Foreign Brands Retreat and Domestic Prices: The Real Cost of a Simple T‑Shirt
More Western brands are leaving Russia, offering basic T-shirts and sweatshirts at low prices. A plain white T-shirt can cost around 1,000 rubles, jeans about 3,000 rubles, and a hoodie near 1,500 rubles at chains like Uniqlo, H&M, and Zara. Dressing modestly yet presentably is no longer inexpensive. Shoppers either turn to local Russian brands or pay inflated prices when ordering Uniqlo items from dealers or buyers abroad.
Prices at Russian clothing labels often sit well above mass-market levels and tend to tilt toward the premium segment. The clear exceptions include Zarina, Lime, Love Republic, O’stine, and Incity where a T-shirt might be priced between 500 rubles and 1,500 rubles. In the most fashionable Russian brands, a basic T-shirt starts at around 3,000 rubles. To understand why, inquiries were made to manufacturers who insist that the cost of a basic T-shirt is influenced by many factors, and several costs have risen sharply in recent times.
The real cost of goods encompasses patterns, fabrics, accessories, threads, branded materials, tailoring, packaging, and logistics. These expenses are then increased by the margin a brand aims to earn from each sale. A brand’s strength can push the price of a T-shirt upward by many multiples, while weaker branding can keep it only slightly above cost.
According to a founder of a Russian teen clothing label, fabric represents the largest single cost in many of their T-shirts. Pricing can be lowered by using cheaper materials or by increasing batch sizes. The larger the production lot, the lower the wholesale material cost and the lower the tailoring expense, she notes.
Another founder highlights that product adaptation costs are significant. Reducing these costs is possible, but it may come at the expense of product quality. In other words, price reductions can affect durability or finish.
For global retail chains, the cost of tailoring is much lower than for many domestic Russian producers. Large customers and big production runs enable factories to offer discounts and lower prices because of volume. A well-known executive explains that world brands place their orders in thousands of times larger quantities than Russian brands, which explains the price gap. A large Chinese factory capable of producing huge volumes at low cost will not accept small batches.
Today the cheapest production of basic apparel comes from China, Bangladesh, Vietnam, Kazakhstan, and Kyrgyzstan. Major Russian chains place core model productions in these regions to keep costs in check. The head of a fashion consultancy confirms this approach and notes that global players often anchor their mid-market offerings in regions with ready access to cheaper materials and efficient manufacturing ecosystems.
The cost of producing in Russia remains higher than in countries with abundant raw materials and large textile industries. This helps explain why mid-priced and designer labels sometimes manufacture in Russia or in Turkey. If the sewing and materials have long been expensive, the logistics of delivering products have grown even more burdensome in recent years. The supply chain disruption period began well before the current headlines, with delivery times and costs nearly doubling over the past two years, contributing to higher overall costs for goods.
A labels director remarks that some orders have shifted locally to reduce logistics risks since the start of the year. Others note that despite a falling exchange rate, suppliers continue to price goods with high dollar conversion, which still pushes costs upward. The supply chains from China and Turkey have shown resilience, even as European shipments faced interruptions. Logistics costs have risen, yet goods continue to move steadily, reflecting a realignment of trade routes rather than a collapse in supply.
Observers differ on whether domestic brands are inherently more expensive. Some industry leaders suggest comparing brands within the same market segment. For example, a handful of Russian retailers show similar price points to foreign brands. The assertion is that quality and brand positioning matter as much as price, and some domestic labels match or exceed the value found in international competitors.
Analysts believe that brands may be willing to lower core product prices if consumer purchasing power drops. However, current plans among several labels show a reluctance to reduce prices. One brand aims to maintain its price niche, another plans to optimize production to improve margins, and a third states that price reductions are unlikely unless a buyer questions the value of the work. In practice, this means the market continues to see a mix of price discipline and selective adjustments, shaped by supply chain realities and consumer demand.