fashion-features
fashion-features

Seeking Russian Gold: Despite Turmoil, Brands Rush to Booming Market

Fashion and retail firms are heading to Russia in droves, attracted by a vibrant economy, a free-spending elite and a demand for style and status.

fashion-features/news
Leon Max, owner of maxstudio.com in Pasadena, Calif., with 150 contemporary stores worldwide, grew up in St. Petersburg and defected to the U.S. in the mid-Seventies. He, too, has shunned doing business in Russia. “There’s a distinct lack of enforceable commercial codes and contractual laws there,” he said, noting that, just after the Soviet regime, there was even significant amounts of unclaimed retail real estate in cities like Moscow and St. Petersburg. “No one knew who owned the properties. And up until a few years ago, one would have to have protection from strongmen to do business and not be bothered with local bandits. I’m quite sure it’s still a problem around Russia. Also, there’s a growing middle class but a slow-growing middle class. There are very few credit cards in use. I’m better off opening a store in Glendale, [Calif.,] — and they speak Russian just as well there.”
Page:  « Previous ...
VIEW ARTICLE IN ONE PAGE
load comments

ADD A COMMENT

Sign in using your Facebook or Twitter account, or simply type your comment below as a guest by entering your email and name. Your email address will not be shared. Please note that WWD reserves the right to remove profane, distasteful or otherwise inappropriate language.
News from WWD
Newsletters

Sign upSign up for WWD and FN newsletters to receive daily headlines, breaking news alerts and weekly industry wrap-ups.

LatestPublications
getIsArchiveOnly= hasAccess=false hasArchiveAccess=false