Many new goals have been added since last year, such as expanding local sports equipment supply, strengthening existing substitutes, and improving related infrastructure. The program lays the foundation for the roadmap of the development of the sporting goods industry, which the Russian government is tasked with adopting by November 2025.
Import-substitution programs introduced to replace foreign products
The roadmap will determine target indicators for increasing Russian sporting goods production and proposals to beef up the supply in the domestic market, the government said in a statement on its social media channels. The Industry and Trade Ministry is instructed to run the key points of the import-substitution programs by the largest sporting goods manufacturers. In addition, the Russian state standardization agency Rosstandart and the Ministry are due to adopt and update new national standards for various sporting goods annually.
“It is too early to say anything definitive about the initiative,” commented a Russian sporting goods industry source who wished not to be named. “So far, this is only a declaration of intent, nothing more.”
The Russian government originally approved the national sports industry development program in June 2019 with the main goals of improving the popularity of mass sports and creating a modern sports industry infrastructure. During a Council for Physical Culture and Sports meeting in October 2023, Russian President Vladimir Putin ordered the Russian government to update the development program to adapt it to new realities.
Numerous challenges for the Russian market
As was outlined during the meeting, the Russian sporting goods market faced numerous challenges due to the mass exodus of Western brands from the country. Particularly severe problems were reported in the segment of athletic apparel, where a large share of demand used to be met by Western suppliers. Some analysts doubt whether effective import replacement in the Russian sporting goods industry is possible.
“The technical possibility of manufacturing sporting goods in the country exists,” said Andrey Selskiy, former deputy of the Russian Sports Ministry. “But for such projects to pay off, the national (Russian) market size is not enough. If production remains small-scale due to limited demand in the local market, each product will cost more than large-scale production. To be competitive, exports and international expansion are needed,” Selskiy claimed.
Combating illegal trafficking is mentioned as one of the key pillars of the new strategy. The Russian market is flooded with counterfeit goods, the share of which ranges between 30 and 40 percent, as estimated by Vlasta-Consulting, a Moscow-based consultancy representing the interests of Adidas and several other Western sporting brands in the country.
