As big brands withdraw, will “Made-in-China” clothing explode in the Russian online market?

According to foreign media reports, a study by Russian mobile operator MegaFon showed that Russians' interest in domestic clothing brands increased in April compared with the traffic in February. The number of customers in Russian brand online stores increased by 23% and 17% in March and April respectively compared with February .

As a large number of international clothing brands announced their withdrawal from Russia and online consumer platforms such as Etsy, eBay, Amazon and Shopify announced the suspension of operating services in Russia, Russia's clothing sales fell 25% year-on-year.

But what followed was the attention of Russian consumers to the online stores of local brands, and consumers also focused more on platforms such as Wildberries, Ozon and AliExpress. In April 2022, the average daily mobile traffic of Russian brand online stores increased by 55% compared with February. MegaFon also pointed out that the average time consumers spend on online shopping platforms has increased to 16 minutes .

Before the Russia-Ukraine conflict , from January 1 to February 20, clothing sales increased by 8% year-on-year , most of which came from international clothing brands outside Russia . From March 14 to March 20, sales of domestic brands fell by 15.5% year-on-year, and increased by 14%-28% year-on-year in early April. At the same time, the online clothing market has also ushered in new growth points.

It is understood that in 2021 , more than 80% of the sales in the Russian clothing market came from imports, mainly from China . AliExpress , which is committed to cross-border sales from China , said that in 2021 the platform generated a turnover of 306 billion rubles ( about 29.5 billion yuan ) , a year-on-year increase of 46%.

Earlier, Wildberries platform announced that its turnover in the first quarter of 2022 was 289.2 billion rubles ( about 27.9 billion yuan ), a year-on-year increase of 95% . The full-year turnover in 2021 increased by 93% year-on-year to 844 billion rubles ( about 81.4 billion yuan ), of which the sales of fashion products exceeded 336 billion rubles (about 32.4 billion yuan).

Wildberries said total orders on its platform more than doubled to 288.7 million in the first quarter , with online sales improving in February and March as Western brands began to exit the Russian market .

It is reported that as the epidemic is lifted, more and more Russians are returning to the office, and the demand for workplace attire such as shirts, suits, and ties has soared to varying degrees. In addition, with the arrival of summer, shorts, suspender skirts, swimsuits, sun protection clothing, sun hats, etc. are expected to be hot-selling .

The withdrawal of international brands from Russia and the closure of physical stores have prompted Russians to shift their consumption needs to online shopping. As a major importer to Russia, Chinese sellers may usher in a new turning point in this trend .

Russia

AliExpress

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