Rieker
Russians shoe Poles
07.12.2011 2410

Russians shoe Poles

The largest Russian footwear retailer, Tsentrobuv, is trying to launch its Centro network in the markets of Poland and Ukraine

Seven Centro brand stores opened in the second half of this year in Poland, six more in Ukraine, Tsentrobuvi CEO Andrei Nesterov told Vedomosti. In Poland, he said, the network operates on a franchise: “We don’t want to take much risks and are exploring the market.” Next year, according to him, the company intends to bring Centro to other markets in Eastern Europe - the Baltic States and Slovakia.

In Europe, there are virtually no shoe retailers that work in the same format as Centro, says Nesterov. This format is called fast fashion and is aimed at an audience of 17-25 years. Closely following the latest fashionable models, Tsentrobuv quickly copies them and launches them in Chinese design at a very affordable price. A pair of women's shoes is in Centro 300-400 rubles, boots are about 800 rubles, bags are from 400 to 600 rubles. “The strength of Centrobuvi is not only in the format, but also in a very high expertise in working with Chinese suppliers, in established deliveries. In terms of purchasing power and the final price that the network can provide in retail, it probably has no competitors in Europe, ”says Mikhail Burmistrov, director of Infoline Analytics.

“Tsentrobuv” is the first Russian shoe retailer to step further than the CIS, Burmistrov says. An electronic store chain Eldorado tried to work in Poland: in 2000, it opened a hypermarket in Warsaw, but two years later sold it to the German Media-Markt. In Western Europe, according to Burmistrov, only one Russian retail company is well represented - re: Store Retail Group, which has 25 single-brand stores with Apple appliances in Germany, Norway and Denmark.

“The average check of European stores is about the same as in Russian, revenue per square meter is higher, but the structure of margins and costs is completely different,” says Tikhon Smykov, CEO of re: Store. In Europe, he said, rental costs are lower, infrastructure is more affordable, but personnel are noticeably more expensive. “The competition in European retail is much higher and therefore profitability is lower than in Russia, about two to three times. There EBITDA margin in 2-3% is the norm, as for Russian networks it is in 6-8%, ”he explains.

Spreading business from high-income Russia to low-income Europe, the Russian retailer can pursue representative goals - to acquaint investors with their business, said TKB Capital analyst Natalya Kolupaeva. "Tsentrobuv" does not hide that it wants to conduct an IPO - in London or Hong Kong. “If investors recognize the brand, know that the business geography includes Europe, understand the format the company works in, this will simplify communication and can help make a successful placement,” Kolupaeva said. About this newspaper Vedomosti.

The largest Russian footwear retailer, Tsentrobuv, is trying to launch its Centro network in the Polish markets and ...
5
1
Rating
Euro Shoes Exhibition

Latest News

Floral flip flops featured in Melissa x Larroudé collaboration

Brazilian plastic footwear brand Melissa has collaborated with 2020-born premium footwear brand ...
08.12.2021 74

Prices for clothes and shoes in 2021 increased by 10-15%

According to Fashion Consulting Group, prices for clothes and shoes in Russia in 2021 increased by 10-15%. The reason for the rise in price is the growth of costs associated with production and logistics. It is assumed that the trend for the rise in the price of fashionable goods may ...
08.12.2021 82

Louis Vuitton boutiques showcases decorated in Virgil's Sky colors

Around the world, Louis Vuitton boutique windows now display fuzzy transverse multicolored stripes and the slogan "Virgil was here." Thus, the luxury brand pays tribute to its creative director, talented designer Virgil Abloh, ...
07.12.2021 88

Wildberries begins development of partner logistics centers

Online retailer Wildberries announced the start of cooperation with a Russian business to open partner logistics centers. The first three partner sorting centers have already begun work in Moscow, and in the next few days several objects will start operating in ...
06.12.2021 151

Converse Chuck 70 sneakers digitally hit the digital fashion marketplace

Members of the local Converse All Stars community, in collaboration with the designers of the Sxema3D studio, have created a digital version of the iconic Converse Chuck 70 sneakers and placed them on the Russian digital fashion marketplace ...
06.12.2021 130
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning