Developing Retail Trade Networks of the Mass-Market Segment of the Fashion Industry in Ukraine

• Main Authors: Ilchenko Nataliia B., Voynilovych Vita Ye.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2019-11-01
• Series: Bìznes Inform
• Subjects: retail networks of fashion; mass market; fast fashion; fashion pyramid; digital platforms
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2019-11_0-pages-407_416.pdf

The article researches the features of development of the national and local retail networks in the mass-market fashion segment in Ukraine, as well as international retail networks in the same segment. The structure of retail turnover of clothing and footwear for the first half of 2019, which are produced in Ukraine and sold through retail trade networks, is analyzed. Accordingly, the distribution is as follows: clothing – 8.4%, footwear – 3.8%. The advantages and disadvantages of mass-market fashion are identified. A pyramid of fashion for the main national and local retail networks, as well as international ones, specializing in the sale of clothes, footwear and accessories in the mass market segment in Ukraine, is built and suggested. It is proved that all trademarks of the fashion industry can be conditionally divided into 5 segments: price, turnover, exclusivity, quality, level of service. The suggested pyramid is illustrative for exclusivity and quality, in the top of this pyramid are placed the retail networks that, in addition to the line of the «high fashion», also propose the lines of ready-to-wear clothes. When comparing the suggested pyramid with the Maslow’s pyramid of needs, it can be stated that this segment corresponds to the need for self-fulfillment. The second segment, which corresponds to the Maslow’s pyramid per se, includes aesthetic needs aimed at defining harmony and beauty. Accordingly, the more expensive the brands, the higher are they towards the top of the pyramid, while at the bottom can be found the brands of the low price segment. The carried out research defines that mass market fashion is more for youth and beauty, the target segment of this group is mainly focused on the 18–30-year-old consumers. It is defined that the fashion industry market is growing rapidly due to the use of digital platforms related to this age category of consumers. It is proved that the big problem in the development of international retail chains of the fashion industry existing on the Ukrainian market is the overpricing of identical goods that are sold in other countries of the world and as a result, this significantly affects the formation of demand.