economy
December 30, 2025
Dressed for disaster: Russian fashion retail collapses despite losing Western competition
Contrary to the optimistic forecasts of 2022, the mass departure of international brands did not lead to rapid growth among Russian clothing manufacturers. Intensifying fiscal pressure and widespread uncertainty, rising prices for raw materials and accessories, competition from China, and an overall decline in demand (in 2025, shoppers were unmoved even by Black Friday) have combined to doom the sector. True, there are isolated success stories among premium brands, but the mass market is represented mostly by retail operators importing foreign goods. This is not import substitution, but import placement, fashion historian Alexander Vasiliev notes.
TL;DR
- Russian clothing manufacturers are not benefiting from the departure of international brands, facing challenges like rising material costs, increased competition from China, and a decline in consumer demand.
- Despite initial illusions of growth, the Russian fashion retail market has seen widespread closures, including major brands and smaller businesses, with workwear and niche categories also affected.
- The market is increasingly filled with imported goods from China and other Asian countries, with Russian retailers and brands relying on foreign production due to higher domestic manufacturing costs.
- Genuine Russian brands that have managed to fill the void are few and often in the premium segment, while the mass market is dominated by new labels for previously imported goods or imported assortments.
- Consumer spending has shifted away from clothing towards essentials and experiences, with many Russians cutting back on non-essential purchases.
- Upcoming tax increases and potential changes to self-employment status are expected to further burden small businesses, potentially leading to more closures or a move into the shadow economy.
- Fashion historian Alexander Vasiliev describes the situation as 'import placement' rather than true import substitution, with luxury Western brands still entering Russia through parallel imports.
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