A new world will be built
SEE WHO CAME
According to JLL, in 2018, 27 new international brands entered the Russian market, 13 of them represent the fashion industry. The stores of debutants mostly opened in Moscow, although the Russian regions also did not remain without attention. For example, the German clothing brand Orsay returned to Russia, opening a store in Kaliningrad. The company also notes the appearance of the Swedish fashion retailer COS store in the Afimall City shopping center and the Dr. Martens shoe brand in Metropolis. In addition, the large fashion retailer Mexx announced its intentions to return to the Russian market. More than 50% of the brands that have entered the Russian market represent the premium segment, 39% medium, 7% luxury brands.
According to Maris in association with CBRE, in 2018 in St. Petersburg in the first 9 months of 2018, nine new international brands that were not previously represented in the city entered the market. So, Victoria's Secret has opened a two-storey store with an area of 1,000 sq.m. m in the shopping mall «Gallery» international sportswear brand Under Armour with an area of 585 sq. m. m is located on the third floor of the Gallery. EGLO interior lighting store from Austria rented a room of 340 sq. m. m on the second floor of the Okhta Mall, and the French Etam group entered the St. Petersburg market with its second brand Undiz, a lingerie store opened in MEGA Parnas. The first boutique of the Swiss watch brand Hublot has opened in DLT, and the flagship Opium underwear store has opened on Nevsky Prospekt, 48. The first store of the Turkish fashion retailer DeFacto opened in the shopping center "Peter Rainbow".
At the same time, 6 international brands, according to JLL, left the Russian market in 2018, and half of them – Le Coq Sportif, Zlocci and L.K.Bennett– represent the fashion industry. Of the key retailers in all segments that have left the Russian market, CBRE names Crate&Barel, Stockmann and K-Rauta, Mediamarkt, as well as the British company Castorama. The delivery points of online retailers Quelle and Otto have also closed.
"Throughout the year, the activity of foreign retailers in terms of entering the Russian market has been reduced," says Alexander Morozov from S.A. Ricci. First of all, this is due to the tense economic situation. Most of the new brands appeared in the segments of fashion retail (American brand Coach, Karl Lagerfeld, Adolfo Dominguez, Liu Jo, French brand of bags and suitcases Lipault), goods for children (GEOX Kids, Modern Easy Kids, Coccodrillo, Panco) and cosmetics (Sephora, Skinfood, Flormar). In general, the number of foreign stamps issued is significantly lower than last year (according to preliminary data, the deviation is more than 30%). Brands of Russian designers are actively developing. As a rule, brands begin their development with accounts in social networks and gradually expand, opening small boutiques in shopping centers. Sometimes they grow to a chain of stores. Here a vivid example can be 12storeez, Alix Story, 1001 dress, You Wanna, etc. However, with the current alignment of forces, it is incorrect to say that Russian brands will be able to displace key foreign retailers.
According to CBRE, with a high level of presence in the Russian market, the number of outlets of new foreign brands in Russia exceeds the figures of Poland (15 brands in 2017, 10 in 2018) and Hungary (14 brands in 2017, 12 in 2018).
In JLL they predict: given that in 2019 two large facilities are expected to be commissioned in Moscow, the Island of Dreams and Salaris, as well as a number of small district centers of ADG group, the volume of the new offer it may double the figure of 2018 and amount to 321 thousand square meters. m. The share of available space for 2019 is projected at 5.3%.
< span style="font-size: 12px;">Text author: Ekaterina Reutskaya
Photo: pixabay, Castorama, 12storeez