A new study byCBRE, a leading international real estate consulting company, predicts the demand for commercial real estate over the next five years in such key segments as "food", "clothing and footwear", "beauty and health products », as well as «home and garden products».

CBRE predicts that the growth in demand for retail real estate in the segment of "beauty and health products" will outpace other segments, and the growth leader will be China (8.1%), followed by Germany (4.5%), Italy (4.2%), Great Britain (1.7%), USA (1.6%) and Spain (1.1%). Growth in this segment will, as before, be facilitated by the development of technology, as well as innovations combined with growing demand from consumers who will spend more on personal needs.

In the segment "clothing and footwear" in Europe, Spain will lead, where demand growth will be 2.2%.

On the Russian market the segment "clothing and footwear" is most active This is almost half (45%) of all new brands in Russia since the beginning of 2014. Brands of the segment «perfumes and cosmetics» occupy the second place – 14% of the total number of foreign brands that have appeared on the Russian market over the past 5 years. Brands of other categories («household goods» and «products»), which showed the most active growth in other key markets, practically did not enter Russia (1.7% and less than 1%, respectively, since the beginning of 2014). High activity of the segment «cafes and restaurants» – their share was about 10%, as well as children's goods and accessoriesin 8%. This structure is related to the consumer preferences of Russian buyers who pay great attention to style and appearance, which determines the demand for fashion brands, accessories and beauty products of well-known international brands.

"We are seeing a slight decrease in the number of brands entering the Russian market: 44 new players were registered in 2014, 35 in 2017. Basically, brands continue to enter Russia through local partners and, as a rule, focus on opening in Moscow and St. Petersburg. Nevertheless, we assess this indicator relatively positively: given the moderate growth of retail trade indicators in Russia against the background of the general economic situation, Russia still remains one of the most interesting markets against the background of Eastern Europe in terms of the number of openings of international brands. 

We also expect a positive growth in the number of retailers in the mass market and premium segment in 2019 due to the continued expansion of European and Chinese brands.

Marina Malakhatko, Director, Head of Retail Premises in Moscow, CBRE, Russia

Source: CBRE

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