for 11 largest million cities. Among them are Moscow (18%), St. Petersburg (13%) and other cities (69%). Though Moscow share is shrinking steadily, it is still considered the biggest hub for brand stores and retail outlets. Furthermore, Moscow attracts a great number of franchisers who are likely to set up retail outlets there. Over the last years, the share of the local market has been escalating, while the importance of regional markets continues to grow as expected.
“In 2003 the overall value of the retail textile market comprised nearly €2-3 billion. In the midst of the financial crisis, there appeared a broad range of world’s famous brands, among them Mango, Zara, H&M and Uniqlo. The Russian retail market got through four major stages of development. The first stage was experimental. The second stage started out during the financial crisis and can be referred to as market consolidation. During the recession 2009 the market was on the upswing. By now, we are entering a new stage of economic development that we call a phase of organic growth”, - says Reinhard E. Doepfer, Chairman of the European Fashion and Textile Export Council.