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Russia Becoming an Alluring Market Again for Companies That Can Meet Needs of Value-Conscious ConsumersMOSCOW, May 17, 2018 (GLOBE NEWSWIRE) -- As the Russian economy continues to stabilize after several years of financial crisis, many of the nation’s consumers are ready to spend more on goods and services that matter most to them, such as fresh foods, education, and travel, according to a new report by The Boston Consulting Group (BCG). The report, Russian Consumers and the New Economic Reality, was released today. To succeed in Russia, the research found, companies will have to adapt their products and marketing strategies to noticeable shifts in consumer sentiment. According to the findings, which are based on a survey of nearly 4,000 Russians of different ages and income levels in 2017 by BCG’s Center for Customer Insight, consumers have grown more cautious, pragmatic, and value-conscious since BCG conducted a similar survey in 2013. They are more prone to buy low-cost generic drugs than branded medications, for example, and to take shorter vacation trips closer to home. “Russia remains a critical emerging market for global companies that understand the nuances and needs of this complex consumer economy,” said Ivan Kotov, a BCG partner who leads the firm’s Consumer practice in Russia. “Companies that align their strategies with the desires and budgets of Russian households will find significant growth opportunities.” The study found evidence that Russian consumers are adapting to the new reality that the economy is unlikely to soon return to the booming growth it once enjoyed when oil prices were high and the ruble was strong. After several years in which inflation far outstripped GDP growth, the buying power of average households has declined—especially for imported goods and foreign travel. Among the key findings:
“These findings suggest there is high demand for affordable, high-quality medical services in Russia that’s not being fully met by public programs,” said Stefan Tushchen, a BCG partner who leads the firm’s Health Care practice in Russia. “They will increasingly be met by private investors.” A number of foreign providers, including the Italian medical holding company GVM and Macedonia’s Acibadem Sistina, are investing in Russian clinics. Others are becoming partners in the Moscow International Medical Cluster, an initiative that aims to improve access to global treatment methods. Israel’s Hadassah Medical Center, for example, will open a clinical diagnostic center and oncology therapy center. The study also indicates that Russia will remain a dynamic travel and tourism market for companies that bring the right value proposition. Cost leadership and customer centricity will be among the key sources of advantage for travel companies seeking to capture the Russian growth opportunity,” said Nicolas Boutin, a BCG partner and global leader of the firm’s Travel and Tourism practice. “To win in Russia, companies should use the current economic reset to seize competitive advantage.” A copy of the report can be downloaded here. To arrange an interview with one of the authors, please contact Eric Gregoire About The Boston Consulting Group About BCG’s Center for Customer Insight The Boston Consulting Group Tel +1 617 850 3783 |