Economic sanctions and inflation have hit Russians’ spending. A native of Yaroslavl province Galina Yurkova is a clothing retailer with a long career. He has a boutique in a provincial town. This is how the war has affected his business and life.
Where are you at the moment, Galina Jurkova?
– I am at home in Yaroslavl. Today I am free and I have plenty of time for this interview. It’s very slippery here right now. Yaroslavl is roughly at the same latitude as southern Finland, so when you have bad weather, so do we.
You are an entrepreneur and you have a clothing store. Tell us how your business has changed over the past year.
– About a year ago, there was a change in consumer behavior. Purchasing power has weakened. Many are no longer willing to pay the same price for clothes as before the war. Nowadays, people want either very cheap, used clothes or cheap new clothes. However, the trade in used clothes is not booming, so in Russia people now prefer to buy new Chinese clothes.
Have the collections you sell changed since the start of the war?
– My business revolved around western brands for a long time. Before, I bought old collections of luxury brands from Europe for sale. For example, I sold collections to Gerry Weber that were discontinued in Europe.
Our target customers are average Russians, and now in the province it is difficult to sell, for example, a jacket if it costs more than 6,000 rubles (76 euros).
So we have to look for cheaper brands to sell. Most recently, I acquired for sale, for example, British Boho and German Otto brand clothes. In the past I have also bought H&M and Primark.
What do you think is the reason for the weakening of customers’ purchasing power?
– It is due to the economic situation of the Russians. The cost of living and the price of food are rising. Fashion and dressing are no longer as important to many as they used to be.
People can perfectly well not buy clothes, but not food. I don’t think purchasing power has weakened due to the sanctions, but the fluctuation in the value of the ruble has a strong impact on prices.
How have sanctions affected supply chains?
– I have not noticed that the sanctions have affected supply chains or prices. We can still get clothes without problems. In March of last year, there were delays in deliveries. It continued for a couple of months, but the logistics chains were quickly renewed. Before, the clothes came wholesale directly from Europe, while today they go through Kazakhstan and middlemen.
The truth is that Russia is still a huge market, and the money will do.
How is the retreat of Western movements visible in Russia?
– Many stores left. For example, H&M, Cos and Mango closed their stores in Russia, but the market niche left by them was quickly filled. People started looking for similar products and they also started appearing for sale quickly. It used to be McDonald’s, now it is replaced by a similar Russian hamburger chain Vkusno i totška.
It was sad when Ikea left. Many Russians still don’t understand why it left.
H&M stores were closed last year. How can you get the brand’s clothes in Russia?
– Yes, you can still get H&M clothes from Russia. Consumer stores closed their doors, but you can still order western brands via wholesale if you have the ability to pay.
As far as I know, H&M comes to Russia from Germany through intermediaries. I don’t order from abroad, I buy wholesale in Moscow, so I don’t know the supply chains exactly.
When the business launch started in Russia in September, did you receive inquiries about thermal layers, winter boots or other equipment?
– Oh, did people ask for wool socks and warm sweaters so they wouldn’t get cold in the trenches? This has never happened before. I know because many of the female clients are acquaintances of mine, and many have men of marriageable age in their close circle.
How did the business launch appear in Jaroslav’s street scene?
– The campaign launch in the fall concerned only a small part of the population. Only a few people joined the army from our city. The truth is that almost everyone in our country has not been called to arms, although you may have had such an image. However, many were afraid of putting the motion forward.
You have a son of calling age. How has the business launch been reflected in your family and close circle?
– In the circle of acquaintances, sometimes there was even exaggerated panic for no reason, outright hysteria. A man I know was drafted, but as far as I know, he left voluntarily.
Thank God my son has a protective shield. He is a university student. Yes, I was scared for my son too in September, and many of my friends were. In my circle of friends, almost everyone’s sons are in universities and we know that invitations do not apply to them.
Some send their adult children abroad to hide, in Turkey and Georgia. An acquaintance of mine sent his adult child who works in the IT field abroad, even though we all knew that IT experts are not drafted into the army. In a way, I understand their reaction. After all, we are mothers. We are programmed to fear for our children.
The war has been going on for almost a year now, and the campaign is still going on in Russia. What kind of feelings does it evoke?
– Right now, everyone is tired of being afraid of putting a motion into motion. The human mind is interesting because it has its limits. I think the limit has been reached for many Russians.
In Russia, the people are basically very apolitical. When new challenges arise, we start solving them. Now there is no need to worry about future problems. In reality, many people in Russia do not have the resources to worry about world events. I am very privileged compared to many others, but ordinary Russians now have the main thing in their mind is how to make a living. Many have to work long days to get their bills paid.
Do you follow the events in Ukraine? What do you think of the news?
– You can’t watch the news. I have been to college and there I was taught to use reason. I no longer bother to waste my precious time on such nonsense as the news. I am a pacifist through and through, and for me human life is the most important value.
In this series of stories, we call Russians and look for answers to what is happening to representatives of various professions, civil society, journalists and activists in Russia.
Previous parts of the series:
“The situation resembles the last years of the Soviet Union” – Ksenia Kochenko, 21, tells what changed in Moscow
Anastasia Burakova heads one of the most visible anti-Putin networks, and she has a dark message for Russia’s neighbors