AtFashion Retail 2017 Inga Mikaelyan, head of the analytical group of RBC "Market Research", presented an analysis of the economic behavior of buyers and the new reality of clothing retail.

The crisis situation affecting the entire Russian economy has hit the clothing and related shoe retail especially hard. The reason for the subsidence of the fashion retail market was a combination of several factors: the devaluation of the ruble, an increase in the foreign exchange cost of imported goods, which are the main ones on the market, a decrease in household incomes. In 2016, in comparison with 2013, the increase in prices for goods and services amounted to 32.5%, despite the fact that the incomes of the population during this period fell by 9.5%. This led to a drop in consumer demand, which resulted in a reduction in consumer traffic of shopping malls and stores, as well as a decrease in the conversion of clothing retailers. Experts note that a new reality has come for the clothing retail sector.

There has also been a change in the consumption model. Buyers began to save on clothes and update their wardrobe less often. According to data for February 2017, spending on the purchase of women's clothing decreased by 6%, compared with 2016. At the same time, the price and the opportunity to buy with a discount have become the decisive factors motivating to make a purchase: 74% of clothing buyers pay attention to the price, and 84% are interested in special offers and discounts if the assortment is to them;seemed interesting.

The Internet segment has an opportunity to save money thanks to promo codes. The number of Internet requests for the keyword "promo code" increased by 131% for August 2016, July 2017, compared to the same period of 2015, 2016 in total promo codes 11.7 million Russians were interested in the Internet, which is 2.3 times more than a year earlier. Perhaps, in the near future, offline retailers will also join the promo codes, following the online one, notesInga Mikaelyan.

In general, there is a clearing of the market, the departure of weak players, the closure of inefficient stores. Retailers continuously optimize business processes. In total, more than 30 international fashion retailers left the Russian market in 2015 and 2016, but 11 other foreign brands took their place. Meanwhile, the analyst notes that 60 leading companies in the clothing market do not feel the crisis, they are growing and capturing those areas where competitors have left. The leaders, according to RBC «Market Research», are: O'stin, Gloria Jeans, Zara, Bershka, H&M, Adidas, Reebok, «Children's World». The Internet segment demonstrates a higher rate of development: Wildberries andLamoda are growing in the crisis by an average of 30%.

In the coming years, the market should not be expected to grow due to the fact that household incomes will grow slower than the prices of goods. The growth of real disposable incomes of the population by 1% in 2017, which is promised in the Ministry of Economic Development of Russia, will stabilize the situation, but will not lead to consumer activity, which was observed on thethe market in the pre-crisis period, the analyst notes. People will become a little bolder to spend, but at the same time choose proven and high-quality products. Within 3 5 years, the fashion retail will be characterized by a model of rational consumption.

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