Domestic sewing companies have found a “turning point” in the crisis. The prospects of the Russian sewing machine market are worth looking forward to
Where are the business opportunities? This is a question that the CEOs of domestic sewing machine companies are thinking about every day in 2008.
In this international financial crisis caused by the U.S. subprime mortgage crisis, international textile and apparel production has suffered a heavy setback, and the international sewing machine market demand has also shrunk. Sewing machine companies have been helpless to find that the incoming international orders in the past have also been reduced. Suddenly there was less, and my country’s sewing machine industry product exports declined for the first time in eight years. Where is the international sewing machine demand market in 2009?
Through the author’s introduction to the Russian sewing machine market, perhaps domestic sewing machine companies can find a “turning point” in the financial crisis.
Russia, a large European country with a land area of 17.0754 million square kilometers, has more than 130 ethnic groups and a population of nearly 150 million. After experiencing the financial crisis in 1998, Russia’s economic situation has improved, residents’ incomes have continued to increase, and the market demand for textile and clothing products has become increasingly strong. As a result, the market demand for sewing machines has also gradually increased.
In the first three quarters of 2008, despite the less than ideal environment in the international market, my country’s exports of sewing machinery products to Russia still reached US$24.3 million, an increase of 40.64% over the same period in 2007. The export prospects are worth looking forward to.
Clothing consumption has become a hot spot
In recent years, Russia has become one of the fastest-growing consumer goods markets in the world, with clothing consumption of approximately US$36 billion per year. According to a report by Russia’s RBC market research network on October 21, 2008: In the past five years, Russia’s economic development has been good. Russia’s GDP grew by 8.1% in 2007, one of the fastest growing years after the financial crisis. Russia’s economy has ended its recovery phase and is gradually moving towards a period of investment growth mode.
According to relevant statistics, Russia is currently one of the countries with the fastest economic growth in Europe. In terms of per capita purchasing power, Russia’s per capita purchasing power increased by 65% between 2001 and 2006; by 2006, Russia’s national purchasing power had surpassed that of the Netherlands, ranking sixth in Europe. Today, Russia has a disposable income of 286 billion euros, and the average monthly income of residents exceeds US$500. People have shown unprecedented enthusiasm for clothing and other commodities, demonstrating huge market purchasing power.
According to statistics released by Symbol-Marketing, the rapid growth of household consumption in the past five years (an average annual rate of 12.5%) is the main factor driving the rapid development of the Russian economy. In the structure of Russian household expenditure, non-food commodities account for 38%, of which clothing accounts for a large part (10.5%).
By analyzing the changes in this indicator, we found that Russian households’ consumer spending on clothing products is increasing, while its internal structure has hardly changed. Women’s clothing products are still a large part (accounting for more than 44% of the total). The consumption of men’s clothing products is less than 24%, and the consumption of children’s clothing products is less than 32%. The women’s clothing market remains a large and attractive market in Russia.
On the other hand, from Russia’s major clothing exhibitions and markets, we can also see the booming degree of its clothing consumption. Many well-known exhibitions in Western Europe have moved to Russia, including the Russian Fashion Show (CPM) hosted by Germany’s Igedo International Fashion Fair Company, Germany’s Munich Messe Company Ispo Sportswear Trade Fair, and Germany’s Frankfurt Messe Company’s Russian Clothing Fabrics and Accessories Exhibition, as well as the Russian Home Textile Exhibition and Vision Moscow Exhibition.
Russia’s clothing market has a complete range of categories. In Russia’s big cities, there are many international luxury brand agencies frequented by wealthy people. Middle-class consumers usually buy fashionable clothes in modern shopping malls or fashionable stores. The middle and lower classes in Russia who are more sensitive to prices usually shop in high-end department stores or rapidly developing fashion chain stores. Those consumers who are not yet able to catch up with fashion tend to choose traditional road markets to buy cheap clothing.
Experts predict that the Russian clothing market will continue to grow in 2009, with total annual sales reaching 1.241 trillion rubles.
The demand for sewing machines is increasing
Russia has a huge consumer market for light industrial textile products, with a purchasing power equivalent to that of several Eastern European countries combined. However, due to the “tradition” of economic development formed during the former Soviet Union that emphasized the development of heavy industry and ignored the development of light industry, Russia’s light industry development has long lagged behind, accounting for only 1.6% of the country’s GDP. After the disintegration of the Soviet Union, the Russian textile and garment industry declined sharply. It only began to improve slightly after the financial crisis in 1998. However, its development level is still not high, with an annual output value of approximately US$10 billion, which can only meet 15% of the domestic market demand – 20%.
In recent years, Russia’s economic situation has improved, residents’ incomes have continued to increase, and the market demand for textile and clothing products has become increasingly strong. These have effectively promoted the development of Russia’s domestic clothing industry, and have also aroused the attention of major manufacturers. focus on. Although Russian clothing companies have also faced problems such as rising prices of production raw materials and the need for upgrading of production equipment in recent years, due to their relatively advanced clothing styles and production processes, despite the impact of imported goods, the income of domestic clothing has been in the middle and lower levels. The consumer market is still� Clothing and using sewing machines to “make” clothes have increasingly become a new way of life.
Embroidery machines are mainly used for clothing and home textile processing in Russia. Compared with other products, my country’s export volume of embroidery machines to the Russian market is not large, but it has increased significantly in the first three quarters of 2008. The number of exports reached 1,634 units, an increase of 18 times year-on-year, and the export earnings were 1.34 million. The U.S. dollar increased fivefold year-on-year.
In addition, in the first three quarters of 2008, my country’s exports of parts and components to Russia were US$970,000, a year-on-year increase of 30.93%. Among them, the export of sewing machine needles increased significantly. The export quantity was 7,493 kilograms, an increase of 16 times year-on-year. The export earnings were US$80,000, an increase of 11 times year-on-year.
From the perspective of development trends, with the continuous strengthening of business exchanges between China and Russia, as well as the vigorous development of the Russian textile and apparel market, relying on the excellent cost-effectiveness of my country’s sewing machine products, Russia will surely become my country’s sewing machine exporter in the future. one of the main markets. Therefore, the author suggests that domestic sewing machine companies that are eager to escape from development difficulties through overseas expansion should conduct strategic research on the Russian market, make timely plans, and accelerate the implementation of the “going out” strategy of my country’s sewing machinery, thereby promoting my country’s better March towards a sewing machine power!
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