Baby products market will slow down
The socio-economic situation in the Russian Federation in the near future will inevitably affect the children's goods market, despite the fact that this is one of the most dynamic industries. This was announced at the IX All-Russian Trade Forum "Supplier of Children's Products", which was held as part of the exhibition "World of Childhood". So far, the market, which has a capacity of 600 billion rubles, is saved from negative influences by a good demographic situation and the fact that they are the last to save on children.
According to a survey by RBC Research, the majority of children's goods chains (about 90%) for 8 months of 2014 recorded an average 12% increase in turnover in rubles compared to the same period of 2013.
According to studies of experts and analysts gathered at the Forum, market growth in 2015 will slow. Already, the lack of growth in household incomes with increasing costs and rising inflation has led to the fact that price has become a decisive factor in choosing a product. The prospect of ending the transition period of accession to the WTO and, accordingly, creating more comfortable conditions for foreign children's goods requires the development of competitive measures, and an increase in the average age of parents of children makes a more balanced and thought-out sales policy necessary.
According to Aleksey Voskoboynik, Deputy General Director for Strategy and Analytics of the Detsky Mir group of companies, now "it is necessary to keep prices at a minimum and fight for the consumer." Including, reducing own costs by automating many processes and adding an entertainment part for buyers during sales. This is the policy followed by Detsky Mir, whose revenue over the past year has grown by almost 30%. The plans are to open 40 new stores annually.
Over the year that has passed since the previous Forum "Supplier of Children's Products", organized by KVK "Empire", significant changes have taken place on the economic map of Russia, the organizers summarize. The weakening of the Russian ruble, the subsequent rise in prices and a drop in consumer demand, increased competition with foreign companies - this is not a complete list of problems that are of concern to the heads of companies supplying children's goods today. In total, the Forum was attended by over 250 people from 50 cities, buyers from 40 retail chains.
The socio-economic situation in the Russian Federation in the near future will inevitably affect the market for children's goods, despite the fact that this is one of the most dynamic sectors. This was announced at IX ...
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