After turbulent 15 months of store closures and slumping demand, Russian designers and brands are helping the retail sector gradually recover with new labels plugging the gap left by foreign rivals and shoppers tentatively returning.
Russian import of $2.5 billion fashion brands stopped after Russia invaded Ukraine hundreds of foreign retailers shut up shop in response leaving some of Moscow’s most prestigious streets boarded up with stores.
Spain’s Inditex (ITX.MC) has already sold some of its more than 500 Russian stores to a UAE-based buyer. Its flagship Zara store in Moscow reopened under new management and a new brand, MAAG, leaving customers largely satisfied. Customers found no difference between the apparel of two brands.
People in general just did not understand what was going on. They did not want to spend money. The losses were about 200 billion roubles ($2.47 billion).But it is recovering now as money always eventually changes hands.”
Gloria Jeans, once a reseller of Levi’s jeans, has taken over Swedish retailer H&M’s central Moscow store. Retailers say the biggest problem is international transactions. Fashion industry is extremely dependent on imports. Another problem is the shortage of staff, like lack of seamstresses and professionals in textiles.
Russians have developed solutions with small-scale imports and online sellers helping to keep foreign brands alive, but some things remain difficult to find. Consumers in Russia still miss original Zara and Ikea. Some consumers go to Kazakhstan for shopping. But due to devaluation $1 = 80.8200 roubles they cannot buy at all they desire anymore.
Russian clothing brands replacing Western rivals
