1 SUMMARY

Moscow Thermal Underwear Market

Research

(demo version)

March 2013

2 SUMMARY

Table of Content

Slide No.

Table List 3

Research Description 4

Condition and Behavior of the Consumer Demand for Thermal Underwear 7

Thermal Underwear Purchase Frequency and Addressees 10

Situations of Thermal Underwear Use 11

Brand Preferences of the Thermal Underwear Buyers 12

Awareness of Thermal Underwear Brands 14

Social Portrait of Thermal Underwear Buyers by Brands 16

Places of Thermal Underwear Purchase 18

Thermal Underwear Internet Purchase 20

Overlapping of the Thermal Underwear Sales Formats 21

Differences of the Thermal Underwear Buyer Audiences 22

3 SUMMARY

Table List

Slide

No.

Table 1. Categorization of the Thermal Underwear Buyers by Gender 7

Table 2. Categorization of the Thermal Underwear Buyers by Age 8

Table 3. Social Portrait of the Thermal Underwear Buyers by Brands in a View

of Age Groups

16

Table 4. Social Portrait of the Thermal Underwear Buyers by Brands in a View

of the Income Self-Assessment

17

Table 5. Places of Thermal Underwear Purchase 19

Table 6. Overlapping of the Audiences of Thermal Underwear Stores 21

Table 7. Gender Differences of the Audiences of Thermal Underwear Stores 22

Table 8. Age Differences of the Audiences of Thermal Underwear Stores 23

Table 9. Income Self-Assessment Differences of the Audiences of Thermal

Underwear Stores

24

4 SUMMARY

Research objective. To gain an insight into the current thermal underwear use situation in

Moscow and predict the consumer demand dynamics in the near-term perspective.

Goals:

• To determine the actual and potential capacity of the Moscow thermal underwear market

as the largest and financially significant one

• To determine probable variations of the consumer demand for thermal underwear in the

near-term perspective (next season)

• To identify the basic situations of thermal underwear use by Moscow residents

• To determine the XXX Brand share in the Moscow market

• To determine approximate shares of the main competitors in the Moscow market

• To identify a thermal underwear brand awareness

• To identify the basic shopping format of thermal underwear purchases by Moscow

residents

• To draw a portrait of an “average” Moscow buyer of thermal underwear

Research Description

5 SUMMARY

Target group: residents of 4 administrative districts of Moscow: South-East Administrative

District, South-West Administrative District, North Administrative District, North-East

Administrative District (except for the immigrants).

Information sources: Federal State Statistics Service data, secondary research data,

interview with the buyers.

Method: phone interviews with the Moscow residents over 16 years of age based on a

formalized questionnaire.

Amount: 1,600 interviews

Period: March 2013

Geography: Moscow

Form of presentation: Power Point slides

6 SUMMARY

Selection Stages of the Respondent :

• Data of the National Population Census.

• Stratified sampling of the Moscow administrative districts

• Random phone selection of respondents.

7 SUMMARY

Moscow thermal underwear market capacity.

• At the time of the poll ХХХ % have worn or purchased thermal underwear (which in

absolute numbers is ХХХ people)

• Hence one can assume that the total capacity of the Moscow thermal underwear market

(without participation of immigrants) is ХХХ % or approximately ХХХ people in absolute

numbers.

Data of the Federal

State Statistics

Service for Moscow

Poll data Wore Wore Brand

Male 46.1% 43.8% ХХХ % ХХХ %

Female 53.9% 56.2% ХХХ % ХХХ %

Table 1. Categorization of Thermal Underwear Buyers By Gender

Condition and Dynamics of the Consumer Demand for Thermal

Underwear.

8 SUMMARY

16-23 24-29 30-39 40-49 50-59 60+

Data of the

Federal State

Statistics Service

12.1% 12.4% 19.0% 17.3% 17.0% 22.3%

Poll data 11.3% 13.0% 19.7% 14.6% 17.6% 22.2%

Wore thermal

underwear

ХХХ % ХХХ % ХХХ % ХХХ % ХХХ % ХХХ %

Wore Brand ХХХ % ХХХ % ХХХ % ХХХ % ХХХ % ХХХ %

Table 2. Categorization of Thermal Underwear Consumers by Age.

9 SUMMARY

• ХХХ% of the total selection have plans to purchase thermal underwear in the future:

out of those who has purchased thermal underwear– ХХХ%;

out of those who has not– ХХХ %.

• Therefore, the correlation between the actual and potential thermal underwear buyer

audiences in Moscow is ХХХ. This means that the Moscow thermal underwear market at

this moment is close to saturation. But considering that not every intention to purchase

leads to its realization, and additionally considering the negative macro- and micro

economical processes (stable negative Consumer Confidence Index, decrease in car

purchases, sales decrease in FMCG segment of medium and premium level) one can

assume that the Moscow thermal underwear market has a tendency to contraction in the

nearest future. One should predict a decline of the consumer demand for thermal

underwear by ХХХ %.

10 SUMMARY

• Multiple purchases (over 60%) prevail in those who have purchased/worn thermal

underwear.

• Prevailing frequency of thermal underwear purchase is once per season (approximately

50%). Less often than once per season – 37%. More often than once per season – 8%.

• The addressees of the thermal underwear purchases are mostly self-usage (for self) –

over 50%. Then there are purchases for self and others (24%) and For others (16%).

Thermal Underwear Purchase Frequency and Addressees.

11 SUMMARY

Situations of Thermal Underwear Use

In the situations of thermal underwear use (open question) the leader is “for street walks”

(ХХХ%). Then go (provided data are not ranked by decrease of their significance):

Outdoor sports (ХХХ%);

Everyday wear (ХХХ%).

For warmth when it is cold (ХХХ%);

For hunting/fishing (ХХХ %);

For tourism (3%);

Other (less than 2%).

12 SUMMARY

Brand Preferences of the Thermal Underwear Buyers.

• ХХХ Brand share in the Moscow thermal underwear market is approximately ХХХ %

(in the absolute values from the number of Moscow residents who have worn it –

approximately ХХХ people).

• The audience of ХХХ Brand and the audience of Moscow residents, who have

purchased/worn thermal underwear are somewhat different: the audience of ХХХ Brand

is more high-profitable.

From the buyers of thermal underwear of ХХХ Brand: a challenging purchase for 54%

is car, for 27% - real estate, for 11% - major appliances.

From the audience of the Moscow resident buyers of thermal underwear: a

challenging purchase for 23% is a car, for 18% - major appliances, for 15% - real estate.

13 SUMMARY

• Competitive surrounding of ХХХ Brand without a statistical load of those who don’t

remember (provided data are not ranked by decrease of their significance):*

Adidas – ХХХ %;

Norveg – ХХХ %;

ХХХ Brand– ХХХ %;

Guahoo - ХХХ %;

North Face - ХХХ %;

Nova Tour - ХХХ %

Marmot - ХХХ %;

Glissade - ХХХ %;

Cratex – ХХХ %.

Other brands (mostly singular) – 42%.

• The inability of most of the respondents to remember the trade mark of the purchased

thermal underwear implies that the consumer behavior can be described by the phrase

“ХХХ”.

• This is supported by a low, comparing to the purchases in Sportmaster (see further),

recognition of Glassade (ХХХ% purchased the thermal underwear in Sportmaster, 3%

specifically purchased Glissade, 5% recognized Glissade).

* The total of values exceeds 100%, as the respondents could mark several options.

14 SUMMARY

Awareness of the Thermal Underwear Brands

• The research showed that in half of the cases (47%) the buyers do not know the

brands of thermal underwear.

• In those who knew, the leading trade mark by recognition is Adidas (32%). But in this

case one has to account for distortions related to a global nature of this Brand.

• ХХХ Brand is in the group of the most recognized brands.

Without considering Adidas the following brands are listed in accordance with their

awareness (provided data are not ranked by decrease of their significance):

Norveg (ХХХ %);

Marmot (ХХХ %);

Guahoo (ХХХ %);

North Face (ХХХ %);

Ultramax (15%);

Nova Tour (14%);

Cratex (12%);

Glissade (11%);

Other brands (mostly singular) – 29%.

15 SUMMARY

• Significant differences between ХХХ Brand recognition and its purchases indicate

that the advertising effectiveness (buyer awareness) is considerably ahead of the

distributional one.

16 SUMMARY

Social Portrait of the Thermal Underwear Buyers by Brands.

16-23 24-29 30-39 40-49 50-59 60+

Social portrait of the brand buyer

(except for Others) - 100%.

15% 15% 22% 16% 16% 14%

Social portrait of Other brand

buyer (mostly singular) - 100%.

15% 19% 30% 15% 11% 8%

Table 3. Social Portrait of the Thermal Underwear Buyers by Brands in a View of

Age Groups.

17 SUMMARY

Car purchase is

challenging

Major appliances

purchase is

challenging

Real-estate

purchase is

challenging

Social portrait of the

brand buyer (except for

Others) - 100%.

28%

16%

19%

Social portrait of Other

brand buyer (mostly

singular) - 100%.

28%

23%

22%

Table4. Social Portrait of the Thermal Underwear Buyers by Brands in a View of

Income Self-Assessment.

There are no gender-related differences found in the usage.

18 SUMMARY

Places of Thermal Underwear Purchase.

Most consumers (82%) do not remember in which exact stores (names) they purchased

thermal underwear.

The most attractive places for the thermal underwear purchases are (provided data are not

ranked by decrease of their significance):

• Sportmaster/Dekatlon stores (ХХХ%);

• Trade centers/Malls (ХХХ%);

• In Other sport shops/in Pavilion shops (Dubrovka, All-Russian Exhibition Center)

thermal underwear is purchased by approximately 9 %;

• In Internet shops– ХХХ %;

• In the Hunting/Fishing type stores thermal underwear is purchased by ХХХ%;

• In specialized trade centers (SportHit, Extreme type) thermal underwear is purchased

by ХХХ %;

• In merchandize markets– only 6%;

• In other Points of Sale– 4% and less.

19 SUMMARY

Table 5. Places of Thermal Underwear Purchase.

Trade

Center

Sportmast

er/Decatlo

n

Other sport

stores

Market, in

the pavilion-

type stores

Internet

Social portrait of

the brand buyer

(except for Others)

- 100%.

ХХХ %

ХХХ %

9%

15%

ХХХ%

Social portrait of

Other brands

buyer (mostly

singular) - 100%.

ХХХ %

ХХХ %

11%

15%

ХХХ%

20 SUMMARY

Internet Purchases of Thermal Underwear

In the Internet purchases of thermal underwear (Internet purchases of thermal

underwear are taken for 100%) the leader is Adidas (ХХХ %). But it is necessary

to consider a certain correction caused by possible overlay of thermal

underwear with some other product (knitwear, sportswear) of this global brand in

the consumer mind.

Then follow (provided data are not ranked by decrease of their significance):

Norveg – ХХХ%;

Brand ХХХ - ХХХ%;

Guahoo – ХХХ%;

Marmot – ХХХ%;

North Face, Glissade – по ХХХ%;

Other brands (mostly singular) – 19%.

21 SUMMARY

Overlapping of the Thermal Underwear Sales Formats

In which other stores do the Buyers purchase thermal underwear?

People purchasing thermal underwear mostly from Sportmaster/Dekatlon (taken for 100%)

also intent to buy thermal underwear in trade centers/malls (ХХХ %).

The audience of thermal underwear buyers in Trade centers/malls (taken for 100%) very

much intent to buy thermal underwear in Sportmaster/Dekatlon (ХХХ %).

Internet buyers (taken for 100%) also purchase thermal underwear in Sportmaster/Dekatlon

(ХХХ %), and Trade centers/malls (ХХХ %).

From the buyers of

Sportmaster / Dekatlon

From the buyers

of Trade

centers/malls

From the

Internet

buyers

Sportmaster/Dekatlon 100% ХХХ % ХХХ %

Trade centers/malls ХХХ % 100% ХХХ %

Internet purchases 4 % 7 % 100%

Table 6. Overlapping of the Audiences of Thermal Underwear Stores

22 SUMMARY

Differences of the Thermal Underwear Buyer Audiences

Table 7. Gender Differences of the Audiences of Thermal Underwear Stores

Sportmaster/Dekatlon Trade

centers/malls

Internet purchases

Male 54% 47% 35%

Female 46% 53% 65%

23 SUMMARY

Table 8. Age Differences of the Audiences of Thermal Underwear Stores.

Sportmaster/Dekatlon Trade

centers/malls

Internet purchases

16-23 ХХХ % ХХХ % ХХХ %

24-29 ХХХ % ХХХ % 13%

30-39 ХХХ % ХХХ % ХХХ %

40-49 14% ХХХ % 8%

50-59 13% 14% 19%

60+ 9% 11% 8%

24 SUMMARY

Table 9. Income Self-Assessment Differences of the Audiences of Thermal

Underwear Stores

Sportmaster/De

katlon

Trade centers/malls Internet

purchases

Car purchase is

challenging

ХХХ % ХХХ % ХХХ %

Real estate purchase is

challenging

22% 12% 19%

Major appliances

purchase is

challenging

17% 23% 19%

25 SUMMARY

Attachments

Recommendations on positioning and promotion of the XXX Brand

of thermal underwear

26 SUMMARY

Attachment

Phone questionnaire