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    Analysis Of Current Situation Of Clothing Market In Eastern Europe

    2013/8/8 20:34:00 20

    Eastern European ClothingApparel IndustryClothing MarketClothing Sales

    Although compared with Western Europe, the whole of Eastern Europe clothing The market is showing bright prospects for rapid growth, but further analysis in the industry indicates that there are still huge regional differences behind this exciting boom. In 2012, Russia became a leader in the fast growth of the apparel market, and sales of clothing achieved a two digit growth. By contrast, other countries in Eastern Europe Clothing industry The results varied: Ukraine's GDP grew by 8.2% in 2012, and the consumer confidence index was greatly improved. Compared with this boom, Czech's clothing market has suffered from a series of problems, such as economic difficulties, weak domestic demand and relatively slow export growth, and the market size has shrunk by 2.2%. In the future, can the electricity supplier lead the development of Eastern European clothing market? Is fast fashion the last terminator of the retail industry growth mode?


    Distribution mode boosts sales


    In fact, compared to the more diversified clothing market, Designer The performance of clothing has been poor. For luxury brands, the current situation does not mean that it is booming. Recently, the growing prosperity of Russian apparel industry is mainly driven by other consumers, such as non brand, standard economic brand and loyal consumers of regular distribution channels.


    With the growing popularity of the Russian open market and market stall sales, the spontaneous retail industry has dominated the sales of the clothing industry in the country. In many towns and villages in Russia, the open market is still no branding and imitation. shoes And clothing products are the most extensive gathering place.


    Similar cases are common in Ukraine. Brand clothing Tend to enter the big city, because it is the mainstream market of all kinds of clothing sales industry. But in rural areas, consumers still prefer outdoor markets such as traditional rural fairs, because there are a large number of affordable and practical groceries and small brand clothing products. However, in recent years, due to the continuous expansion of global international brands, especially with the emergence of all kinds of brand shops that are developing rapidly, the traditional distribution mode is undergoing tremendous tests and changes. The open-air market (other non grocery retailers) has gradually become indispensable or irrelevant from the indispensable and attractive role. In 2012, the share of clothing sales in these markets dropped from 61% in 2007 to 54%.


    Electricity supplier sales growth accelerated


    2012 Eastern Europe market online Apparel Retailing It accounts for 3.7% of the total retail sales of the market, compared with 8% of the relatively mature Western European market, and its growth rate has been significantly accelerated. In Eastern Europe, the most powerful country in Internet retailing is Poland. In 2012, retail sales in Poland accounted for 5.6% of the total sales. In 2012, the online consumer confidence index of Poland increased significantly, and the legality of commodities was also guaranteed. All of these constituted the key factors for the rapid growth of online stores in China.


    However, in other markets in Eastern Europe, online sales channels will still be challenged. For example, most consumers in Czech continue to be cautious about Internet retailing. Even if they try, they will only be able to avoid disappointment and economic losses if they fail to meet expectations by buying less expensive daily necessities, such as tops or clothing accessories.


    Lamoda, one of Russia's largest online retailers, recently announced that its sales volume reached $130 million last year, which shows the great potential of Russian apparel e-commerce. Taking this opportunity, the British girl shop Asos shop decided to open up the Russian market and completed its official entry in May 2013. Ranked first in Spain, Inditex, one of the world's four largest fashion chains, refused to follow suit and decided to complete the Russian online store in 2013. At the same time, Russia's vast land area and underdeveloped infrastructure also pose a challenge to the physical retail industry, providing consumers with opportunities for consumption in the remote provinces of Russia and the limited area of retail stores. Therefore, it is also reasonable for the online retail industry to become increasingly active in the country.


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    Price competition spawned discount stores


    In Eastern Europe, due to the difference in scale of resources, environment and market, Russia has become the leader of the rapid development of the clothing market. While some other countries and regions still have to face the disadvantages of unfavorable economic conditions. In order to obtain market's right to existence, Eastern Europe is also starting to imitate the price competition model in Western Europe.


    The relatively low price of bulk purchases also poses more challenges to retailers in price competition. Frugality and parity began to prevail, which also gave rise to the growing popularity of discount stores, such as Pepco, Textil Market, Poland shoe company CCC, and low-cost grocery retailers Lidl and Biedronka.


    The enthusiasm of consumers to buy free brands has also encouraged the development of F&F, the clothing brand of Tesco group, which operates 3 independent stores in Czech Republic and Poland. It is reported that Tesco purchased in 2012. Clothing sales The volume increased by 12%, which greatly expanded the brand's local influence. In addition, the higher price sensitivity of consumers also spawned the development of international Internet retail and discount websites, especially in Czech.


    Fast fashion meets local competition


    Because of the similar geographical position and cultural characteristics of eastern and Western Europe, Eastern Europe has provided strong growth opportunities for the growth of transnational brands.


    Fast fashion brands also take the lead in the wave of international expansion. As of May 2013, Inditex has 345 branches in Russia, reaching the most retail market expansion in Europe, and opened 75 stores in 2012 alone.


    However, despite the success of fast fashion in Eastern Europe, no one can guarantee that rapid expansion is the best selling mode in the international market. For example, Bestseller, one of Europe's largest fashion groups, has young people. Fashion brand Jack & Jones and Vero Moda, which is currently unable to withstand the pressure of competition in Hungary, is scheduled to withdraw from the market in 2013.


       international brand Also facing fierce competition from local enterprises, this is particularly evident in Poland. LPP, the only clothing sales company in Poland, is highly sought after by female consumers. The company currently has 217 retail outlets, and is considered to be the representative of high quality, latest fashion and super parity clothing products, so it is a fatal threat to international brand ZARA.


    According to Euromonitor, the world's authoritative market research firm, by 2017, the size of the Eastern European clothing market is expected to grow to $24 billion, becoming the most dynamic region after the Asia Pacific and Latin America. However, more than 70% of sales growth will come from Russia. Eurozone also said that by 2017, the country will surpass Germany and Britain to become the largest clothing market in Europe. The garment market in other regions will continue to face a fragile economic recovery. And fierce price competition will continue. Clothing distribution mode is mostly fast fashion shop, discount shop, export shop and Internet retailer.

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