Business thinks about fashion – Kommersant FM
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The fashion business has grown. The demand for specialists in opening a clothing brand has increased six times compared to 2021, Avito Services analysts estimate. They are most often sought in Moscow, St. Petersburg and Omsk. And, as Kommersant FM found out, an hour of consultation with such experts costs an average of 20-30 thousand rubles. and reaches 100 thousand rubles. Most requests for projects in the fashion industry come from large business owners. Fashion retail is now included in the portfolio of non-core investors. How much does it cost to launch a local brand? And who is entering this market? Aelita Kurmukova found out.
The fashion industry set a course for the formation of local brands immediately after the first package of sanctions. In 2014, the share of domestic companies was only 20% of the market, now it is almost 70%, Fashion Consulting Group told Kommersant FM. Large investors and non-core businesses have entered the market; they account for half of all requests, shares the founder and CEO of the fashion business development agency SHTAB Stanislava Nazhmitdinova:
“Entrepreneurs think that fashion is now the industry where they can make good money and diversify their current business for new consumption. I call these “import substitutes.” They come in with investments from 5 million rubles. and up to 300 million rubles. It’s one thing when a clothing brand is created within a family. For example, if the wife did not work before, and now, let’s say, she wants to replace imports with Loro Piana, and now she is allocated 15-20 million rubles. for cashmere. And there are those who want to build a factory, provide jobs, launch production, and develop Russian light industry. This is most often realized with one’s own money, already received from other businesses.”
Investors who previously considered such an asset to be risky also believed in the fashion market, adds Nazhmitdinova. Thus, the clothing brand Noun raised 200 million rubles. from the TealTech Capital fund – the founder of Vkusville Andrey Krivenko. Investments, as stated then, would be used to launch a franchise and increase retail outlets.
And there are already dozens of similar transactions, Kommersant FM’s interlocutors say. And to find such a company, just look at the sales statistics on marketplaces. If the brand exceeds 50-100 million rubles. per month, an investment fund may be interested in it. And marketplaces have already overtaken social networks in terms of promotion, adds Fashion Consulting Group CEO Anna Lebsak-Kleymans:
“Companies create a brand, do not invest money in rent or opening their own stores, but go to marketplaces with collections. You still need large marketing budgets, but the marketplace is still a lagoon that you can enter with a budget of 2 million rubles or more. up to 4 million rubles and start quite successfully.”
The collection itself takes up only 10-20% of the success formula, notes Lebsak-Kleymans. If we talk about pricing, some local brands decided to start immediately with margins, says Irina Polykovskaya, founder of Totti:
“If the quantities are small, then the cost is low. But some brands have gone almost into the luxury segment; I’m not talking about well-known brands now, but about new, young ones. The company enters the market and immediately sets a fairly high price. If a cashmere jumper costs from 50 thousand rubles, then I think that this is a high price.”
The Totti brand has its own production in Russia, which today is rather an exception. The local brand MONOCHROME, which is already worn by Hollywood stars, also has its own manufactory. And the main problem is the shortage of personnel, sums up brand co-founder Nikolai Bogdanovich:
“If we are talking about quality, some kind of aesthetics and claims to truly become a brand, then good specialists are at a premium. This market exists, it is very closed, narrow, the salaries of good specialists in the sewing craft are quite high. As a rule, employers stick to great employees, and we do the same. On average, our tailors earn 100 thousand and more.”
Sewing has now become expensive not only in Russia. Against the backdrop of the falling ruble, the services of Chinese and Turkish factories, which accepted most of the orders from Russian companies, increased noticeably. In the fall, as Kommersant FM reported, many local brands, including Snow Queen, Zarina, Befree, Sela, began ordering collections in Uzbekistan, Kazakhstan and Kyrgyzstan.
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