Provincial cities outside the Russian capital are the biggest driving force for national underwear sales. Among them, Yekaterinburg, Novosibirsk, Nizhny Novgorod, Chelyabinsk, Ufa, and Volgograd appear to have the most development potential. market.
The sales of Russian men’s underwear have grown significantly, and traditional women’s underwear stores have developed steadily. Some stores have begun to increase product categories and sell knitted clothing and casual clothes.
The annual turnover of the Russian underwear market is US$3.5 billion. It is estimated that the overall growth in 2008 will be 10%, which is similar to 2007. At the same time, large chains and franchises are expected to slow their expansion.
Despite this, Alexander Fedorov, president of Wild Orchid Group, one of Russia’s leading underwear retail traders, predicts that the Russian underwear market will expand at an average annual growth rate of 20% from now until 2011.
According to a study in early 2008, Russia’s traditional wholesale agents are facing threats because Triumph International, the market leader in providing diversified underwear products, has begun to set up subsidiaries in Russia to engage in distribution business and directly sell to Available from retailers. Triumph International continues to provide retail management skills training to its franchisees and significantly increases the number of stores in cities in other provinces.
It is worth noting that the Russian mid-price underwear market is mainly driven by the strong demand in provincial cities. The growth of the high-end underwear market is significantly slower, averaging only 7% per year.
Overall, as consumer demand rises, the competitiveness of mid-range and high-end underwear manufacturers will become increasingly stronger. In fact, most high-end retailers try to capture the mass market.
From a business perspective, the Russian underwear market has clear barriers. The high-end market accounts for 10%, with a total value of approximately US$350 million; the mid-range market accounts for 35%, with a total value of US$1.2 billion; the mass market accounts for 55%, with a total value of US$1.9 billion. Dollar.
In the mid-range market, each piece of underwear sells for an average of US$125; in the high-end market, each item of underwear often sells for up to US$700. Some market analysts believe that the Russian market has far more types of underwear than other European countries and is dominated by European brands.
Estella Dani is Russia’s top high-end underwear chain store, selling multiple brands of products. Major retailers operating a single brand include La Perla, Chantal, Thomass, Wolford, etc.
Russian consumer preferences are consistent with European consumers. Women value traditional plain colors, environmentally friendly fabrics, and functional designs, and resist unconventional sexy styles. For men who value functionality, boxing shorts are the first choice for easy wear. The children’s underwear market is booming and is currently dominated by products from mainland China, Turkey and Belarus.
