Luxury brands have expanded sales in Kazakhstan after leaving or downsizing operations in Russia, Kommersant reported, citing Artur Gafarov, head of Russia’s Institute for the Development of Entrepreneurship and Economics.
Gafarov pointed to Richemont, the Swiss holding company that owns Cartier, Montblanc and other brands, as an example. Since 2023, Richemont’s Russian division has focused on wholesale jewelry shipments to Kazakhstan. By 2024, revenue had risen 19% to 986.6 million rubles, equivalent to approximately $10 million.
Kazakhstan accounted for 96% of the Russian unit’s total revenue in 2024.
Tiffany & Co. took a similar approach, shifting its focus to wholesale trade in Kazakhstan, the expert said.
According to Gafarov, the Russian luxury goods market has shrunk by more than half in recent years — from $4.3 billion in 2021 to $2.06 billion in 2024.
The decline stems from several factors: Western restrictions on luxury imports to Russia, the exit of major brands, and a high interest rate that has prompted consumers to save rather than spend on costly items.
Richemont, one of the world’s largest luxury groups, specializes in high-end jewelry, watches and accessories. Its brands include Cartier, Van Cleef & Arpels, Piaget and Montblanc. The company was founded and is controlled by South African billionaire Johann Rupert.
