Majority of High-End Market Consumers in Russia Uneasy about Product and Service Quality
Impact of Brand Departures on Russia's Premium Market (2022-2024)
The Russian premium market has undergone significant changes over the past two years, primarily due to the exit of Western brands from the market. These departures, driven by geopolitical tensions and sanctions, have resulted in the closure of premium brand outlets, supply chain disruptions, and the need for market adjustments.
Brand Closures and Exits
Many Western premium brands have suspended or terminated operations in Russia, either closing stores entirely or stopping shipments. This withdrawal has led to a shrinkage of available premium international brands on the market. By spring 2024, 85 Western fashion brands had altered their business status in Russia. Notable brands like Dior, Prada, Louis Vuitton, and Cartier closed their stores in 2022.
Supply Changes
The disruption of Western supply chains has led to a diminished availability of premium products. Logistic hurdles and sanctions have contributed to lower imports of genuine branded goods, resulting in shortages in certain high-end categories. Some brands have transitioned to limited or digital presence, but physical availability has been curtailed.
Market Adjustments
The absence of some brands has opened opportunities for local or non-Western brands to fill the premium segment gaps. Consumer purchasing habits have adjusted to rely more on domestic luxury and alternative international suppliers not affected by sanctions. Retailers and distributors have had to adapt pricing and inventory strategies amid inflationary pressures and currency fluctuations.
While detailed quantitative data for 2023-2024 in search results is unavailable, these dynamics align with known global responses to the Russia-West conflict context during these years. The premium segment showed resilience but faced contraction and reorientation due to reduced brand diversity and supply chain issues.
Quality Concerns and Consumer Preferences
The quality of Russian premium segment products has been a key issue for brands. In 2025, 68% of consumers were disappointed with the quality of these products, according to Retail.ru, citing data from NAFI. On the other hand, 54% of potential consumers are willing to pay a premium price only if the product or service has proven status and value.
Premium Sectors' Growth
Despite the challenges, some premium sectors have shown growth. The premium health sector is valued at 120 billion rubles in 2025, and luxury tourism volume increased by 40% year-on-year in the first half of 2025, reaching 280 billion rubles. The premium real estate sector grew by 15% from 2024 to 450 billion rubles in 2025.
Art Auction Market
The art auction market in Russia reached 12 billion rubles in 2025, showing a resilience in the face of geopolitical challenges.
The article also discusses the case of a founder of a Russian brand in the context of global names leaving the market. The founder stated, "We are not needed as brands in the West, and on the East, brands are not needed at all."
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