Stefanel, the first international company that directly entered the Romanian apparel market 17 years ago, estimates the market will expand this year amid the arrival of international players and the emergence of new shopping centres, but that trend will not be a spectacular.
"For 2008, we expect moderate market growth of around 10-15%, particularly amid the emergence of brands in the country and especially in Bucharest. However, our concerns are related to the country's economic situation and inflation, exchange rate fluctuations and consumers' shrinking disposable income," Lucio Manfreda, chairman of Stefanel Romania, told ZF.
The Economist analysts put the apparel and footwear market at around 3bn dollars (2bn euros).
According to company data, Stefanel derived turnover worth 7.6m euros last year, up 55% year-on-year.
"In Romania, we are still involved in the investment stage and our priorities are related to boosting our market share. We are constantly in the process of assessing shopping centres to find out what best suits Stefanel customers," says Manfreda.
At present, the Stefanel network includes 12 stores, which includes six stores in Bucharest. In terms of cities considered for expansion, the company is interested in Arad, Oradea, Pitesti and Suceava, but the launch of stores in these areas depends on the development of the city, both financially and in terms of consumer behaviour.
In terms of location, the company believes that high street locations most suit the brand, but the lack of space domestically has meant that the company has looked towards shopping centres opened in recent years for expansion.
Out of 12 Stefanel stores only two are located on street front locations, one in Bucharest, in Victoria Square, and the second in Brasov, in Republicii Street, while the other stores in Bucharest, Constanta, Iasi, Ti
