Expert Analysis of the Retail Real Estate Market

04.03.2023

Cre Russia, a real estate news platform, recently published an extensive analytical review on the state of the Russian retail market, gathering opinions from numerous international experts in the commercial real estate market. Sharing his views on the situation and expert opinion on Belarus, our partner and executive director, Andrey Aleshkin, was featured in the report.

We at NAI Belarus have put together a basic article for you:

According to the experts at CRE, the slowdown in the development of the market segment can be attributed to a decline in the purchasing power of the population, uncertain forecasts for trade turnover, and a 5-10% increase in rental rates for new brands. However, Russian companies and Turkish networks remain active among the "replacements" for the departed brands.

Market professionals note that large Turkish brands are already present in Russia, while small brands lack the resources to enter a new market. Belarusian brands also face problems associated with a limited number of production facilities and a shortage of raw materials for fabric production. Additionally, competition among local and foreign brands in Russia is very high, with some companies already establishing their own factories abroad to reduce production costs and maintain competitiveness.

Andrey Aleshkin notes that many players in the Belarusian textile and clothing industry are unknown even on a local level, let alone in Russia. Typically, consumers and market specialists are familiar with well-known companies that develop their networks and open stores or flagship salons. However, in recent times, small manufacturers and designers have also attempted to enter the mass market. In Belarus and Russia, "conceptual spaces" are often created in large shopping centers, showcasing the products of dozens of authorial and designer brands.

Andrey Aleshkin also notes that there are many interesting Belarusian brands that could be successful in various segments on the Russian market, from fashion to food products. However, historically in Russia, Belarusian manufacturers of industrial goods, clothing, and shoes have gained the most widespread recognition.

Belarusian companies in e-commerce continue to increase their share on Russian marketplaces, reaching 25% last year compared to 13% in 2021 and 11% in 2020. This is due not only to the supply of "parallel import" goods but also to the increase in the presence of Belarusian products and manufacturers in the market.

The full article is available here: cre

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