According to Alessandro Maria Ferreri, the owner and CEO of The Style Gate consulting firm, the big Russian retailers have blocked payments and shipments for spring, and are canceling their orders for pre-collections, which were set to be delivered in June.
“Even in normal times importing goods in Russia is extremely complicated and custom procedures are very complex,” he said, adding that even if the war ends quickly there will be long term consequences.
“The Russians will be cautious for a very long time, even if the war ends quickly, local spending will shrink and it will be a while before they start to travel again. And outside of Russia will their credit cards be accepted lightly?
“The war has triggered a domino effect that will impact all of the luxury sector. And even if tourists will eventually travel to Russia, they will hardly go and shop for international fashion brands. The market is very local in Russia,” he said.
He noted that the country has a middle class that will be afraid to spend given the uncertainties they will have experienced.