18 April 2022, Mumbai:
With the conflict between Russia & Ukraine and the emerging global crisis in the market, India has taken the opportunity to invade and grow its apparel and fashions market in Russia.
The retailers and traders have successfully grabbed the opportunity and signed the pacts with the Russian markets. Internationally successful brands like H&M, Zara, Nike, etc., have opted out of the Russian market with the ongoing conflict, leaving the ground open for the Indian fashion and apparel sellers.
Brands as things stand, no wonder, are scared now!
The shares in luxury retail groups, including the likes of French fashion stalwarts LVMH and Kering, Swiss group Richemont, Italian bigwig Prada, and British clothing brand Burberry, have fallen between 3 and 6 percent by sources.
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At the heart of this unfolding unprecedented human tragedy is the human emotions playing out in the resultant actions and deeds said a Nike spokeswoman for instance,“ We are deeply troubled by the devastating crisis in Ukraine and our thoughts are with all those impacted, including our employees, partners and their families in the region,”.
As a pulse check, 'Indian Brands' are monitoring the situation pretty closely as they expect to earn/cash in on substantial visibility & growth from this region.
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Russia can expect more brands approaching India, which serves as an excellent opportunity for them and us. There have been other news that about a dozen Russian franchises will shortly approach the Indian fashion and apparel industries and explore opportunities and partnership profits.
So to keep the people employed, there have to be stores and companies which the American brands have vacated due to the war; people owning those lands and stores need new brands to run their businesses.
Else they will be stranded without work.
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Those Franchises have to have a running business to sustain the war and earn a living. The deal amount has been fixed to more than $1 million for the Indian Brands to run a business there and open a Russian franchise store.
Since we have witnessed how India has been neutral in the war between Ukraine and Russia, the industry has not been stopped by the Indian firms in Russia.
A handful of Indian firms have been courted by the substantial Russian mall owners by the Russian Council of Shopping Centres, making it a massive market for the Indian firms. Home furnishing retailer Maspar and fashion brand Killer Jeans are among the retailers exploring franchise opportunities in Russia.
The only unknown is global macroeconomics.
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