Import Substitution in Russia: Successful Brands and Their Achievements

Import substitution in Russia has become particularly relevant for business. Import substitution is an economic strategy aimed at replacing imported goods that are popular in the domestic market with goods of own production. Import substitution can be used in any areas of trade and industry.

The purpose of import substitution is to protect the economic interests of the state, reduce risks for the local currency and stimulate the development of domestic production. Due to import substitution, new enterprises and jobs are created in the country, new technologies are developed. There are also prospects for growth in exports of goods.

Examples of successful import substitution cases in Russia

Recently, many brands producing foodstuffs, clothing, footwear, cars and IT-technologies have been able to successfully replace products from other countries. At the same time, the Russian market has lost nothing in terms of profit, as these goods are in high demand. Moreover, the goods of these manufacturers are supplied to neighboring countries such as Kazakhstan, Kyrgyzstan, Uzbekistan and a number of others.

Food industry

Cherkizovo, a producer of meat and sausage products, and Baltika, a producer of beer, were particularly successful in the food industry. The dairy products sector has also achieved success: according to Maria Zhebit, Soyuzmoloko brand representative, Russia's self-sufficiency in milk and dairy products is currently 82%. 

Electronics and IT-technologies

As for information technology, the Yandex search engine is in high demand in Russia. According to statistics, more than 80% of users choose Yandex as their main search engine, and website owners try to achieve top positions for their resources in Yandex.

Clothing and footwear

In terms of jeans wear production in Russia, Gloria Jeans and Zenden products have grown in popularity. They have successfully replaced such popular foreign brands as H&M and Uniqlo. Russian clothing brands are actively advertised by showbiz stars. 

Auto industry

Cars made by Russian manufacturers LADA and UAZ are becoming especially popular. The state provides financial support to Russian car manufacturers. Thus, already in 2025, UAZ will start serial production of airbags and seat belts, steering wheels and electronic control units. For this purpose, UAZ will also build new factory capacities and create about two hundred additional jobs at auto plants.    

Advantages of Russian brands

Russian brands have a number of advantages in terms of import substitution:

·      simplified logistics: the opportunity to save time and money, as one will no longer have to go through customs control and pay duties;

·      direct cooperation with manufacturers. This gives the opportunity to control quality and make changes at different stages of production;

·      increased customer loyalty, affordable prices for domestic products;

·      possibility to minimize any foreign economic risks, independence from the current exchange rate;

·      stable state financial support for domestic producers;

Thus, import substitution opens new opportunities for brands, buyers and customers alike. That is why it is worth looking at domestic producers and supporting them.