Obuv Rossii to float on Moscow Stock Exchange
27/09/2017
Obuv Rossii was established in Novosibirsk in Siberia in 2003 as a small family business but is now Russia’s largest mid-price segment footwear retail group, with more than 500 stores and a presence in more than 140 cities. It achieved revenues of around $175 million in 2016.
On announcing the IPO, chief executive, Anton Titov, commented: “We have done something that few other retailers have managed to do: develop a portfolio of five distinct brands, each with its own positioning and broad base of loyal customers. The Russian footwear market, already one of the largest in Europe, is still lagging behind developed countries in terms of footwear consumption per capita and is expected to grow at 9%-11% per annum in financial terms over the next five years.”
The group’s five core brands are Westfalika, Rossita, Emilia Estra and Lisette.
He said Russia’s per capita consumption is currently two pairs per year, compared to five or six pairs in most of the rest of Europe. Mr Titov said Obuv Rossii will double its store count within three years and invest in the development of in-house production and its product design capabilities.
In 2016, 12% of the products sold by Obuv Rossii were made in Russian factories, including the company’s own facilities in the Novosibirsk region. The remaining 88% were produced by outsource manufacturing partners in China. Obuv Rossii says it carefully selects suppliers and works only with “big, reputable high-tech enterprises that also produce footwear for well-known brands in Europe and the US”.
Share this story:
