🇷🇺 Would western brands return to Russia if sanctions were lifted? Following Friday’s angry spat between US president Donald Trump and Ukrainian president Volodymyr Zelensky, the White House is reportedly drafting a plan to offer Russia sanctions relief as part of a deal to end the war in Ukraine. Far-reaching sanctions imposed on Russia by western countries compelled companies ranging from LVMH and Inditex to McDonalds and Mercedes-Benz to withdraw from the market following Russia’s full-scale invasion of Ukraine in 2022, with some incurring significant losses. With Trump now saying that sanctions could be lifted “at some point,” observers are mulling an eventual return of some western brands to Russia. However, just last week H&M Group said it has no plans to reopen in the country and Uniqlo owner Fast Retailing said it sees “no foreseeable prospects” to resume operations there, according to the Sourcing Journal, although other firms like Zara-owner Inditex chose to not comment on the likelihood of re-entering. Even if sanctions were removed as part of a deal to bring peace to Ukraine, companies would face numerous challenges in Russia including heightened reputational and operational risk, a weakened local economy, new competition from non-western and local analogue brands launched by former partners, shifting consumer attitudes toward western brands and the possibility of an increasingly complex or even hostile business environment for western businesses. [Sourcing Journal, Reuters, BBC]
🇰🇷 South Korean beauty brands pin their hopes on the removal of a Chinese ban. The Chinese government’s unofficial but de facto ban on South Korean entertainment and goods, which was imposed in 2017 following a political row over Seoul’s deployment of the THAAD missile system, is expected to be lifted or at least softened. Korean media cited clues about the possible move in a report by Xinhua about Beijing’s 2025 foreign direct investment plan, which is seen as a response to China’s economic slowdown. Many Korean brands experienced heavy losses or withdrew from the market in the years since the ban was imposed. [The Korea Herald]
🌏 Global luxury brands unveil 2025 Ramadan collections, edits and campaigns. The holy month, which started on Mar. 1 in Gulf countries, and is expected to end on March 29 or 30 ahead of the Eid-al-Fitr holiday celebrations, is one of the most anticipated occasions in the Islamic calendar. Ramadan is also known to bring one of the biggest annual upticks in consumer spending for Muslim-majority countries across the Middle East, with global fashion labels releasing dedicated Ramadan collections, edits or campaigns. This year saw Loro Piana, Tom Ford, Louis Vuitton, Fendi and Gucci pay homage to Ramadan with luxury capsule collections. [Vogue Arabia]
🇰🇪 CFAO ups its stake in Kenyan retail chain Goodlife Pharmacy. The Kenyan unit of Paris-based CFAO Group, a subsidiary of Japan’s Toyota Tsusho Corporation which is active in 38 African countries, is acquiring an additional 69.9% stake in the pharmacy, bringing its total holding to 99.9 percent following its initial investment in 2022. Co-founded by Joshua Ruxin in 2014, the Nairobi-based pharmacy chain with over 140 stores in Kenya and Uganda sells pharmaceuticals as well as global and local beauty brands like La Roche Posay, L’Oréal, Maybelline and Anashe. [Semafor, Business Daily Africa]
🇮🇳 Indian traders hail EU’s latest delay of diamond traceability requirements. The European Union’s extension of the implementation of its plans for controls on polished diamond imports from March 2025 to January 1, 2026 “provides the Indian diamond industry the much-needed breathing space in a very challenging time due to a multitude of factors,” said Kirit Bhansali, chairman of India’s Gem & Jewellery Export Promotion Council. The move postpones the stringent regime developed by the EU and G7 group of countries (including the US, UK, Canada and Japan) to prevent diamonds from sanctioned Russian suppliers to enter those markets. [Economic Times]
🇨🇳 Chinese-owned Lanvin Group’s annual revenue plummets by 23 percent. The Shanghai-based group formerly known as Fosun Fashion Group recorded the double-digit decline in its preliminary, unaudited earnings for 2024 to €328 million ($340 million). Andy Lew, the recently appointed executive president of the group which owns Lanvin, Sergio Rossi, Wolford, St. John Knits and Caruso, conceded that the firm was at a “pivotal” moment. Over the last 10 months, the group appointed Paul Andrew and Peter Copping as Sergio Rossi’s new creative director and Lanvin’s new artistic director respectively in a bid to help turn around the group’s fortunes. [BoF Inbox]
🇯🇵 Uniqlo’s sister brand Gu and Undercover partner to create new label Ug. Uniqlo’s Japanese parent company Fast Retailing and Undercover designer Jun Takahashi have joined forces for the new low-priced fashion line launching this month. “With Ug, we aim to redefine the intersection of mainstream and high fashion, offering unique, forward-thinking designs that can be enjoyed [by] people around the world,” said Yosuke Hasegawa, research and development director at Gu. [Hypebeast]
🇮🇳 Unilever and L’Oréal Groupe’s VC arm invest in Indian haircare brand Arata. The British multinational consumer goods giant led a Series A funding round for an undisclosed amount with participation from the French beauty group’s venture capital arm BOLD (Business Opportunities for L’Oréal Development) in Arata, a New Delhi-based haircare brand founded in 2017 by Dhruv Madhok and Dhruv Bhasin. [Cosmetics Design Europe]
🇧🇷 Brazil’s Natura & Co. said to be in talks with IG4 about Avon unit sale. The São Paulo-based beauty giant is reportedly in negotiations with Brazilian alternative asset management firm IG4 Capital about a potential sale of Avon’s operations outside Latin America. The American unit of the New York-founded, London-based cosmetic brand known for its direct sales business model would not be part of any deal. [Reuters]
🇮🇳 Zara shutters standalone store leaving only five locations in Mumbai. Inditex Trent, the joint venture between the Spanish fast fashion giant and its India market partner Tata Group’s retail arm Trent Ltd, is closing an outlet in South Mumbai following a rent increase. The closure of Zara’s largest India store brings its nationwide footprint to 23 stores including 5 in Mumbai which are all located in malls. [Fibre2Fashion]
🇨🇴 Colombian singer Sebastián Yatra is named Azzaro’s fragrance ambassador. The L’Oréal Groupe-owned French brand has signed an endorsement deal with the Latin Grammy award-winning musician born in Colombia but raised in the US. Yatra, who has more than 28 million Instagram followers, will appear in the campaign for the brand’s new scent Forever Wanted Elixir. [Grazia México y Latinoamérica]
🇨🇳 Shiseido’s men’s skincare brand Sidekick exits China after less than 3 years. The Japanese beauty conglomerate’s luxury brand aimed at Asia’s Gen-Z male consumer is no longer available in mainland China, according to a report by Nanfang Daily. The brand launched in the Chinese market in July 2022. [Jing Daily]
🇯🇵 Japan’s SK-II appoints Taiwanese actress Ning Chang as brand ambassador. The Tokyo-based luxury skincare company has signed an endorsement deal with the entertainer formerly called Janine Chang who is known for roles in Taiwanese drama series and has over 15 million followers on Chinese social media platform Weibo. [Jing Daily]
🇨🇳 Prada taps Chinese actress Chen Haoyu as brand ambassador. The Italian luxury brand has partnered with the star of film and TV series like ‘Novoland: Eagle Flag’ and ‘Home Coming’. Chen has amassed a following of more than 4.4 million on social media platform Weibo. [BoF Inbox]
