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Expert Speaks
Kontakt ( InterSearch Group Russia ) is a consulting company providing services of Executive Search and Management Selection . The company was founded in 1990 and is among the first agencies working in the area of HR consulting in Russia . In apparel sector , the company works with more than 250 clients , who source from China , Bangladesh , Uzbekistan and some local manufacturers . Speaking to Apparel Online , Mariya Kelina , Senior Consultant – Retail & FMCG , Kontakt ( InterSearch Group Russia ) shares her perspective on the Russian retail sector … Here are the excerpts !
AO : Products for the future …
Mariya : Innerwear , outerwear , shoes and kids ’ fashion items in middle and middle plus segment with good price / quality correlation are very promising . People here are even ready to pay more , provided what they buy lasts long . a number of global retailers are actively entering and expanding their chains both in Moscow and nearby areas including names like Victoria ’ s Secret , Superdry , Charlotte Olympia , etc . Apart from these , many retailers have made their debut in Russia in 2015 such as Tsumori Chisato , MCS , Malo , Nelva and Henry Cotton ’ s .
e-Commerce boost
Russia ’ s online market is also rapidly growing due to an urbanised technologically-equipped population .
Few Russian companies sourcing from India
AO : Growth potential and market trends …
Mariya : Russian market has good potential for growth . After the crisis in 2015 ( due to the growth of exchange rates ), the market has started to grow again and according to various sources , the growth rate is somewhere between 2-7 per cent at present . Some general trends of the Russian retail market are as follows :
• Off-price segment is growing .
• In terms of production , there is emphasis to reduce the manufacturing cost by using local factories while also sourcing from new destinations ( instead of traditional ones ) that are more costeffective .
• There is emergence of start-ups and private labels .
• In fashion section , there is a lot of scope in categories such as inner and outerwear .
• Many fashion brands are planning to open representative offices in Russia .
AO : Factors to consider while working with Russian stores / importers / brands ...
Mariya : The most important criteria are pricing and business terms as most brands have a tendency to shift to fast-fashion retail scheme . Also , it is important to stress on quality / price factor as Russian buyers are very particular about value for money .
AO : Major cities for apparel market …
Mariya : Moscow and Saint Petersburg are very interesting as these two have a substantial number of students besides the general public . These two cities also have higher disposable income and purchasing power . Apart from these , Rostov-on-Don , Yekaterinburg , Omsk , Tomsk , Krasnoyarsk and Vladivostok also have vibrant markets .
AO : Relevance of smaller markets …
Mariya : Smaller markets are very relevant as we do not have big malls in all cities and trade centres . For example , in a city with a population of less than 5,00,000 , there are not many fashion brands and not even street retail , so people count on the small markets .
O ’ Stin , Moscow : Having sourcing office in Bangalore , ( OSO Sourcing ) O ’ Stin , Moscow is one of the most successful apparel retailers in the Russian market with more than 700 stores in Russia ; it designs and markets women ’ s , men ’ s and kidswear . According to a study by Online Market Intelligence ( OMI ), in 2017 , O ’ stin brand became the favourite brand of Russian clothes .
Melon Fashion Group : The company operates in 7 countries ; its headquarters is located in St Petersburg . Having nearly 600 stores in Russia and Ukraine , it has three brands – ‘ Zarina ’, ‘ Love Republic ’ and ‘ Befree ’.
Modis , Moscow operates nearly 75 large-format fashion department stores and is a regular buyer from India .
Top Secret , Poland is also having strong presence through its stores in Russia .
Fashion-Sport having 17 stores also sources from India .
20 Apparel Online India | MAY 1-15 , 2018 | www . apparelresources . com