Russia’s footwear industry is experiencing one of the sharpest contractions in its history. Since September 2024, a total of 289 footwear manufacturers and retailers—including both small enterprises and long-established companies—have exited the market. As of September 1, 2025, only 853 legal entities producing footwear remain active, marking a 13.5% decline year-on-year.
New market entries have nearly stalled. During the first eight months of 2025, only 16 new manufacturers were registered, while 120 companies ceased operations—2.5 times higher than the previous year.
Among the companies that shut down are long-standing brands such as Yunichel’s factories in Zlatoust and Orenburg, and the 25-year-old Francesco Donni plant. According to ProFashion citing Rosstat data, footwear production in Russia dropped by 28% in the first eight months of 2025.
Sharp Decline in Moscow and Surrounding Regions
Moscow and the Moscow region, home to the highest concentration of manufacturers, faced the steepest losses. The number of registered footwear manufacturers in Moscow fell by 37.7%, and in the Moscow region by 34.2% within a year.
As of September 1, 2025:
- Moscow: 132 legal entities focused on footwear manufacturing
- Moscow region: 71 entities
Other major regions also recorded declines:
- St. Petersburg: 52 entities (–3.7% YoY)
- Rostov Oblast: 49 entities (–7.55% YoY)
- Dagestan: 42 entities (–2.33% YoY)
Meanwhile, Tula and Yaroslavl regions saw slight increases. Still, average producer income fell by 12% in real terms compared to 2023.
Retail Weakens as Consumers Shift Toward Budget Spending
Footwear retail is also shrinking. As of September 1, 2025, Russia had 1,521 active footwear retailers, a 9.2% decline year-on-year.
Store numbers in major cities fell by 8–32%, and by 23% in Moscow and St. Petersburg combined. Consumers’ shift toward saving is reducing the appeal of specialty footwear stores.
Online Sales Grow, but High Return Rates Pose Challenges
Online footwear sales continue to grow, yet high return rates limit the effectiveness of marketplace platforms. According to Moneyplace analysts:
- Women’s footwear return rate: 72.4%
- Men’s footwear return rate: 71.6%
- Children’s footwear return rate: 68.8%
Demand for international brands through delivery services like CDEK rose 21% in the first eight months of 2025, with over half of orders originating from China.
Legal Marketplace Plan Threatens Domestic Producers
A new legal marketplace initiative for Chinese footwear imports is raising concerns across the industry.
The plan includes exemptions from customs duties and VAT, and mandates product registration through the Honest Sign system.
Industry representatives warn that such conditions may force many Russian footwear producers out of the market, further increasing dependence on foreign suppliers.
Source: www.kommersant.ru
