The FINANCIAL — The export of light industry, which mainly consists of clothes, has been growing rapidly in Georgia in 2012.
The number grew by 30 percent in the first quarter of 2012 compared to the same period of 2011. Meanwhile shoes make up the majority of light industry imported to the country, but clothes including trousers, shirts and jackets are imported in quite large quantity as well. Improved practice of sales in Georgia and increased average salary amounts have resulted in increased demand for clothes, experts believe.
The import of light industry came to GEL 16,557,900 in total in the first six months of 2012. Products are mainly imported from Turkey, Arabia and China. Light industry export amounted to GEL 4,209,100 in the same period.
“Georgians tend to like showing off. Therefore they are spending more and more money on shopping,” economist Giorgi Kurtskhalia told The FINANCIAL. “Average nominal salary is growing well in the country but is not high enough to influence such a big rise in sales. Statistics show that quite a large share of Georgians’ income is spent on clothes. This is not a new trend here. But for example, Americans in contrast spend comparatively less money on clothes.”
The average monthly nominal salary in Georgia amounted to GEL 690.7 in 2011 according to the National Statistics Office of Georgia, which is GEL 93.1 more than that of 2011.
All brand shops and small boutiques have recorded increased sales. Shops in Tbilisi usually have improper sales practices but this summer the general situation has been improving. This fact has also supported the increased sales. In August shops offered at least 50 percent discounts for whole collections.
Tbilisi Mall, the biggest shopping mall in Tbilisi, opened on April 7, 2012, incorporates up to twenty of the world’s most recognizable fashion brands, including Pull and Bear, Massimo Dutti, Bershka, Stradivarius and Oysho and Zara, Gap, New Yorker, Banana Republic, Lipsy London etc. In total Retail Group plans to bring forty more brands to Tbilisi Mall. The entrance of such prominent brands has also increased the tendency of Georgians to shop.
“According to our statistics about 300 customers enter Kotton every day. Out of 300 customers at least 20 percent are real buyers. One of our customers buys on average items to the value of GEL 2,000 during the year,” said Salome Isiani, Marketing Manager at Kotton.
“We have our loyal client base and their number is increasing. Tourists from Azerbaijan, Armenia, Turkey and Ukraine are our main clients,” said Natia Ninidze, brand manager for Hugo Boss and Ermenegildo Zegna with Victoria 98 Ltd, which consists of high-end and premium brands. “Our advantage is that we offer only one item of clothing in each size and our collection is not massive, so there is competition to acquire our clothing. Also there is a huge scope of difference in quality between our stores and all the other ones.”
Psychologists say that the mentality of Georgians is oriented on looking good at all times. Georgians believe that if they are well-dressed then that makes them cool.
“Unfortunately people in Tbilisi tend to compete each other in terms of who is better dressed,” said Nino Navrozashvili, psychologist. “I have lots of young patients who are suffering because of this emphasis on one’s material appearance. Of course it’s nice when people in the street are dressed well, but this can’t be a number one priority.”
“Europeans have a sophisticated taste for clothing but their attitude towards it is totally different from Georgians. Americans always buy clothes which are necessary for them and are durable, therefore will last for a long time. Fashion is important for Americans but they don’t tend to build their lives around it,” she stated.
The export of clothes is increasing in Georgia as well. In general the apparel business in Georgia is developing quite fast. There are six apparel companies in western Georgian (one in Kutaisi and five in Adjara) established by Turkish investors. They are doing outsourcing of international brands of clothes in Georgia. Meanwhile there are twelve local middle and big apparel companies in Tbilisi mainly working for state tenders.
Discussion about this post