Discounts will replenish the wardrobe – Newspaper Kommersant No. 206 (7407) dated 11/08/2022

The unstable economic situation and the desire of consumers to save money can affect the structure of demand for mass sales. According to Platforma analysts, the most popular category in November and New Year’s promotions this year will be clothing and footwear, surpassing appliances and electronics. Clothing purchases in the conditions of global brands leaving the market were declining, and now pent-up demand can be realized, experts say.

Clothing and footwear may become the most sought-after goods at mass sales by November 11, Black Friday on November 25 and during the pre-New Year season, follows from a study by big data analysts Platforma. According to the company’s survey, 29% of consumers are interested in the category, which is more than the share of potential buyers of household appliances and electronics, which was chosen by 23-22% of respondents. In 2021, appliances and electronics were the leaders in sales demand, with clothing and footwear in third place, according to the study. A similar trend was noticed at Ozon. According to the site’s survey, clothing and footwear share the top spot in sales with small gadgets.

According to Platforma, 38% of Russians plan to spend money on New Year’s sales, 28% on Black Friday, and 25% on November 11th. The average budget for the year has not changed, the study says. According to Platforma estimates, 25% of consumers want to spend 10-20 thousand rubles during sales, 24% – 20-40 thousand rubles, and 21% – 5-10 thousand rubles. For a budget in the range of 50–70 thousand rubles. 6% of respondents calculate, 8% are ready to spend 70-100 thousand rubles, and 4% – more than 100 thousand rubles. According to Ozon, 35% of respondents can spend 10-30% of their salary on sales, 23% – 30-50%, and only 3% – their entire monthly earnings.

The change in consumer preferences in Platforma is explained by the unstable economic situation in the country and the desire of consumers to minimize spending. According to NielsenIQ, even with an improvement in the economic situation, up to 30% of consumers in Russia will continue to save on many items of expenditure. And the purchase of new clothes in the third quarter of this year was the main source of savings for Russians. According to NielsenIQ, 71% of consumers cut spending in this category, while 66% save on entertainment and 65% on eating out.

Baon President Ilya Yaroshenko notes that departing European brands have staged massive sales this season, which could stimulate consumer demand. “Traffic in these stores is very high now,” he says. According to Mr. Yaroshenko, Baon expects a 50% increase in LFL sales in retail in November, the figure should be higher in the online segment. The network is not going to “chase discounts”, but they plan to give “interesting offers” for the price, he adds.

Stockmann CEO Gennady Levkin says that Black Friday, which lasts a week in the department store chain, usually doubles turnover, but he does not expect a significant increase in sales this year. According to him, year-on-year growth may be at the level of inflation – about 20%. Stockmann did not revise the terms of the shares, keeping the 25% discount, adds Mr. Levkin. Lamoda Development Director Irina Maksimova says that this year the sale on the site goes on throughout November in order to extend discounts to a larger number of products. Since the start of sales, Wildberries has noted an increase in demand for clothing and footwear from foreign brands that are reducing their presence in Russia and selling off leftovers.

Sellers of home appliances, however, do not expect a decrease in demand for their products. In the M.Video-Eldorado group, they indicate that equipment is among the most popular purchases during the sales period, and they see an increase in purchasing activity following the results of the first week of promotions. Men are most attracted to electronics, laptops and televisions, while women are most attracted to kitchen appliances and health and beauty accessories, says a spokesperson for the group.

Mikhail Burmistrov, General Director of Infoline-Analytics, recalls that this year there were several surges in demand for equipment and electronics, which satisfied the basic needs of consumers, and mobilization and emigration negatively affected the activity of buyers. Clothing purchases were declining as brands exited the market, so pent-up demand could be realized during sales for the category, he points out. According to the expert, the fashion segment of marketplaces can become a growth driver.

Anatoly Kostyrev