FLO goes through marketplaces – Newspaper Kommersant No. 147 (7348) of 08/15/2022

The Turkish clothing and footwear manufacturer FLO Retailing, after a possible purchase of the Russian business of the Reebok chain this spring, began to negotiate with online platforms for direct deliveries of its goods. So, the first batches of shoes of more than 200 trade names will appear on Wildberries. Ozon is also talking about agreements with the Turkish company. Experts believe that it will not be easy for a new player to compete with large Russian fashion companies that already have leading positions on marketplaces.

According to a Kommersant source in the fashion market, Wildberries agreed with the Turkish clothing and footwear manufacturer FLO Retailing on direct supplies of goods. The representative of the marketplace confirmed the information, specifying that we are talking about more than 200 new brands such as Garamond, Miss F, Polaris, Lumberjack, Kinetix and others.

An Ozon representative also announced the agreements with the Turkish holding Kommersant. According to him, the first goods belonging to FLO Retailing brands will appear on the site in autumn. It will be mainly sports and casual shoes in the mass market segment with an average check from 1.5 thousand to 3 thousand rubles, Wildberries added. It was not possible to contact FLO Retailing Kommersant.

Fashion manufacturer FLO Retailing was founded in the early 1960s by Ahmet Ziylan and now operates in 21 countries. Manages shoe chains Flo, Sport in Street and the major German brand Reno. In the spring, it became known that this company received ownership of the Reebok business in the Russian Federation (see Kommersant of May 16). Then it was reported that as a result of the transaction, FLO received more than 100 points of sale and intends to rename the stores.

FLO Retailing spokesman Mahmed Ziylan later told Reuters that the parties were in talks. In May, it also became known that FLO signed an agreement with Reebok, under which the Turkish concern will produce brand products for 12 countries.

Ziylan Group, which includes FLO Retailing, worked fragmentarily with Russian marketplaces until 2022, says Anna Lebsak-Kleymans, CEO of Fashion Consulting Group. So far, there has been no official information about large-scale expansion in the Russian Federation, but in any case, the Turkish manufacturer will have to compete with such brands as Carnaby, Chester, Ralf Ringer, Respect, Unichel, Zenden, Monro, Kari, she clarifies.

In the short term, while the brands leaving the country are being sold, it will be even more difficult to increase their share in the Russian market, warns Mikhail Burmistrov, CEO of Infoline-Analytics. “The fashion market has its own strong players, such as Melon Fashion Group, Tvoe and Gloria Jeans, which are also traded on marketplaces. But with proper investment in marketing, FLO can become a prominent company in the market,” the expert believes.

In Russia, there is a high level of supply from local shoe sellers, agrees Anna Lebsak-Kleymans. In her opinion, FLO brands will only be able to become visible if specialized offline shoe stores are opened. In the fourth quarter of 2022, the redistribution of space occupied by large foreign players, such as Inditex and Uniqlo, will begin in shopping centers, Mikhail Burmistrov notes. “It is at this moment that FLO Retailing can begin to actively open its offline points,” he says. According to a Kommersant source in the commercial real estate market, FLO will resume the work of some Reebok stores before the end of this year, and the active expansion of the network will begin only next year.

In addition to FLO, other foreign players are also expanding their offer on the Russian market, such as, for example, the Chinese Anta, continues Ms. Lebsak-Kleymans. Wildberries reported, without specifying details, that interest in the Russian market from Turkish and Chinese suppliers continues to grow. Yandex.Market added that they are negotiating with Italian, German, British and Dutch brands, including Strellson, Hugo and Guess.

Nikita Shchurenkov