New Retailing research report from Business Monitor International is now available from Fast Market Research
Boston, MA -- (SBWIRE) -- 09/05/2014 -- While Russia's retail market remains an attractive investment area as the largest consumption market in Europe and with 40% of its population estimated to reach the middle income bracket by 2020, it still faces significant concerns due to disappointing growth figures and growing concerns about the impact of recent international sanctions.
Russia's retail industry is a $300bn market that is bolstered by a rapidly growing middle class. The market is forecasted to continue its growth as the percentage of households falling into the middle-income wage bracket of USD10,000+ is expected to exceed 90% by 2018. With this growth, there will be an increase in aspirational purchasing, with clothing and footwear, household goods and personal care and effects all set to see average growth of 6.2%, 6.4% and 5.5% over the 2014-2018 forecast period.
The attraction of Russia's retail market to potential investors centers on the continuing rise in disposable incomes, the growing desire for a wider choice of products and price points, easier access to credit and an increase in car ownership. Recent or upcoming EU membership and significant foreign direct investment should also lead to an expansion of retail markets.
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While Russia is projected to enjoy moderate growth in its retail market, deteriorating economic relations with its international partners can pose a significant risk. With the July 2014 attack on Malysian Airlines Flight 17, the European Union imposed a third set of tougher economic sanctions against specific sectors of Russia's economy. This hinders the entrance and operations of international retailers that are active in the country. The sanctions are also designed to cut off Russia from access to European Union capital markets and the supply of dual use (civilian and military) technology products.
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The Russia Retail Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.
BMI's Russia Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.
- Benchmark BMI's independent retail industry forecasts for Russia to test other views - a key input for successful budgeting and strategic business planning in the Russian retail market.
- Target business opportunities and risks in Russia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
BMI Industry View:
Summary of BMI?s key forecasts and industry analysis, plus a discussion of major industry developments and a snapshot of key short-term demand-driving macroeconomic movements.
Industry SWOT Analysis:
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the retail sector and within the broader political, economic and business environment.
BMI Industry Forecasts:
There are four separate 5-year forecast modules in the retail reports. These are:
Headline Retail Forecast: Total Household Spending, (US$bn and local currency, % growth, % GDP, per capita, per household); Spending by Retail Sector for: food and non-alcoholic drink, alcoholic drink, clothing and footwear, housing and utilities, furnishings and home, health, transport, recreation, education, transport, restaurants and hotels, personal care and insurance (US$bn and local currency, % growth, % GDP, % of total spending)
Retail Sector Forecast: Breakdown of Food, Non Alcoholic Drink, Alcohol, Tobacco, Clothing, Footwear, Household Goods, Furnishings, Appliances, Glass and Tableware, Household Textiles, Consumer Electronics, Garden Toys and Pets, Home and Garden tools, Personal Care, Personal Effects Spending (US$bn, % Growth);
Household Income and Numbers Forecast: Number of Households (?000,% growth); gross income per household and per capita; net income per household and per capita; tax and social contributions per capita; breakdown of household incomes ? US$5000+, US$10,000+ US$50000+ (?000, % of total); labour force, employment and unemployment (?000, % change)
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