Consultants Report Arrival of a Few Western Brands in Russia in 2025
The pace at which new brands entered the Russian market halved in the first quarter of 2025 compared to the same period last year. While domestic companies dominate among the newcomers, several foreign brands have also appeared. This is according to Russian consulting firm Commonwealth Partnership (CMWP).
According to CMWP data, nine new consumer goods brands entered the Russian market between January and March (specialist goods excluded from monitoring). Of these, five are Russian, and four are foreign: German premium women’s footwear brand Kennel & Schmenger, Italian home appliance maker De’Longhi, Chinese furniture company Jinkailai, and Kazakh fashion label Gaissina.
CMWP analysts note that only one brand has so far announced its intention to enter the Russian market in 2025, compared with 21 brands that made similar announcements in 2024 but have yet to revise their status. Thus, at the moment, 22 brands are planning to enter the market in 2025. Twelve are backed by Russian operators; two each hail from South Korea, China, and the UAE; and one each from the USA, France, Turkey, and Italy. Over one-third (39%) of these brands belong to the fashion sector.
The slow entry of new brands is attributed to a lack of vacant retail space in shopping centres, according to Yevgeniya Khakberdiyeva, Director of Retail Property at consulting firm NF Group, as cited by Kommersant.
The Russian Council of Shopping Centres believes that Western brands that exited the Russian market in 2022 will find it challenging to return. Large spaces in shopping centres are already occupied by Russian companies (e.g. Lime, Stockmann, Gloria Jeans, Melon Fashion Group, which includes the brands Zarina, Befree, Love Republic) and some foreign ones (such as Maag, Ecru, and Dub), Izvestia reports.