Russia is the ninth biggest market of the fashion world according to Euromonitor, after Italy and before Canada. There are actually ten big fashion companies who have decided to make a temporal pause on the operations in Russia, such as H&M, Mango, Bestseller or Burberry are some of the brands that have decided to close their stores.
This was not only the fashion companies decision, out of fashion this list is growing Ikea, Apple, Volskwagen, Spotify…
Some brands have qualified this war as a humanitarian crisis, so this was the only way they could be able to support Ukraine. Even Though they know that their losses are going to be high, their incomes will be reduced by 3.000 millions each year they are closed.
Inditex, counting with 502 stores has decided to temporarily stop selling also via online, there are around an 8% of all the stores in the world (more than 6.500 of the stores of all the brands that the group is conformed by)
Analysts estimate a drop of GDP for this year of around 10%, some others think it could be higher and inflation could rise 20%. But obviously this is not only going to affect Russia but also to the global market, speaking in terms of oil and also grains (both countries in war represent the 30% of wheat exports and after the invasion the increase of this product was of 55%), which is not favorable for a global economy right after the covid pandemic that we seem to have overcome and poor countries who depend on it will suffer a big shortage (Turkey, Egypt and India).
The only beneficiary of this war will be without a doubt China, because it is the only country helping Russia with its imports and exports making Russia completely dependent on this one.
Ami Daniel, cofounder of Windward, an intelligence maritime brand that helps governments, said “Companies are going well beyond their legal obligations and taking action based on their own value scales, even before their customers ask for it”
Claudia G.
