Clothing (Russian market)

Apparel (Global Market)

• Apparel (Global Market)

Children's clothing (Russian market)

• Children's clothing (Russian market)

2024

Clothing manufacturer Happy Easy Anyway enters the Russian market

On April 11, 2024, it became known that the development company Malltech entered into a cooperation agreement with the Chinese retailer Happy Easy Anyway (HEA). As part of the partnership, HEA clothing stores will appear in various cities of Russia. Read more here.

South Korean clothing brand for recreation and everyday life Lifework enters the Russian market

In early April 2024, it became known that the South Korean brand of clothing for recreation and everyday life Lifework was entering the market Russia and. Kazakhstan The first store of the brand begins work in the shopping and entertainment center "," Fleet located in the To Moscow Khodynsky field. More. here

Chinese children's clothing brand Balabala entered the Russian market

On March 7, 2024, it became known that the Chinese brand of children's clothing Balabala entered the Russian market, the assortment of which includes clothes, shoes, underwear and accessories. The brand is owned by Semir Group - a leading Chinese multi-brand clothing company. Read more here.

2023

Sportswear sales up 29% to 31.8m units in 2 years

In 2023, 31.8 million units of sportswear were sold in Russia, which is 29% more than two years ago, and in comparison with 2022, the market volume increased by 8.7%. Such data in the analytical agency BusinesStat presented in February 2024.

As noted in the study, sales of sportswear in the Russian Federation continue to recover from a fall during the COVID-19 coronavirus pandemic. In 2023, the market was in an active phase of restructuring and development, experts say. According to them, sales of sportswear in Russia at the end of 2023 increased due to the resumption of growth in household income, an increase in the popularity of various sports and physical activity. All these factors contributed to the fact that the market size in 2023 was above the pre-pandemic 2019 mark by 4.6%, according to BusinesStat.

BusinesStat

Sales of sportswear in Russia are growing despite the departure of large foreign brands, including Adidas, Nike, Reebok and Decathlon. Their places were taken by domestic manufacturers and retailers, as well as companies from China. Among the latter, the Li-Ning brand stands out, according to the report of BusinesStat. Analysts call parallel imports another driver of growth in the Russian sportswear market.

Researchers call the following companies the largest manufacturers of sportswear in Russia:

• Gloria Jeans;
• "Alice Fashion Rus";
• Sharm Factory LLC;
• OOO "Fakel-Special Clothing";
• LLC "Iniko."

The shares of these manufacturers in the study are not given. In their reports, BusinesStat analysts take the data of Rosstat (domestic production) and the Federal Customs Service (export and import) as a basis, and then use expert assessments and their own research on retail and wholesale trade to calculate warehouse stocks, shadow production and other factors that affect the market.^[1]

The share of clothing stores of foreign brands in Moscow in 2 years decreased from 50.3% to 36.4%

By the end of 2023, the share of foreign stores in Moscow shopping centers of the regional and super-regional format was 36.4%. For comparison, at the end of 2021, this value was 50.3%. Thus, a drop of 13.9% was recorded. The corresponding figures were announced on February 22, 2024 by the Russian Council of Shopping Centers (RSTC).

According to the Vedomosti newspaper, from 2021 to 2023, the share of domestic fashion brands in shopping centers increased by an average of 20%. This is due to the outflow of foreign companies that have curtailed their activities in the Russian Federation in the current geopolitical situation. The areas of departed foreign sellers began to be actively occupied by Russian retailers. For example, in the metropolitan shopping center "Metropolis" the share of foreign tenants at the end of 2023 was approximately 43%, while two years earlier it reached 69%. In particular, in 2023, Melon Fashion Group (brands Zarina, Befree, Love Republic, Sela, Idol) opened and relocated over 200 stores to large areas.

Pexels

The trend in the redistribution of retail space in favor of domestic fashion retailers is also observed in other Russian regions, where foreign companies that left the country were present.

In early October 2023, NF Group reported that Russian brands occupied more than 85% of the space in 22 Moscow shopping centers after large international retailers left the country - Swedish H&M and Japanese Uniqlo. The vacated premises are rented by such domestic retailers as Gloria Jeans, Lime, Just Clothes, Befree, Outletium, Blind Chicken, Offprice, Snezhnaya Koroleva, Love Republic, Sela and others. High demand for these areas remains due to the quality of the shopping centers themselves, the decoration of stores and their favorable location.^[2]

Clothing manufacturers who left Russia file lawsuits over parallel imports

The US and EU authorities forced some foreign companies to leave the Russian market after the start of a special operation of the Russian Armed Forces in Ukraine. As a result, arbitration courts throughout Russia - from the Novosibirsk to the Rostov region - from October 2022 literally bombarded with claims from the American company Calvin Klein Trademark Trust, which demands compensation from companies and individual entrepreneurs from 50,000 to 310,000 rubles for violation of the exclusive right to the trademark.

In addition, the arbitration courts of the Novosibirsk and Sverdlovsk regions are considering three lawsuits from the American manufacturer of jeans Levi Strauss & Co, filed in December 2022 and January 2023, and two lawsuits from the German manufacturer of sportswear Puma SE to stores in Novosibirsk, filed in January.

2022: Fur shortages and rising prices as demand for fur coats slows

Due to the sanctions imposed by the EU on Russia after the start of a special operation in Ukraine, and the mass extermination of minks in Denmark, fur coats producers in Russia faced a shortage of fur and rising prices for raw materials. This has already led to a reduction in the range of stores, which already have a drop in demand for fur products.

2021: In Russia, sales of fur coats fell - by 0.5%; revenue up 2%

In 2021, 624,764 fur coats were sold in Russia, which is 0.5% less than a year earlier. However, revenue from the sale of these fur products increased by 2%, to 40.1 billion rubles. This is evidenced by the data of the labeling operator of the Center for the Development of Advanced Technologies (CRPT), published in March 2022.

In 2019, when there was no COVID-19 coroanvirus pandemic yet, residents of Russia purchased more than 1 million fur coats. Regarding this indicator, sales of fur goods in 2021 decreased by more than 40%.

Sales of fur coats fell in Russia

Most of all, residents of Moscow and the Moscow region spent on fur coats (a total of more than 21.8 billion rubles), the Kirov region (3.3 billion rubles), the Stavropol Territory (2 billion rubles), St. Petersburg (1.7 billion rubles) and the Chelyabinsk region (825 million rubles).

Compared to 2020, the rating has practically not changed, only in fourth place St. Petersburg replaced the Novosibirsk region, which by the end of 2021 was not included in the top 10 subjects of the country in terms of fur coat costs, said Deputy General Director of the CRPT Revaz Yusupov.

According to the statistics of the CRPT, in 2021, sheepskin products came out on top in popularity - 313 thousand 930 units, followed by mink fur products - 259 thousand 942 units and fox fur products - 12 thousand 999 units. In 2020, mink fur products were the most popular products. According to the amount of expenses of Russians, the first place is taken by mink fur products, on which more than 24 billion rubles were spent. The second and third places, respectively, are occupied by sheepskin (11.3 billion rubles) and nutria (almost 1 billion rubles).

At the end of 2021, Wildberries reported that Russians began to buy more fur coats, household appliances and jewelry amid high inflation.^[3]

2020

The largest online clothing and footwear sellers in Russia

Online sales of clothing and footwear in Russia at the end of 2020 amounted to 382 billion rubles, which is 35% more than a year earlier. Such data in June 2021 were cited by Data Insight analysts.

According to their estimates, the average check for the purchase of clothes and shoes on the Internet amounted to 1,770 rubles (-3% by 2019), and the number of orders - 215 million (+ 40%).

The share of online clothing and footwear stores in 2020 accounted for 27% of the Russian e-commerce market in terms of the number of online orders and 15% in terms of online sales in rubles.

The conversion of online clothing and footwear stores in 2020 amounted to 4.5% (4.5 orders per 100 site visits). The nearest indicators of perfume online stores and online auto stores are 5.1% and 3.1%, respectively.

Wildberries became the first among online sellers of clothing and footwear in Russia in 2020 in terms of sales, gaining a share of 54%. Next are and Lamoda. Ozon Also in the top ten were Adidas Bonprix,,,, and H&M. KupiVIP Rendez-Vouz CENTRAL DEPARTMENT STORE Zara

The study also says that 93% of online stores use courier delivery, 92% use pickup points, 75% use Russian Post, 58% use checkpoints.

Of the 109 online clothing and footwear stores included in the TOP-1000 of online retailers, 91% are companies (JSC/CJSC/OJSC/LLC). 9% are owned by individual entrepreneurs. 73% of sites are registered in Moscow and the Moscow region, 8% - in St. Petersburg and the Leningrad region. 19% of online stores are registered in other regions of Russia.

According to Data Insight, in 2020, 47% of online clothing and footwear stores used proprietary CMS (CMS - system for creating, managing and editing site content). Bitrix is used by 34% of online stores. 19% use other CMSs. 32% of online clothing and footwear stores did not have a newsletter.^[4]

The Russian clothing and footwear market sank by 25%, sales on the Internet increased

The volume of the Russian fashion market (clothing and footwear) in 2020 amounted to 1.7 trillion rubles, which is 25% less than a year earlier, when the turnover was measured at 2.29 trillion rubles. This is evidenced by data from the Fashion Consulting Group (FCG).

Adaptation to the working conditions in a pandemic, investments in various anti-crisis measures and forced discounts led to the zeroing of net profit from many fashion companies that experienced difficulties with sales even before the crisis, - explained the state of the market FCG CEO Anna Lebsak-Kleimans (quoted by Kommersant).

Online sales have become an "inevitability" in the fashion market, FCG notes. In 2020, the turnover of online commerce increased by 11% to 245.2 billion rubles.

Irina Ryabko, managing director of Tsvetnoy department store, told the publication that the lack of an Internet platform led to more than two months of downtime in its work in the spring, as a result, trade turnover decreased by 19% over the year. Representatives of Stockmann and Melon Fashion Group (Befree, Love Republic, Zarina and Sela) also reported a loss of a significant share of revenue due to the spring quarantine. But the growth of online sales allowed Melon Fashion to achieve positive indicators in 2020 compared to 2019.

Sportmaster's share of online sales on an annualized basis increased 10 times. At Stockmann, Internet sales in turnover increased to 15%.

According to Anna Lebsak-Kleimans, the COVID-19 coronavirus pandemic has also led to a change in the rules in rental relations - retailers are trying to switch to short-term leases, exclude sanctions from contracts and get the opportunity to quickly transform space under new conditions. At the same time, as Boris Matsa, deputy director of the trade real estate department at Colliers International, clarified to Kommersant, the amount of fines for tenants remains at the level of 2019.^[5]

Notes