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miniOverview of the Russian market:

With over 140 million of consumers, an expanding middle-class and a virtually unlimited need of infrastructural works, the Russian market is still one of the most interesting to exporters of goods of any country.
 
In 2009, the per capita incoma of 4.830 $ and the GDP of 15.200 $ were the highest among the BRIC countries. Before the world economic crisis when its GDP fell by 7,9%, Russia had been a fast and continuously growing economy its GDP was increasing by almost 7% per year. 

After the abrupt slowdown of the second half of 2008, Russia re-emerged from the recession already in the third quarter of 2009, thanks to the almost unlimeted resources of raw materials and energy: the forecasts of the international experts for the triennium 2010-2013 show the Russian GDP increasing from the 3,3% to the 6,2%.

  

Typology and challenges of the Russian market:

Stretched on 9 time zones and on 17 million square kilometers, Russia is a massive market whose infrastructural system is stil underdeveloped, regarding especially the logistics, for exemple the access to the areas with commercial potentialities far from the big cities. The half-done transition from the centralized planning to the market-based liberal economy caused a lack of integration in the Russian economy of the present day and disparities in the allocation of wealth on both geographical and demographic basis.

 

The implementation of enterpreneurial activities can be frustrated by:

  • Muddled bureaucracy
  • Contradictory enforcement of rules and regulations
  • Lack of trasparency
  • Various barriers to the access of the market, e.g. excessive protectionism 
 

Chances of business in Russia and CIS countries:

  • Automotive Parts & Equipment Service / Accessories
  • Aviation
  • Chemical production machinery / Industrial chemistry
  • Electronic goods
  • Cosmetics
  • Production of electricity, transmissione devices
  • Green Technology / energetic efficiency 
  • Medical equipment
  • Restaurant Equipment
  • Security & Safety Equipment
  • Travels & Tourism
  • Furniture
  • Food
  • Clothing
 

Market Entry Strategy:

The Russian market is as simple as demanding.

The scheme of an entry strategy can be:

  1. Simple: select a partner with whom to establish a relationship of manufacturer-distributor and with whom to build a the best possible commercial policy; 
  2. Complex: select a partner with the characteristics suitable for our demands (the right size, a defined view on the business, need for that spacific product in that moment) and decide with him the strategic targets and the budget, it should not be left out the option of integrating into the organization of the Russian company a manager, whose role would be to work only on the Italian brand. This strategy requires the time and commitment come to Russia to make the right choice among the potential counterparts, selected for the Italian company by a consultant in outsourcing operating on the Russian territory.

Developing your own business in the Russian Federation may require quite a large amount of resources, for instance time, staff, financial means. Before undertaking any enterprise project, it is recommended to lead at least an exploratory marketing research on the real potential of a branch or the reliability of a commercial partner. So, for instance, you can get support after consulting the institutions in the Russian Federation like the Italo-Russian Chamber of Commerce, you can often visit Russia to find new contacts and possibilities and get a better idea of the conditions and the trends of the local market, you should use the credit note and other safe means of financing, avoiding the sales on credit; you should evaluate the implementation of programs of corporate social responsibility; a great way to start a fruitful business is also to work with the regional or local administrations.


The keys of success in Russia are determination, forwardness and perseverance.