Lamoda and Yandex Advertising Research: Fashion Brand Promotion Strategy

Lamoda and Yandex Advertising conducted a joint study and described the trends in the strategic development of local fashion brands. The study is based on a survey of 261 representatives of large and medium-sized fashion retailers; to analyze the customer perspective, a survey of 1500 buyers was conducted, supplemented by an analysis of demand on the Lamoda platform.

Digital platforms are a priority

According to the survey, 55% of buyers buy clothes, shoes and accessories only online. The market is shifting towards e-commerce - only 15% of respondents noted that they buy more often in offline stores. The data is confirmed by INFOline statistics for 2024: 53% of clothes, shoes and accessories are sold online, and by 2030 the online share in the category will reach 80%.

Fashion retail sees online channels as a key growth area. 70% of brands plan to develop their website and mobile app, expand sales channels and enter marketplaces in the next three years.

Growing has become more difficult and this changes the strategy from scale to focus on the product and flexibility in channel management

Growing has become more expensive: every fifth brand (21%) noted a decline in sales in 2024. But among those who adapted strategies to the new market context and continued to move forward, 57% of independent fashion brands reported an increase in turnover.

The key growth drivers are not scale, but product and flexible channel management: 23% of respondents expanded their product range, 22% increased their presence in new sales channels. Every fourth mention of growth factors is about the development of their own distribution channels: launching online stores, opening offline points, connecting BNPL, improving user experience.

The product range becomes a lever for managing brand growth through differentiated offerings. The “Everything Everywhere” model is being gradually abandoned, and the focus is shifting to a flexible, selective distribution strategy. 52% of brands distribute products across channels taking into account the characteristics of the site and target audience. 42% of respondents release limited product lines:

● 44% allocate separate collections for niche marketplaces,

● 42% - for your own website,

● 30% — for offline stores.

For example, 70% of respondents can sometimes ship a more affordable assortment to a number of universal marketplaces: goods from previous collections or mid-price segment items. This way, brands do not blur the audience's perception, maintaining status positioning in priority channels - in independent e-com and offline, without reducing overall profitability at the expense of other channels.

However, in some cases, a marketplace can become an effective platform for attracting, among other things, a premium audience and introducing new collections. This is evident in the example of Yandex Market, which launched the Ultima service in the fall of 2024.

Pricing strategy

Three pricing models dominate among respondents:

● 46% regularly use discounts and promotions,

● 38% give discounts only to loyal customers,

● 36% change prices depending on the sales channel or region.

A third of respondents reported that their strategy is to set prices higher than the segment average. 23% of respondents rarely reduce prices: they only hold closed sales or offer personal discounts to loyal customers. At the same time, 51% of brands set uniform prices for products for all distribution channels, and the rest set different prices depending on the channel.

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Complexity and competitive advantage

The number of fashion brands continues to grow, and the competition between them is becoming tougher. As reported by research Kontur.Fokus, as of January 2025, 36,9 thousand clothing manufacturers were registered in Russia, which is 18,03% more than in 2021. The buyer has become more selective and expects high-quality service, reasonable prices, discounts and bonuses. The cost of attracting customers is also growing: social networks are changing the rules for displaying publications, and only paid promotion methods bring results.

Price wars between brands continue. Exchanging discounts predictably leads to dumping and losses. But companies are moving away from this strategy: 89% of the brands interviewed agreed that it is more important for a fashion brand to offer a unique experience and a quality assortment than to compete solely on price.

Ways to differentiate yourself from competitors

A strong brand is an opportunity to stand out in the market and build customer loyalty. 70% of companies noted the high quality of materials, practicality and quality of tailoring as a difference from competitors. At the same time, independent ecom differentiates itself from marketplaces due to its uniqueness: the depth of the assortment, expertise and service.

The survey proves the hypothesis that people follow a brand. 7 out of 10 buyers are loyal to certain brands, and 40% choose only trusted manufacturers. At the same time, every fifth respondent is ready to pay extra for natural materials, custom orders, brand, exclusive design and handwork.

The buyer is willing to pay extra for a designer item

Interestingly, according to Lamoda, sales of designer brands with a strong DNA in some product categories are growing twice as fast as the main assortment on the platform, even with a check 47% higher than the average. Buyers are ready to pay extra for designer outerwear, dresses, trousers, knitwear, jeans. Even if they need to reduce costs, only 25% of respondents are ready to give up their favorite brand. The rest will try to find other ways to buy a product from a trusted manufacturer. In a situation where they like the product, but the price is too high, only 17% of respondents will refuse to buy it. The rest will try to buy the product: find a discount, wait for a sale, pay using BNPL.

60% of respondents claim that the shopping experience influences the decision about the next purchase. Polar age groups have their own quality standards: young people want to receive quality service, recommendations on selection, innovative services. For people over 45, it is important to try on the product before buying, exchange it or return it under warranty.

The most active buyers are older people

The mature age segment is becoming a strong growth driver as the most undervalued by brands, as this audience remains unclaimed by brands. The study confirms that women aged 36-50 and men aged 41-60 are the most dynamic age groups on Lamoda in terms of growth in purchasing activity and average check. Mature people are ready to spend more, buy premium goods and plus size products.

But the fashion business continues to focus on young people. According to Yandex Advertising, advertisers most often target media advertising at middle-aged audiences — 25 to 34 years old and 35 to 44 years old. These groups are included in the targeting of more than 90% of campaigns. The age group 45-54 is chosen less often — in 74% of cases, and the audience 55+ is included in only 46% of campaigns — this is less than the share of targeting for young people 18-24 (57%). Only 31% of advertisers choose all five age groups of coverage. The rest often limit themselves to three or four segments.

In a changing market environment, brands are rethinking growth: instead of rapid development, they are focusing on sustainability and control. To maintain their positions and remain visible to the audience, independent fashion retailers are betting on brand development, increased distribution, and targeted work with channels. High-quality goods, assortment management, and a flexible pricing policy help to differentiate themselves from competitors.

Independent ecom — a market for online sales through own channels: for example, omnichannel retail, DTC platforms, online brand stores, niche marketplaces, etc. Independent ecom also includes niche marketplaces — multi-brand platforms with a narrow specialization, where brands of one or a couple of related niches are sold.

Lamoda – a leading fashion retailer, combining an online platform with an assortment of more than 4 global and local brands, an editorial content section “Ideas”, as well as Lamoda Sport retail stores, where an assortment of global sports brands is presented. Lamoda’s portfolio includes three own brands: women’s Nume, men’s Mademan and footwear Founds. Lamoda is represented in Russia, Belarus and Kazakhstan.