Why if you are not doing business with Russia you should consider starting soon?
Russia is the largest country in the world, with a massive spread, bordering with three continents of the world. Its size and innate geographical edge sets the ground for country to a stable and growing economy. With that being said, the country has been subject to an eventful history, which has hindered the way to a strong economy.
Irrespective of the past, Russia is finally on its way to tap the potential that its markets and unique customer segments has to offer. Following are some of the reasons that make the country optimum for foreign investment in the years to come:
Country’s economy stands tall as various indicators go on to show a growing trend. Instead of comparing the country’s economy with other parts of the world, it’s important to keep country’s history and undesirable circumstances that curbed country’s growth in to account. A fair analysis would be to draw a comparison with what it used to be, and what it is.
Apart from the occasional recessions, Russia has shown massive GDP growth in the past 10-15 years and is on its way to become the market leader in various sectors. If seen critically, its occasional recessions also indicate the country’s ability to bounce back effectively. For instance, recent economic recession in 2015-16 caused a sudden negative GDP due to a downfall in oil prices all over the world. Despite its heavy dependence on oil market, the country recovered well and is heading towards a positive GDP. This goes on to show stability that the Russian economy enjoys today.
Favourable Business Culture:
Russia’s business culture is welcoming to new investors and is largely transparent, supportive and advantageous to them. Russians believe in doing a fair business where both parties can mutually reap the benefits. Personal relationships also play a pivotal role when it comes to sealing good deals. It is worth investing your time creating strong bonds initially, prior to doing any real business.
Instead of the competitive nature prevalent in western markets, Russian markets are generally collaborative. This stems from the fact that extreme climate and geographical conditions have dictated various businesses to adopt a cooperative position, instead of being in a confronting one. This meant a win-win situation for everybody.
Diverse Consumer Market:
Russia offers a pretty diverse and large consumer marketand is thus, suitable to invest in almost any sector. Moreover, there are a thick number of educated consumers who are open to new businesses. This goes on to show that the market is by large, flexible in its attitude and welcoming to new investors. Moreover, large number of educated population shows a great potential for finding locally skilled workforce.
Russia spreads to border with three continents of the world. It shows its potential with respect to the trade and business. The favourability to do business is further supplemented by a vast and well connected network of roads, rails and airports. Moreover, locally available natural resources like timber, coal and minerals make it feasible for any industry to operate seamlessly.
Foreign investors can benefit immensely from the aforementioned opportunities that Russia has to offer. It is important to understand and strategise keeping country’s unique business culture, consumers and distinct business dynamics into account. So if you are not yet doing business with Russia, consider starting soon or relocating at least some part of your business in Russia, your company turnover will tell you the rest.