Perception of Alternative Brands by Russian Consumers after the Imposition of Sanctions

This article's goal is to investigate the effects of local companies replacing well-known foreign brands in the Russian market, especially in light of the economic sanctions put in place as a result of geopolitical tensions. The impact of these brand substitutes on consumer behavior and the general dynamics of the market are the main subjects of the research. Two case studies were carefully selected to enable a comprehensive investigation: the rebranding of LPP Group, which resulted in the introduction of brands like Re, Sin, X, and M in response to the changing market environment, and the conversion of Starbucks into Stars Coffee after the start of the Russian special military operation. The present research utilizes a comprehensive analytical approach to analyze the consequences of various rebranding initiatives. The research endeavors to offer a comprehensive understanding of the changes occurring in the Russian retail industry through the examination of many data sources, such as company records, customer surveys, and a thorough analysis of previous studies. The investigation's results paint a complicated picture. Customer satisfaction and brand loyalty have declined noticeably, despite efforts to | preserve a sense of continuity and familiarity with the new brands. In addition, these rebranded companies' financial standing has deteriorated, as seen by the noticeable declines in their profit margins and market share. These results provide important insights into the difficulties and traps of rebranding in a contentious political and economic environment. The study highlights concern about the long-term viability of substituting local brands with well-known global brands in addition to illuminating the immediate effects of such strategic moves. The results underscore the importance of understanding consumer attitudes and the broader socioeconomic factors that influence brand performance in times of political and economic unrest, for both brand managers and academic researchers. By addressing a significant research gap, this study aims to improve understanding of brand management strategies during sanctions and the adaptability of consumer behavior in response to geopolitical shifts. Key words: brand awareness, sanctions, fashion industry, food industry, Russia, consumer behavior