Market Trends of Russia Luxury Goods Industry
This section covers the major market trends shaping the Russia Luxury Goods Market according to our research experts:
Consumer's Willingness to Spend on Luxury Grooming
As Russia has a stable economy, the consumers are engaged in purchasing the products that have a high brand value, this is because the consumers in the respective nation are owning the accessibility to purchase the product, moreover, due to the high brand equity of the products in the luxury goods segment, consumers also use them to showcase their lifestyle in the market. Furthermore, the rising employment and spending power among the Russians have provided the ingress to the consumers to purchase these premium products, for instance, consumer spending in Russia for 2021 was USD 886.41B, a 17.11% increase from USD 756.91B in 2020. According to the Russian Federal State Statistics Service, the employment distribution among consumers starts from the age group of 15 and ends beyond the age group of 70, eventually, the mid-age (25-40), consumers have the highest percentage share among the Russian population who are employed., thereby, due to the increased employment rate, consumers are availing the accessibility to purchase luxury goods.
Evolving Retailing Landscape with the Penetration of Online Channels
With the changing lifestyle of the consumers, the demand for luxury goods such as premium watches is also rising among them, this is because, of the fact that the utilization of these products enables the consumers with an extreme level of comfortability. Moreover, due to the premiumization factor of these products consumers trends to utilize them in their daily routine, likewise, the retailing segment has been playing a significant role in the selling of luxury products, such as, in 2020, the Russian brand WOS launched e-commerce at the start of the year and has seen online monthly sales grow 1000 percent between January and May. Eventually, the availability of different products in both offline shopping chambers and online retailing websites has added additional value to the purchasing as the consumers are been offered choices before the final purchase. Besides, the consumer can purchase different classes of watches, moreover, the utilization of these luxury watches promotes the self-esteemed of the individual, thereby, this factor has turned the consumers to purchase the products of their choices which has resulted in fueling the luxury goods market of Russia.
