Moscow is the most capitalist city in the world. Ironic, but true. The only thing that reminds one of communist times is the metro system, all monumental marble and statues of Chekhov. The rest of the city is a grubby struggle for money, from chic bars to rising crime.
The first thing that strikes the potential shopper in Moscow (as I was last week, there on a three-day business trip) is the Russia premium. Most designer brands in Moscow, St Petersburg and elsewhere add somewhere between 20% and 40% on top of their prices for the Russian market. An Etro suit that costs £600 in London, for example, was priced in Moscow at the equivalent of £780.
It used to be said that a similar premium operated in Tokyo, but that was before a decade of stagflation took some of the oomph out of the retail market. Luxury is still big business in Japan (as evidence by Dunhill’s new flagship store that is part shop, part bar), but it is luxury that everyone aspires to, no matter what their income, and luxury that has adapted itself to a very changed retail market.
Russia is more like Dubai. Although there is nothing like the same premium in the UAE, the shoppers on offer are similarly bifurcated: the only people that go into Moscow’s shopping malls are the ones with lots of money. They don’t use the metro and they don’t carry their own bags. So luxury brands can charge them a premium. They are not cost-conscious shoppers.
There are advantages to be a luxury target. Yes, you pay more, but the shops are bigger and better. The main Etro store, for example, had the only full home furnishings section I have ever seen. You don’t get paisley tea cups and leather-bound photo albums in Milan or Florence. Brands will always prioritise towards people who pay little attention to the price tag.
So despite a few pleasant hours exploring the shops (and a heart-stopping moment when I saw a pair of Artioli shoes for 1000 roubles, only to find out the price was actually in euros) I didn’t end up buying anything. Probably a first for a business trip.
The less said about what most Russians actually wear the better. So to be brief: the ordinary working man strolls out in a 1980s BHS catalogue; the rich oligarch prefers the flashiest white suits he can find. And the less his girlfriend is wearing, the better. Oh dear.
2 Guest Comments »
1.
Neat article about a subject not addressed anywhere else (to my knowledge). Thanks for the insight.
Comment by Alan B. — August 26, 2008 #
2.
I was born in Greece and now live in Monte Carlo. Russians are buying up everything and they do not get along with the locals at all. They are extremely high maintainance and a bit rude at times. These are the new great nations however, China, India, Russia, Brazil and UAE. We are going to have to get used to them I suppose. I am a bit worried about how they will mix into the global community. Russia invading Georgia and Armani opening 4 floor showrooms in Moscow may have to come to an end.
Comment by Caligula — August 26, 2008 #
To be fair, there is a real emerging middle class in Moscow, who tend to buy the same mass market brands as their counterparts in Madrid or Paris or Berlin.
As for the oligarchs, you don’t have to venture further than South Kensington to see the same thing.
So funny – I only came across this post now when I browsed through your very early articles… I guess your observations were very true for that time (and still to some – albeit much lesser – extent today). I take it you never came back? It changed a lot. There are even some very decent bespoke Russian tailors nowadays.
I’m afraid not Andrey, no. I wish I could
Very interesting for me to give ‘Russia’ a search on the blog in case something came up, and there this post was. Also fascinating to read your view from 2008, some Muscovites would say then being the best of times between the 90’s and now. Though having lived in Russia 2019-21 and visiting numerous times 2024 and 2025, it’s a very interesting time. Many of the big luxury brands have gone despite owning their own real estate there (e.g. empty Chanel shops). Russian tailors do exist, but it is like finding gold and the development is not quite there yet. Various popular fabric mills supply tailors, but the finished looked is often not worth the price at all. Oddly enough, some brands have either quietly stayed or expanded even, like SuitSupply, they have three major stores in Moscow and it’s very popular. I was even shocked to see it, but I went in, and while there’s a marginal increase on prices due to importing costs, it’s all the same, the average man (me) could live on it alone between trips back to London.
Lastly, it’s perceived wisdom in Russia that you “cannot dress warmly and beautifully”, I think this is so because the emphasis is rarely on fabric in most clothing stores for most people, unless it’s a full Arctic Shuba (fur coat). Still, that depends on the city. Some are -10, others -40 plus.
Not sure what I’m contributing here, but since you say below that you haven’t been back, I thought I’d chip in with some up-to-date observations!
Very useful and interesting! Thanks John-Paul, and nice to have the reminder of being there all those years ago