subscribe to brand news 
b2b Magazine
21.02.2019 | Альбина Весина

A new world will be built

part 1     part 2      part 3    part 4      part 5


In 2018, a number of retailers optimized the size of leased space for new stores in Moscow. In particular, the leading networks of the segment "perfumery" and cosmetics "L"Etoile" and "Rive Gauche" presented new concepts with a more concise and convenient for customers organization of the shopping center spaces are reported in CBRE. Changes in the size of retail space and the organization of space in stores are due to both the growing competitive influence of online stores and trade in social networks, and the use of new retail equipment.


Retail Transformation 2018


"In the absence of some large quantitative development of the old times, we can talk about qualitative improvement, for example, of our business," reflects Robert Courtney, Senior Executive Director of Retail Profile Russia. In 2018, it continued to develop despite global and local factors negatively affecting traditional retail, such as online and declining revenues. In the outgoing year, we have grown by only one, but a very large-scale project in Chelyabinsk – Almaz » shopping center. Now our rental programs are present in 27 shopping centers in 17 cities of Russia. Historically, this is our largest volume in the 10 years of Retail Profile's existence in Russia - about 1,000 rental places. Specialty retail will continue to grow in parallel with the development of shopping malls, as shopping malls redefine themselves as places of social interaction, visitors will spend more time and money in these retail locations, respectively, even more time will be spent in public areas. Impulse sales, in turn, will increase from an increase in traffic. The retailers that will benefit most from this are the ones that will be interesting, fresh, not boring and visually appealing.And, of course, we all hope for the absence of new economic shocks.


Retail Transformation 2018



Considering that the incomes of Russian residents did not grow in 2018, and buyers continue to adhere to economical consumption and smart shopping, the share of goods in the FMCG group, which occupies the largest share, purchased at a discount and on special promotions, exceeded 50% in kind.rage. When buying fashion industry goods, buyers also pay great attention to discounts and bonuses, purchasing high-quality goods within a very limited budget, CBRE notes. As a result, online retail will remain the fastest growing segment of retail. Despite the reduction of the duty-free trade limit to 500 euros for cross-border purchases from January 1, 2019, it is possible to predict growth in this segment, 4 times 6 times higher than sales in traditional retail segments.

Already now 2018 has broken the next re­­cords for the development of e-commerce and the expansion of traditional offline retailers in the Board of Internet sales, agrees Alexander Morozov. In turn, electronic platforms go offline.


Retail Transformation 2018


"In the beginning of 2019, the largest player in the e-commerce market Lamoda plans to open the first offline store with the talking name Lamoda Market in the Atrium, where it will be possible to try on clothes, pick up an order or arrange express delivery right at the­­kupke, – lists Alexander Morozov. In addition, the retailer promises that the assortment in the store will be updated almost as often as on the website. E-commerce players are increasingly combining formats, opening stores where, in addition to a warehouse area for storing ordered goods, there are also fitting rooms. There are quite a few examples: (shop in the Arcadia shopping center), (a point in a department store "Colored"), (boutique in Stoleshnikov Lane), online watch store All (4 points in Moscow)».


New boutique of the Free Age brand

"Discussions and slogans"Retail is dead. Long live retail!» sound here and there, – reflects Tatiana Zatravina, founder of the brand Free Age. – Nevertheless, people both go shopping and will continue to go. Clothing purchases, in addition to the entertainment factor, primarily still solve the issue of closing the basic needs of a person in comfort and coziness. Going to a museum or to the cinema cannot solve this problem, and even if at some particular moment a person chooses between going to the store or cultural enlightenment, the pleasure of owning a new thing cannot be replaced by anything. In general, competition within the industry has become very acute, which is only a plus for the growth of this segment. Trends are influenced by social networks, where the speed of content distribution is mind-bogglingly high. In our opinion, the client has become more demanding in terms of quality and its relation to price; the market of our time is a market of ideas, concepts. Fewer and fewer are buying goods simply as goods. People care about the story and the opportunity to be involved in it; the more honestly and clearly the concept reflects its target audience and suits it, the more successful the brand is. In general, the struggle for consumer attention is very acute now, as never before. Whoever wins this race of content and meanings, who will be as close to the customer in spirit as possible, while providing a pleasant shopping experience, will be on the horse. I think in 2–3 years, there will be a number of major ups of new brands and loud falls of brands that, it would seem, have nothing to fear.


To be continued.


< span style="font-size: 12px;">Text author: Ekaterina Reutskaya

< span style="font-size: 12px;">Photo: pixabay, Free Age