Tuesday, 14 April 2009

Why Russia matters?

From a business perspective Russia is very important, for a number of reasons:

(1) Russian art and culture is influencing the West. Fur hats, trendy vodka ads, Russian TV on Sky, Russian films becoming like: The Return, Night Watch and Day Watch are becoming popular, Russian directors making Hollywood films e.g. Wanted,
trendy Russian art galleries in London e.g. http://www.whitespacegallery.co.uk/,
the re-emergence of Diaghilev ballets, Russian exhibitions at the V&A and Royal Academy.
Russia is a real 'hot potato' and it's cultural codes are filtering into the West.

(2) Western Culture is influencing Russia. It is a two way process, just as Russian culture is merging into the West, western culture is also influencing Russia. Western brands and music are regularly adopted by the Russian Middle class and youth culture. Therefore it is important to understand what Western codes are filtering into Russia and what there likely impact will be?

(3) Russia is a gateway between East and West. Russia is the ideal trading nation positioned between the West and the East e.g. China and Japan. This positioning means that Russia blends Eastern and Western brands, thinking and attitudes. Russia has uniquely become a battleground between Eastern and Western brands.

(4) Russia has a large population: Over 141 million people: This is a large audience that is becoming hungry for consumer goods

(5) Consumer growth rates: In 2004 Russia was the largest market in the world for mobiles, in 2005 it was the largest market for washing machines, it is now estimated, that it is the second biggest market for cars, it is one of the biggest markets for juice and beers and the Russian advertising market is tipped to be the third biggest in Europe by 2010.

(5) The Russian middle class is expanding: The middle class in Russia is estimated to be between 20 - 30% of the population. As the middle class grows they become more interested brands and branding.

(6) The 'near abroad': There are 25 million Russians living outside of Russia e.g. in Central Asia, Baltic States, Ukraine. These audiences watch Russian media and culturally look towards Russia for inspiration. So a marketing strategy in Russia stretches beyond the Russian border

(7) Rising Superpower: As we all know: Russia is an energy superpower as we rely more and more on these resources Russia's stature and economy will grow.

No comments:

Post a Comment