Peacock shopping in Russia
Peacocks is to open more than a hundred of shops in Russia in the coming five years
Entering the Russian market this February, the British Peacocks apparel brand shop chain is planning to have already a total of 20 shops in Russia by the end of the year, and more than a hundred outlets in five years from now. Experts say the fast pace of shop opening can bring losses on the initial stage of development.
Vladimir Lunin, CEO of BTI Systems (Maratex) that is promoting Peacocks in Russia and the CIS says new shops will open in Moscow, St. Petersburg, Ekaterinburg, Nizhny Novgorod, Yaroslavl, and Voronezh. Speaking about development plans for 2007, Lunin noted that the high shop opening pace will continue with the geography expanding.
Industry experts say the Peacocks concept can be rather popular in Russia. «Unlike many Western apparel shops, Peacocks is developing and has all the chances to be successful,» says marketing director of S.Oliver in Russia Alexey Volkov. Marina Voloschuk from the Russian Trade Group promoting BHS, C&A, Morgan and Koton in Russia says that regional real estate developers have intensified, as more and more global cheap apparel brands are entering the Russian market.«
According to Natalia Daudrikh, an expert at IMA-Consulting, the project's success depends to a large extend, on how clearly the brand will be positioned to the target audience, as well as on the adequacy of promotion efforts. «With increasing competition on the market, promotion costs go up three-five-fold, and not all companies can sustain this budget race.»