The reduction of the middle class in Russia hit the shoe market
11.10.2016 2133

The reduction of the middle class in Russia hit the shoe market

Since the onset of the crisis, 14 million people have moved from the middle class to the lower-income class, as their expenses have grown faster than salaries, says a study by Sberbank Investment Research. According to the statistics presented, the share of Russians who consider themselves to be the middle class has declined over the past two years from 61% to 51%.

Since January this year, the average wage growth has been 1,6%. Inflation, according to Rosstat, gained 4,1% over this period. Thus, the fall in real income for two years amounted to about 15%, the study says. The shrinking middle class is putting pressure on the consumption of goods that are not essential. Demand for basic consumer goods decreased - residential real estate, household appliances, cars.

Traditionally, devaluation involves an influx of investors and the development of production, but this does not happen in the context of sanctions and uncertain economic prospects. As a result, industries such as clothing or footwear could not rise so much that import substitution developed, experts say. 

Since the onset of the crisis, 14 million people have moved from the middle class to a lower-income class, as their expenses have grown faster than salaries, says a study by Sberbank Investment ...
5
1
Rating

Latest News

LIMÉ opened a flagship in a mansion on Kuznetsky Most

The flagship store of Russian clothing retail LIMÉ opened on five floors of an old mansion built in 1903 on Kuznetsky Most Street in Moscow. The store occupied the space of the former Nike flagship. And even earlier in the 1940s. Here…
23.07.2024 75

Rendez-Vous launched cross-promotion with Ile de Beaute

Russian shoe retailer Rendez-Vous continues to launch cross-promotions with different companies from the retail sector. One of Rendez-Vous’s regular partners is the cosmetic chain “Ile de Beaute.” Two brands...
23.07.2024 95

Tom Ford changes creative director

Peter Hawkings, Tom Ford's longtime deputy who took over as the brand's creative director in 2023, has left the business, BOF writes, citing a statement from the Estée Lauder company. A successor will be announced in the "near future" -...
22.07.2024 254

Balenciaga promotes Rodeo Bag with the help of three star actresses

The advertising campaign for the luxury brand Balenciaga Rodeo Bag launched on July 18. Its main characters were three actresses - Isabelle Huppert, Kim Kardashian and Naomi...
22.07.2024 272

Adidas pulls out of sneaker campaign featuring Bella Hadid

A recently launched advertising campaign for Adidas Originals sneakers, the face of which was chosen by American supermodel Bella Hadid, unexpectedly found itself at the center of a public scandal. The ad caught the attention of the American Jewish...
22.07.2024 388
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning