In recent news, nearly every leading luxury has suspended business in Russia. Joining the likes of Nike, FedEx, and UPS, who cut ties with Russia on February 24, are luxury giants Richemont, LVMH, and Kering. The companies collectively own more than 100 luxury brands. These revered labels confirmed they planned to close stores and pause business operations in Russia for the time being. French luxury fashion house Chanel revealed via a LinkedIn post, “Given our increasing concerns about the current situation, the growing uncertainty and the complexity to operate, Chanel decided to pause its business in Russia temporarily.” Luxury giant LVMH with renowned brands such as Christian Dior, Givenchy, Kenzo, TAG Heuer, and Bulgari, among others under its umbrella, can single-handedly change the face of luxury shopping in Russia.
It decided to close all 124 boutiques in Russia without abandoning its staff. LVMH will disburse the salaries of its 3,500 employees in the country, a spokesperson told Reuters. Though Kering has a smaller workforce than LVMH, it has taken the same solid stance. The French multinational owns Gucci, Saint Laurent, Bottega Veneta, and Boucheron. Kering too has closed shops and vows to support all 180 employees. Following its counterparts is jewelry house Cartier which also disclosed a momentary hiatus of commercial activities in Russia and Ukraine.
Not just luxury fashion, but also luxury car manufacturer Rolls-Royce has stopped deliveries of cars to Russia. It is reported by Forbes with reference to the official representative of the brand.
“The situation in the region remains uncertain. In the current conditions, we are suspending the supply of cars to the Russian market. We continue to evaluate the situation, as well as the possible consequences for our business,” the company said. The British ca manufacturer is joined by German car brand Porsche, who replicated the cessation of the supply of cars to Russia. Porsche has a big business in the country with a presence in over 20 Russian cities. In 2021, a whopping 6,262 vehicles were delivered all over the country. It is not just the biggies of the luxury world that are adopting the above measures. Even retail platforms like Net-a-Porter, Mr. Porter, Yoox, and The Outnet have jumped on the ban bandwagon and asserted the suspension of sales of products to Russian buyers.
