As a fast developing market, Russia presents many growth opportunities for new products and services. According to the U.S. Department of Commerce, Russia has an emerging middle class with a growing disposable income, which is driving demand for automotive products, consumer/household goods, financial services, and healthcare services. With its incredible natural resources and over 140 million consumers, Russia is fast becoming a hot spot for new business growth. According to a recent survey of U.S. companies by the American Chamber of Commerce in Russia, 50% of companies surveyed reported sales increases of 200% from 2001-2005.

Most major corporations, especially those from Europe, have found that Russia’s market potential demands they have a presence in the country. The U.S. Department of Commerce offers the following market entry tips:

• Perform detailed market research to identify specific sector opportunities.


• Establish a local presence or select a local partner for effective marketing and sales distribution in Russia. Due diligence is a must.


• Maintain a long-term timeframe for plan implementation and achieving positive results.


• Use the experience of other, successful U.S. companies in the market. The local American Chamber of Commerce has over 800 members and is a great resource.


• Be prepared to offer financing to Russian buyers. Both EXIM and OPIC have programs to address these needs.

To find out more about the Russia, access this issue’s useful links.

SOURCES:
U.S. Commercial Service
U.S. Department of Commerce
U.S. Embassy in Russia