Former Nike partner in Russia will launch a new multi-brand network of sporting goods
Source：Kommersant
From：Taiwan Trade Center, Moscow
Update Time：2023/08/15
Inventive Retail Group will launch a new chain
Local retailers, in an attempt to make up for the reduced range of sports goods on the Russian market after the departure of international manufacturers from the country, are launching their own multi-brand stores. Inventive Retail Group, which has partnered with Nike, is already gearing up to open the first points of sale for its new Amazing Red chain, which is primarily aimed at people involved in sports. However, such projects face serious pressure from marketplaces expanding the range of sportswear and footwear.
Inventive Retail Group (IRG) in July this year will launch a new multi-brand network of sporting goods stores Amazing Red, which will include 100 stores in more than 20 cities of Russia, Kommersant was told in the company.
The basis of the assortment in Amazing Red will be products for different sports from the brands Puma, Nike, New Balance, Reebok, and Asics.
The launch of the new network in the company is explained by the continued high demand and lack of sports brands. At the same time, another IRG chain, Street Beat, will continue to focus on the everyday lifestyle assortment, the retailer's representative clarifies.
Inventive Retail Group (IRG) is part of the LANIT diversified group of IT companies. Philip Gens is the President of the company, and Tikhon Smykov is the General Director. The core brands of Inventive Retail Group are Samsung, Xiaomi, Street Beat, Store, UNOde50, formerly Apple, Sony, LEGO, Nike, and PRENATAL. IRG is an operator of retail chains, online stores, a distributor, and a provider of business solutions in the premium segment. The Group is developing an omnichannel business strategy. The group's retail stores are points of sale in four market segments: electronics, sports, children's goods, and fashion. The company's chains include about 365 stores in 33 cities in the Russian Federation. IRG's revenue in 2022 decreased by 40.8% year-on-year and amounted to RUB 71 billion.
As Kommersant was convinced, the Amazing Red sign has already appeared on the site of the former store of another sports brand - Puma in the Europolis shopping center in Moscow. The IRG confirmed this fact. The company clarified that the Inventive Retail Group will be fully engaged in the search for goods and brands for the new network without being tied to the Puma brand. The Russian office of Puma did not respond to Kommersant's request.
As Kommersant reported on June 26, the Puma network, which had suspended work in Russia since the spring of 2022, attracted Miroslav Ryba, a head from abroad, to the local division. According to the market, a top manager can restart the process of supplying brand products to the country.
Until last year, Inventive Retail Group was Nike's franchised retail partner in Russia. But the company had to close all stores of this brand after its decision to leave the Russian market.
However, IRG was not able to reformat Nike stores into multi-brand points of sale in a short time, the president of the company, Tikhon Smykov, said in an interview with Vedomosti in February of this year.
CORE.XP Senior Director Marina Malakhatko notes that, despite the closure of retail, some international brands have maintained the supply of basic collections for partners within the framework that Western sanctions allow. We are talking about clothes and shoes worth less than €300 per item. However, the expert notes, all high-tech novelties, collections created jointly with celebrities, enter the Russian market through parallel imports and cost three to four times more.
Sports goods suppliers launch their own brands
Multi-brand networks, in addition to the traditional assortment, quality of goods, and prices, compete through loyalty programs, and the convenience of an online store, says Ms. Malakhatko. At the same time, in terms of prices, retail chains are under pressure from marketplaces, as some of them, due to the increase in the range of sports goods, can afford to sell them at a noticeable discount, says Dania Tkacheva, business consultant for sales management and strategic development.
According to Ms. Tkacheva, today there is an unclosed demand for sports goods intended for playing sports in the cold season: down jackets, insulated sneakers with a membrane, warm suits, etc. Now a large volume of sports goods is imported from the countries of the Middle East and Africa, which do not meet the climatic features of Russia, the expert explains. According to Evgenia Khakberdiyeva, director of the retail real estate department at NF Group, there is a lack of quality supply, for example, in the segment of goods for specific sports.
Source: https://www.kommersant.ru/doc/6069455?from=top_main_7