Fashion for Bankruptcy: Russian Clothing Market Devours Itself

Clothing manufacturers and retailers in Russia used to boast about growth figures — in rubles, in square meters, in the number of store openings. But in reality, all of this turned out to be a fiction: every third brand in the mass segment ended last year in the red, while premium collapsed entirely — there, every second business is now unprofitable.

The market for clothing, footwear, and accessories in Russia shrank by 5% over the year. Moreover, for the first time in many years, it was not some small semi-cottage workshops that fell into the red zone, but market leaders: the «Tvoyo» chain, the Oodji brand, and the Zenden retailer.

An industry that just yesterday celebrated the departure of Western giants as a «window of opportunity» is today burying its own children — and doing so methodically, store by store. Details are in the article by MSK1.RU.

Numbers That Make You Want to Close Your Eyes

At the request of MSK1.RU, the situation on the market was analyzed by Sofia Bergman, founder of the communications agency Be Famous PR. According to her calculations, in the first half of 2026, 39 brands were forced to revise their offline presence strategies: a third cut their retail chains, and another third completely liquidated their physical stores.

«The »Odezhda 3000« chain (Modis) shrank from 120 to 31 stores and is in bankruptcy proceedings, while Zenden faced tax claims of 24 billion rubles (around $240 million at current exchange rates),» says Bergman.

In total, since the beginning of 2026, 11 brands have completely closed their retail operations (a year ago, 20 domestic players left the market). As a result, the share of unprofitable clothing chains in the country almost doubled — from 18% to 34%.

The main pressure on businesses today comes from rising taxes, expensive rent, and complex logistics, says Bergman. On the other hand, the market is hit by a sharp drop in citizens« purchasing power.

Clothing sales in 2025 decreased by 8-10% compared to 2024. At the same time, in monetary terms, the market nominally grew by 6%. This means that due to inflation, consumers are paying more but taking home fewer items, says Bergman. In the regions, due to lower income levels, this trend is felt even more acutely than in the capital.

In these conditions, the pricing of many local brands has, so to speak, clashed with buyers« capabilities. A price tag of 24,000-40,000 rubles (about $240-$400 at current exchange rates) for a dress from a Russian designer makes the audience at least think twice.

«After all, this price is not always backed by material quality, and from a design perspective, the market has been offering essentially variations on the same themes of Western collections for the past few years,» says Sofia Bergman.

Blame It on the «Ducks from Patriki»

Clothing designer and production director of the AltraNatura brand, Artur Nakhapetov, does not mince words about the diagnosis. He reduces the reasons for the market collapse to four points: the avalanche-like emergence of small and random brands, a sharp drop in purchasing power, stiff competition from Kyrgyzstan and China in the economy segment. And, of course, marketplaces with their, in Nakhapetov«s words, »suffocating policy of imposing discounts.«

According to the expert, after the departure of major Western players, everyone rushed into the industry — «bloggers, psychologists, doctors, even security officials.» People who suddenly decided that making clothes is easy and fashionable.

«Thousands of brands, workshops, salons, and so on opened up. At the same time, the purchasing power of the population went down. So there was a sharp oversupply of products on the market,» says Nakhapetov.

However, many «couture stars» refused to sew economy-class clothing, and manufacturers from Kyrgyzstan and Uzbekistan quickly took advantage of this, simply being willing to work in that field.

Separately, Nakhapetov took aim at pseudo-designers without their own style and identity:

«Everyone just copies each other, there is no brand that stands out in style and recognition. There is no individuality now. Many times, »ducks from Patriki« (socialite wannabes) have come to me, who call themselves couturiers and shout that they have their own brand. And they stupidly show photos from the internet and ask to sew that item, but with their label. Such »couturiers« are now closing down in droves,» the designer says.

In his opinion, in the current situation, the most flexible and professional companies will survive.