It's critical to find the right balance between premium products and affordable goods.
Critical success factors for consumer products companies in Russia are split between the types of goods sold and business management. Companies must find a balance between producing premium products and affordable goods. Behind the scene, companies must manage talent effectively and budget well.
Balance product offerings
The post-financial crisis consumer is more sophisticated and focused on quality. These consumers buy a mix of premium and affordable products, and companies must adjust their businesses to match. Customers don't automatically see Western brands as the best anymore.
It's a challenge for consumer product companies to produce a balanced offering of premium and affordable goods when companies are traditionally focused on one end of the spectrum. However, the reward for companies able to master the balancing act is maximizing market opportunity.
To help balance product offerings and react to future changes, companies must:
- Improve real-time consumer insight
- Develop the right product at the right price
Managing talent and budgeting
The challenges facing Russian businesses aren't improving as fast as similar businesses in the Asian market. These challenges include:
- High employee turnover
- Rising wages
- Bleak outlook on work attitudes and qualification levels
To meet these challenges, consumer product companies can focus on:
- Nurturing talent across the employee spectrum
- Providing strong leadership with flexible work practices
- Developing a modern workplace
Finally, it's important to remember that the cost of doing business in Russia remains high. Yet, there are cost saving opportunities in areas such as:
- Working capital (both in inventory and collectables)
<< Previous | Next >>