The Russian market is currently one of the most attractive in the world. It has about 140 million potential customers, and it has considerably grown over recent years. According to many experts, such tendencies retain even further, despite the existing downtrend in business and the economy in general. Entering the Russian market and doing business here is not a difficult task, provided that you have enough knowledge of the Russian legislation. In addition, there exist other issues that need to be considered by the foreign companies for the future business activity if they enter the Russian market on their own.
Features of the Russian Market
In fact, the main difficulties that may to be faced by foreign companies are not always connected with the issues they get used to when entering other markets. The independent entry to the Russian market has its own characteristics. The main emphasis should be on the emerging language barriers, the peculiar mentality, separate specifics of the market, various difficulties connected with the organizational issues in a foreign country, etc.
Any entrepreneur should know that the key to the successful doing business in Russia lies in the understanding of the peculiar consumers’ behavior and the extraordinary perception of the world of such a multinational population.
It is quite difficult for companies to know where to start their business journey, and some of them simply underestimate the complexity of the business activity in the Russian Federation. Entering the market by one’s own is characterized by a lot of various difficulties, as companies have to take care of all the organizational processes, including:
- registration of a legal entity or a branch of the business organization
- searching for the premises and conducting negotiations with lessors;
- completing of a variety of administrative procedures;
- adjusting of the supplies of goods;
- launching of production, etc.
In regard to promotional campaigns, Russia is a quite specific country. Therefore, the future advertiser has to know this primarily. However, the tools are certainly the same – a standard search, social networking, RTB, and others; still, there are several significant differences, namely:
- Yandex – not Baidu – is the leading search engine.
- VKontakte is the most popular social network, Odnoklassniki takes the second place, and Facebook is only the third.
- The Russian customers use mobile tools while selecting goods, but the majority of purchases are made using a PC.
Apart from the features listed above, when entering the Russian market, one should bear in mind that the usual methods of promoting goods may be not effective in Russia. That’s why one will have to find new ways of solving this task to attract the right customers. Of course, you can also invest into the already existing production in Russia. Such a variant is analyzed in detail in the article "Russian Manufacturing Investment: a Win-Win Game"
Moreover, special attention should be paid to the speed of the goods delivery, the payment methods usual for the local clients, and the local customer service, of course. Thus, entering the Russian market by himself, a foreign businessman has to face lots of unpleasant surprises.
Qualified Assistance in Organizing Business in Russia
To minimize all the aforementioned difficulties, you should contact a specialized company New Project LLC. We offer our services to international organizations interested in developing their business in Russia, finding partners, agents, representatives, or distributors of their products.
Our experienced staff will provide your company with an efficient solution for a successful business organizing in Russia.