The Russian fashion industry is in a state of disarray, with leading experts now openly questioning whether the sector can even be considered a "fashion industry" at all. In a scathing assessment, renowned fashion historian Rustam Iskhakov declared, "There is no fashion industry in Russia." This damning verdict comes amidst a wave of store closures, brand exits, and a broader collapse of the once-promising domestic apparel market.
A Shattered Retail Landscape
The exodus of major Western brands like Zara, H&M, and Benetton following Russia's invasion of Ukraine in 2022 was widely expected to create opportunities for local Russian labels to fill the void. Reuters reports that this has not materialized, with domestic brands struggling to compete against a surge of Chinese imports and the continued presence of foreign labels operating through grey market channels.
"The best spots, where Western brands used to be stationed, are already filled," said Pavel Lyulin, vice president of the Shopping Centres Association of Russia, Belarus and Kazakhstan. "These are now taken by Russian rivals."
Failed Import Substitution
The Russian government had pinned its hopes on "import substitution" - the idea that local producers could rapidly scale up to replace lost Western goods. However, reports indicate this strategy has largely failed, with small and medium-sized brands unable to cope with rising costs, dwindling consumer demand, and intense competition from China.
"Everything has shot up into the stratosphere," lamented one business owner, noting that the price of raw materials has skyrocketed. "Maintaining a location with inventory, a register, and staff is now a luxury that small brands can't afford."
A Bleak Outlook
The bigger picture, according to fashion historian Alexander Vasiliev, is that Russia's fashion landscape has devolved into little more than "import placement" - the mere relocation of foreign goods, rather than the development of a vibrant domestic industry. India's World reports that even the once-celebrated Moscow Fashion Week has struggled to regain its former prestige, as the country's designers grapple with a range of economic and geopolitical headwinds.
With the collapse of mass-market fashion retailers and the inability of local brands to fill the void, the future of Russia's fashion industry appears increasingly bleak. As Iskhakov bluntly stated, "There is no fashion industry in Russia." The country's designers and entrepreneurs will need to overcome significant structural challenges if they hope to revive this once-vibrant sector.