Last December, “Russian Goods Pavilion” caught fire on the streets in several cities in China. Several months later, some Russian goods stores have started to close down, with ongoing stores offering discounts almost as a standard.
According to a report by Red Star Capital on March 18th, it was observed recently in Chengdu, specifically on Chunxi Road, that the “Russian Castle Goods Pavilion” is being transformed into a panda cultural and creative store. While the sign of the Russian goods store is still up, about 3/4 of the space inside is now filled with panda cultural and creative products, mainly panda plush toys, along with various panda-themed bags, decorations, pencils, and hair ties. Upon entering the store, one would find half of the space showcasing panda cultural and creative items. On one side, ubiquitous slogans like “Top-Quality Goods” and “Russian Goods Pavilion,” on the other side, a wide array of panda elements.
The store employees mentioned they are starting to change their business model, and once the current batch of Russian goods is sold out, they might not restock them.
The Russian Bear China-Russia Goods Pavilion next to Kowloon Plaza on Chunxi Road has already closed its doors. Although the sign at the entrance remains, it has been transformed into a shoe store. Nearby, another “Russian Goods Department Store” has put up a banner announcing its closure.
Apart from closing down, discounts and promotions have become commonplace for Russian goods stores.
The report noted that during visits, it was found that two stores still focusing on Russian goods as their primary business have introduced various discounts to attract customers. The Russian Bear Russia Excellent Market located on Chunxi Road launched a 65% discount for the Foodie Festival.
Another store on Dong Street, the Russian Bear Russia Goods Pavilion, offered a buy-one-get-one-free promotion.
In comparison, with the stacked discounts, many products were priced lower than on e-commerce platforms. For example, at the Russian Bear Russia Excellent Market, a 500g bottle of Arih King Vodka was priced at 28 yuan after discount, while the same product sold on Tmall Supermarket was priced at 37.62 yuan. Additionally, a 250g package of KONTI chocolate sandwich cookies was priced at 12.25 yuan after discount, with the online price generally above 15 yuan.
The report mentioned contact with several Russian goods stores in Shenzhen, Guangzhou, and Wuhan, all of which stated they were conducting promotional activities, offering different levels of discounts. Some implemented discounts for certain spending amounts, like 15 yuan off for 100 yuan spent, 35 yuan off for 200 yuan, and 50 yuan off for 300 yuan; some offered 50 yuan vouchers for spending 100 yuan; and some stores offered a 50% discount if you purchase seven items.
However, the appeal of low prices seems limited. During on-site investigations, it was observed that some stores had few customers. Mr. Li, who has been engaged in street sales work in the Greater Bay Area for many years, believes that discounts will not stimulate sales for Russian goods stores, as “it’s only a way for businesses to relieve inventory pressure, and consumers are now quite rational, so the marginal effect of promotions will not be very obvious.”
Mr. Li expressed that turning Russian goods stores into pop-up shops may generate excitement for a while but is likely not sustainable in the long run.
Data from Tianyancha shows that as of March 10, there are a total of 3537 Russian goods-related companies in China, with over half of them being established in the past three years. In 2024, the number of Russian goods-related companies registered a 28.53% year-on-year increase, reaching 892 companies. (Only companies with brand products containing keywords such as “Russian goods, Russian store, Russian supermarket, Russian food, Russian products, Russian trade” were included in the statistics.)
A Weibo account, “Weichengdu,” focusing on Chengdu, previously reported that in the second half of last year, various Russian goods stores sprung up like mushrooms on the streets of Chengdu, rapidly developing but also accompanied by many problems. Many stores bearing the Russian goods sign were found selling products from Uzbekistan, Belarus, Vietnam, as well as from domestic regions like Heilongjiang and Shantou. With market supervision authorities across different regions taking action, Russian goods stores are facing a new round of reshuffling.
While some Russian goods stores grew rapidly, there were also stores looking towards the long term. One of them is the European-style “Russian Goods Store” located under the popular screen on Chunxi Road.