The Fashion Consulting Group (FCG) predicts pressure from a depreciating ruble would result in Russia’s $33 billion fashion market losing by about 20 percent this year. As per FCG review of the fashion market in the country, inflation significantly influences consumption, which includes clothing and footwear, and thus the market is changing substantially. Last year, the fashion market dipped 8 per cent compared to the previous year, while import dynamics were positive due to pre-orders, because orders in the fashion industry are usually made five or seven months in advance.

FCG further stated that middle-class consumers are moving to lower price points and people’s incomes have been affected by the weak ruble. Thus, many Russians now spend half of their budget on food and much less on clothes. The fashion industry particularly and retailers have been affected by the country’s slow economy, with some global brands quitting the country.

Last year in March, Adidas announced plans to shut 200 shops this year because it was affected by the devaluation of the ruble and other emerging market currencies. Reinhard Doepfer, Chairman, European Fashion and Textile Export Council says despite this, the process of construction and opening of shopping centres continues. Since the beginning of 2015, more than 15 new brands have entered the Russian fashion market. Also, e-commerce trade is gaining momentum in Russia now, with Chinese online retailers Alibaba and JD.com expanding in the country.