Russians Adapt to Western Brand Departure, Domestic Businesses Step In
The range of goods and services in Russia has seen a reduction, particularly in high-price segments, yet serious shortages remain minimal. A significant shift has occurred in consumer sentiment towards the departure of Western brands, with a majority adapting and only a third expressing regret.
The Center for Strategic Research has identified several companies, including IKEA, BMW, Volkswagen Group, and Leroy Merlin, as having irresponsibly left the Russian market. Meanwhile, the greatest challenges persist in technologically complex sectors like automobile and civil aircraft manufacturing.
A substantial 44% of Russians believe domestic businesses have successfully replaced Western brands, with older generations leading this adaptation. Only about a third of the population regrets the departure of foreign brands, and this sentiment has weakened over the past three years, even among youth. Price increases and reduced product variety were the most common impacts of sanctions.
While domestic companies have met most citizens' needs, they have not fully replaced the departed brands. A notable 17% of Russians reported full import substitution due to sanctions, with specific niches like IKEA, McDonald's, and branded clothing still feeling the impact.
Despite the reduction in available goods and services, particularly in high-price segments, Russians have largely adapted to the departure of Western brands. Domestic businesses have stepped in to meet most consumer needs, although full replacement remains elusive. The impact of sanctions on consumers has weakened over time, with only a third expressing regret.
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