EY - Russia: a pulse on the consumer products market

Russia: a pulse on the consumer products market

2016

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Key questions for management

  1. How will companies maintain profit margins?
  2. How can companies respond to the needs of consumers with the portfolio they have?
  3. How are consumer product companies responding to digital disruption?
  4. How can consumer product companies retain their market share?

EY - Key economic indicators

How will the new realities influence business?

Key trends

Most executives underline that 1H2016 has exceeded expectations: companies are growing in ruble terms, and some even expect double-digit growth.

EY - Key trends

Consumer product companies continue investing in local production to reduce costs and hedge against currency risks.


EY - Key trends

Consumer product companies are thinking of exporting to the CIS and beyond.

Most executives point to the resilience of Russian consumers' demand though consumption has declined in some segments. In addition, consumers are very price-conscious today and careful about spending. They continue to seek value for money and have started looking for alternatives.


EY - Key trends

Digital disruption has empowered consumers. To win over today's consumers, companies need to understand personal preferences, shopping behaviors and purchase decision paths. Companies need to leverage digital technology, data and analytics to gather these critical insights and win in the market.


EY - Key trends

Growing e-commerce creates a competitive advantage, but executives lack the capabilities required to manage e-commerce. Going digital means re-thinking current business models and establishing new logistic chains.

Supply chains remain a key issue; they should be cost-sustainable, reliable and contribute to a company’s competitive advantage.


Given the current market volatility, the biggest challenge is to find a balance between short- and long-term strategies and tactics. Companies have already made a number of changes to adapt to the crisis: staff cuts, portfolio optimization, cost reduction, price increases, etc.


Pricing remains a key challenge.

Brand value is still very important. It should be convincing, as consumers trust brands they know. Companies continue to invest in brands, and large sums are spent on promotions.

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