Although European, North American, and Japanese companies are leaving Russia over its invasion of Ukraine, some branded goods still remain in stores in Russia.
ZARA in Minsk
Inditex, the owner of Zara, closed its 502 Russian stores after Moscow sent its troops into Ukraine, and then sold them to Daher Group, a company based in the UAE.
Their operations are now sustained by small-scale imports and online sellers.
While most Western brands that halted operations in Russia also withdrew from Belarus, Moscow’s staunch satellite, Inditex hasn’t followed suit. The company made no comments on this matter.
Online marketplaces
When supply chains became disrupted, Russia legalized the so-called parallel imports, allowing retailers to bring in foreign products without the trademark owner's permission.
A wide range of imported goods is offered on e-commerce websites, where sellers often brandish bringing in products from abroad.
"Friendly" imports
As new routes are developed, additional logistics, travel, and scaling costs will decrease. And, even though trade remains inefficient, these new relationships will endure.
Replicas
Some brands have to spend years fighting copies and unauthorized imports.
Meanwhile, Coca-Cola's Russian competitors increased their bottling capacity and introduced new Cola products.
Although Russian firms are embracing new opportunities, their fixation with Western brands may hinder efforts to boost local production.
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