Despite a barrage of Western sanctions and many brands pulling out of Russia after the Kremlin launched its attack on Ukraine, Moscow’s wealthiest shoppers remain spoiled for choice when it comes to Western luxury goods. do not have.
Western sports cars, gold jewelry and designer clothing are on sale in the Russian capital’s upscale shopping streets, department stores and luxury Russian outlet stores.
This situation is a far cry from Western claims that sanctions will collapse Russia’s economy and cut it off from the outside world.
“I don’t see much change,” said Natalia, 51, as she strolled through GUM, a luxurious shopping mall facing the Kremlin on Moscow’s Red Square.
“For all I know, maybe three stores have left: Chanel, Dior and Hermès. Everything else is the same as before. Even Brunello Cucinelli seems to be here,” she said of Italy. about the fashion house.
Many in Moscow, including Russian President Vladimir Putin, are celebrating the “failure” of sanctions to isolate Russia from the global economy.
“Did they want to isolate us? Please! We are so isolated here that it’s funny,” said Sergey, a 61-year-old pensioner as he left a luxury store. sneered.
– “Pure hypocrisy” –
As part of the sanctions, the United States, the European Union and the United Kingdom have explicitly banned the export of “luxury goods” to Russia.
Several brands and groups, including Chanel, Hermès, LVMH and Kering, also voluntarily withdrew from the market at the beginning of the offensive, amid a wave of companies withdrawing from Russia.
But almost three years later, their logo still adorns products on the shelves of Russian stores in Moscow. Moscow is a bustling metropolis of about 13 million people and was a lucrative market for them before the conflict.
Sanctioned goods of all kinds are easily exported to Russia through willing intermediaries in the Caucasus and Central Asia.
Even if they no longer sell directly to Russian shoppers, many Western luxury brands maintain stores in central Moscow, apparently hoping to reopen sometime in the future.
“Their announcement of their resignation is complete hypocrisy,” said a French businessman who sells luxury goods in the Russian capital.
“Even though their stores are officially closed, these brands continue to sell their products to Russians through ‘markets’ and dealers,” he said on condition of anonymity.
Export statistics show that after the introduction of sanctions, trade between Western countries and Kyrgyzstan, Kazakhstan and Azerbaijan (former Soviet states with close ties to Moscow) increased significantly.
“Everything is imported anyway,” said Elena, 38, a marketing manager for a high-end lingerie designer, as she shopped in central Moscow.
“It’s a little complicated, but overall everyone can manage it,” she told AFP at the TSUM department store, home to luxury goods and brands.
“Luxury brands are still here, so are our regular customers, and demand hasn’t slowed down,” a sales assistant at the store told AFP.
-Returns “time issue”-
On its official website and app, TSUM is promoting the sale of products from Prada, Yves Saint Laurent, and Alexander McQueen, which have officially withdrawn from Russia.
Prices are “more competitive than in Dubai,” the company said. Dubai is booming as a vacation and shopping destination for the wealthy, even as travel to Europe becomes difficult.
Since Russia ordered troops into Ukraine, “sales of luxury goods have exploded in Dubai,” said the French businessman.
Cut off from direct exports, Russian retailers have found creative ways to get the products their customers want.
Sanctions led to the resurgence of “buyers”. The term was popularized in the early 1990s by people visiting Europe and bringing home cases of luxury goods for their customers.
Buyers now deal directly with major boutiques and shopping malls, said Andrei, a 52-year-old stylist with a high-end client list.
“We accept orders directly from representatives in Milan, Paris and London for everything from furniture and tableware to jewellery, clothing and furs,” he told AFP.
Given the huge demand for Western luxury goods, wealthy Russians are confident that Western brands themselves will rush back if possible.
“It’s only a matter of time,” Andrei said.
Bar/SBK
