**Russia Reports Domestic Light Industry Accounts for 45% of Market**
Moscow, September 29, 2023 – Russian Industry and Trade Minister Anton Alikhanov announced that domestic light industry products now constitute 45% of the Russian market. This statement was made during the BRICS+ Fashion Summit, which is part of Moscow Fashion Week.
The minister highlighted that this percentage is approaching the target of 50% outlined in Russia's Light Industry Development Strategy, which aims for completion by 2035. Furthermore, he indicated that the updated version of this strategy, anticipated to be approved by the end of 2026, may increase the target share to at least 60%.
Alikhanov noted that the clothing manufacturing sector is experiencing a phase of market saturation. After an initial surge in production following the exit of many global brands from the Russian market, there has been a reported decline in production growth, with a projected 3% decrease anticipated for 2025. "We are reaching a plateau," he remarked.
The minister explained that the void left by international brands has been partially filled by domestic producers and imports from countries that Russia considers friendly. Despite this, foreign-made goods continue to dominate the overall Russian market. Alikhanov pointed out that approximately half of Russian brands are focused on narrow market niches, which include high-tech clothing and ethnic or regional labels.
In discussing technological advancements, Alikhanov stated that the Russian market is largely aligned with global trends, particularly regarding the shift in the balance between natural and synthetic materials. He noted a significant change over the past three decades: while cotton once made up half of the market and synthetics accounted for 39%, current figures show that cotton now represents only 25-26%, with synthetics rising to 60%.
Despite this shift, Russia remains heavily reliant on imports of synthetic materials, such as polyamides and polyesters. However, Alikhanov expressed optimism about the potential for Russian manufacturers to increase production of viscose and lyocell, a type of artificial cellulose fiber derived from wood.
To bolster these sectors, the Russian government is implementing a national project titled "New Materials and Chemistry." This initiative allows enterprises in these fields to seek support from the Industrial Development Fund and the cluster investment platform. Alikhanov added that following the imposition of sanctions, the government introduced measures to support equipment leasing, with plans to double financing next year to meet the needs of manufacturers.
The BRICS+ Fashion Summit, which focuses on industrial development, local production, technology, and the future of the fashion market in BRICS and other emerging economies, serves as a platform for discussing these developments in the light industry sector.
As Russia continues to navigate the challenges posed by international sanctions and the departure of foreign brands, the emphasis on domestic production and innovation in the light industry appears to be a strategic priority for the government.