Paul Walker, Group Managing Director, Russia and North East Europe
Boasting the second highest GDP in Europe, a robust growth rate in disposable income, and recent middle class expansion to 25 percent of the population, Russia’s economy offers many reasons to expect future consumption growth. In fact, many view Russia as the new European growth engine.
Despite the optimistic forecasts, Russian consumers are still cautious. Consumer confidence is relatively low compared to the global average, but ranks among the highest in Europe. So, understanding consumer purchase habits and media consumption behavior is vital for marketers to unlock the potential growth in Russia’s consumer market.
Reaching the Russian Consumer
Russian consumers are demanding, economical, open-minded and technologically savvy. As Russia’s middle class population and buying power increase, the need to effectively reach consumers also grows. Marketers have an opportunity to:
Provide Better Assortment Online and Offline
Increasing visibility across online media and improving offline distribution and product assortment is necessary to reach today’s Russian consumer.
Provide More Product Information
Russian consumers have exhibited a strong demand for more product information. Additional information can increase chances consumers will discuss your products with friends—both offline and online.
Strive for Brand Loyalty
With so many changes in the Russian consumer-goods and retail markets underway, securing brand loyalty early will improve success rates down the road.
Market New Products More Widely
Russia’s size presents a challenge for marketers of new products. For new products to have a chance of success, a wide and sustained marketing campaign with relevant messages is necessary.
Never Forget Distribution
In the Russian market, effective distribution is still the number one key to success.