The economic crisis in Russia, which started already in 2013, hit the fashion industry as well. Due to value decrease of the Russian Ruble, prices of non food products increased by around 20% in the last years. This also affected the import dynamics of apparel, shoes and fabrics.
However when taking a closer look at the footwear and apparel exports from Europe to Russia it shows that in 2016 exports from Germany and Italy are already growing again and for 2017 the market is expected to grow further.
Many European brands are operating on the market, partly with own outlets or over distributors. According to Director Partner of SCHNEIDER GROUP, Lars Flottrong, some companies need to reconsider their business strategy: ”The Russian government is fighting grey imports and with tighter regulations and tracking of goods, dubious schemes will be detected.”
At the moment a significant amount of apparel and knitwear is brought from Eastern EU-member states to Russia, especially through Baltic countries, knowing that there are weak points in the border control. With the restructuring of the governmental authorities, the customs and tax databases are consolidated and goods are tracked from import to the final customer. To successfully do business in Russia and not get black listed, European brands need to take action and assure that their goods are distributed compliantly.
SCHNEIDER GROUP informs about the fashion market developments and important facts and news fur successful business strategies on its roadshow of seminars.
We have also developed service packages especially for fashion companies to successfully operate on the Russian market. Read about our industry offer.