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Article

3 Oct 2024

Author:
B4Ukraine

Russia: Dior allegedly continues business in country despite public statements about halting operations; incl. co. comments

Christian Dior apparently never fully Left Russia, 3 October 2024

French multinational luxury fashion house, Christian Dior Couture, has resumed trademark registration in Russia after announcing the suspension of its operations in the market at the onset of Moscow’s full-scale invasion of Ukraine, the company confirmed in a letter to B4Ukraine.

Christian Dior is majority (59%) owned by the French luxury group LVMH...On March 4, 2022....LVMH announced the “temporary” closure of its 124 stores in Russia given “the current circumstances in the region.” The group, which is headquartered in Paris, stated that its 3,500 Russian employees would continue to receive their salaries and benefits, while €5 million would be donated to the International Committee of the Red Cross...to “help the direct and indirect victims of this conflict.”

However, the company did not directly condemn Moscow for its unprovoked onslaught nor name the aggressor by the name. “The LVMH Group is closely monitoring the tragic situation in Ukraine and stands alongside all those severely affected by this war. The group’s first concern is the safety of its 150 employees in Ukraine and is providing them with essential financial and operational assistance,” LVMH said in a statement.

The luxury giant did not specify whether it was still delivering goods to Russia. The export data later showed it had been. After a sharp drop immediately following the invasion, Christian Dior shipments never completely stopped, as per Russian customs data, and somewhat recovered by the fall of 2022, though not to pre-invasion levels. Moreover, a significant portion of the shipments came directly from France (amounting to $2 million in March 2023), as well as through Latvia and Serbia. In contrast, Prada and Chanel shipments dropped sharply after the invasion with very few remaining shipments being indirect, according to the same customs data source. The latest available customs data for Dior for April-May, 2024 show USD 24 million of direct shipments from a supplier named Perfums Christian Dior.

In a recent response to B4Ukraine’s inquiry, the company has denied providing any product shipments to Russia since March 2022, indicating the seizure of “all commercial activity in Russia” since the full-scale invasion and its intention to defend its brand in the aggressor state. “Christian Dior Couture’s recent trademark applications speak directly to this position, as they are meant to protect the brand from third parties’ fraudulent misappropriation and unauthorized use in Russia and in no way indicative of an intention to resume commercial operations in the region.” When further probed by B4Ukraine about the analyzed customs data that clearly shows direct exports into Russia, a representative of Dior stated that such figures “may be the result of unauthorized parallel exportations by third-party resellers.”

Dior, however, did not explain how this statement aligns with the fact that its official website currently offers 2024/2025 collection in the Russian language. B4Ukraine was also able to confirm that the main Dior store in the prestigious GUM shopping center located in Red Square remains open, as confirmed on the phone by a Dior customer service representative based in Paris. The GUM shopping mall also features Dior Institute, which advertises itself as a place offering various “exclusive treatments”...