Luxury and fashion—Russia—Q&A guide

The following IP practice note provides comprehensive and up to date legal information covering:

  • Luxury and fashion—Russia—Q&A guide
  • 1. What is the current state of the luxury fashion market in your jurisdiction?
  • 2. What legal framework governs the development, manufacture and supply chain for fashion goods? What are the usual contractual arrangements for these relationships?
  • 3. What legal framework governs distribution and agency agreements for fashion goods?
  • 4. What are the most commonly used distribution and agency structures for fashion goods, and what contractual terms and provisions usually apply?
  • 5. Do any special import and export rules and restrictions apply to fashion goods?
  • 6. What are the requirements and disclosure obligations in relation to corporate social responsibility and sustainability for fashion and luxury brands in your jurisdiction? What due diligence in this regard is advised or required?
  • 7. What occupational health and safety laws should fashion companies be aware of across their supply chains?
  • 8. What legal framework governs the launch of an online fashion marketplace or store?
  • 9. How does e-commerce implicate retailers’ sourcing and distribution arrangements (or other contractual arrangements) in your jurisdiction?
  • More...

Luxury and fashion—Russia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to luxury and fashion in Russia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: January 2021).

Authors: Borenius Attorneys Ltd—Anna Zabrotskaya; Alexey Nikitin

1. What is the current state of the luxury fashion market in your jurisdiction?

Current sales volumes in the Russian fashion market are approximately €30.5 billion. Before the pandemic the market was growing by 3-4 per cent per year, but this year most market players predict a 20 per cent drop in sales.

Russia is experiencing an atypical situation for the industry: the fashion and textile industries are developing separately. Almost every region of the Russian Federation has clothing and knitwear production facilities that are mainly focused on local markets. They produce mostly cheap and simple products: underwear, school uniforms, children's clothing, basic women's and men's clothing, but these cannot be classified as fashionable goods. Factories rarely cooperate with talented designers when creating designs. The main reasons for this difficult situation are: the conservative tastes of regional clothing factories' target audience, lack of equipment and qualified personnel needed to create complex designs; and the unprofitable production of small batches of designer clothing due to high labour costs as compared to countries such as China, Bangladesh and Vietnam.

The top three Russian fashion market players are:

  1. Melon Fashion

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