Big opportunity for exporters
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.