Moscow’s well-off customers are nonetheless spoilt for selection in terms of some luxurious Western items, merchants and customers say regardless of a barrage of Western sanctions and swathes of manufacturers quitting Russia after the Kremlin launched its Ukraine offensive almost three years in the past.
In the Russian capital’s unique buying quarters, department shops and high-end Russian retailers are doing a roaring commerce in Western sports activities automobiles, gold jewellery and designer garments.
The image is a far cry from the West’s claims that its sanctions would collapse the Russian economic system and lower it off from the surface world.
“I don’t see any particular changes,” mentioned Natalia, a 51-year-old dentist strolling via the plush GUM shopping center, dealing with the Kremlin on Moscow’s Red Square.
“Maybe there were three stores – Chanel, Dior, Hermes – that I know have left. All the rest are the same as before. I see even Brunello Cucinelli is here,” she mentioned, referring to the Italian vogue home.
Many in Moscow – together with Russian President Vladimir Putin – have reveled in what they name the “failure” of sanctions to isolate Russia from the worldwide economic system.
“They wanted to isolate us? Please! We are so isolated here it’s even funny,” scoffed 61-year-old pensioner Sergei, leaving an upmarket retailer.
‘Pure hypocrisy’
The United States, European Union and Britain have explicitly banned the export of “luxury goods” to Russia as a part of their sanctions packages.
Several manufacturers and teams additionally voluntarily stop the market initially of the offensive – together with Chanel, Hermes, LVMH and Kering – amid a wave of company exits from Russia.
But nearly three years later, their logos nonetheless adorn merchandise on the cabinets of Russian shops in Moscow, a bustling megalopolis of some 13 million inhabitants that was a worthwhile marketplace for them earlier than the battle.
Sanctioned items of every kind are simply exported to Russia via keen middlemen in locations just like the Caucasus and Central Asia.
Even if they don’t seem to be promoting on to Russian customers anymore, most of the Western luxurious manufacturers have saved maintain of their premises in central Moscow, apparently within the hope of reopening someday sooner or later.
“Their announced departure is pure hypocrisy,” mentioned one French businessman promoting luxurious items within the Russian capital.
“Even though their stores are officially closed, these brands continue to sell their products to Russians via ‘marketplaces’ and dealers,” he mentioned, talking on situation of anonymity.
Export statistics present an enormous bounce in commerce between Western international locations and the likes of Kyrgyzstan, Kazakhstan and Azerbaijan – ex-Soviet international locations which have shut ties with Moscow – after sanctions had been launched.
“One way or another, everything is imported,” mentioned Elena, a 38-year-old advertising supervisor for a luxurious lingerie designer, buying in central Moscow.
“It’s a little more complicated, but overall everybody manages,” to get the merchandise they need, she informed Agence France-Presse (AFP) within the TSUM division retailer, residence of luxurious items and types.
A gross sales assistant there informed AFP: “The luxury brands are still here. And so are our regular customers, demand has not dropped.”
Return ‘matter of time’
On its official web site and app, TSUM advertises promoting merchandise from Prada, Yves Saint Laurent and Alexander McQueen, all manufacturers which have formally left Russia.
It says its costs are “more competitive than in Dubai” – which has turn into a booming vacation and buying vacation spot for rich Russians amid difficulties touring to Europe.
“In Dubai, sales of luxury goods have exploded,” since Russia ordered troops into Ukraine, the French businessman mentioned.
Cut off from direct exports, Russian retailers have discovered inventive methods to pay money for merchandise demanded by their purchasers.
Sanctions have led to the resurrection of “buyers” – a time period popularized within the early Nineties by individuals who would journey to Europe to deliver again instances of luxurious items for purchasers at residence.
Nowadays the consumers have direct contracts with main boutiques or buying malls, mentioned Andrei, a 52-year-old stylist who has a high-end shopper ebook.
“They take orders on furniture and tableware to jewelry, clothing and furs directly to representatives in Milan, Paris and London,” he informed AFP.
Given the large demand for luxurious Western items wealthy Russians are certain that Western manufacturers will themselves come dashing again as soon as they will.
“It’s only a matter of time,” mentioned Andrei.
Source: www.dailysabah.com