
Written by Roman Corikov and Oga Bubova and Yivgene
MOSOCON (Reuters) – Washington's batch to end the conflict in Ukraine rapidly raised speculation that Western brands may want to return to Russia, but from fashion to cars, the markets that have now evacuated are now more competitive than three years.
While Ukraine was referring to the anniversary of the Russian forces overwhelmed by its borders, US President Donald Trump suggested that the conflict ended within weeks, although it has not yet been clear.
Western sanctions that hold boundaries and commercial flows may need to soften companies to return in large numbers. Those who take diving will find markets now dominated by local – or in the case of cars, Chinese brands.
Henderson, a series of clothing for men listed in Moscow for exchange in late 2023, said that the departure of foreign retailers gave them a development boost, especially by providing better locations in shopping centers.
This has helped the company to develop its sales three times faster than the 8 % annual growth in the men's clothing market, although Western brands are still available in some places.
“The market itself has not changed significantly, because the majority of foreign brands (60-80 % of global manufacturers, according to our estimates) did not leave.”
“(They are) only transformed sales channels, using local multi -brand store services to sell products, or by changing signs on their stores and offering new brands.”
Consumer goods are not subject to sanctions, but since many companies have refused to do business with Russia, Moscow has legislate gray imports through the third countries that allow retailers to sell foreign goods without the brand owner's permission.
Fighting for space
The difference is that the main shopping centers sites, in the past, are intended for western leading stores, are now taken by Russian competitors.
“The best sites, as western brands were already concentrated, were already filled,” said Pavel Liolin, Vice President of the Shopping Centers Association in Russia, Blasusia and Kazakhstan.
“These are long -term contracts, so every place will be killed like that.”
The Moscow greeting the brands returning with open arms. President Vladimir Putin said on Friday that Russian manufacturers must be treated preferentially if foreign companies returned.
Putin's special envoy on international economic and investment cooperation said that he expected a number of American companies to return early in the second quarter of this year, without providing more details.
The post From fashion to cars, Russian markets pose new test for Western brands weighing return first appeared on Investorempires.com.