Crisis hits Russia’s clothing sector as mid-range companies flee market. Eleven international clothing brands have abandoned Russia in the last year as the ongoing financial crisis forces the mid-price segment out of the market. Sensing an opportunity, budget labels are moving in to take its place. Online Asian stores, with which western players find it difficult to compete, have also embarked on an aggressive campaign.

Buffeted by the winds of the economic crisis sweeping the country, Russia’s clothing sector is undergoing a profound polarisation as international mid-range players abandon the market, leaving it dominated by the elite and low-price segments, the latter of which is moving to cash in on the decreased spending power of the average consumer.

For commercial networks operating in Russia, 2015 began with losses: Demand for clothes, footwear and accessories has fallen by 27 percent in the first three months of 2015. “This has forced international retailers to reduce their presence in Russia,” says Darya Yadernaya, General Director of Y Consulting.

Source: Russia Beyond the Headlines

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