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Fashion retail in our country is going through difficult times. Spontaneity has disappeared in the behavior of buyers – consumption has become rational. How this situation will develop and how consumer demand will change, we will try to understand using analytical data from the RBC Market Research agency.

The conducted research is devoted to the changes taking place in the modern clothing market, it is based on the All-Russian sociological survey and interviews with key market players.

THE MARKET IS DIVING DOWN

In 2015, there was a turning point in the dynamics of the market – it acquired a negative character. If in pre-crisis 2014 the volume of the Russian clothing market was estimated at 2,419 billion rubles, then in 2016 it was 1,896 billion rubles. In other words, from 2014 to 2016, the drop was 22%. Changes have occurred both in non-food retail, and in food and catering, which in two years 2015 and 2016 decreased by 14%, 15% and 9%, respectively.

In the fashion retail market, the dramatic rise in prices caused by the devaluation of the ruble and the decline in disposable incomes of the population led to a noticeable drop in consumer demand. The consumer price index, which characterizes the level of prices for goods and services, increased by 32.5% in 2017 compared to 2013, and household incomes decreased by 9.5%. The high creditworthiness of Russians also had a negative impact on purchasing power. In 2016, the average debt on loans of one working-age Russian with a salary level of 36.5 thousand rubles reached 170 thousand rubles, which is several times higher than in 2009, which amounted to 53 thousand rubles.

According to Inga Mikaelyan, head of the RBC Market Research analytical group, it is too early to talk about the market recovery, and a quick return to the pre-crisis level is unlikely. Consumption will be less active – it depends on the financial situation of Russians. However, the expected slowdown in price growth and stabilization of income, which next year is still unlikely to reach the level of 2010, are prerequisites for the development of clothing retail.

The crisis has significantly reduced the capabilities of the population. Russians show restraint and make purchases deliberately, reducing spending on less priority goods, which for many fall into the category of clothing and shoes. Such rational behavior will be characteristic of domestic consumers who have realized the long-term nature of the crisis for several more years.

RUSSIAN CONSUMERS SAVE

Thanks to the crisis, Russians have learned to save. This manifested itself in the rejection of spontaneous purchases and rationality, as well as in a high interest in discounts, promotions and sales. The most important role in the purchase of clothing continues to play the price.

A sociological survey by the RBC Market Research agency showed that the price, according to 74% of respondents, ranks first among the factors influencing the decision to make a purchase. To the least extent, people pay attention to the brand and the country of origin, which turned out to be important only for 9% and 6% of the study participants, respectively. For 62% of respondents, fit is important, for 61% - comfort when wearing, for 53% - model, and for 40% - quality of tailoring.

Russians are experiencing a difficult economic situation thanks to discounts and attractive price offers. So, from September 2016 to February 2017. 35% of respondents tried to buy exactly the clothes that are sold at discounts, 30% paid attention to them, but bought a thing only if they liked it, 19% were waiting for promotions and sales, while only 13% of respondents were not interested in promotions and discounts.

The desire of Russians to save money reflects the growth in the number of Internet requests for the search word "Promo code", which from August 2015 to July 2017 amounted to +131%. For example, domestic consumers are actively looking for offers for purchases in the Lamoda online store, the number of requests for which from August 2015 to July 2016 amounted to over 141 thousand, and from August 2016 to July 2017 more than doubled and reached 313 thousand.

To be continued.

Text: Elena Varnina

Photo: shutterstock.com