Images Review RFRF 09/2015

Execu&veSummary&ImagesReview
RFRF09/2015
September3-4,2015
September3,2015,poweredby
Fashion Trend Informa<on Season
Spring/Summer2016
The first part of RFRF encompassed two
presenta&onsonkeycharacteris&csoffashion
trends of outerwear for women and men for
which interna&onal purchasing managers had
expressed their preferences at the pre-order
trade-fairs that had already taken place prior
to CPM. Alexander Radermacher presented
thedomina&ngcategoriesofmaterials,colorrangesandthediversityofstyling,applyingto
thepre-orderseasonofSpring/Summer2016.
Despite the early hour of his presenta7on,
Alexander Radermacher was very sa7sfied
withthenumberofaTen7velisteners
Crisis & Fashion Trend: Which Clothes
topurchasebyRetailers?
Galina Kravchenko had the difficult task to
recommend fashion buyers of how to
structure their offer during &me of crisis and
recessive consumer demand. She referred to
the experience of past crisis periods, when
retailers reduced their fashion assortment to
need-oriented,affordablypricedclothingasa
base line, which was popped-up by trend-
oriented fashion pieces, including a larger
choiceofaccessories.Thebaselineneedsthe
support of eye-catchers under a mix-andmatch sales promo&on strategy, that a
consumercannotresist.
Report&ImagesReviewRFRF09/2015
Alexander Radermacher, Fashion-Director of
IGEDO, illustra7ng and explaining key fashion
trendsfortheSeasonS/S2016
According to Alexander Radermacher, the
characteris&cs of fashion trends for S/S 2016
shouldbesummarizedasfollows:
“The 7meless quali7es of historical and
contemporary design are showcased with
stripped-backproductsthatbringtogetherthe
old and the new, the past and the future.
Inspira7onscomefromclassicalartglamourof
the 70ies and geometric aesthe7cs. Next
summer shows a constant interplay of nature
and technology from the primi7ve to the
futuris7c, as well as a loud, quirky and
extensiveretro-aOtude”.
Galina Kravchenko, Senior Expert of FCG for
fashiontrendsandassortmentplanninggiving
adviceonwhattopurchaseovercrisis-7mes
2
September3,2015,poweredby
Execu<veConferenceofRFRF:
“Challenging the Recession in Fashion
Retailandpreparingfornewgrowth”
This was the lead-theme of the Execu&ve
ConferenceoftheSeptemberedi&on2015of
RFRF. Philipp Kronen, Managing Partner of
IGEDO Company, and host of RFRF, took
advantage of his welcome-speech to draw
aYen&on to the fact that the 25th edi&on of
CPM presents itself as a vivid example for
challengingthecrisissuccessfully.Hesaidthat
IGEDO and Messe Duesseldorf confirm their
commitment to develop CPM & RFRF over
anothercri&calyear2016andbeyond.
PhilippKronen,addressingtheaudiencewitha
welcome message on the occasion of the
Execu7veConferenceofRFRF
“Economic Indicators speaking for a
RecoveryoftheRussianFashionMarketin
2016andemergingGrowthin2017”
“Whereisthelightinthetunnel?”wasthekey
ques&on of Reinhard E. Doepfer when he
presented his introduc&on address at the
Execu&ve Conference of RFRF. According to
him, Russian fashion retail does not sleep. On
the contrary, despite the plunge of the Ruble
andthepoli&calturmoil,certaindynamicshave
emergedover2015.Hemen&onedtheongoing
expansionofinterna&onalandRussianclothing
Reinhard E. Doepfer, Chairman of European retail chains for both mono- and mul&-brand
Fashion & Tex7le Export Council (EFTEC) formats. This process is supported by falling
deliveringhisinaugura7onspeechatRFRF
leaserates,tenantrota&onandtheopeningof
newshoppingcentersintheregions.
“Russian Fashion Market Overview 2015
thewayitwent,andthewayitwillend”
Anna Lebsak-Kleimans, CEO of Fashion
Consul&ngGroup(FCG)featureddetailsofthe
currentsitua&on,andshegaveabriefforecast
onthedevelopmentoverthefourthquarterof
this current year. According to her analysis,
retail sales of clothing fell by 40% in USD
during the first six months. Dealers and
distributors were forced to increase prices at
20% average, in September; falling margins Anna Lebsak-Kleimans, CEO of FCG, presented
and cash-flows will have a nega&ve impact on her Russian Fashion Market Overview 2015 as
purchasingbudgetsforthenextseason.
thirdspeakerattheExecu7veConference
Report&ImagesReviewRFRF09/2015
3
September3,2015,poweredby
Execu<veConferenceofRFRF:
Con<nua<onofFashionMarketOverview
byAnnaLebsak-Kleimans
Asaconsequenceofdecliningassets,independent
mul&-brandfashionretailersaswellasfranchisees
willsufferunderloanrestric&onsofRussianbanks.
As Anna Lebsak-Kleimans further pointed out,
Russian retail chains who produce private label
garments for their own stores have the
opportunity to freeze prices for a while, but they
face the currency problem if their clothing is
sourcedfromabroad.Winnersofthesitua&onare
large, well capitalized ver&cal chains who keep
prices low at the expense of their key markets.
Moreover, Anna sees e-commerce providers and
outlet discounters on the winner’s side of the
presentmarketsitua&on.
Anna Lebsak-Kleimans aTracted well over 120
followers, eagerly listening to her “deep-dive”
analysisoftheRussianFashionRetailMarket
RFRFSeminarSessionPartI
“Methodsofchangingtradi<onal fashion
retailprac<ce”
Anna Balandina opened the first part of the
Seminar Session of RFRF. In her speech, she set a
focus on how to change Visual Merchandising
Standards when the store assortment had to be
m o d i fi e d d u e t o c r i s i s - e ff e c t s . H e r
recommenda&ons were 1) display basic clothing
together with seasonal “fashion highlights”, 2)
show catchy prices for basics, 3) display the basic
assortmentattheentranceand“hot”spotsofthe
store and 4) create seasonal emo&onal decora&on
Anna Balandina, Senior Expert of FCG for Visual intheshopwindows
Merchandising and Fashion Display recommended
substan7alchangesinclothes‘presenta7on
“Customer Loyalty Programs are more
thanBonusCardsandDiscounts”
ThiswasthekeymessageofNatalyaChinyonovain
her speech addressing how to effec&vely increase
the impact of customer loyalty programs. She
explained that customer binding to a store should
include personal mailings to selected clients to
mo&vate these for next purchases; invita&ons to
events; personalized customer care throughout
store visits; familiariza&on with characteris&cs of Natalya Chinyonova, Senior Consultant of FCG on
brands and new products; assessing of clients’ RetailTechnologyinFashion,pledgedforchangesin
desiresandpreferences.
theapplica7onofLoyaltyPrograms
Report&ImagesReviewRFRF09/2015
4
September3,2015,poweredby
“ChangingthepurchasingManagement”
In her second seminar, Galina Kravchenko, reiteratedtothecontentofherpresenta&onatthe
Fashion Trend Forum of RFRF and deepened and
widened her recommenda&ons on changing the
assortment policy during crisis &me. She
illustrated the building of a classifier matrix as
basic requirement to op&mize the assortment
matrix, according to FCG’s consul&ng standards:
essen&al parameters for composing the store’s
assortments under the impact of declining and
growingdemand.Shealsosuggestedrulesofhow Galina Kravchenko held a second seminar session
todealwithlehovers.
advoca7ng effec7ve methods of change in fashion
assortmentplanningincrisis7mes
“How to take advantage of the liquidity
reservesderivingfromle`overs”
Andrey Gorb, Senior Consultant of FCG on retail
sales development, and chief advisor for Bri&sh
brandsKARENMILLENandOASIS,spokeaboutthe
necessary changes in calcula&ng the budget of a
fashion store facing recessive demand. “You have
to be more realis&c and more accurate in working
out the seasonal budget than you were used to
during the growth-phase”, Gorb said. As an
Andrey Gorb, FCG specialist on strategic fashion example,hedrewaYen&onoftheaudiencetothe
retail development, recommended to generate real sales value of lehovers and its effec&ve
deprecia&on against the pre-calculated price.
immediatecash-flowbygeOngridofle`overs
“However,today,lehoversgenerateanimmediate
cash-flow,iftheygotodiscount-outletsorserveas
bonus-offerinastore-corner”,Gorbemphasized.
The first day of RFRF, organized by Fashion
Consul7ng Group (FCG), generated an aTendance
ofcloseto500professionals
RFRF-visitors took advantage of the FCG seminars
toshootphotosofthemanyslidesandPowerPoint
presenta7ons
Report&ImagesReviewRFRF09/2015
5
September4,2015,poweredby
RFRFSeminar-SessionPartII
“Opportuni<es and Risks of Clothing
Produc<onintheDomes<cMarket”
This was the lead theme of a 90-minute panel
discussion between Russian apparel producers
moderated by Andrew Burma<kov, head of
PROfashionConsul<ng.Par&cipantsinthepanel:
(see image below f.l.t.r.) Irina Fomina, Director
General of German underwear brand COMAZO,
Sergey Roznov, Vice-President of GLANCE,
Gulnara Babich, President of Russian Apparel
Federa<on (RAFI), Sergey Bezkorovainy, CEO of
BEZKO,andNikolaiKhokhryakov,CEOofPOMPA.
They spoke about their experience in clothing
produc&on in Russia, described their difficul&es
andreportedonhowtheysolvedproblems.
Andrew BurmaFkov, Head of PROfashion
ConsulFng, ac7ng as moderator of the panel
discussiononpros&consofdomes7cproduc7on
“Russian Clothing Retailers just started to
discover domes<c manufacturers as
reliablesuppliers”
ThisstatementwasmadebySergeyBezkorovainy.
He also said, that domes&c producers lack of
investments in technology and qualified staff.
According to Andrew Burma<kov, Russian brands
should rather produce for the medium priced
mainstream segment than for the mass- market.
“That’s where import-subs&tu&on will work”, he
said .“Russian brands need iden&ty of their own,
quality and uniqueness, even at the expense of
profits”wasthecommonopinionofSergeyRoznov
Five panel speakers agreed that the climate in the and Nikolai Khokhryakov. The panelists concluded
Russian clothing market will generate more that the development of domes&c produc&on will
consumerdemandforhome-madeapparel
facegrowingdemand.
Sergey Bezkorovainy, CEO of BEZKO, and his The panel session „Producing in Russia“ was very
colleague, Nikolai Khokhryakov, CEO of POMPA, well aTended by an audience of 100 visitors
followingthediscussionintensively
advoca7ngforapparelproduc7oninRussia
Report&ImagesReviewRFRF09/2015
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September4,2015,poweredby
“GrowthFormulaforadomes<cDesigner
in<mesofRecession”
Thiswasthe&tleofates&monialspeechbyElena
Kogel, CEO of the Russian women’s wear and
accessories’brandANNACHAPMAN.Sheoffereda
freshandposi&veapproachtoproblemsolvingat
all stages of development, produc&on and retail
sales opportuni&es in Russia. “Never before a
Russianbrandhashadsuchagreatopportunityin
produc&on and retail in this country”, Kogel
assured: lease rates tumble, get fixed in Rubles
instead of USD, good vacant spaces in shopping
malls are available. And to support her words,
Elena Kogel announced the opening of her own
franchisestoreofANNACHAPMAN.”
Elena Kogel, CEO of Russian women’s wear and
accessories’brandANNACHAPMAN,seesfavorable
perspec7vesfor“madeinRussia”
At the end of her speech, Elena Kogel announced Anna Chapman par7cipa7ng as V.I.P. guest in
theopeningofafranchisestoreofherownforthe “Grand Lingerie Defile” on the occasion of 25th
CPM
brandANNACHAPMAN
“Crea<ng an opera<onal scenario for
Russianbrandstosub-contractproduc<on
todomes<corforeignmanufacturers-the
pros&cons”
Ekaterina Diaghileva, Co-Owner of RUSSKIYE
SEZONI presented a compara&ve analysis between
the op&ons, a Russian brand has in outsourcing
clothing produc&on. According to her, there is a
variety of indicators determining this op&on: the
price segment in which a Russian brand is
posi&oned, the volume of the contract, the choice
of fabrics or yarns to be used, the complexity of Ekaterina Diaghileva, Co-Owner of RUSSKIYE
cuongandsewingofeachstyle,andthetermsof SEZONI, spoke about the pros & cons of
outsourcingproduc7onin-andoutsideRussia
financeofthecontract.
Report&ImagesReviewRFRF09/2015
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September4,2015,poweredby
“It is a mere mager of calcula<ng your
costprecisely”
said Ekaterina Diaghileva, when she went
through her compara&ve analysis. On the one
hand,thelowRublespeaksfororderdonor-ships
to Russian manufacturers in the regions. On the
other hand, the Russian order-donor will have to
pre-finance the import of materials and
accessoriesinhardcurrency.Accordingtoher,the
ques&oniswhetherlowerwagesinRussiaandthe
inputofdomes&cmaterialswillcompensatemuch
higher import cost. As a consequence of this
reflec&on, Mrs. Diaghileva suggested that
produc&oninRussiashouldworkforoperatorsin
the medium price level and for high priced
designerclothes.
The PROfashion speaker Ekaterina Diaghileva
surrounded by interested professionals to share
experiencewithher,a`erthepresenta7on
“The Department Store Format TSUM
shouldexpandintheRegions”
IrinaGorban,DirectorGeneralofSMARTFASHION
GROUP, reported on her studies on the
development of more department stores in the
TSUM-format, like TSUM Tyumen and TSUM
VALENTINAinVladimir.Asthereares&ll42Soviet
styleTSUMsopera&ngintheregions,theseshould
be renovated to form an an&-pole to shopping
malls. Mrs. Gorban suggests that such structures
shouldsetafocusonprovidingcornersorshop-inshops for Russian brands under the condi&on of
own financed procurement of the merchandise by
IrinaGorban,DirectorGeneralofSMARTFASHION thedepartmentstore.
GROUP, spoke about the importance of expanding
departmentstoresintheregions
“Mo<va<onofSalesStaffisakey
instrumenttoChallengeconsumer
reluctanceinarecession”
This was the key message to the audience, which
Maria Gerasimenko, CEO of CLEVER FASHION,
expressed on the occasion of her speech focusing
onher“an&-crisisplanofac&onsforfashionretail”.
According to her, educa&on of staff and customer
care are the main objec&ves in an&-crisis
management.Theexpertwasaccompaniedbytwo
tes&monialspeakersonthepodium,whoanimated Maria Gerasimenko, CEO of the consultancy
theaudiencetotakepartinanintensiveinterac&on CLEVER FASHION, in a dialogue with two
throughouttheseminar.
tes7monialspeakersonsalesstaffcapacita7on
Report&ImagesReviewRFRF09/2015
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September4,2015,poweredby
“Importantpagernsofinterac<on
betweenfashionretailersandtheir
suppliers:Howtobalanceparityof
intereststoensurethedevelopmentof
brands?”
This was the key theme for Kirill Volkov,
Marke&ng Director of the ACADEMY OF RETAIL
TECHNOLOGY,whoexplainedthatcommunica&on
between retailers and suppliers should not be
limitedonissuesofhowtoincreasetheturnover
andonhowmuchofadiscountmaybegrantedby
the supplier. Instead, both par&es should closely
worktogetheronissueswhichguaranteethemidtolongtermviability.
Kirill Volkov, Marke7ng Director of ACADEMY OF
RETAIL TECHNOLOGY, recommended to intensify
open communica7on between retailers and their
suppliers
Impressions from the audience at the PROfashion More impressions from the audience: doesn’t she
Seminar Day of RFRF: Visitors aTending from all lookpreTyinherretro-lookofthe70s?
partsofRussiaandtheCIS
The hosts of the 16th consecu7ve edi7on of Russian Fashion Retail Forum, IGEDO & MESSE
DUESSELDORF,wishtothanktheorganizers,ITMMGmbH,FASHIONCONSULTINGGROUP(FCG)
andPROfashionPublishingHouse,fortheirvaluablecoopera7oninorganizingthepar7cipa7on
of high-profile speakers & panel par7cipants, thus helping decisively to aTract around 1.000
visitorstoRFRF.
Wearegladtobeabletoannouncethatthiscoopera7onwillcon7nuein2016!
WelookforwardtowelcomingourRFRFvisitorsontheoccasionofits17thedi7ononWednesday,
February24andonThursday,February25,2016.
Report&ImagesReviewRFRF09/2015
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Report&ImagesReviewRFRF
09/2015
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