The main target markets of Silvano Fashion Group are Russia, Belarus, the Baltic States and Ukraine. According to the macro-economic indicators there are over 200 million potential consumers. This region could be divided into three parts.

First are the Baltic States. Over the last 10 years there was the highest developed region in whole Europe (approximately 10% GDP increase per year). This growth has fasted after joining the EU what encouraged the big volume of European companies to invest in these countries in a large scale. Over the past few years the volume of the Baltic retail market has greatly increased (around 17% per year) and outpaced the overall growth of the economy. The Group is active in the lingerie and women’s apparel markets in the Baltic’s. The increasing growth and consumer’s salaries was possible because Baltic countries have a special advantage to be a bridge between the two world’s strong economies – European and Russian.

Russia is the largest one because of their stretch and population (around 143 million people). It is characterized also by fast increasing economic growth (7-8% per year). That is the main reason why Russia is the major retail market for the Group. SFG is active in the lingerie and women’s apparel markets in Russia. It is estimated that the size of the lingerie market in Russia is in the range of EUR 1.5 billion. The gradual development and growth of lingerie sales is mainly driven by the general economic growth and increase in the amount of disposable income, as well as the increasing importance and purchasing power of the emerging middle class. The majority of Russian apparel sales are highly concentrated around Moscow, St. Petersburg and other major cities with more than one million inhabitants.

Belarus and Ukraine – two very perspective countries also placed between the high developed Western States and high developing Russia. That influenced in the past few year on the growth of people’s demand to buy high quality clothes. It is estimated that the size of the lingerie market in Ukraine EUR 300 million and in Belarus EUR 60 million and sales of lingerie are growing year by year.

According to the economic factors, as well as the overall development of the consumer society, Eastern European markets have a proven tendency to grow and develop trends and patterns that are similar to those in Western markets. As the market develops, Eastern European consumers become more demanding and start looking for higher quality, fashionable clothes. This has already allowed several well-known international companies’ apparel chains to carve their niches in Eastern European markets. It is anticipated that Eastern European markets will continue to rely on imports of clothes, since domestic production does not seem likely to be able to satisfy the demand in terms of quantity, quality and design in the near future. Moreover, the penetration of the market by Western European companies contributes to the development of the whole market, pushing it towards the level of Western consumer expectations, including, primarily, the tradition of purchasing clothes from shopping malls and shopping streets rather than from open-air markets.