Western luxury brands returning to Russian market – media
Stores of German fashion brand Hugo Boss will reopen in Russia this month or in September after their acquisition by retailer Stockmann, RIA Novosti has reported, citing the Union of Shopping Centers for new brands. Other Western brands are extending their trademarks in the country, hoping to get back to trading.
Hugo Boss joined the ranks of other major brands to exit the Russian market in 2022 after Western countries imposed sanctions on Moscow over the conflict in Ukraine. The German company has also paused its e-commerce activities in Russia and stopped advertising there.
“The new Hugo Boss will not be any different, everything will remain the same, without changes. All 19 stores will open at the same time ...” Natalia Kermedchieva, vice president of the Union of Shopping Centers for new brands, told RIA on Monday, noting that the branding of the stores will be preserved.
The legal entity itself will be renamed from ‘Hugo Boss Rus’ to ‘Link Fashion’ at the request of the seller, she specified.
Media had earlier reported that the German fashion company has sold its Russian business to wholesale partner Stockmann for an undisclosed amount. Neither party has revealed the financial terms of the deal. Firms exiting Russia are required to sell their assets at a 50% discount, while also needing to obtain government permission for the sale, and are also required to pay a fee to the Russian treasury.
Russian authorities reportedly approved the sale of Hugo Boss in April. Corporate filings there show that the deal closed on August 2 and that Stockmann JSC now owns 100% of Hugo Boss Rus with a nominal value of 40 million rubles ($466,217). Stockmann in Russia operates independently of its former Finnish owner.
Nearly a third of Western retailers left Russia, reports suggest, following the introduction of Western sanctions over the Ukraine conflict.
According to the Russian trade ministry, the majority of foreign companies are interested in resuming their activities as soon as possible and are working through various options.
Media reported on Wednesday that French luxury brand Christian Dior has submitted applications to Russia’s intellectual property service, Rospatent, to register new trademarks, including Dior, Dioramour and Gem Dior. The company reportedly also applied for a logo with a stylized image of the letters C and D.
Earlier this year, American soft-drinks giant Coca-Cola and US coffeehouse chain Starbucks also submitted applications to Rospatent to register several trademarks in the country.
Swedish multinational IKEA has reportedly also extended its trademark rights in Russia, for ten years.
