The world market got a "clothing fever". Due to the pressure of economic crisis sales volumes decreased on 30%. Many clothes retailers  attended  at seminars at the international exhibition of fashion CMP-Collection Premiere Moscow this fall for getting good advices from Russian and European experts. Debate on "How to survive" were hot and actually, very useful. 

Not as bad as it could be.

During the exhibition the most discussed topic was the verdict of Reinhard Dopfer - Head of the European Council on the export of textile products (EFTEC) - that a third of clothing stores in Russia will be closed and leave Russian market before the end of this year. Maria Smorchkova - Director of the Association of the fashion industry has tried to sechange a final statement of Mr. Dopfer to a positive one, asking the European expert "not to exaggerate." "The situation is not as good as we would like to, but not as bad as it could be" - she sayid.

The luxury and mass-market imitate each other.

The dynamics of sales has changed and the whole structure of the clothes market is changing. Here, everything is mixed. To avoid bankruptcy, retailers have to adapt to new trends.
  "The middle segment "jumped" into luxury level, and the mass segment almost disappeared because now it becomes more and more branded. Structure which existed for many years becomes more and more "fuzzy", "- says Anna Lebsak-Kleimans - CEO Fashion Consalting Group.
The reason for mergers and acquisitions mostly is in the price question. It specifies the cost of production be the most important factor. Russian market now is facing with the middle and low price but high-quality brands from China and Turkey. And they are like a sponge absorbing all the good things that have a luxurious brands but price is more suitable for the Russian market and due to these factors these products are in demand. From 2006 to 2007, exports from China to Russia has grown on 161% and amounted to more than $ 8 billion. For example it is in 2,5 times more than export from Europe during the same period.
In addition, last 10 years we saw a growth of vertical single-brand operators (producer and owner of stores is one and the same company), who came from Europe. They are  mostly working in the middle price segment. Their main pluses - strong service, the ability very quick to adapt to all the market changes and effectively promote their products.
Thus, " middling " started actively coping from foreign and luxury-quality companies the quality and style components. Luxury products in order not to get lost, were forced to learn from competitors�� business models, such as discounts and sales techniques. "This is an absurd trend of our times. Luxury has not got any opportunity to return to it is "no-discount concept" any more, - said Anna Lebsak-Kleimans.

Retail has to exist in the mixed system. 

During the discussions, Russian and European experts came together to the one and the same conclusion - the future of clothes is in the multi brand retail format. Stake only on luxury, or only on the middle segment - is utopian. If the store will present products from different manufacturers, which differs style and prices, it has chance to survive in the market. For example, vertical retailers Zara and Mango more than 15 years ago began to implement this strategy.
Buying should become an adventure, says Reinhard Dopfer. According to a sociological survey research  by "Romir" company, 61% of Russians are ready to save money on a new clothes. Therefore it is important not only to attract people into the store, but make sure that they leave it  with the purchase.
"This is the so-called customer-service ratio - the ratio of visitors who were attracted and visitors who bought the product - explains Maria Smorchkova �C In spite of the crisis in the Russian stores this rate since 2008 has increased on 25-40%. That means that Russian retailers have already become more creative in promoting  products.
Maria Smorchkova advised sellers to make a bet on the highest average check. To stimulate sales retailers should expand the assortment line. If a woman came to the store to buy a business suit, she must be offered related products: jewelry, handbag, shoes and so on.

Expansion of Europeans.

In spite of the statistics that the Europeans are closing most of the contracts with Russian cloths sellers, there is another trend. Foreign brands by themselves go to Russian market  and opening stores without any intermediaries. It seems that the western companies were waiting for this crisis, when the rental rates in shopping centers decreased.
According to the "Association of the fashion industry", in the first half of 2009 the volume of vacant space has increased on 8%. By 2010, the rental rates can be decreased on 10-15%. Landlords are willing to work with sellers, even with post paying system, as well as let them work with out insurance premiums.
In 2009 H & M (Sweden), GAP (USA), WALMART (USA), DEBENHAMS (United Kingdom), NEW LOOK (United Kingdom), ONE STER (France), MEUCCI (Italy), STEFANEL (France), WRANGLER ( USA) came to the Russian market.
Expansion of Western verticals, as says Mr.Dopfer, will be in several Russian regions. For example, this year MaxMara already plans to open its stores in Ekaterinburg, Omsk, Ufa, Krasnodar and Rostov-na-Donu.