We don’t want to talk about the political and economic situation in Russia, as we are for sure not in the position to give an explanation to that, but we can see how this difficult moment is influencing the fashion business.
During the last 10 years mostly of the European fashion brands (specially in the shoes business), have grown or survived thanks to the Russian and Chinese shops and department stores.
It is clear the Russian people like very much the “Made in Italy” and they appreciate the quality of Italian productions. A lot of Companies concentrated their efforts on Russian market because they had no alternatives (European market is still weak and the euro was strong to the US dollars), so they are now depending from this market almost completely.
The situation is now that several brands are in big troubles because they see their seasonal sales going down from 30% to 40%.
The ruble is now about 75 to the euro. Comparing to the 42 we had before the crisis, you have the figure of the situation.
The loss of sales is not only in the Russian territories, but in Europe too. Paris, London, Milan…all the major cities are feeling the lack of Russian buyers in their shops.
Luckly the russian consumer is not moving into buying lower quality goods, but is just waiting for the prices go back to normal, to re start buying his favorite brand. So it seems this is just a temporary situation, but the question is now : when everything will go back to normal?