Russia Case Study

1071 Words5 Pages
Many luxury brands have focused on China, Russia, India, and Brazil, and Saudi Arabia (Doran, 2012; Luke, 2015). Russia was one of the biggest markets for luxury products before the global financial crisis in European countries in 2009 (Doran, 2012). Luxury products retailing has usually been Russia’s most developing sector, with the best part of global luxury companies present with the expansion of mono-brand stores. During the global financial crisis, many luxury brands had to close their stores in Moscow and St Petersburg. Recently, however, their economy has been again showing signs of recovery. For the reason, many luxury companies have begun to interest Russian market again. After 1990, the Soviet Union collapsed, Russian consumers have been unleashed because their government suppressed the desire to fashion (Abenett, 2014).…show more content…
Ekaterina Petukhova, who is a retail specialist at global consultancy, said Russia 's huge problem is that global fashion companies, global brands, are reluctant about development in Russia because they do not know about Russia 's future. For example, New Look, which is a fast fashion brand, was founded in the United Kingdom in 1969 (New Look, n.d). New Look wanted to establish a joint venture with a fashion retailer plans for expansion in the Russia, and they had a plan to franchise partner with a Russian fashion retailer (Abenett, 2014). However, they decided to cancel construction of all of the plans because they were worried about Russia 's political uncertainty. Another fashion company Uniqlo has also stopped their new plans for expansion in Russia because they also were concerned about the same problem. Fortunately, however, many fashion retailers still have focused on Russia because there is a growth fashion market with significant longer-term
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