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RUSSIAN MARKET: INSIGHTS


ECONOMY INDUSTRIES: HEALTHCARE INDUSTRIES: FOOD & AGRICULTURE CONSUMERS


GLOBAL RECESSION HAS SERIOUSLY SHAKEN A LOT OF WORLD’S ECONOMIES. HOWEVER, THE LEVEL OF DAMAGE IS DIFFERENT FROM COUNTRY TO COUNTRY. DESPITE THE GLOBAL RECESSION,

RUSSIAN

MARKET IS STILL LUCRATIVE AND ATTRACTIVE TO FOREIGN INVESTORS.


ECONOMY BY 2020 RUSSIA IS GOING TO BE EUROPE’S LARGEST AND WORLD’S FOURTH-BIGGEST CONSUMER MARKET.

- ERNST & YOUNG’S ATTRACTIVENESS STUDY: RUSSIA 2013, SHAPING RUSSIA’S FUTURE-


RUSSIA IS EXPECTED TO JUMP ON THE TOP 5 LIST OF WORLD’S LARGEST ECONOMIES, REPLACING GERMANY AT NUMBER 5

-MARKETING WEEK, 2013-

TOP 5 LARGEST ECONOMIES IN 2020 AND THEIR SHARE OF WORLD GDP IN PPP -EUROMONITOR, 2013-


RUSSIA HAS JOINED THE WORLD TRADE ORGANISATION,

SIGNALLING THAT IT’S OPEN FOR BUSINESS AND SHOWING THAT IT’S ADOPTING AN INSTITUTIONAL FRAMEWORK THE REST OF THE WORLD CAN TRUST.

-THE FINANCIAL TIMES, 2012-


FOREIGN INVESTORS ARE TURNING THEIR GAZE TO RUSSIA. RUSSIA WAS RANKED SECOND IN EUROPE IN 2012 IN TERMS OF EMPLOYMENT GENERATED THROUGH FDI. - ERNST & YOUNG’S ATTRACTIVENESS STUDY: RUSSIA 2013, SHAPING RUSSIA’S FUTURE-


SECTORS DRIVING GROWTH IN RUSSIA IN THE NEXT 2 YEARS ENERGY & ENVIRONMENT (32%) HEAVY INDUSTRY (23%) AUTOMOTIVE (13%) CONSUMER GOODS (12%) HIGH-TECH EQUIPMENT (12%) TRANSPORT (10%) & CHEMICAL INDUSTRIES (10%) PHARMACEUTICAL INDUSTRIES (9%)

- ERNST & YOUNG’S ATTRACTIVENESS STUDY: RUSSIA 2013, SHAPING RUSSIA’S FUTURE-


MORE THAN 140 DANISH COMPANIES HAVE A SUBSIDIARY OR REPRESENTATIVE OFFICE IN RUSSIA.


DANISH COMPANIES IN RUSSIA


HEALTHCARE


RUSSIA IS FORECASTED TO FACE A GREATER DISEASE BURDEN THAN ANY OTHER EUROPEAN COUNTRY. IN TERMS OF HEALTHCARE, RUSSIA IS NOT ONLY FAR BEHIND DEVELOPED WESTERN COUNTRIES, BUT ALSO BEHIND THE MAJORITY OF EASTERN EUROPEN AND LATIN AMERICAN COUNTRIES WITH A SIMILAR LEVEL OF ECONOMIC DEVELOPMENT. -MINISTRY OF FOREIGN AFFAIRS OF DENMARK, 2013-


 RUSSIANS ARE 30% MORE LIKELY TO GET SICK THAN EUROPEANS.  MOST OF THE RUSSIANS SUFFER FROM RESPIRATORY (26%), BLOOD CIRCULATORY (11%), AND DIGESTIVE APPARATUS (8%) ILLNESSES.  MORE THAN 1.1 MN RUSSIANS ARE IN SOME WAY DISABLED.

-MINISTRY OF FOREIGN AFFAIRS OF DENMARK, 2013-


 70% OF EQUIPMENT USED IN RUSSIAN HOSPITALS IS OUTDATED.  THE AVERAGE DOCTOR’S WAGE IS VERY LOW, THUS MAJORITY OF PHYSICIANS SUPPLEMENT THEIR INCOME BY ACTING AS PHARMACEUTICAL REPRESENTATIVES.  HEALTHCARE FINANCING IS AN EVEN MIX BETWEEN COMPULSORY SOURCES AND OUT-OF-POCKET PAYMENTS, HOWEVER THE SYSTEM IS LARGELY UNDERFUNDED.  RUSSIAN MEDICAL MARKET IS PRIMARILY SUPPLIED BY IMPORTS. RUSSIA HAS RECENTLY STARTED A LONG-TERM FINANCING (4.5 BN EURO)PROGRAM FOR LOCAL R&D DEVELOPMENT IN THE HEALTHCARE SECOTOR, HOWEVER THE DEMAND FOR HI-TECH MEDICAL PRODUCT IMPORT REMAINS.

-MINISTRY OF FOREIGN AFFAIRS OF DENMARK, 2013-FOREIGN POLICY, 2009-


 LEADING COMPANIES IN THE MEDICAL INDUSTRY ARE THE MULTINATIONALS LIKE NOVARTIS, BERLIN CHEMIE, AVENTIS, GLAXOSMITHKLINE AND KRKA.  PHARMACIES IS STILL THE MOST IMPORTANT DISTRIBUTION CHANNEL FOR OTC HEALTHCARE.  CONSUMERS ARE CHOOSING BRAND PRODUCTS INSTEAD OF GENERICS , BASED ON HIGHER QUALITY EXPECTATIONS.  OTC HEALTHCARE IS EXPECTED TO GROW DUE TO INCREASED CONSUMER DEMAND AND RISING DISPOSABLE INCOME LEVELS, AS WELL AS GROWING INTEREST IN HEALTH AND WELLBEING.

-MINISTRY OF FOREIGN AFFAIRS OF DENMARK, 2013-


FOOD & AGRICULTURE


 FOOD AND AGRICULTURE SECTOR IS A PRIORITY DEVELOPMENT SECTOR IN RUSSIA.  BY 2018 RUSSIA PLANS TO BE SELF-SUSTAINING IN ALL FOOD GROUPS, WHICH CALLS FOR MAJOR MODERNIZATION AND IMPROVEMENT IN ALL LEVELS OF PRODUCTION.

- MINISTRY OF FOREIGN AFFAIRS OF DENMARK, 2013-


 RUSSIAN FMCG’S MARKET IS CHANGING INTO A CONSUMER DRIVEN ECONOMY.  RUSSIAN BUYERS ARE LARGELY INFLUENCED BY WESTERN TRADITIONS, THEREFORE RIGHT CHOICE OF BRANDING AND MARKETING IS CRUCIAL IN ORDER TO GET A MARKET SHARE.

- MINISTRY OF FOREIGN AFFAIRS OF DENMARK, 2013-


CONSUMERS


“RUSSIAN CONSUMERS DON’T BELIEVE IN THE FUTURE, THEY BELIEVE IN TODAY” -FINANCIAL TIMES, 2012-


THERE IS NO TENDENCY OF SAVING MONEY OBSERVED IN RUSSIAN CONSUMER BEHAVIOR. DUE TO ECONOMIC UNCERTAINTY, RUSSIANS TRAVEL, BUY CARS AND OTHER PRODUCTS, BECAUSE THEY ARE NOT CERTAIN OF WHERE ELSE THEY COULD INVEST. -THE FINANCIAL TIMES, 2012-


RUSSIAN SHOPPERS LOVE NEW PRODUCTS AND INNOVATIONS. 76% OF RUSSIAN CONSUMERS ARE INTERESTED IN TRYING NEW PRODUCTS. AS A RESPONSE, 7000 NEW FMCG PRODUCTS WERE LAUNCHED IN 2012.

-”HOW TO WIN WITH A RUSSIAN SHOPPER”, CONSUMER 360-


 RUSSIAN CONSUMER PURCHASES ARE FAMILY FOCUSED. 53% SHOP REGULARLY FOR THE WHOLE FAMILY.  THEY ARE SHORT-TERM DRIVEN. ONLY 5% THINK OF THE FUTURE USE WHEN BUYING.  QUITE A FEW CONSUMERS ARE SHOPPING FOR PLEASURE. 65% OF RUSSIAN CONSUMERS SEE SHOPPING AS A ROUTINE.

-”HOW TO WIN WITH A RUSSIAN SHOPPER”, CONSUMER 360-


RUSSIAN MARKET IS VAST AND LUCRATIVE… INDUSTRIES SUCH AS HEALTHCARE, FOOD AND AGRICULTURE ARE READY FOR NEW FOREIGN INVESTORS...

RUSSIAN CONSUMERS HAVE THE MONEY AND ARE READY TO SPEND… RUSSIA IS LESS THAN 3 HOURS AWAY FROM DENMARK…


DO YOU KNOW HOW TO COMMUNICATE WITH YOUR RUSSIAN AUDIENCE?

Russian market insights  

Insights on Russian market: Healthcare, Food & Agriculture

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