FashionUnited

Facts and Figures about the Fashion Industry

National data Russia (2014)

Population: 143.8 mio
Labor Force: 77.0 mio
Population growth rate: 0.2%
Unemployment rate: 5.6%
GDP per capita (PPS): $ 12,736 (718,964 RUB)

Статистика по индустрии моды

Статистика по индустрии моды ниже на английском, они будут переведены в Россию как можно скорее.

Russia is the biggest country in the world which covers 11 time zones. This country has a developed economy and with the appearance of the middle class, fashion industry has been growing fast the recent years. Its retail market is the largest one in Eastern Europe. Forecasted sales in 2015 equal 1290,6 ml items.

Market Insights

Consumer expenditure (2013) Percentage
Clothing: 6.8%
Footwear: 2.0%

Consumer expenditure (2013) RUB
Clothing: RUB 2,282,243 million
Footwear RUB 678,434 million

Turnover

According to Fashion Consulting Group the size of the Russian Fashion Market in 2013 has increased by 4,8% comparing to the previous year. Thus, apparel, shoes and accessories equal 2 448 bl rubles all together.

The apparel segment equals 1 503 bl. rubles and remains the largest one (61,4%), shoes - 27% (661 bl. rubles) and accessories - 11,6% (284 bl. rubles).

In 2014 the rise of the market slowed down and the turnover of the first quarter of the year decreased by 7-8% comparing to 2013 (in Euros).

At the moment (beginning 2015) it is hard to predict the situation as the ruble lost over 30% of it’s value. In practice it actually means an inevitable rise in prices of all goods, both imported and domestic.

Price Segmentation

  • The upper segment (euro 200 for the base model of trousers), 10% of the market, 150 billion Rubles.
  • The middle segment (20-200 euro for the base model of trousers), 40% of the market, 601 billion Rubles.
  • Lower segment (up to 20 euro for the base model of trousers), 50% of the market, 751 billion Rubles.

Lifestyle

  • Limited time to shop for apparel.
  • Harsh climate influences repeated purchases of basic items.
  • Family structure: low percentage of DINKs at the age group over 25.
  • Beauty standards are shaped by the blend of cultures. Denial of casual style in everyday life. Emphasized feminity and masculinity in style.
  • Low brand awareness and loyalty.
  • High number of fashion events covered in the local media.

Retail

  • Construction of medium segment shopping malls is booming all over the country as they allow to save time, however, Moscow and St. Petersburg are over saturated.
  • Shopping streets are the main streets in the cities and traffic of on-purpose shoppers is relatively low.
  • High variance in economic development of different regions/ increased importance of large urban centers such as Moscow, Petersburg, Yekaterinburg, Kazan.
  • 89% of the luxury apparel segment are concentrated in Moscow.

Currently the structural changes happen to the Russian retail market:

  • development of network management sales
  • the number of uncivilized trade reduces as open and closed markets are substituted with a network of trade centers
  • the intensive construction of shopping centers helps the development of chain stores

The structure of retail trade in 2013:

  • 51% - modern format (shopping centers and street retail) - 766 billion Rubles.
  • 42% - the old format (markets, fairs, booths, stands) 631 billion. Rubles.
  • 7% - sales through the Internet 105 billion Rubles.

Supply Chain

  • Underdeveloped textile industry.
  • Small volumes of own production and sales.
  • Designers are often the directors of their own brands without having a business education.
  • Most brands are supported by venture capital.
  • Growth is boosted through the development of retail infrastructure.
  • To date, the value of imported goods accounts for about 80% of the total market. On average about 60% of apparel import across all categories of clothing comes from China and South-East Asia.
  • Today, even large scale Russian clothes companies do not place orders for collection production within Russia but in the South Asian region.

Trade Statistics

To date, the value of imported goods accounts for about 80% of the total market. About 60% of apparel import comes from China and South-East Asia.

About 24% of foreign retailers operating in Russia are only presented in Moscow due to the positioning in the upper middle and premium price segments.

On the contrary, domestic companies focus mainly on the regional market and position themselves as middle-lower cost and economic price segments.

Common features of Key players in the Russian market in the segment MASS MARKET.

  • Russian brands dominate in economy segment.
  • There are no chains among the leaders which focus on one sex and age group. Most of them offer products “for the whole family.”
  • Some chains offer the production of large size and are actively promoting it in the regions.
  • Most of the Russian brands are private labels whilst in Europe and the United States multi-brand stores remain leaders.
  • The number of the stores owned by the market leaders increases while the share of franchise stores among the market leaders declines. The reason for this is that the operational efficiency has improved, a possibility to react immediately and manage effectively has appeared.
  • Russian brands in the segment of “economy” have a strong position among competitors. They are popular not only among consumers, but also cause the interest of investors. Today the Russian clothing market is still quite attractive because of its potential.
  • The majority of sales are made in medium size segment.

Employment

Human Resources - problems

  • Blue-collar jobs have a negative image, there is no developed educational system to prepare professionals in the field of production.
  • High rotation of retail personnel, incompetence and high salary expectations.
  • The lack of professionals in the field of technology and brand management with experience abroad.
  • The lack of category, sales, production managers and internet marketeers.
  • Lack of time or opportunity of HR-managers to engage in training the personnel.

Education

  • Few opportunities for young designers and managers to receive high-quality domestic education.
  • Low barrier to start career in the fashion industry.

Sources:

FashionUnited, OECD, Observatory for Economic Complexity, FASHION CONSULTING GROUP, WTO, Central Intelligence Agency, ILO, Trendyman, Slideshare.

For global fashion industry statistics please go to the FashionUnited.com fashion statistics page.