Russian luxury market booming
- November 5, 2019
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Moscow is rapidly achieving the status of luxury shopping destination attributed to cities like Paris , London and New York . Like China , the Russian market is booming and foreign luxury companies are increasingly jumping at the opportunity to establish a presence there. Last week, Ralph Lauren announced it was to open a flagship and second store in Moscow in spring 2007 and Christian Dior opened a 3,650 square foot flagship in the GUM shopping centre on the Red Square last Thursday.
“Luxury is really booming in Moscow ,” said Dior president Sidney Toledano. “The market is becoming more and more sophisticated.” He hinted that there might be more store openings in that market over the next 18 months. Meanwhile, the company’s existing Dior store in central Moscow will now be operated by a subsidiary. The company is choosing to take direct control of its retail outlets. Other companies to enter the market with directly controlled stores include Louis Vuitton and Chanel.
Sales of fur coats, diamond jewellery and luxury handbags are selling particularly well. According to research by Renaissance Capital, Russian retail growth has risen 9.1 percent, indicating the enormous economic growth in the country. Russia is the second largest developing luxury market, representing 3 percent of total sales of luxury goods. Only China tops the list with a 6 percent of sales, according to Eric Gerritse of MeesPierson. The country even has its own fashion week, which is currently being held in Moscow ‘s famous Gorky Park . This year, Moscow Fashion Week enters its fifth year with shows by local fashion designers including Olga Romina and Svetlana Tegin.
Like their Chinese and Japanese counterparts, Russia ‘s elite are enamoured with logos and expressions of wealth, making them an attractive target for companies like Christian Dior. Toledano said that Russia and Eastern Europe are “one of the key markets” for the company over the next three years.
The new Dior store in GUM mixes the traditional with the modern, like it does in its flagship store on the Avenue Montaigne in Paris . It encompasses three floors, offering ready-to-wear, jewellery, shoes, handbags and small leather goods, fragrances and cosmetics and beauty treatments.
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