Luxury Moscow

By Alexander Zaitchik

updated 1:43 p.m. ET Jan. 24, 2008

Few cities in history have seen a transformation as rapid or as extreme as Moscow’s in the last decade. In 1998, the Russian capital was shorthand for social and economic chaos, symbolized by a worthless ruble and gangland assassinations carried out in broad daylight. No one could have predicted that the New York Times would—ever?—name Moscow “Luxury Destination of the Year.” Or that it would top Mercer Consulting’s “most expensive cities in the world” list—two years running.

But that’s exactly what happened. Fueled by high oil and gas prices, the economy bounced back strong, and the new glittering Moscow is resurgent Russia’s showcase. The city in recent years has found its legs as a chic travel destination for high-end travelers; it is now home to multiple five-star hotels, diverse world-class cuisine and a profusion of showrooms that display everything from Ferraris to the latest Rolexes. This past December, Moscow played confident host to Supreme Luxury 2007, the annual industry powwow sponsored by the International Herald Tribune. Legendary IHT fashion editor Suzy Menkes marveled at the country's “speedy switch from drab conformity to superluxury” and concluded that “luxe [is] in the bloodline in Russia.”

Few familiar with the new Russian taste for luxury would disagree. But according to some local observers, the race to reclaim lost luxury reached a Putin-era pitch that may have even been a little too feverish even by Russian standards.

“Until recently, there was a complete obsession with the idea of luxury,” says Alex Shifrin, director and CEO of The Creative Factory, a Moscow boutique advertising agency. “Every new construction project, chocolate bar, restaurant, vodka brand and fruit juice was being marketed as a ‘luxury’ item. The term luxury became so commonplace that finding something simply above average became near to impossible. Things have recently settled a bit and there’s more of a sense of proportion.”

According to Merrill Lynch, Russia is among the fastest-growing emerging markets for luxury goods—and the evidence is abundant. More than 120 Italian and French luxury companies have a footprint in Russia, sized at more than 360 boutiques and growing. Many of these are collected in the famous GUM Department Store on Red Square, which Stalin converted into offices in the 1920s. Just outside the city is Barvikha Luxury Village, featuring Gucci and Armani outlets as well as a Lamborghini dealership.

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The most fashionable downtown outdoors shopping strip is clustered around Bolshaya Dmitrovka, home to showrooms for everything from Crocus shoes to Hummer SUVs. It’s in this quarter that you’ll find work from Moscow’s most of-the-moment international designer, Denis Simachev. The Simachev Boutique and club are located in the same building on Stoleshnikov pereulok. Shop for one of Simachev’s latest Soviet Kitsch designs by day; hit the club downstairs at night.

Rai Club Gargoyles, sci-fi cabaret, go-go dancing galore and top international DJ's. If you can get in, you'll understand why Moscow clubs are famously shameless and over-the-top with $50 drinks, waterfalls and some of the world's most beautiful women.

One institution warranting the luxe moniker is the Moscow Ritz Carlton, which opened its doors this July on Tverskaya street, the city’s main shopping boulevard. (Across the street, a Four Seasons Hotel is under construction behind enormous billboards advertising diamond-encrusted Rolex watches.) Nightly room rates start at $1,000 and offer some of the city’s best views of Red Square and the Kremlin. Its ground-level restaurant abuts a wine tasting room lined with one of the world’s largest displays of vintage Petrus, and boasts three-star Michelin chef, Heinz Winkler. One of his better-known creations is the Tsar’s Breakfast, which includes Kobe beef steak, foie gras, Beluga caviar and a truffle omelet, served with champagne. It rings in at $750.

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