ALL OF WARC
ALL OF WARC
Pinpoint the case evidence you need – search by industry, objective, media and more.
Case summaries showcasing leading brands achieving key marketing objectives.
Creative TV and video executions from the most innovative and market-leading brands.
Browse campaigns from the world's leading advertising and marketing effectiveness awards.
The latest from our annual case study competitions.
Rankings of the world's most effective agencies, advertisers and brands.
Industry Topic Pages
Shortcuts to the latest industry-focused information and insight.
Apparel & Accessories
Government & Non-profit
Household & Domestic
Media & Entertainment
Pharmaceutical & Health
Toiletries & Cosmetics
Travel & Tourism
Subject Topic Pages
Shortcuts to the latest information
and insight by subject area.
Overviews of leading brand owners, and guides to key issues and tasks.
Browse all articles, papers and case studies by subject.
Latest reports from Warc and trusted partners offering unique insights into current trends.
The driving forces behind consumer behaviour.
New developments for industries and sectors.
Strategic insight for the marketing of brands.
Media & Tech
Latest innovations in media and technology.
Insight and intelligence for countries and regions.
Daily coverage of key developments for marketers worldwide.
The Warc Blog
Insights, opinions and fresh new thinking from our team of bloggers around the world.
Advertising expenditure by medium in 80 markets, plus forecasts and media costs for key countries.
Key briefings from major conferences and events in the US, Europe and Asia Pacific.
Plan your schedule of must-attend events with our global calendar of conferences.
Review your contact details and public profile.
Choose and review which topics to follow.
Choose and review which brands to follow.
Your Email Updates
Select and manage the emails you receive.
Contact your dedicated Client Services Manager.
Put our research team at your service.
Today's Top Stories
Today's Top Stories
Wal-mart gets personal with shoppers
Euro online adspend up 11.5%
Category leadership vital in Indonesia
Mobile ad metrics questioned
Electronic Arts is most social brand
Indian attitudes to luxury alter
7 Day Round-Up
The Warc Blog
Russia offers apparel opportunity
MOSCOW: Brand owners in the apparel category stand to achieve substantial growth if they are able to navigate the complexities of the Russian market, research by McKinsey has suggested.
The consultancy argued in a
that sales in this sector would bounce back to the pre-downturn levels of $50bn by the close of 2011, and should grow by 8% a year to 2015.
It revealed that Russians spend a higher share of their income, 3.1%, on apparel purchases than was recorded in nations like China, Germany, Hungary, Poland and the US.
Other encouraging trends outlined by the company included the fact that income levels are due to expand by 7% a year to 2015, while there is also a "strong sense of aspiration" among shoppers.
"Almost half of consumers say that they want to see premium brands when they shop, even if they can't buy them," McKinsey's study said.
Less favourably, apparel takes up just 3,500 square metres of retail space per 100,000 people in Russia, half the figure logged by Brazil and 10% of the equivalent total for the US.
More positively, this means considerable room for growth remains, prompting Uniqlo to enter the market in 2010, following Gap's arrival in 2009.
In 2010, the largest Russian apparel chain had 560 stores, up by 133 year on year, and the biggest foreign operator boasted 153 outlets, an improvement of 14.
Moreover, the top ten retailers in the country take a modest 7% of category sales, rising to 15% in the modern retail sector, and only three of the 20 top retailers cut their investment in 2009/10.
"In sum, Russia's apparel market is a wide open race, with a large number of players jockeying for position," McKinsey said.
At present, traditional open-air markets deliver 45% of category sales, ahead of department stores on 26%. Looking forward, however, single-brand chains are likely to see growth of 15% per year.
On average, Russians spend $6 a year per capita on clothing online, equating to a value of $1bn, but set to reach $9bn or so by 2015. Nearly a quarter of web users have made apparel purchases in this way.
Typically, netizens direct 52% of their category spending to offline sources, 12% to "monobrand" ecommerce sties and 11% to multibrand web platforms, falling to 4% for social networks, the lowest score in all.
Data sourced from McKinsey; additional content by Warc staff, 28 November 2011
Russian adspend exceeds forecasts
Brands face hurdles in Russia
Facebook aims for Russian growth
Content & Partners
Terms & Conditions
© 2013 Copyright and Database Rights owned by Warc