Russia's Fashion Market Impacted By Ruble Devaluation Posted on 09 Sep 23:39 , 0 comments
Fashion can often be looked upon as frivolous and fickle. The truth of the matter is that it is huge business globally and highly dependent on the success and/or failure of other commodities. This does contribute to its fickle image, but there is no doubt that it aids in driving healthy economies worldwide. There are hints of its value and force everywhere - we see celebrities and athletes diversifying their portfolios by either endorsing specific brands or creating their very own. Currency ups and downs, however, directly affect many brands and companies and can make and break profits for companies here and abroad.
The Russian economy is one such economy feeling the pinch and showing evidence in the local fashion marketplace. The ruble like a domino got dragged down along with the Yuan, which was recently devalued by 2%. Oil prices were subsequently driven down and Russia's exports are at risk. If oil prices manage to increase soon, the ruble may see a rebound.
In the meantime, Russia's fashion market is expected to diminish by at least 20% this year. This is no small number in a multi-million dollar market and several retailers will react unfavorably. Adidas plans to shutter 200 stores in 2015 and several other European based retailers will scale back as well. E-commerce retailers on the other hand have continued plans to expand and hopefully this can balance out the brick and mortar retailers hurt by the ruble currency slide.
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