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back to index backEUROtalk April,  2012


Getting real about Russia

Russia is outperforming other European markets, but it’s no longer a place where capturing growth and profit is easy. Post the global recession, it has become a normal value-focused FMCG operating environment in which companies have to become more realistic about market potential and more disciplined about how they run the business to deliver top and bottom line growth.

At a meeting hosted for country leaders of some of the world’s largest consumer products companies operating in Russia, a number of key themes emerged:

- For most companies, 2011 has been an OK to good year, having seen high single digit to low double digit growth, with some geographic markets and categories stronger than others.

- However, for some, it has been the toughest for years and a number are predicting 2012 to be worse than 2011.

- Despite this, Russia remains the best market in Europe.

- As part of the market’s normalization, executives observe that Russian consumers are seeking value for money and becoming more discerning.

- Modern retail, although still small in comparison to traditional retail, is expanding fast and becoming more powerful.

To download 8-page report, please click here.

Source: Ernst & Young - GAI





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