Electricity Supplier Sales Growth Speed Up Price Competition Spawned Discount Stores

< p > 2012, the growth rate of clothing sales in Eastern Europe reached 12%, becoming a highlight in the global apparel market competition.

According to statistics, Russia's clothing sales in 2012 amounted to 69 billion US dollars, and it has surpassed Italy and France, becoming the third largest garment market in Europe after Germany and Britain.

< /p >

< p > although compared with Western Europe, the overall clothing market in Eastern Europe shows bright prospects for rapid growth, but further analysis in the industry indicates that there are still huge regional differences behind this exciting prosperity.

In 2012, Russia became a leader in the fast growth of the apparel market, and sales of clothing achieved a two digit growth.

By contrast, the performance of other garment industries in Eastern Europe is different: Ukraine's GDP grew by 8.2% in 2012, and the consumer confidence index was greatly improved.

Compared with this boom, Czech's clothing market has suffered from a series of problems, such as economic difficulties, weak domestic demand and relatively slow export growth, and the market size has shrunk by 2.2%.

In the future, can the electricity supplier lead the development of Eastern European clothing market? Is fast fashion the last terminator of the retail industry growth mode? < /p >

< p > < strong > distribution mode boosts sales < /strong > /p >

< p > in fact, compared with the more diversified clothing market, the performance of designer clothing has been poor.

For luxury brands, the current situation does not mean that it is booming. Recently, the growing prosperity of Russian apparel industry is mainly driven by other consumers, such as non brand, standard economic brand and loyal consumers of regular distribution channels.

< /p >

(P) with the growing popularity of the Russian open market and market stall sales, the spontaneous retail industry has dominated the sales of the clothing industry in the country.

In many towns and villages in Russia, the open market is still the most extensive gathering place of no brand and imitation shoes and clothing products.

< /p >

Similar to P, it is also common in Ukraine.

Brand clothing tends to become a big city, because it is the mainstream market of all kinds of clothing sales industry.

But in rural areas, consumers still prefer outdoor markets such as traditional rural fairs, because there are a large number of affordable and practical groceries and small brand clothing products.

However, in recent years, because of the expansion of global international brands, especially the emergence of all kinds of brand stores with rapid development momentum, this traditional distribution model is experiencing a great test and change.

The open-air market (other non grocery retailers) has gradually become indispensable or irrelevant from the indispensable and attractive role. In 2012, the share of clothing sales in these markets dropped from 61% in 2007 to 54%.

< /p >

< p > < strong > electricity supplier sales growth accelerated < /strong > < /p >

< p > 2012, online retail sales in Eastern Europe accounted for 3.7% of the total retail sales of the market, compared with the 8% of the relatively mature Western European market, the growth rate of online retail sales has been significantly accelerated.

In Eastern Europe, the most powerful country in Internet retailing is Poland.

In 2012, retail sales in Poland accounted for 5.6% of the total sales.

In 2012, the online consumer confidence index of Poland increased significantly, and the legality of commodities was also guaranteed. All of these constituted the key factors for the rapid growth of online stores in China.

< /p >

< p > however, in other markets in Eastern Europe, online sales channels will still be questioned.

For example, most consumers in Czech continue to be cautious about Internet retailing. Even if they try, they will only be able to avoid disappointment and economic losses if they fail to meet expectations by buying less expensive daily necessities, such as tops or clothing accessories.

< /p >

Lamoda, one of Russia's largest online retailers, has recently announced that its sales volume is up to US $130 million last year, which shows the great potential of Russian apparel e-commerce. P

Taking this opportunity, the British girl shop Asos shop decided to open up the Russian market and completed its official entry in May 2013.

Ranked first in Spain, Inditex, one of the world's four largest fashion chains, refused to follow suit and decided to complete the Russian online store in 2013.

At the same time, Russia's vast land area and underdeveloped infrastructure also pose a challenge to the physical retail industry, providing consumers with opportunities for consumption in the remote provinces of Russia and the limited area of retail stores. Therefore, it is also reasonable for the online retail industry to become increasingly active in the country.

< /p >

< p > < strong > price competition leads to discount shop < /strong > /p >

In Eastern Europe, due to the differences in resources, environment and market size, Russia has become the leader of the rapid development of the garment market. While some other countries and regions still have to face the disadvantages of unfavorable economic conditions. In order to gain market survival rights, Eastern Europe has begun to imitate the price competition model in Western Europe. P

< /p >

The relatively low price of bulk products purchased by P is also a challenge to retailers in price competition.

Frugality and parity began to prevail, which also gave rise to the growing popularity of discount stores, such as Pepco, Textil Market, Poland shoe company CCC, and low-cost grocery retailers Lidl and Biedronka.

< /p >

< p > consumers' enthusiasm for buying free brands has also encouraged the development of Tesco's brand F&F, which operates 3 independent stores in Czech Republic and Poland.

It is reported that in 2012 Tesco clothing sales increased by 12%, greatly expanding the brand's local influence.

In addition, the higher price sensitivity of consumers also spawned the development of international Internet retail and discount websites, especially in Czech.

< /p >

< p > < strong > fast fashion encounter local competition < /strong > < /p >

< p > because Eastern Europe has similar geographical position and cultural characteristics, Eastern Europe has provided strong growth opportunities for the growth of pnational brands.

< /p >

P fast fashion brand is also a leader in the wave of international expansion.

As of May 2013, Inditex has 345 branches in Russia, reaching the most retail market expansion in Europe, and opened 75 stores in 2012 alone.

< /p >

< p > however, despite the success of fast fashion in Eastern Europe, no one can guarantee that rapid expansion is the best selling mode in the international market.

For example, Bestseller, one of the largest fashion groups in Europe, has a fashionable brand Jack & Jones and Vero Moda suitable for young people. At present, the group's stores in Hungary are unable to withstand the pressure of competition and are scheduled to withdraw from the market in 2013.

< /p >

< p > international brands are also facing fierce competition from local enterprises. This is especially evident in Poland. Poland's only clothing sales listed company LPP is highly sought after by female consumers. The company currently has 217 retail outlets, and is considered to be the representative of high quality, the latest fashion and the super parity of clothing products, so it is a fatal threat to the international brand ZARA.

< /p >

According to Euromonitor, the world's most authoritative market research firm, by 2017, the size of the Eastern European clothing market is expected to grow to $24 billion, becoming the most dynamic region in the world after the Asia Pacific and Latin America.

However, more than 70% of sales growth will come from Russia.

Eurozone also said that by 2017, the country will surpass Germany and Britain to become the largest clothing market in Europe.

The garment market in other regions will continue to face a fragile economic recovery.

And fierce price competition will continue. Clothing distribution mode is mostly fast fashion shop, discount shop, export shop and Internet retailer.

< /p >