Russian fashion industry dreams of “made in Russia”, despite challenges

Despite the lack of personnel, equipment and fabrics, the fashion industry in Russia is rushing to fill the void left by the big Western brands that left the country after the start of the conflict in Ukraine.

Since February 2022, dozens of brands such as Adidas, H&M and Zara have closed their stores in Russia, which saw its annual European clothing imports decrease by 37.2% last year, according to the website for fashion professionals Fashion Network.

The Kremlin repeats that the imposed sanctions provide the opportunity to develop light industry and national firms.

The country, which historically focused on raw materials and heavy industry, has already made some efforts following sanctions over the annexation of Crimea in 2014.

With the current offensive in Ukraine and the break with the West, the Kremlin redoubles its efforts to make fashion successful “made in Russia” in the country, ninth customer of European clothing before 2022.

Industrial Revolution

Nadejda Samoylenko, vice president of the Russian Light Industry Entrepreneurs’ Union, said that when the Soviet Union fell, so did the country’s light manufacturing industry.

According to Samoylenko, who has worked in the sector since 1978, Russia stopped producing fabrics, and with the closure of the Soviet-era schools that trained personnel, it also lost knowledge of this industry.

Therefore, factories lack “between 25% and 50% of specialists” what do you need.

Russian brands such as LIME and “Lady & Gentleman”which replaced brands like H&M and Uniqlo, “they produce in Asia, in exactly the same factories as the Western brands that came out of Russia”declared Tatyana Belkevich, president of the Russian Association of the Fashion Industry (RAFI).

The YOU brand, based in Saint Petersburg (northwest), was positioned as an alternative to the Spanish Massimo Dutti of the Inditex group, which closed more than 500 stores after beginning the Moscow offensive.

The company manufactures in Russia but volumes are low.

YOU claimed to have doubled its production last year, up to 4,000 items. The company’s goal is to double it again by 2024, “although delivery times for raw materials and supplies from Asia also doubled”declared its executive director, Yevgeniya Moseychuk.

The brand tripled its workforce in 18 months and opened six stores, but it is still far from mass production, in addition to lacking a quarter of the necessary seamstresses.

Patriotic consumer?

Despite the challenges, the number of clothing companies continues to increase.

According to the official Rossaccreditatsia agency, the number of companies in the sector grew by 20% between 2021 and 2022.

However, in marketing matters, Russian does not triumph: the vast majority of brands choose names in English.

“At their heart, the Russian consumer remains under the influence of the ‘soft power’ of the West,” Belkevich explained.

Stanislava Najmitdinova, development advisor in the sector, pointed out that the cost factor hampers the growth of the “made in Russia”. For the buyer, the “cheap consumption” is more important than “local consumption”.

According to Fashion Consulting Group, clothing prices rose 30% as sanctions complicated supply chains and the ruble is at its lowest level against the dollar.

“Russians now say they are more interested in local brands, but in reality, do they have a choice?”Najmitdinova questioned.

In any case, 45% of Russians continue to buy Western brands through other countries, according to the audit and consulting company B1, the former Russian branch of the EY giant.

“When Westerners return to Russia, they will continue to find their loyal customers,” Najmitdinova stated. “If they are still alive, of course.”

Source: AFP