Russian Clothing Brand Invaded Asian Market By Unique Design

It is understood that with the decline of ruble, imports

Shoes and accessories are too expensive to give local manufacturers more room for development, especially low price products.

Therefore, under the overall stagnation of the Russian clothing and footwear market, Russian domestic clothing brands adopted an anti crisis strategy to reduce product prices or pfer production equipment from China and Southeast Asian countries to Russia, because their domestic labor costs were greatly reduced.

The call of the Chinese market

China, Bangladesh, India, Pakistan, Sri Lanka and Vietnam are generally regarded as the world.

Center.

But now these countries also form a fast developing consumer market, which provides great opportunities for foreign clothing brands.

According to market research, Asians in 2018

Spending on shoes and shoes is expected to reach US $920 billion.

Among them, the Chinese mainland market will account for about 1/3 of the total.

Demand comes next to Hongkong, Japan, South Korea, Indonesia, India and other Asian countries.

"No matter from a single national market or from the purchasing power of consumers, the Asian market is very diverse," said Timur Nigmatullin, a financial analyst at FINAM group.

"In Asia, China has the largest number of potential consumers in the Chinese market. Although the economic development is slowing down, the stability of the RMB value has led to an increase in consumer demand."

Expansion to Asia

In the past few years, some Russia

Chain stores have been opened in Asian countries.

Sportmaster, Russia's largest sporting goods retailer, began expanding to Asia a few years ago.

Sportmaster group announced the "Asian expansion" plan in 2013, and Sergey Agibalov, group manager, said the company is preparing to use China as a potential market because it is geographically close to Siberia and the Far East of Russia, and also because the company has started production in Chinese factories.

。

During the 2014-2015 years, the sales volume of the Russian domestic market dropped sharply. Sportmaster group opened 12 Sportmaster brand chain stores in China and 19 O 'STIN brand chain stores (Sportmaster group's brand, the main middle end casual wear).

According to Sportmaster sources, China is the most attractive market in Asian countries.

"It is a large and rapidly developing market, and we must compete with global brands," he said.

In addition, compared with other Asian markets, entry to China is less hindered.

"Sportmaster currently has dozens of retail outlets in China.

Obviously, their expansion strategy is very successful. In 5 years, the company's chain stores in China are larger than their own counterparts.

It's bigger, "Nigmatullin said.

Russia's Carlo Pazolini group has been producing luxury high-end shoes and accessories since 1991, and now has pferred 70% of its manufacturing business from Europe to China.

Open in Beijing

And announced that more retail outlets will be opened in China.

Focus on India Market

In January 2016, Vladimir Yevtushenkov, President of Russian enterprise AFK Sistema, said the company's

Concept Group, a retail asset, has established a partnership with India Tata group, which was recently launched by Tata group.

TataCliq sells "made in Russia"

。

According to AFK Sistema insiders, although the company is very interested in the Asian market, but

There is no very clear strategy for expansion.

The cooperation between Concept Group and India e-commerce platform is regarded as a pilot project, which will determine the further development strategy of the group.

In 2014, Sistema acquired a stake in Concept Group 40%.

Another Russia

SELA has successfully entered the India market.

The company sells its brand clothing online through cooperation with the two major e-commerce platforms (Amazon and Myntra).

"We are very interested in the Asian market.

India is a fast developing market, attracting a lot.

Just like China attracted many foreign companies ten years ago, "said Julia Zefirova, head of SELA corporate relations.

"T-shirts with Russian themes are very popular in India."

SELA does not distinguish the brand positioning in the Russian and India markets, although the brand adopts different pricing strategies in terms of pricing.

In Russia, SELA takes the middle and low price; in India, it chooses the price of mid end products.

Undetermined advantage

Timur Nigmatullin, a financial analyst at FINAM group, believes that the expansion of Russian brands to Asia is in line with the trend forecast of experts.

"In the near future, more Russia Company will enter the Asian market.

Their biggest advantage in these markets is their old partnership with local manufacturers, and the excellent way of doing business, "he added.

However, Fashion Consulting Group CEO Anna Lebsack-Kleimans does not think.

Brand has great advantages in Asian market.

"Russia's large scale

Manufacturing equipment in China and other Southeast Asian countries can help reduce logistics costs and sell products to Asian markets at lower prices, "she said.

"But it did not make them more competitive than local brands, only to make them competitive."

Lebsack-Kleimans said most local brands in the Asian market have very loyal customers.

Russian brands can attract Asian consumers by providing superior designs, original "European style" or unique retail formats.

Russia

Gosha Rubchinsky is such a successful example.

This street from Russia.

It successfully integrated high street fashion design with street culture full of Eastern Europe, bringing fresh feeling to Street Fashion.