Luxury sales in Russia decline 5 percent – market recovery not before 2017
According to a report by Altagamma, presented today in Milan during a debate with luxury industry leaders, Russia’s luxury market has seen a decline of 5 percent due to the economic and political turmoil.
The tenth largest market in the world and the fifth largest in Europe) Russia boasted a luxury market in 2013 which reached 5.8 billion euro (+5% compared to 2012). Altagamma estimates that this year the Russian luxury market will decline between 4% to 6%. Since the beginning of 2014 luxury sales in Russia declined 5%, and sales to Russians in Italy dropped 13%. Russians retailers face many challenges, including some of the highest rents of commercial spaced in Europe.
According to Armando Branchini, vice president of Altagamma Foundation, the structural weaknesses of the Russian economy are likely to influence the consumption of luxury for many years to come. And it is expected to improve in 2017, when finally after five years since the country’s accession to the WTO, the reduction of duties will enter into effect for luxury products, from fashion to jewelry, from furniture to design, from food to cars.”