retailing in russia

By

Mayank K. Dave

Mayank.dave@aegisglobalacademy.com

Roll No: 1131

Aegis Global Academy, coimbatore

Date: 14 th July, 2011

Retailing @ Russia

1. Country detail

SEVEN PRIMARY CONSUMPTION STYLESInnovatorsSpontaneousSelf RealizedTraditionalThrifty

2. Culture of people & Trends in shopping

ATTITUDE TOWARDS RUSSIAN BRANDSATTITUDE TOWARDS INTERNATIONAL BRANDSPERCEPTION OF ADVERTISING IN RUSSIACHANNELS - FAST MOVING CONSUMER GOODS AND

RETAILREGIONS VERSUS CENTERS

Culture contd …

3. Entire country’s purchasing power, GDP, spending habit

Marketing and advertising in Russia are more important than elsewhere. Analysis of evidence gleaned over years shows that the quality of marketing and advertising is often a make-or-break thing for Russian companies.

Composition of average household expenditure

4. Major retails in the country

X5 Retail Group is the largest retail company in Russia in terms of sales.

The company uses a multi-format strategy to develop three formats simultaneously: soft discounters, supermarkets and hypermarkets.

Key strategic objective is to become the main consolidator of the Russian food retail market and the absolute leader of Russian retail, able to compete with leading international chains as an equal.

5. Two of retailers activities, strategy

Auchan offers a very large assortment of quality goods at everyday low prices, which are the basis for its success in Russia

Auchan Company controls 41 trading units in Russia.

Auchan hypermarkets operate in 11 regional areas

Auchan is accelerating its development :   Innovative solutions Opening of hypermarkets in new cities and new countries New scopes of activity such as electronic commerce Development of private label products

Auchan Group

growth has been experienced in every segment from discount to luxury

Consumers’ increasing maturity and sophistication has stimulated the luxury sector

Challenges include attaining operational effectiveness and cost reduction, shortage of good retail space, warehousing, logistics and supply chain management (and availability of specialists)

Organised retail is booming due to improving living standards and Russians’ desire for more convenient stores with better prices and service.

6.Future trends projected in Russia

Both country are going towards Organized Retailing.

People lifestyle improved and they move towards more Luxury items.

In Russia already FDI is allowed and India it just to start

People’s spending power is increased in both country.

7. Similarities & differences between India & Russia

What is the learning from Russian Retailing?What is the Major Difference between

Russian & Indian retailing?

9. Question ????

http://region-media.ru/behavior.phphttp://www.tradingeconomics.com/russia/gdp-

growthhttp://www.tradingeconomics.com/russia/gdp-

per-capita-ppphttp://www.russiaretail.com/http://www.pwc.com/en_GX/gx/retail-

consumer/pdf/russia.pdf

Source