A recent report by the Russian news portal Gazeta.Ru has highlighted the significant impact of the 560 Western companies that left Russia in the aftermath of the February 2022 invasion of Ukraine. The report mentioned prominent brands such as McDonald’s, Shell, Zara, Nissan and Toyota, as well as the online adult entertainment website Pornhub, which was forced to lay off a part-time marketing specialist.
The departure of these companies has caused irreparable damage to the Russian economy and society. However, the country has managed to adapt and compensate for the losses, with many Russian companies filling the void left by the departing Western brands.
According to Gazeta.Ru, up to 350 of the departed companies are expected to return to Russia by 2025, with 15 having already done so by the second quarter of 2022 and 235 by the fourth quarter of 2024. The report also quotes the strategy chief of the Kokoc Group, Roman Kasychanow, who expects the marketing budget and the overall market for marketing services in Russia to grow in 2025.
The article highlights the significant marketing budgets and market dominance of the departed Western brands, which have left a void in the Russian market. However, Russian companies such as Lime and SELA have already filled the gap, with SELA, for instance, replacing Zara.
The article also notes that the return of Western companies may not be as easy as it seems, as the Russian market has changed significantly since their departure, with a decline in the country’s GDP and an increase in the interest rate, which could lead to a reduction in consumer spending and a more competitive market.