Closed, opaque and in no hurry to change

The state of the retail shoe market

The Russian retail footwear market is at the development stage. It is characterized by:

- low but growing level of consolidation and concentration of the retail shoe market;

- average level of competition;

- opacity and closure of the retail footwear market;

- the absence of large-scale lending transactions for shoe retail operators and precedents for their IPO;

- the absence of leaders in the global retail footwear market in Russia (Bata failed in the Russian market), at the beginning of this year Brown Shoe entered Russia with one of its Naturalizer brands. Only at the end of this year, the first Payless stores of the American Collective Brands corporation opened. Accordingly, it is too early for the global players to make any conclusions.

The low level of consolidation of the Russian retail footwear market characterizes a large number of small players (more than 250 footwear chains only) and their relatively low turnover. Even large players control no more than 2–3% of the market.

LLC Trading House Spartak Kazan and LLC Obuv Rossii remain the first and only companies that publish financial statements and are presented on the open financial market.

Mergers and acquisitions in the shoe market during the 2001 – 2008 years were single, and in the 2009 year, which became a crisis for the Russian footwear industry as a whole, were completely absent. In 2009 - the beginning of 2010, this process slowed down significantly. In this area, open sources note two significant events: the acquisition by the Monroe chain of stores of the Pedometer chain and the entry into the Russian market of the Payless ShoeSource network.

In general, the market trend of 2008 of the year - the emergence of new networks - is replaced by a process of closure and redistribution. The retail shoe market is still under saturated. The reduction in the share of uncivilized shoe sales channels (about 42% in 2009) cannot be called significant, but this process is steadily continuing (in 2007, 49% was sold through clothing markets).

Among the long-term factors affecting the development of the shoe market, three key ones can be distinguished: the growth of population incomes, a qualitative change in the culture of shoe consumption and the development of the quality retail property market. Accordingly, customer requirements for shoe quality and service in stores are growing. And shoes themselves turn into an instrument of self-expression, a sign of belonging to a particular social group. Following them, the requirements of store owners for developers opening shopping centers are growing.

Sales channels

The following sales channels can be distinguished in the Russian retail footwear market: a specialized store / shoe network, a grocery supermarket / hypermarket, an open clothing market, a department store, distance selling by catalogs or via the Internet.

Clothing markets continue to exist, but their share is declining - by the beginning of 2010 of the year it amounted to 42%.

In grocery supermarkets (Auchan, Pyaterochka, Metro, Ramstore, Mosmart, Marktkauf), low-price shoes are most often sold. As a rule, the range is limited to domestic and beach shoes. The share of this channel in the total sales is minimal. According to experts, shoes at the grocery store are a spontaneous purchase, and the functionality of the product is most important for the buyer.

In formats of this type you can find the brands Gavary, Adelfia, Rox, De Fonseca, Rider, Grendha, Biti's. Moreover, the exclusive sellers of these brands do not have their own retail networks.

Department stores in Russia received their dynamic development only in recent years. Shoes in them remains a secondary commodity. Despite the growing number of department stores, their contribution to the sale of shoes is unlikely to increase significantly due to a number of factors, including the variety of formats for selling shoes in megacities and the potential of specialized shoe supermarkets noted by experts.

Electronic shoe sales have been growing over the past two years, and this trend will continue. According to AC Nielsen, such a category of goods as shoes, clothes and accessories, in 2009, was in second place in terms of purchases by Internet users and amounted to 24%. In 2010, the situation is similar.

Paper catalogs remain in demand in small towns and rural areas most often among older people. This is due to the relatively weak development of stationary non-food retail trade. Among the users of distance trading, 61% live in settlements with a population of less than 50 000 people, while the total number of such residents in Russia is 55%; 40% of buyers are rural residents.

Retail Formats

Currently, the following shoe trading formats can be conditionally distinguished in the Russian retail shoe market: shoe hypermarket, shoe salon, shoe supermarket, casket, boutique and stock store. It should be noted that most shoe chains are multi-branded. The most common shoe store formats are “shoe supermarket” and “shoe salon”.

Network trends

A widespread trend among shoe chains is the tendency to produce shoes under their own brands (private label). This increases profitability. According to experts, the retailer in this case can earn 10 – 15% more than when selling goods under third-party brands.

Advertising

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Private label allows you to independently position products, manage customer loyalty, reduce dependence on manufacturers / distributors, have an exclusive product.

The development of franchising in the shoe market is far behind the clothing market. Shoe networks are developing “commodity franchising”, the main purpose of which is to market products.

Shoe retailer segmentation

Conventionally, in the Russian shoe market, five main types of shoe chains can be distinguished: global (Russian “subsidiaries” of international chains), federal, regional (operates in one region), local (operates in one federal district, less often in several) and the capital. The main criterion for determining the type of network was the geographical distribution of its outlets. It should be noted that the structure of the shoe retail market over the past 2 years has not changed. According to RosBusinessConsulting, the share of federal shoe chains on the market at the end of the first half of 2010 was about 54,7% (almost 1 percentage point less than in 2008 year). In second place in terms of number are local chains selling shoes. Least of all are metropolitan and regional networks.

Biggest shoe retail players

The leaders in the number of outlets in the Russian retail footwear market are CenterObuv (331 store), Ecco (218) and Unichel (170) chains. Only branded retail and franchised stores were taken into account (corners and shop-in-shop were not included in the review). In 2008, the Tervolina chain was in third place, the number of stores in 2010 was reduced by 24 units. At the closure of "Tervolin" was on

first place. Also, during the analyzed period, they closed their stores in Footterra (18 stores), Ionessi, Zenden, Monarch (on 17 points). The networks of Ralf Ringer (open 2008 store), Respect Yourself (2010) and Heelys (62) grew faster than others during the period from the second half of 60 to the end of the first half of 54.

Most retail players in the Russian shoe market today do not have a clear positioning and differentiation. As the results of the RosBusinessConsulting study showed, almost all shoe chains offer similar products for a wide range of consumers in multi-brand stores.

Currently, it is almost impossible to distinguish brands of shoe chains in the mass market. To those at the federal level, experts rank only Ecco and Ralf Ringer. From region to region, the level of knowledge and loyalty to different brands of networks varies. The presence of a brand, and, consequently, a clear positioning, is a prerequisite for the competitiveness of the shoe network.

Forecast for 2011: the stage of increasing the number of outlets is ending, working with the buyer will become a priority for market players.

In the regional cutaway

On the whole, the civilized retail footwear market in Russia is at the stage of development, and not one of the markets of the subjects of Russia has reached its saturation. We can note a different level of competition in a particular regional market, which is characterized, inter alia, by the number of players.

The leader in regional development today is the Ecco shoe chain - its stores are open in 57 constituent entities of the Russian Federation. In second place is the CenterObuv network (51 entity), in third is Chester (45 entities of the Russian Federation). In general, there were slightly more chain stores in the 2010 year in the regions: if in 2008 there were 45 networks operating in 5 and more regions, then in 2010 they became 49.

The Central Federal District is the leader in the number of shoe chains and chain stores: 118 chains (versus 95 in 2008) and 1765 chain stores (their number has increased by 2008 since 222). In general, the rating of federal districts in 2010 did not change.

Mini

Among the cities with a population of 100 thousand people and above, the Moscow Region has the best shoes: Elektrostal (14,4 stores for 100 thousand people) and Orekhovo-Zuevo (14). In third place is St. Petersburg (12,7). The leader of the 2008 of the year Vladivostok has moved to the 9 place. For understanding - all cities were miscalculated uniformly, therefore Elektrostal appeared near St. Petersburg.

Medium

Among the cities with a population from 100 to 500 thousand people, Elektrostal (100 stores at 14,4 thousand people) and Orekhovo-Zuevo (100) are the leaders in the number of network shoe stores for 14,0 thousand inhabitants. The smallest supply of population with chain stores in this group of settlements - less than 1 stores for 100 thousand people - in the cities of Prokopyevsk, Magadan, Seversk, Kyzyl, Novokuybyshevsk, Murom, Bratsk, Belovo, Makhachkala, Vladikavkaz. Compared to the 2008 year, the list of low-income chain stores in cities increased (in the 2008 year, only Vladikavkaz was such).

Maksym ANTONYUK

Among the cities with a population of 1000 thousand people, St. Petersburg (100 stores, 2008 in 12,7), Yekaterinburg (11,8 versus 2008 in 10,7, the leaders in the number of network shoe stores for 9,7 thousand residents, as in the 2008 year). ) In third place is Moscow (10,0), which has replaced Kazan (9,6 stores for 100 thousand people in 2010, 9,4 in 2008) in fourth place. Omsk, Chelyabinsk, Ufa and Volgograd have the least provision of the population with chain stores in this group of settlements - less than 8 stores for 100 thousand people.

As for the subjects of the Russian Federation, among them the leaders in the number of shoe chains are Moscow (110 networks, 95 in 2008) and St. Petersburg (98 networks, 104 in 2008). In the 2008 year in Russia there were 14 regions in which there were 5 or fewer shoe networks. In 2010 such regions, 10 remained. These are the Republic of Buryatia (4 networks), the Yamal-Nenets Autonomous District (3 networks), the Amur Region (3), Tuva (2), Altai (1), Magadan Region (1), Chukotka Autonomous Region (1). There are no network shoe retailers in the following regions of the Russian Federation: Chuvash Republic, Karachay-Cherkess Republic, Komi-Permyak Autonomous Okrug, Nenets Autonomous Okrug, Ingushetia, Chechen Republic, Jewish Autonomous Oblast.

Most of the chain shoe stores in St. Petersburg have 12,7 stores for 100 thousand residents (11,8 in 2008) and Moscow - 10,1 stores for 100 thousand residents (9 in 2008). This is followed by the Novosibirsk region - 5,1 chain stores for 100 thousand inhabitants (the indicator has not changed since 2008) and Tatarstan - 4,6 stores (in 2008 there were 4,5).

The least provided with chain shoe stores - less than one store for 100 thousand inhabitants - Tver region, Yakutia, Komi, Zabaykalsky Krai, Buryatia, Kurgan region, Magadan region, Ulyanovsk region, Yamalo-Nenets Autonomous District, Jewish Autonomous Region, Mordovia, Tyva, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia-Alania, Dagestan, Chuvashia, Komi-Permyatsky and Nenets Autonomous Districts, Kalmykia, Ingushetia, Chechnya and Altai. The average provision of Russians with chain shoe stores is 3,3 stores for 100 thousand residents.

It pleases - because shoe companies have room to grow.