As for the trade of expensive import furniture, it nearly stopped. The quality of Russian goods, which were potential substitutes for imported products, was important. In many cases concerning food, consumers initially moved to cheaper local products after the crisis but got dissatisfied with their quality and returned to imported products. Competitive advantage for local producers depended largely on their capacity to maintain the gap in the price level between Russian and imported goods. Not all of them were successful in this respect.
Many entrepreneurs let their prices rise close to the prices on imported items.
That strategy was a failure. Any crisis is a forceful shift in market relationships. According to our interviews with entrepreneurs, the situation after the crisis resembles the Russian economy of the early 1990s in many respects. There is a certain retreat to the age of early market, with many open niches and a lack of established conventions. Before the 1998 crisis there was a tendency within business circles toward increasing exclusivity.