Other BriefingsTurkish Retailers Snap Up Contracts To Distribute Western Brands In Russia
One way around the Russia sanctions: get someone else to do it for you
The Turkish holding FLO Retailing has received the right to sell goods under the Reebok brand in Russia, according to an August 22, mailing that the participants of the Reebok loyalty program began to receive.
These state that “We hasten to share that while Reebok retail and online stores have suspended their work, the company FLO OBUV RU LLC has received the right to sell goods under the Reebok brand in Russia.”
Turkish holding FLO Retailing, which develops brands such as the US Polo Association, Lumberjack and Reno, took control over the Russian division of Reebok sportswear and clothing chain in May. As a result of the transaction, the company acquired 117 Reebok direct sales points in Russia.
The move doesn’t place Reebok under any threat of sanctions, while it allows the company to continue to manufacture shoes and related gear for the Russian market, much of which is made in Asia in any event. It also highlights the development as use of Turkiye as a regional supply chain and distribution hub for the Russian market, a strategy that could be used by other EU and US brands mindful of awkward shareholder questions as concerns their operation: Reebok can state it its accounts that the sales are to Turkiye despite the end consumer being Russian. Reebok, which is owned by Adidas LLC of Germany, made just under US$1 billion in sales in Russia in 2021. Turkiye and Russia agreed to allow trade in their respective currencies rather than the US dollar or Euro last month.
This article originally appeared on Russia Briefing
Related Reading
About Us
Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE), China, India, Vietnam, Singapore, Indonesia, Italy, Germany, and USA. We also have partner firms in Malaysia, Bangladesh, the Philippines, Thailand, and Australia.
For support with establishing a business in the Middle East, or for assistance in analyzing and entering markets elsewhere in Asia, please contact us at dubai@dezshira.com or visit us at www.dezshira.com. To subscribe for content products from the Middle East Briefing, please click here.
