Chanel exits Russia as domestic fashion houses stand ready to fill the gap
The head of the Russian Textile Union, Shamkhal Ildarov, stated that homegrown fashion brands would begin to occupy the retail space left vacant by Chanel. His remarks were cited by the radio program Moscow speaks, underscoring a shift in the Russian luxury and ready-to-wear landscape. (source: Moscow speaks)
According to Ildarov, the Chanel trading house expressed regret over its withdrawal from the Russian market, noting that the brand enjoyed popularity among local customers. He added that a once-hallowed retail space would not remain empty for long, and that Russian labels would step forward to take its place. The statement reflected a broader sentiment that the market is rebalancing in favor of domestic fashion names. (source: Moscow speaks)
The official suggested that Chanel had anticipated continuing its presence in Russia but faced mounting pressure from European Union sanctions and other geopolitical tensions. He conveyed confidence that the French fashion house, along with other renowned brands, could be replaced by prominent Russian designers such as Gosha Rubchinsky, Alena Akhmadullina, Igor Chapurin, and a growing roster of domestic labels. The assertion signals a strategic pivot for Russian consumers who may increasingly gravitate toward local creations that align with current market conditions. (source: Moscow speaks)
Reports from the day prior indicated that Chanel began declining to rent boutiques in Russia. Analysts attribute this move to sanctions affecting the import of clothing and accessories valued at more than 300 euros, a threshold that appears to have intensified constraints on foreign luxury brands operating within the country. The development is part of a broader pattern in which international players reassess presence in the Russian market under evolving regulatory and political pressures. (source: Moscow speaks)
Meanwhile, observers note a wider commercial impact on the luxury segment as parent groups and portfolio brands reassess exposure. Earlier, Kering reported substantial losses worth nearly 8 billion dollars as Gucci’s earnings in Asia declined, illustrating how interconnected regional markets are in the fashion sector. This backdrop helps explain why local players view the Chanel withdrawal not merely as a single brand decision but as a signal of shifting dynamics that level or tilt the field toward homegrown labels. (source: Moscow speaks)