Reinhard E. Döpfer
Chairman of the European Fashion and Textile Export Council
(EFTEC)
Lingerie Market Report Russia Spring 2014
Presentation at
4th RUSSIAN LINGERIE MARKET FORUM in the Framework of
13th RUSSIAN FASHION RETAIL FORUM (RFRF)
on the Occasion of CPM BODY & BEACH
February 26, 2014, 10:30 – 13:00 hrs.
- Updated in April 2014 -
Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
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Table of Content:
1. General reflections on the status of the Russian Intimate Apparel Market
2. Development of Intimate Apparel exports from the member states of
EU-27 to Russia
2.1.
Benchmark EU-15 exports against EU-Eastern member states’ exports from 2008
until 2013, projection for 2014
2.2.
Benchmark of the 10 main intimate apparel suppliers, comparison of 2013 against 2010
2.3.
Benchmark of the 6 main product categories exports, comparison of 2013 against 2012
2.4.
Share of main product categories of Intimate Apparel against total EU-27 Intimate
Apparel Exports to Russia, Comparison of year 2013 to the crisis year 2009
3. Key indicators for the Russian Intimate Apparel Market 2014 p
3.1.
Projection on the shares of retail market value 2014 p per price segment
3.2.
Projection on the share of main retail channels against total retail market
value of € 4.429 million
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
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1. General reflections on the status of the Russian Intimate Apparel Market
•
Russian consumers of today have a rather need-oriented purchasing behavior
for intimate apparel and have developed a very rational price-quality
consciousness, which guides their buying decision to the lower-medium to
medium-priced underwear.
Fashion context, function and fit are secondary attributes which stand in
contrast to the hype around body culture, fitness-training and wellness
treatments.
•
The Retail Structure for intimate apparel is split between open markets for mass
consumption merchandise, domestic and international mono-brand chains
offering “affordable” lingerie, a few, but important, multi-brand chains selling
“better-to-premium” intimate apparel and privately owned multi-brand shops
and boutiques operating in the medium- to upper-medium price segments.
Department stores carrying large brand-oriented sections or concessions of
women’s lingerie and men’s outerwear, as found in the West, are lacking in
Russia. Instead, catalog distance retail and online retail are playing a
consistently growing role in the commercialization of intimate apparel.
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
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•
Import Distributors carrying multi-brand portfolios of intimate apparel still
play a dominant role in wholesale, serving over 1.000 independent shops,
often through a network of regional wholesalers.
This archaic system of distribution, which costs multiple re-sell margins, is
not really breaking up in any way because foreign brands still depend on
these distributorships.
•
Direct Purchasing of intimate apparel from foreign brands is complicated and
cost-excessive for independents due to numerous problems: prepayments
to the supplier, shipping and logistics plus customs clearing at own risk,
mandatory EAC certifications including hygiene certification for underwear.
•
Deficits at P.O.S. include weak ERP knowledge, HRP and CRM skills, visual
merchandizing, brand-building awareness as well as training of sales personnel
and event marketing.
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
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2. Development of European Intimate Apparel* Exports to Russia 2008-2013, 2014 p
2.1. Comparison of EU-15 versus EU Eastern Member States
Million
Euro
300
290
250
233
(-32%)
200
236
(+9%)
216
(-7%)
150
100
130
50
0
2008
110
(-15%)
2009
139
(+26%)
2010
186
(+34%)
2011
EU Eastern States
262
(+8%)
242
(+3%)
177
(-5%)
2012
147
(-17%)
2013
269
(+3%)
139
(-5%)
2014 p
EU-15
*Intimate Apparel includes: day- and night underwear for women, men, children; bras, shapewear,
corsetry; home- and loungewear; underskirts, pantyhose (tights) and swimwear for both genders
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
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2.2. EU-27 Intimate Apparel Exports to Russia by 10 Main Supplier Countries,
Comparison of 2013 against 2010
Million
Euro
140
2013
120
2010
100
80
60
40
20
0
Source: EFTEC
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
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Product Categories
2.3. EU-27 Intimate Apparel Exports to Russia by 6 Main Product Categories,
Comparison of 2013 against 2010, in million €
66.1
106.1
+ 60,5%
Pantyhose (Tights)
135.1
64.0
31.6
28.8
+ 54,4%
Circular knitted slips & underpants for women & girls (bottoms)
+ 83,0%
52.7
27.9
Swimwear for women & girls
40.5
12.8
- 56,0%
Circular knitted singlets & undervests for women & girls (tops)
48.8
+ 45,0%
2010
Slips, briefs, underpants including boxer shorts for men & boys
24.4
0
Brassieres, Shapewear, Corsetry
20
Source: EFTEC
2013
+ 91,0%
40
60
80
100
120
140
160
180
Million €
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
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2.4. Shares of main product categories of Intimate Apparel against total EU-27 Intimate
Apparel Exports to Russia, comparison of year 2013 to crisis year 2009
€ 343,5 Million
Homewear/
Bathrobes
for females
and males
7,2%
Day
Underwear
for males
6,7%
Swimwear
for females
and males
9,7%
Brassieres,
Corsetry,
Shapewear
15,2%
Other
Underwear
(Nightwear)
3,1%
€ 408,2 Million (+ 19%)
Circular knitted
day Underwear
for males
increased from
6,7% to 10,8%
Homewear/
Bathrobes for
females & males
fell from 7,2% to
5,1%
Tights fell from
42,8% to 15.7%
Tights 42,8%
Day
Underwear
for females
15,3%
Nightwear
fell from 6,7% to
4,5%
Circular knitted
day Underwear
for females
increased from
15,3% to
26%
Swimwear for
females & males
increased from
9,7% to 11,4%
2009
Source/ Copyright: EFTEC,
average nominal annual growth over four years, since 2009 = 4,75%
Brassieres,
Corsetry &
Shapewear
increased from
15,2% to 26,0%
20121)
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
_________________________________________________________________________________________________________
3. Key Indicators for the Russian Intimate Apparel Market
3.1. Projection on the shares of retail market value per price segment 2014 p
Retail Market Value per Segment / Market Share in % / Average Retail Price Points / Main Supplier Countries
€ 4.429 mn in Total
+ 3%
€ 443 mn. (10%) ↘
Luxury & Premium
€ 753 mn.
(17%) ↘
Italy
Luxury
RUB 4.800
Italy, France
RUB 3.900
Italy, Germany, France, Austria, Spain, UK
Upper Medium
Italy, Germany, France
RUB 2.000
Medium
€ 1.461,5 mn.
(33%) ↗
Ukraine, China, Turkey, Serbia,
Romania, Russian Production
RUB 900
€ 1.771,5 mn.
(40%) ↔
Baltic Republics, Belarus, Hungary, Russian
Production, Poland, Turkey, Hong Kong
RUB 800
Low priced Mass Market Segment (Share in Value!!!)
(Share in Volume is over 50%)
China, Vietnam,
Turkey
RUB 400
RUB
400
Source: EFTEC
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Lingerie Market Report Spring 2014
4th RLMF, February 26, 2014
_________________________________________________________________________________________________________
3. Key Indicators for the Russian Intimate Apparel Market
3.2. Projection on the shares of main retail channels against the total retail
market value of € 4.429 million
Category
Share in Value
Price Category
P.O.S. Numbers
Tendency
Open Markets, Mass Market, Trade Centers,
Kiosks
40 %
Low-end
3.300
↘
Multi-Brand Intimate Apparel & Legwear
Hypermarkets (Style Park)
5%
Lower-medium
> 50
→
Mono-Brand affiliated Retail Chains
(Intimissimi / Calzedonia, Incanto, Etam,
Milavitsa, TRIUMPH, Vis-á-vis, Defilé, H&M,
ZARA)
20 %
Medium
> 800
↗↗
Multi-Brand affiliated Retail Chains and
Department Stores (Triumph, Bustier, DIM,
Zolotaya Trekoza, Stockmann, Marks &
Spencer…
(Estel Adony, Dikaya Orchideya)
18 %
Medium-to-upper
medium, 2% Premiumto-luxury
> 500
↗
Independent Multi-Brand Retailers, smaller-tomedium regional chains and Boutiques (Salons)
(Parizhanka, Golfstream, Gelios / Jemini)
15 %
Medium
> 1.200 *⁾
↗
Distance Catalogue Retail and B2C
e-commerce (Otto Group, Wildberries, KupiVIP,
LaModa… )
6%
Medium
↗↗
*⁾ Increase of independent multi-brand Intimate apparel shops results from many regional wholesalers changing their business model to retail.
Source: EFTEC
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