Clothing sellers to increase prices by 10-15% after ruble collapse

On November 27, the ruble exchange rate in the interbank market fell by 7%: the dollar rose to 113 rubles, and the euro to 119 rubles. Finn Flare, which bought products at a price of 88 rubles per dollar, will now pay 110 rubles per dollar, which increases the cost by 30%, said the company’s general director, Ksenia Ryasova.

Rels CEO Ivan Petrakov said the company has already raised prices by 5% and is preparing for new growth if the pace continues to increase. Baon promises not to raise prices during sales periods, but predicts an increase in prices for new collections.

According to a survey by the Marketplace Partners Club, 56% of sellers plan to raise prices on all products and 9% on certain categories.

The founder of the Slava concept, Alexander Peremyatov, added that the price increase will also affect domestic products due to the increase in the cost of materials and accessories.

Ryasova noted that Finn Flare will abandon traditional discounts on certain products after Black Friday. According to Petrakov, some market sellers will reduce discounts to 5% instead of the planned 20% to avoid losses.

During the current sales, the markets will maintain large discounts of up to 50%, Petrakov believes. However, for them it is a marketing strategy that does not aim to make profits, but rather serves to attract buyers.

The increase in prices is affected not only by exchange rates, but also by the increase in material prices. For example, Chinese down has risen in price by 30%. In addition, from January, companies using the simplified tax system will begin to pay VAT, which will also increase the cost of goods, Peremyatov added.

The Bank of Russia set the official dollar exchange rate for November 29 at 109.58 rubles. The official euro exchange rate was 116.14 rubles. These are the maximum rates of the Central Bank of American and European currencies since March 2022.

Vladimir Putin, at a press conference in Astana, stated that the situation with the Russian currency is “generally under control.” “There is certainly absolutely no reason to panic. Yes, the processes in our country and in neighboring countries are not easy, but they are under control, everything is going according to plan,” said the president. He added that fluctuations in the Russian currency are determined by “seasonal factors,” including payments to the budget and oil prices.