Having a Hard Time Launching Innovations in Russia
Along with other BRIC countries, Russia is becoming a key focus of multinationals looking for the global growth of their revenue and profits.
Indeed, Russia with almost 140 million inhabitants spanning over nine time zones, offers a lot of opportunities for FMCG manufacturers. After years of communist regime, Russia transitioned into a market economy in the early 1990s and the Russian market became open for new products. Soon after that the majority of multinational FMCG manufacturers established their businesses in Russia.
It is often believed that Russia is an easy market where double digit growth comes without any effort. Indeed, twenty years after transitioning to a market economy, many product categories are growing in volume and value. The purchasing power in Russia shows a positive trend and consumers are changing their habits, which opens up the need for new products offering distinctive benefits.