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During the crisis, Russian manufacturers won only 5% of the shoe market
14.01.2011 2255

During the crisis, Russian manufacturers won only 5% of the shoe market

The economic crisis in most cases negatively affected the state of many markets. However, the production of domestic shoes was an exception, reports in its study "Express Review" (www.eo.ru) Due to the sharp rise in price of imported products, the demand for shoes has shifted towards cheap domestic brands. So, according to official statistics, the production of shoes in Russia in 2008-2009. not only did not decline, which was regularly observed before the crisis, but even increased slightly. In total, in 2009, 57,5 million pairs of shoes were produced.

At the same time, despite a slight recovery in domestic footwear production and a sharp increase in prices for imported products, the presence of foreign footwear in the Russian market was still significant. Domestic manufacturers were able to win only 5% of the market at the end of the 2009 year.

The economic crisis has seriously affected competition in the shoe market. A drop in sales, a decrease in revenue, and an increase in the debt burden amid rising credit prices forced some shoe chains, especially small ones, to leave the market. The advantage was gained by large Russian retail chains having established relationships with partners and a constant audience of customers. In addition, the impetus for development was received by discounter chains, which expanded their audience at the expense of customers who moved from the middle and high segments. But even those who remained in the market had difficulties. For example, in order to reduce accounts receivable, Monarch Group ceased wholesale sales to other retailers (their share in turnover was 10%), Econika refused part of the men's assortment, opting for the best-selling women's shoes, Obuv Rossii, Monroe Group of Companies and Tervolina increased the share of low-price products. If we talk about the pace of expansion of networks, then the players behaved differently. For example, Tsentrobuv purchased the Bonita network (Moscow, 16 stores) and Obuv-Shock (St. Petersburg, 8 stores), Monroe Group - the Pedometer network (10 stores) near Moscow, and Tervolina closed 50 least effective stores. Summing up the crisis period, we can distinguish the most common actions taken by networks to optimize performance:

· Reduce the number of stores. Orientation to the most profitable points.

· Assortment optimization: reduction of commodity units, focusing on the most popular models, increase in footwear of an economic segment, increase in women's shoes in assortment.

· Cost reduction: rent for shops, advertising, staff salaries, administrative expenses.

· Launch of loan and installment purchase programs.

· Orientation to Chinese wholesalers, providing the best market conditions for deferred payments and return balances.

Speaking of imports in the footwear market, it is worth considering the presence in the market of illegal products. According to the Express Review, in 2009, the share of gray imports amounted to about 32% in physical terms. However, recently there has been a trend "whitewashing ”the market. For comparison, in 2006, gray imports accounted for almost 60% of the market.

Domestic footwear is mainly exported to the CIS countries, while the share of exports among Russian shoes is negligible. The main consumers of Russian shoes are Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan and Ukraine. At the end of 2009, these countries accounted for slightly more than 50% of total exports.

Decrease in the income level of the population in 2008-2009 seriously affected the consumption of shoes in Russia. In 2009, the demand for shoes (including the shadow sector) in Russia fell by almost 28% in physical terms, reaching the level of 2005 of the year. Soon expect a quick stabilization of the Russian shoe market. Despite the fact that the market will reach the pre-crisis level no earlier than 2013 of the year, the growth rate in 2010-2012. will be double-digit. According to the Express Review, the main trends of the 2009 of the year, such as a decrease in the share of imports in the market and an increase in demand for domestic products, are temporary. Already at the end of the 2011 year, imported shoes will again begin to regain the lost in the 2009-2010 years. position.

The economic crisis in most cases negatively affected the state of many markets. However, the production of domestic shoes was an exception, according to a study ...
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