The Bright Prospect Of Fast Growth In Eastern European Clothing Market

In 2012, Russia became clothing The fastest growing market leader in clothing sales has achieved two digit growth. By contrast, the performance of other garment industries in Eastern Europe is different: Ukraine's GDP grew by 8.2% in 2012, and the consumer confidence index was greatly improved. Compared with this boom, Czech's clothing market has suffered from a series of problems, such as economic difficulties, weak domestic demand and relatively slow export growth, and the market size has shrunk by 2.2%. In the future, can the electricity supplier lead the development of Eastern European clothing market? Is fast fashion the last terminator of the retail industry growth mode?

With the growing popularity of the Russian open market and market stall sales, the spontaneous retail industry has dominated the sales of the clothing industry in the country. In many towns and villages in Russia, the open market is still no branding and imitation. shoes And clothing products are the most extensive gathering place. Similar cases are common in Ukraine. Brand clothing Tend to enter the big city, because it is the mainstream market of all kinds of clothing sales industry. But in rural areas, consumers still prefer outdoor markets such as traditional rural fairs, because there are a large number of affordable and practical groceries and small brand clothing products. However, in recent years, due to the continuous expansion of global international brands, especially with the emergence of all kinds of brand shops that are developing rapidly, the traditional distribution mode is undergoing tremendous tests and changes. The open-air market (other non grocery retailers) has gradually become indispensable or irrelevant from the indispensable and attractive role. In 2012, the share of clothing sales in these markets dropped from 61% in 2007 to 54%.

In 2012, online retail sales accounted for 3.7% of the total retail sales in the Eastern European market. Compared with the 8% of the relatively mature Western European market, the growth rate of online apparel retail sales has been significantly accelerated. In Eastern Europe, the most powerful country in Internet retailing is Poland. In 2012, retail sales in Poland accounted for 5.6% of the total sales. In 2012, the online consumer confidence index of Poland increased significantly, and the legality of commodities was also guaranteed. All of these constituted the key factors for the rapid growth of online stores in China.

However, in other markets in Eastern Europe, online sales channels will still be challenged. For example, most consumers in Czech continue to be cautious about Internet retailing. Even if they try, they will only be able to avoid disappointment and economic losses if they fail to meet expectations by buying less expensive daily necessities, such as tops or clothing accessories. Lamoda, one of Russia's largest online retailers, recently announced that its sales volume reached $130 million last year, which shows the great potential of Russian apparel e-commerce. Taking this opportunity, the British girl shop Asos shop decided to open up the Russian market and completed its official entry in May 2013. Ranked first in Spain, Inditex, one of the world's four largest fashion chains, refused to follow suit and decided to complete the Russian online store in 2013. At the same time, Russia's vast land area and underdeveloped infrastructure also pose a challenge to the physical retail industry, providing consumers with opportunities for consumption in the remote provinces of Russia and the limited area of retail stores. Therefore, it is also reasonable for the online retail industry to become increasingly active in the country.

In Eastern Europe, due to the difference in scale of resources, environment and market, Russia has become the leader of the rapid development of the clothing market. While some other countries and regions still have to face the disadvantages of unfavorable economic conditions. In order to obtain market's right to existence, Eastern Europe is also starting to imitate the price competition model in Western Europe. The enthusiasm of consumers to buy free brands has also encouraged the development of F&F, the clothing brand of Tesco group, which operates 3 independent stores in Czech Republic and Poland. It is reported that in 2012 Tesco clothing sales increased by 12%, greatly expanding the brand's local influence. In addition, the higher price sensitivity of consumers also spawned the development of international Internet retail and discount websites, especially in Czech.

According to Euromonitor, the world's authoritative market survey, the size of the Eastern European clothing market is expected to grow to $24 billion by 2017, becoming the world's most dynamic region following the Asia Pacific and Latin America. However, more than 70% of sales growth will come from Russia. Eurozone also said that by 2017, the country will surpass Germany and Britain to become the largest clothing market in Europe. The garment market in other regions will continue to face a fragile economic recovery. And fierce price competition will continue. Clothing distribution mode is mostly fast fashion shop, discount shop, export shop and Internet retailer.