Experts evaluated the savings of Russians on clothes and shoes: how to buy “smartly”

Almost two-thirds of citizens (59%) reduced spending on clothing and footwear in the second half of 2022. This is evidenced by the study of the Yula Internet service and the A2:Research agency, published on January 13. Half of the respondents switched to cheaper items, another 15% of respondents stopped buying additional clothes if they already have analogues. Every second participant in the study became less likely to purchase expensive clothes and shoes. Historical experience shows that if the crisis intensifies, then in the future, citizens move from moderation in clothing to saving on food. Will it be so this time and what caused such a sharp change in the habits of Russians, experts told MK.

As noted in the study, over the past six months, 41% of Russian residents have noticed that their spending on clothing has increased significantly. 12% of Russians began to save on underwear and office suits, 13% of respondents – on household items. Purchases of casual and evening wear were reduced by 14% of citizens. However, experts argued whether this indicates a decrease in income or is a consequence of other economic factors.

Artem Tuzov, Executive Director of the Capital Market Department, IVA Partners Investment Company:

“Oddly enough, the reduction in spending on clothing and shoes in 2022 cannot indicate a decrease in income. Many foreign brands have left retail, selling clothes and shoes at high prices, while Russian counterparts are simply cheaper. Another important trend is marketplaces. There, citizens find good quality clothes and shoes at prices lower than in stores. Further, Russians will adapt to the fact that affordable clothes and shoes are cheaper and will no longer feel that they have begun to spend less on them.

The departure of foreign brands is, of course, one of the expressions of the crisis. At the same time, Russian manufacturers have increased sales, and this is a plus for them, and for citizens it means new jobs. Foreign manufacturers made clothes and shoes at foreign factories and did not give anything to the Russian economy, except for VAT.”

Natalia Milchakova, Leading Analyst at Freedom Finance Global:

“These figures mean that in Russia inflation has risen sharply in 2022, and the population is forced to adapt to increased inflation as best they can, including by reducing spending even on such essential goods as clothes and shoes. And since the clothing and footwear market in our country until 2022 was 60-80% dependent on imports, due to the fact that the ruble fell, prices for imported goods rose. And even domestic clothing has become very expensive, because what is produced in Russia still depends on the supply of imported materials. The textile market is dominated by imported fabrics, and some segments, for example, the costume fabric market, are generally almost 100% dependent on imports. Only now the import of fabrics from Italy, Germany and Spain will be replaced by imports of similar products from Turkey and China, and even, possibly, from the CIS countries. On the other hand, the decline in consumer demand is a natural barrier to price increases.

This is, of course, a crisis phenomenon, but the country needs to go through this crisis in order to invest in the development of domestic light industry. Nevertheless, the reduction in consumer demand still had an impact on the pricing policy of retailers. Prices for clothes, according to Rosstat, in November 2022 in annual terms increased by 8.3%, and for shoes – by almost 7%. At the same time, inflation in prices for non-food products in November increased by 13.3% in annual terms. That is, the increase in prices for clothing and footwear turned out to be less than the increase in non-food inflation. Of course, many Russians, whose real incomes fell by 3.4% in the 3rd quarter of 2022, according to the same Rosstat, will not be happy with these figures, because the budget has become tighter and prices have risen. But, on the other hand, this is not a reason to worry too much and expect that in the new year an “apocalypse” awaits us, such that even food will become a luxury item. In 2023, inflation should in any case be lower than a year earlier – lower consumer demand and parallel imports, which are growing by leaps and bounds, have a positive impact on retail trade. It is possible that the state will also stop excessive experiments with the labeling of imported goods. We expect inflation to grow by 6-8% in 2023.

To save correctly on clothes and non-food items, in our opinion, means to control your expenses more closely and buy smarter, that is, be able to stop in time. If the budget does not allow you to buy the most necessary things, for example, a new coat or boots, when the old things are already out of order, you need to save at least 10-15% of your salary to the bank in advance for the purchase, use the installment plan from the store or the bank (you just need to get acquainted with the installment terms and compare different options, where it is more profitable), or “catch” the right things before the start of the corresponding season, when they will have a good discount, or simply study discount offers from online stores in cases where you can really save money and buy a quality item at a discount. Ultimately, “saving” can mean not being afraid to overpay for an expensive thing, but which will serve you for more than one season.