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How foreign brands are going to the local market?

A foreign brand will be successful in Russia if the company is able to correctly approach this specificity

of the market.

The Russian market, in contrast to Western markets, is fast, where it is possible to establish large-scale

projects in a short time. But this was typical of the era 10 years ago. Now the last gap is not so much

noticeable. But fears of risk and lack of understanding of the intricacies of the market prevent a global

brand from achieving success in Russia. And here it is important to consider the following points.

1) It is necessary to understand the laws and requirements of the market, the local specifics of the Russian

market, entering here. In most cases, it will not be possible to simply transfer an international strategy

without adapting processes. Also, all internal business tools must be adapted to local requirements.

Depending on the product, business or product line, the Russian market requires more control than

developed markets.

2) Russian legislation, which, in the opinion of international companies operating in the Russian market,

changes too often. In addition, there is an inconsistency of legislation with the prevailing conditions and

selective application of laws. Any constant changes in regulation negatively affect the investment

attractiveness of Russia.

3) The specifics of the business environment and the risks of corruption in interaction between business

and government. Before entering the Russian market, a foreign brand needs to conduct market analytics

and think over the adaptation of the product or service itself to country specifics. This will help to avoid

mistakes typical for beginners.

4) Use market analytics before starting local communications with media and entering the market.

Analytics and market research costs are investments in the speed of adaptation in the market. Analytical

research is best done with local market leaders or local agencies. When choosing countries and regions,

you need to study the competitive environment. If there are already products or services in the selected

market, then this means that the demand and the competitive environment in the country or region have

already been formed. If there is no competition at all, it is rather bad. In this case, funding and effort will

have to be spent on creating a market, and not just on promoting the product.

5) It is necessary to consider personnel characteristics and behavioral features of employees, their ethics

and the rules of the relationship between the employer and colleagues adopted in the business

community;

6) Run and grow international business is impossible without business administration, incl. accounting

and HR administration that will be better managed by a local team of specialists

7) Attracting a local partner (agent, consultant, etc.) is an important step in the process of entering the

local market, who will represent the interests of the brand and the company in the local business

community, promote your project, establish contacts with potential partners, the media, local influencers.

In addition, it will be possible to use the existing contacts of the consultant.

News

The most popular investment instruments for Russian citizens are savings accounts in banks, foreign

currency, real estate, life insurance and cryptocurrencies.

The real disposable income of Russians in the third quarter fell by almost 5% after a record drop of

8.4% in the second, Rosstat reported.

In September 2020, the monthly increase in consumer prices (as estimated seasonally adjusted) decreased to 0.25% compared to 0.38% in August, according to the next release of the information and analytical commentary “Dynamics of consumer prices”.

Consumer demand in the first seven months of 2020 in Russia decreased due to the coronavirus pandemic by an average of 6.7% relative to the result of January-July 2019.
Net capital outflow in January-August 2020 increased 1.7 times compared to the data for the same period last year – from $20 billion to $34.8 billion.
MARKET INDICATORS
Retail in Russia
Retail in Russia
Russia and China
Russia and China
The structure of expenses of the population of the Russian Federation
The structure of expenses of the population of the Russian Federation
The structure of expenses of the population of the Russian Federation
The structure of expenses of the population of the Russian Federation
Real estate
Real estate
Real estate Russia
Real estate Russia
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