The number of new brands entering the Russian market has plunged this year in a reflection of weakening consumer demand and tighter access to credit.
Just 27 previously unrepresented brands launched operations in Russia between January and September 2025, a 37.5% decline compared with the same period last year, according to data from consulting firm CMWP cited by the Kommersant business daily.
Analysts expect a total of 42 new brands to enter the market by year-end, half the number recorded in 2024.
The slowdown is mainly driven by falling household purchasing power and limited lending availability, said Natalia Kermedchieva, co-owner of the REC+retail group.
According to SberIndex, real consumer spending in Russia fell 1.3% year-on-year during the week of Oct. 13-19.
Shopping mall foot traffic is also declining and could end the year down 3% compared to 2024, research firm Focus Technologies said.
Of the brands that entered the market this year, 48% operate in the apparel sector — a 12-percentage-point increase from last year, with 13 new labels launching compared to 15 in 2024.
Meanwhile, the share of new cosmetics and perfume stores fell from 12% to 4%, and household appliance and electronics retailers from 17% to 7%. No new footwear brands entered the Russian market in 2025.
Roughly 94% of new apparel brands began as online retailers, distributing their products through their own websites or specialized and general e-commerce platforms, said Yekaterina Nogai, head of research and analytics at IBC Real Estate.
Russia’s apparel market remains volatile despite the sector’s growth.
Between April and June 2025, 29 clothing stores in Moscow closed, up from 19 a year earlier, raising apparel’s share of total store closures in shopping malls to 38%, according to data from CORE.XP.
Rising rental rates and falling customer traffic are forcing many retailers to shut down, Kermedchieva said.
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