The Russian Luxury Brand Kira Plastinina Speeds Up The Pace Of Overseas Expansion

Kira Plastinina is famous in Russia. Luxury brand In addition to its basic products, it also holds one. Top grade clothes Brand Lublu. In recent years, Kira Plastinina has persisted in the strategy of national expansion. However, its internationalization path was not smooth, and in 2008, it closed more than 10 stores in the United States. Today, the company is looking to developing countries and targeting middle-income consumers in these countries.

According to recent reports, Kira Plastinina is a well-known luxury brand in Russia. The company has never stopped stepping into the international market for many years. However, its internationalization process is not smooth sailing. In 2008, Kira Plastinina closed more than 10 designer brand stores in the United States. Today, the company wants to take the market of developing countries as a springboard to enter the world market in an all-round way. To this end, two weeks ago, she hired Martha, former marketing director of Marks & Spencer store in England, as general manager, Hill.

The company will operate in the emerging market in the form of franchising or joint venture, selling Kira Plastinina's basic clothing and high-end brand Lublu fashion. At present, Kira Plastinina takes India, the Middle East, Latin America, Indonesia and other countries and regions as a priority market. The middle class group in these markets is growing rapidly, though its market attractiveness may not be as fast as that of developed countries, but the potential is still large. It is expected that the first store outside CIS countries will be opened in the coming year.

Ya Na Hill believes that the complicated and changeable international situation should not affect the expansion plan of the company. Their Lublu store in Dallas has not been affected by the crisis (because of the Ukraine crisis, the relationship between Russia and the United States has become tense). Kira Plastinina is currently working with potential partners in other countries to discuss the possibility of developing the market.

Dalia Jajalonaa, chairman of Esper Group group, recalled that Russian enterprises had successful experience in developing overseas businesses. For example, more than 20% of Carlo Pazolini's overseas sales came from other countries such as Greece, Italy, the United States and Britain, while oodji successfully developed the Eastern European market. She believes that the opening of a new store will take about 350 thousand to 500 thousand dollars, while franchising will cost 10-50% of that amount.

Hill did not mention the detailed planned cost of overseas development, so it was difficult to grasp the amount of investment. Estimate Kira Plastinina The company invested $100 million in the clothing industry, and will invest 300 million roubles near Moscow for production.

Hill stressed that the company's revenue in 2014 is expected to reach 5 billion 100 million rubles, which will increase to two times in the next three to five years through the expansion of overseas markets. In the long run, the Russian market is only a small part of the revenue. For example, he said that if Zara had 80% of its revenue from Spain, which had been experiencing recession in recent years, the company would no longer exist. For Kira Plastinina, a good result is that the share of Russian market will be reduced to half of the total sales in the next three to five years.