Nikita Kuznetsov, who leads the Domestic Trade Development Department within the Ministry of Industry and Trade, argued that Russia should actively promote brand substitution to empower domestic manufacturers to compete on export markets. The observation was shared during discussions reported by DEA News and reflected at a regional forum in the Volga region focused on Retail Days.
During the forum, Kuznetsov assessed current economic conditions and the strategic shift toward brand substitution. He cited expert analyses indicating that the Russian Federation ranks as one of the world’s most brand-dependent economies, second only to Brazil. This dependency, he noted, has long inclined consumer choice toward established, especially multinational, brands that have dominated shelves and consumer minds for years.
He explained that the current market dynamic—where Western and other multinational brands have been prominent—also creates a structural vacancy. With the retreat of some foreign players, there is a window of opportunity for Russian producers to fill gaps in niches that have not yet been fully addressed by domestic brands. This reconfiguration could help diversify supply chains and strengthen local capabilities in design, manufacturing, and distribution.
Kuznetsov stressed that the opportunity lies not only in producing goods but in developing end-to-end capabilities within Russia. He pointed to the presence of production technologies and marketing know-how within the country, suggesting that Russian firms can adapt and scale these competencies to meet both domestic demand and export opportunities. Such a shift would also support the broader goal of reducing reliance on imported branding while fostering innovations in product development and branding strategies tailored to Russian consumers and international markets alike.
As part of the broader market evolution, the sector is watching for responses to the exit of additional global players. The evolving landscape could accelerate the localization of branding efforts, prompting more firms to invest in local research and development, packaging, and consumer research to create brands that resonate with regional preferences while maintaining global quality standards. The strategic emphasis is on building a robust domestic brand ecosystem that can compete on price, perception, and performance in both internal and external markets.
In the broader context, the situation coincides with policy measures aimed at stabilizing the economy and supporting domestic industrial growth. While sanctions-related dynamics continue to influence international trade relationships, the focus remains on strengthening domestic capacity and ensuring continuity of supply through homegrown branding and manufacturing capabilities. The shift also invites collaboration across industry, government, and research institutions to accelerate capability-building in branding, marketing analytics, and export readiness for Russian products.