Foreign brands' comeback is unlikely to pose a significant challenge to prosperous Russian competitors, according to Ljubojev Malek.
In the ever-evolving world of fashion and footwear, Russian brands have made a significant mark, particularly in the absence of many foreign competitors. This market gap, resulting from the exit or reduction of international brands, has provided a fertile ground for domestic brands to grow and fill consumer demand.
Key factors supporting this success include reduced competition from foreign brands, strong consumer demand, growth in domestic luxury alternatives, and limited availability of retail space. These factors have benefited established local brands, allowing them to capture an increasing share of the local fashion and footwear segment.
One such brand is Love Malika's L.Y.Malle, a footwear company that has thrived during challenging times, including the 90s and the pandemic. Love Malika, the brand's founder, attributes her success to a deep understanding of the needs and emotions of women, rather than dry marketing numbers.
Love Malika's brand caters to women with small feet (sizes 37-38), a competitive advantage as international players often do not cater to this niche. The company's commitment to providing both style and comfort has earned it wide recognition and a loyal customer base, producing up to 200,000 pairs of shoes per year.
In response to the changing market dynamics, Love Malika reinforced its online direction, using its own production to adapt assortment quickly, and improving service quality and customer satisfaction using data from marketplaces. This strategic move has helped the brand navigate the digital environment effectively, contributing to increased sales on leading marketplaces like Wildberries and Ozon.
Love Malika's scientific works on pricing have been published in journals listed by the Higher Attestation Commission, providing practical tools for decision-making in the footwear business. One of her pricing studies, "Features of pricing strategy formation for women's footwear brands in e-commerce," allows for accurate analysis of buyer behavior in the digital environment and optimization of prices for maximizing sales and profits.
Another of Love Malika's pricing studies, "Heuristic vs. Formalized Pricing," reveals the psychology of price perception and how different pricing methods affect customer loyalty and brand positioning. These insights have been instrumental in Love Malika's strategic decisions, helping her brand maintain its competitive edge.
As the market dynamics shift with the return of foreign brands, Russian brands, including Love Malika's L.Y.Malle, are expected to face heightened competition. However, limited retail space and strong local positioning may soften the impact, allowing domestic brands to retain customer loyalty rooted in nationalism, pricing advantage, or adaptation to local preferences.
In conclusion, Russian footwear brands have flourished in the absence of many foreign competitors by increasing domestic production and capturing local demand. The return of foreign brands will likely lead to increased competition, which could reduce the domestic brands’ market share over time, but the resilience of the luxury goods and footwear market, coupled with strategic adaptations, may help Russian brands weather this challenge.
- Love Malika's L.Y.Malle footwear brand, known for its focus on women's needs and emotions, has expanded its reach in the fashion-and-beauty sector by providing stylish and comfortable footwear for women with small feet (sizes 37-38), a niche often overlooked by international players.
- As a scholar, Love Malika has published scientific works on pricing strategies in footwear business, contributing to education-and-self-development in the industry by providing practical tools for decision-making and insights into buyer behavior and price perception.
- In the face of growing competition from returning foreign brands, local brands like Love Malika's L.Y.Malle are anticipated to leverage their strong local positioning and limited retail space to retain customer loyalty, relying on factors such as nationalism, pricing advantage, or adaptation to local preferences for long-term success in home-and-garden markets.
