Low entry threshold - for players with great patience
11.11.2015 7839

Low entry threshold - for players with great patience

The depreciation of the national currency against the dollar and the euro, the fall in labor costs, the flexibility of rental rates and the natural selection of the struggle for survival in the crisis open up great opportunities for foreign players. The threshold for entering the Russian market is almost equal to the smooth surface of the floor tiles of the shopping center.

Of course, European companies have a much better chance of seizing the opportunity, but not all of them either. As Daria Yadernaya rightly notes, “opening any business, whether in a crisis or in a booming market, means the first 12-18 months of work at a loss, since large initial investments in goods, shops, repairs and marketing seriously outweigh sales, even if customers and willingly come to shop. In this situation, there is no significant difference between starting a business in crisis or at the end of it. ”

We dare to assume that this is precisely why we are not now observing the massive entry of new foreign brands into the Russian market. Such phenomena are now perceived by local players as the basis for returning faith in the prospects of the market and hopes for an end to the crisis, rather than as new reasons for panic.

Optimists predict enlightenment on the horizon in a year and a half and pessimists in only five years. So newcomers, even the most affluent, will have to be patient. But to reassure themselves, according to Daria Nuclear, they will be able to think that "investing in recognition, mass coverage and brand formation - all this today will cost much more affordable than during the period of market growth." All who come to it now and stand firm will secure a basis for future growth and long-term advantages at a new stage in the country's development.

The depreciation of the national currency against the dollar and the euro, the fall in labor costs, the flexibility of rental rates and the natural selection of the struggle for survival in a crisis open up great opportunities for ...
3.3
5
1
1
Please rate the article

Materials on the topic

What is the mistake of suppliers of children's shoes in working with wholesale companies

The topic of the work of suppliers and wholesalers has been repeatedly raised on the pages of our magazine by Alexander Borodin, an expert in the sale of children's shoes, the manager of the Mila company. In an interview with SR, Alexander told why difficulties arise, what are the mistakes ...
18.07.2022 6871

How to work with marketplaces to avoid competition between the online assortment and the offline store

Many shoe retailers and manufacturers work with marketplaces today. However, this cooperation has both its pluses and minuses. One of them is the competition of the assortment online and offline, the outflow of real buyers to marketplaces,…
01.02.2022 8730

Brazilian shoe manufacturers invite buyers from Russia and CIS countries to business meetings in online format

From June 21 to July 2 in Russia and neighboring countries, online b2b meetings of the largest Brazilian manufacturers and Russian buyers will be held. The events are sponsored by Brazilian Footwear, a government program that ...
07.06.2021 9824

DEOX strengthens its market position

SR decided to find out what problems Russian shoemakers had to live and work with, and to ask manufacturers about their work in today's realities. This collection of materials will focus on the impact of the coronavirus pandemic on the domestic shoe business, ...
02.02.2021 10237

Lillian Roor, ARA Sales Director in Russia: “ARA Shoes strives to be the most high-tech manufacturer of fashionable footwear.

The German shoe brand ARA has been known and loved in Russia for a long time, since Soviet times. This year the brand will be 72 years old. The company has overcome the difficulties and challenges caused by the current coronavirus pandemic and continues to implement its plans. On the…
17.05.2021 15360
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning