Market and culture: Russia

RussiaMarket and culturenon-professional experience

Alex SombyIT Consultant

Service ManagementCloud Solutions

@_somby

HistoryCultureCustomer choice

«Empty Shelves of USSR»

Raving in Arms RaceHelping friendly goverments around the worldGoverment almost forgeting their own people

Most recognized soviet brand

Youth looking towards capitalistic west

Daily products being smuggled from abroadNoticeable better design and quality

Foreign equals better in minds of soviet people

Fall of the Soviet Union in 1991

Chasing american lifestyle

Most part of ex-soviet citizens dreamt of “American live"

Wearing Levi's, drinking coke and chewing bubble gum

Russian market is open

for new opportunities

ПейтеКока Колу

Huge success of all major western brands who has managed to adapt to Russian

market on time 

Still nobody lines up for russian cars

Out of $100 invested into the economies worldwide $3.50 went into Russia, with foreign direct investment reaching

3 per cent of GDP, more than in China and the United States.

- Russia Today, July 12, 2012

143 million innhabitans according to National Statistic Bureau73% of those are concentrated in cities

Russian Federation National Investment Agency’s

Success Stories

Managed to establish on russian market ahead of Facebook

GUI on russian language from day ONE

Social network

Facebook «ripoff»

Launched 2006

Offers free music and video sharing/streaming using bureaucracy hole in Russian Federation laws

and a talented team of lawyers

International domain www.vk.com in 2012Revenue 152$ mil in 2011Available in 70 languagesAny device

Pavel Durov28 years oldNet worth 260$ mil

First public appearence in 2012 by donating 1$ mil to Wikipedia

Oligarchs

18,1 bil 15,9 bil 15,3 bil

NET WORTH in USD

Notorious ChodorkowskiHad 15,2$ bil according to Forbes

One step government-organized auction has determined to sell his oil company YUKOS to ROSNEFT Group

under suspicious circumstances

Conclusion

Russian market is great for adaptation of western products and servicesDo no forget to play along with the goverment if you aim high

“Positioned for Growth” – by E&Y

“Doing business and investing in the Russian Federation 2012” – by PWC

“ Khodorkovsky ” - by Cyril Tuschi

Thank you

[email protected]