Russian lingerie market outperforms European market

The Russian lingerie market is enjoying a stronger growth rate than its European counterpart. According to a study by the Fashion Consulting Group, the market exceeded 4 billion euros in 2011, while the lion's share of the market

in Russia (more than 50 percent) is made up of the lower segment.

According to Anna Lebsak-Kleimans, managing director at Fashion Consulting Group, the single-brand format of outlets has begun to develop more actively since the reduction in the share of mainstream retail in Russia during the past few years. «In the mid segment, there is parity between the single- and multiple-brand formats," says Ms Lebsak-Kleimans, "but judging by the tendency which can be seen in the market, this parity will very soon swing towards the development of single-brand stores in the very near future, taking into account that the growth rates of the latter are twice as high as those of multiple-brand stores."

At the recent Collection Première Moscow show, during a meeting between executives from various underwear companies, the fastest growth rate in Russia is currently in the budget, lower and middle segments rather than in the premium segment. The total number of sales points in the region is greater than in the major cities, however, globally the offer is focused above all on the cities, where customer's share of spending on underwear is higher.

According to those attending the discussion, one of the industry's priorities is to develop and grow the shapewear and fashionable underwear segment. According to the data from the global survey of Lycra, more than half of all Russians surveyed are unhappy with their figure, and over 90 percent of respondents are interested in buying body shaping garments.

"We are seeing a new trend, whereby women who do not need to drastically alter their figures nevertheless choose to wear shapewear because it gives them confidence," notes Arno Ruffin, head of the lingerie unit at Invista s.a.r.l.

Sergey Kusonsky, Milavitsa's Deputy Chairman of the Board, notes that his company also considers the shapewear market to be a growing one. "By the end of 2012, we will be producing body shapewear in a fashion line, and not only in a classic collection; this is to say that colour and additional designs will be added," he commented. "Do we see a future for corrective and fashionable underwear? Yes and no. We are apprehensive about the jump in prices that occurs when moving from classic models to more fashionable ones."

According to Giulio D'Erme, managing director of Triumph International, the phenomenon of body shaping lingerie may currently split off entirely from the fashion trend into a separate market segment. "One function is not sufficient to form a stable direction of business, it is above all a trend, and it is unknown whether it will continue. But when the elements of fashion and comfort occur, and products "for special occasions" transfer to the "everyday" category, a sustainable market segment is formed," says Mr D'Erme.

Currently, experts believe that the speed of development of the Russian lingerie market is making it attractive for foreign companies, stimulating competition in all segments of the industry. These days, it is difficult to enter the Russian market. And based on the strength of the Russian market, it is inevitable that a series of problems will occur when managing a business in the areas of logistics, communication and range planning.

"The Russian market is assessed by Western companies from the perspective of working in that market and from the perspective of its size. But when we say that the mid segment is growing, the mid segment is up, we mean that consumers are switching from flea markets to mainstream retail. And that gives the impression that the market is growing. And for some brands it really is growing," notes Sergey Kusonsky, "market growth is indeed increased thanks to the development of mainstream retail."

According to a study of the current status of the Russian market conducted by ITMM (Internationale Textilmarketing und Management GmbH), import volumes of underwear and corsets to Russia, as well as beach fashion, domestic fashion and women's legwear from countries that entered the EU first, grew by 7 percent to reach 71 million euros in the first quarter of 2012. A survey conducted at the CPM show showed the popularity of the new division of BODY&BEACH amongst the attendees. Many exhibitors managed to make many new business contacts on top of their existing customers.

CPM (Collection Première Moscow) is the leading Eastern European fashion show. It is held in the Russian capital twice a year.