Faced with sharp devaluation of the rouble, Apple has already halted its online sales in Russia while some luxury brands, including Cartier, are raising prices to counter deflation. If Russia’s financial and economic instability continues, fashion and sportswear brands are inevitably set to suffer too.
adidas Group under increased pressure
adidas clearly leads in Russian sportswear, over Nike. But what was once adidas’s significant advantage, is now becoming a hindrance. Russia accounts for almost 7% of adidas’s global sales compared to only 1% for Nike. Earlier this year, the company had already issued profit warnings, partly blaming the situation in Russia and its share price has slid by 25% since July.