More luxury brands to operate directly in Russia and CIS
In the past five years, major luxury retailers such as Mercury, Crocus, Bosco di Ciliegi and JaMilCo have been losing exclusive distribution rights, mostly through franchising for major brands such as Christian Dior, Giorgio Armani, Chanel, Ralph Lauren and more recently Prada. While Mercury and Crocus have decided to focuse on their luxury retail portfolio such as Tsum, Crocus Mall etc, retailer Bosco di Ciliegi have been developing their own branded stores Bosco promoting sportswear ahead of the major sports competitions which Russia will host, the winter olympics in Sochi and the Fifa World Cup in 2018.
A pioneer of the Russian luxury retail, JaMilCo still operates exclusively brands such as Ferragamo and Burberry. The reason that most of these operators have been sluggish in developing beyong Moscow and St Petersburg, in other major cities such as Ekaterinburg, Samara, Kazan, many of the major interntional luxury brands have decided to operate directly, mostly with dedicated offices in Moscow.