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ONLINE OR OFFLINE?

To say that online sales in the fashion segment are gaining momentum in 2018 is not entirely correct. They have already firmly established themselves in the market, and there is another, more interesting trend. Those fashion players who initially entered the market as online sellers are now trying themselves in offline sales. These include brands such as 12Storeez, Marchelas, Marie by Marie, LN Family and others. According to analysts Knight Frank, projects are becoming very successful, reaching a turnover of 3-6 thousand dollars per square meter per year, which is comparable to the indicators of large network brands in similar formats and price segments.

Experts explain this trend simply: Russians are not ready to buy clothes online and completely abandon the process of fitting goods and physical contact with them. This does not mean that e-commerce is not used at all or companies are abandoning it. But the share of online sales for most fashion brands does not exceed 5% of the total volume. At the same time, according to the research of RBC, in 2017 the share of fashion retailers with online stores exceeded 56%, significantly stepping forward compared to last year.

WHAT IT SAYS: online sales remain a promising direction with lower competition. However, they occupy a small market share, the vast majority of clothing sales – about 97% – occurs offline, and even online retailers tend to occupy this niche.

The fashion industry is still going through hard times, but, according to experts, the most difficult period of 2015 –2016 can be considered passed. Now in the industry as a whole and in its franchising component in particular, one can observe a kind of dawn. Including from the point of view of Russian brands, since foreign ones are not entering the market so actively at the moment.

A great chance for fashion franchises to show themselves and get new partners – the exhibition BUYBRAND Expo, the largest event in the field of franchising, which has been held since 2003. In 2018, more than 8,000 visitors are expected here. The effectiveness of the event is measured by the specific number of open enterprises. Thus, BUYBRAND exhibitions helped to open over 14 thousand outlets. Leading fashion players also participate in BUYBRAND exhibitions and return from year to year. In 2018, the event will be held from 10 to 12 September at the Moscow Expocenter.

The text is based on the materials of Buybrand

Photo: Buybrand