People radically rethink their spending together and refused to purchase new items. In Russia, 90% fell clothing. This was announced by operator fiscal data “Platform of the CRF”. There is nothing surprising in the collapsed demand for jeans and dresses. All the shops of non-closed profile, and the incomes of the poor. However, the majority of the population has eliminated the need for new clothes: walk around the apartment, lying on the couch and to communicate by video you and in old clothes. And while the Russians spend money on food and medicine, players of fashion market bear huge losses imposed by the authorities of restrictions on the work, and from apathy and indifference of the consumers. From the effects of the pandemic, the sector is unlikely to quickly recover.
“the Volume of sales in money terms fell by 90% from the February level,” analysts estimated. According to Google and research company Ipsos, the Russian citizens not only reduced the purchase of clothes, but decided to save money on the acquisition of things. 37% of Russians are guided by what will be able to buy clothes less than once in three months, 21% of respondents are confident that we will be able to buy new things much less frequently than once a quarter. 26% of respondents refused to even think about buying clothes. Incidentally, the last for the month was 6% more. Last month also increased the number of Russians who have decided to shift to budget brands — more than 20%.
as a result, the clothing market losses faced literally everything from the smaller players in the segment of mass-market, ending with the “mastodon”, who owns one of the largest fashion brands in the world. In the fashion community reported a fall in revenue of 15% in the first quarter compared to the same period of 2019 and stated that large-scale preparations for uncertain terms of demand and future sales.
On a purely domestic market, the situation is no better. The owners of Russian clothing brands no longer pay the salaries of employees and forcibly sent staff on leave “at own will”. The company explicitly States that there is no money and to stay afloat they are no longer able to.
the Ministry has attempted to give us something to help domestic market. Organization of work with the enterprises of light industry is supervised by the Deputy Minister Viktor Evtukhov. On 30 April it became known that in less than a month he was able to transfer a significant part of Russian enterprises (including those that previously specialized but the production of clothes for sports and active rest) on the issue of personal protective equipment. But the assistance provided to producers, does not help the sellers of clothing.
According to first Vice-President of “OPORA Russia” Paul Segal, SEGment of fashion retail for the year could be reduced in Russia by 50%. “This is a global trend, all countries experiencing the pandemic, and a record drop in consumer demand for branded goods and the category “luxury”. Citizens pereorientirovanija to cheaper segments of the market, he says. Russian clothing retailers may lose from 450 to 700 billion rubles per year. Demand for expensive clothing things will recover for several years, and the share of the mass market will grow by 50%. The market may leave up to 30% of retailers in the segment of “luxury””.
it is Obvious that after the pandemic, expensive clothes and shoes and accessories will become absolutely inaccessible for many, as and travel, cars, real estate, and gadgets. Market experts are convinced that consumers will prefer to purchase items of clothing used and “second-hand”. The demand and turnover in stores specializing in “rags” obviously will increase.