Any idea why that's the case? Where I live using the local language increases sales. To the point where manufacturers from neighboring countries sometimes even use a local-sounding brand just for our market.

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Because Russian product is associated with low quality, while German, Japanese, etc. is the opposite. It's not just a stereotype, there are reasons for it. So local manufacturers have learned to use it to their advantage.

Also, Cyrillic fonts are often poorly made and look worse than Latin fonts.