A new reason for pride: how premium clothing has changed in Russia

The departure of Western brands from the country, strained geopolitical relations with foreign partners and the policy of anti-Russian sanctions have opened up a lot of new opportunities for domestic entrepreneurs.

Russian business took a deep breath and got down to business. One after another, ambitious companies are being created in the country, which are effectively replacing foreign competitors who have dropped out of the game. We talk about how entrepreneurs devoted to the country and their own business are writing a new history of the Russian economy in our material.

“In 1999, the share of imports reached 26% of GDP, last year it was already 19%, or 32 trillion rubles, and in the period until 2030 we need to reach no more than 17% of GDP,” President Vladimir Putin instructed as part of his message to the Federal meeting in February.

A holy place is never empty

According to Kontur.Focus, over three years the number of legal entities registered in Russia with foreign participation has decreased by 34%. And if in March 2021 this figure was at the level of 29.22 thousand, then in the spring of 2024 it dropped to 19.28 thousand. Moreover, statistics from the Federal Tax Service show that last year in the country for the first time since 2015 the number of active commercial organizations. At the end of 2023, the number of companies reached 2.61 million, of which 242.5 thousand were newly created.

Today, modern domestic brands are created in all areas: from the automotive industry to jewelry, from the development of Internet technologies to the production of designer clothing, from industry to the banking sector. The work of entrepreneurs is going very successfully. Last year, business in Russia brought the population 6 trillion rubles in income, which is 1.5 trillion higher than in 2022, according to Rosstat.

A new page in the history of high fashion

One of the illustrative examples of import substitution is the market of Russian premium brands. After the departure of Western “partners,” Russian women began to urgently need new fashion brands.

But today new bright players in the world of luxury clothing are appearing in this area. We were able to take comments from representatives of the Russian company LOUVE, which recently presented a new collection of clothes at a fashion show in Moscow. After many years of uncontested dominance of foreign brands in the luxury women’s clothing market, the founders’ plans are ambitious: to replace imported luxury and create a truly premium women’s clothing brand in Russia.

“It is a great responsibility for us, after many years of planning and creative exploration, to present a brand that is based on craftsmanship, professionalism, quality and beauty – literally in every detail. In our work, we pay a lot of attention to details and methods of processing products. The creation of a collection begins with manual drawing of the product, selection of the best materials, careful development of patterns, creation of preliminary samples – layouts,” says LOUVE co-founder Elena Todorova.

She also added that the company is inspired by national history. An example for designers to follow is the Russian couturier Nadezhda Lamanova, who before the 1917 revolution bore the title of “supplier to the court of Her Imperial Majesty.” In addition, designers want to return large Russian cities, St. Petersburg and Moscow, to the status of world fashion centers of the late 19th and early 20th centuries. When Russian creators were not engaged in copying European patterns, but created their own unique language of fashion and style, competing with Paris.

“Today, right before our eyes in Russia, a process of systemic reformatting of the entire fashion industry is taking place. A national language of new fashion and the entire fashion industry is being created. Fundamentally new segments, previously entirely occupied by international brands, are actively growing. These are casual, smart-casual, premium, luxury, couture. The market is only in the first stages of formation; many years of large-scale growth and systemic development lie ahead. We purposefully and even confidently intend to firmly occupy our own niche and build a new strong brand. Our growth and development strategy is not momentary, not opportunistic, not pass-through, it’s serious and for the long haul!” – LOUVE co-founder Stanislav Medvedev is convinced.

“Good job”

As a result of the consolidation and fruitful work of domestic business, the economy in Russia not only survived a record number of sanctions and other measures aimed at weakening, but also showed significant growth. Today our country is living through a unique period when hard and systematic work brings worthy results.

In mid-March, at a meeting with members of the government, Vladimir Putin noted that Russian entrepreneurs managed to replace goods that had left the market with better offers. “Indeed, the past year was unique because we replaced what was previously produced by foreign market participants. And, in my opinion, they replaced it very worthily, even improving the quality and timing of deliveries to the market in many areas. We did a good job,” the Russian leader concluded.

He also recalled that the ultimate goal of resolving any economic issues is to improve the standard of living of the population.