Emerg­ing Mar­ket

Big op­por­tu­nity for ex­porters

Apparel Online - - Content -

Evolv­ing and Grow­ing Rus­sia… Big op­por­tu­nity for ex­porters

World’s largest na­tion ge­o­graph­i­cally (span­ning 11 time zones, be­ing the 6th largest econ­omy, boast­ing a pop­u­la­tion of 144 mil­lion with per capita GDP of US $ 8,840 in 2016)...

Con­sid­ered once the fastest grow­ing econ­omy among the top five grow­ing na­tions, as per World Bank, Rus­sian econ­omy is ex­pected to grow at a rate of

1.7 per cent in 2018 and 1.8 per cent in 2019. Al­though the growth is small, but con­sid­er­ing higher ex­ports and stronger do­mes­tic de­mands, the econ­omy is ex­pected to con­sol­i­date in the com­ing years. The in­ter­na­tional lender fur­ther main­tained that the up­com­ing 2018 Foot­ball World Cup will give a boost to the coun­try’s econ­omy fol­low­ing in­creased spend­ing by the lo­cal and for­eign con­sumers. The fluc­tu­at­ing in­fla­tion is also ex­pected to sta­bi­lize at around 4 per cent in 2018-19, it un­der­lined.

Euro Mon­i­tor In­ter­na­tional in its re­cent re­port claims that de­spite a 3-year un­in­ter­rupted de­cline in con­sumers’ real dis­pos­able in­come in Rus­sia, their eco­nomic op­ti­mism and con­fi­dence marginally in­creased in 2017. This be­came pos­si­ble due to the sta­bil­i­sa­tion of na­tional cur­rency ex­change rates and in­fla­tion slow­down.

The re­tail boom

The op­ti­mism is there for ev­ery­body to see with a host of re­tail­ers and brands flock­ing the Rus­sian mar­ket… If LK Ben­nett opened a (1,500 sq. ft.) store in Moscow’s Me­trop­o­lis Mall, so did Su­perdry and lux­ury brand Aquaz­zura as well as US denim brand Wran­gler (which opened a 979 sq. ft. Moscow store and is plan­ning a to­tal of 50 stores in the coun­try by 2020). The Swedish ap­parel re­tail­ing be­he­moth H&M has also opened 21 new stores in Rus­sia within a span of 12 months (till 30 Novem­ber 2017), in­creas­ing its Rus­sian chain to 134 branches now. Apart from Moscow and St. Peters­burg, the re­tail­ers are also now ac­tively look­ing at ex­pand­ing in the TierII cities such as Yeka­ter­in­burg, Nizhny Nov­gorod, Sa­mara and many more. Ac­cord­ing to ex­perts, this is not only a strong in­di­ca­tion

For deep pen­e­tra­tion in Rus­sia, ʻRus­sian Re­tail Weekʼ can be a good op­por­tu­nity. It is go­ing to be held from 6th to 10th June, 2018 at Moscow.

World’s largest na­tion ge­o­graph­i­cally (span­ning 11 time zones, be­ing the 6th largest econ­omy, boast­ing a pop­u­la­tion of 144 mil­lion with per capita GDP of US $ 8,840 in 2016), shar­ing close his­toric and eco­nomic ties with prom­i­nent Euro­pean and Asian coun­tries, Rus­sia is strongly emerg­ing as a po­tent mar­ket for re­tail­ers, man­u­fac­tur­ers and ex­porters, look­ing to cap­i­talise on its ris­ing pop­u­lar­ity. Af­ter more than a decade of roller­coaster ride – dur­ing its boom in the early 2000s, the value of the Rus­sian cloth­ing mar­ket soared from US $ 5 bil­lion (€ 4 bil­lion) in 2004 to US $ 46.6 bil­lion (€ 37.4 bil­lion) in 2005 to drop again sub­stan­tially to US $ 31.15 bil­lion (€ 25 bil­lion) in 2015 (in the back­drop of eco­nomic sanc­tions fol­low­ing the an­nex­a­tion of Crimea). How­ever, it rose again to touch US $ 43.2 bil­lion in 2016 and is still now show­ing signs of pick­ing up fol­low­ing ap­par­ent re­bound­ing of the Rus­sian econ­omy.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.