Russia is 5th country with largest online population

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Russia digital by Andrei Anischenko from Hungry Boys

Top Moscow's Russian Chocolate Shops

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Chocolatier

5 Schyolkovskoe Shosse, (926) 616 7961, m. Cherkizovskaya, open daily 10 am-8 pm, chocolatier.ru

Only three years old, Chocolatier has earned a reputation as one of Moscow’s best artisanal chocolate makers. Its shop sells handmade chocolate, as well as molds, thermometers, mixers and other equipment, and also hosts master classes.

Confael

12 Nikitsky Bulvar, bldg. 3, (495) 690 5617, m. Arbatskaya, open weekdays 10 am-10 pm, Sat. and Sun. 10 am-12 midnight, confael.ru

Confael produces a wide array of high-end truffl es and chocolates, including chocolate sculptures made to order. Chocoholics can sample desserts including chocolate fondue with vanilla souffl e at the boutique’s adjoining cafe.

Confectionary

22 Ul. Pyatnitskaya, (495) 951 3764, m. Tretyakovskaya, open weekdays 9 am-8 pm, Sat. 10 am-6 pm, closed Sun.

This small, old-fashioned shop weighs out bags of all the most popular mass-produced candy from Krasny Oktyabr and other factories, such as Romashki, Belochka and Maska.

Korkunov

13/16 Bolshaya Lubyanka, bldg. 1, (495) 625 6411, open daily 10 am-8 pm, korkunov.ru

Founded in 1999 by businessman Andrei Korkunov, the Korkunov company was purchased by Wrigley in 2007. Though Korkunov’s massproduced bars can be found all over Russia, it sells handmade chocolates exclusively at its Moscow boutique.

Rot Front

13/15 Novokuznetsky Per., (495) 959 2951, m. Novokuznetskaya, open daily 8 am-8 pm, Sun. 9 am-5 pm

Russia’s oldest chocolate factory, famous for popular candies such as Krasnaya Shapochka, maintains a shop near Paveletskaya where you’ll fi nd all its signature caramels, chocolates, waffl e cakes and halvah.

Source: http://themoscownews.com/arts/20120326/189563834.html
Image Source: http://www.chocolatecakeblog.com/chocolate-cake-2/chocolate-russian-doll-cakes

History recreation by Parfenov

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I like Leonid Parfenov's Russian historical project - Kakie nashi godi. I adore his style and creativity. He is showing the Russian history - good and bad, showing how Russian people adapt, what problems they were facing. 

His recent historical project - Kakie nashi godi is very popular now, each seria dedicated to a year or decade of a Soviet/Russian history.

Leonid Gennadievich Parfenov 

(Russian: Леонид Геннадьевич Парфёнов) is a Russian news anchor, journalist and an author of some popular TV shows. From December 3, 2004 until December 20, 2007 he was an Editor-in-Chief of the Russian edition of Newsweek. (Source). 

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The other Parfenov's historical project was a collection of TV series called Namedni.

"Namedni 1961-2003: Our Era"/"Наме́дни 1961—2003: Наша Эра" Documentary television series on the history of the USSR and Russia in the second half of the XX century, the NTV channel. Author and presenter - Leonid Parfenov. Each episode is dedicated to the events, people and events in the Soviet Union (1992 - Russia) in 1961-2003. The series were later released on VHSi DVD. 

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If you speak Russian, here you can watch all the series of Namedni by Parfenov.

It is a Manly drink!

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This product is specifically marketed for men which is quite new for Russian consumer.

'Imunele for Men' comes in a big bottle with a double dose of lactobactiries, vitamins and minerals. 

It comes in two flavours - coffee and spiced apple.

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                                   Imunele FOR MEN                                 

Marussia Virgin Racing...rocks

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Here is an example or the Russian company teaming up with a Western marketing master - Virgin to sell cars that appeal to both Russian and Western consumers.  
'For decades the Lada has been the symbol of Russian cars: cheap, economical and very unfashionable. But as Russia's first luxury sports car, the Marussia hopes to change perceptions of the country's motoring industry. Nikolai Fomenko, 'Marussia motors' CEO, gave the BBC a few insights into the new car' (source). 

Brand 'Marussia motors' (pronunced in English as Maroosya motors | Маруся моторс). 

Marussia will have limited car edition in Russia. There will be three main car categories: Grand Tourer, Sedan and Crossover. All cars have Renault engines. In the car saloon, you will get fast Internet, all entertainment with Tv&Radio, DVD, bluetooth connection, phone, three cameras and so on. The wheel is as in the cars in F1 - that is very comfortable to manage because it has smaller angle of control. There are three monitors in a car that have navigation and projector with a graphic invitation (Source). Cars 'Marussia' have EU certification ISO 9001:2008. 

Marussia Virgin Racing = Marussia + Virgin Racing

Marussia Virgin Racing image source

Russian sports car gears up for F1

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More info here and here.

Russia in brief

Tweet Russia is a vast country with a wealth of natural resources. It is the world's largest exporter of natural gas and second largest exporter of oil, of which it produced about 12 per cent of global supply in 2009. Russia's economy is heavily dependent on these exports Source.

Russian territory divided into 8 federal districts and 9 time zones (previously 11 time zones).

The Russian Federal Districts Map 

Click here to see the Time Zone Map - it is different

Source

More info on federal districts in Russia here.
Some Russian Economic Reports can be found here.

see this video to know more how Russia works - This is Russia (see link)

Online Marketing in Russia

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For online marketers, Russia offers two appealing qualities: It’s one of just five countries in the world where Google isn’t the market leader, and Russia is now the 2nd biggest online market in Europe in terms of users, having passed the UK last year.

Yandex is the market leader in Russia, with a 64% market share, more than double Google’s 22% share, according to Russian statistics service LiveInternet (Dec. 2010). In addition to reaching native Russian speakers, Yandex (Yet Another Indexer has been aggressively expanding globally, now reaching 56 million users from all over the world.

Some other interesting stats: Despite being the second largest online market in Europe, less than half of the Russian population has internet access, suggesting more growth to come:

Russian internet users are comparatively young, though internet penetration in Moscow resembles major western cities:

Although the most popular social media sites in Russia are homegrown (Vkontakte.ru,Odnoklassniki and Mail.ru’s My World Western social media platform usage (namely Facebook and Twitter) almost doubled in 2010.

The total advertising market in Russia was about $7.5 billion in 2010, with about 11% of that going to online ads. The market is expected to grow to about $10 billion by 2012, with online spending increasing to 13% of total spend, according to Russian daily news provider Kommersant.

For more on search advertising options available in Russia, see our detailed Search Marketing Tips For Yandex, Russia’s Top Search Engine. Yandex also offers extensive Webmaster tips for help with getting your site properly indexed. To get started with search ads, visit Yandex Direct, the company’s (English language) self-serve platform.

Source: Chris Sherman, and here

Fashion Marketing

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Last week, I visited 'Practicum: British Fashion-2' an event that was organized by the British Council in partnership with the 'Local fashion' and Center for contemporary culture 'Garage' (see link). 

Very talented designers presented their work and creative approach. The event program is here (see link). Here is a list of the young designers brands that were presented during the fashion event:

Michaela Mazalanova from Slovakia

MAREUNROL'S from Latvia 

D.EFECT from Lithuania 

m*faganel from Slovenia

R/H from Finland

Soulland from Dania

Kristian Steinberg from Estonia

Lisa Shahno from Russia

Nadia Nurieva from Russia

[Пять Пять] from Russia

FortyTwo from Russia

The UK fashion marketing experts  Toby Meadows, Janine Passley, Amelia Gregory, Clare Lopeman, Michael Salac raised some marketing general questions that are relevant for the young up-and-coming designer to go through and they shared their UK business experience with the creative young audience. Their speech was not tailored specifically to the Russian market but to the UK and how things are done in the West for Western customers.

Some observations relevant to the Russian market raised during discussions

MOST RUSSIAN MARKET CHALLENGES

"What are the challenges designers face when entering the Russian fashion market?"

Finding the right fabric can be challenging for a designer in Russia

Moscow is not as developed in terms of international fabric supply as it is in London, where you can buy almost any kind of fabric by visiting shops on a  single street. While some designers use locally produced fabrics, most Russian designers import  good quality materials from abroad in small quantities. Ordering and delivering materials to Russia can be pricy.  For that reason, some Russian designers offer their 'Limited edition collection' for a small or even 'elite' audience.

Location. Location. Location - finding the store to place your collection can be difficult in Russia

In Russia, designers face the retail distribution issue. I would say that in Russia there are three main types of outlets.

First are retail chains such as Zara, Gap and other mostly Western brands, second is a private small Russian boutiques shops that are already selling Russian designer brands to the public.  Some stores are willing to take just small orders for sale. Even though there are lots of shopping centers in Moscow and other Russian cities, I still think that most lower middle class Russians go to the market to shop for clothing. The question is that if you are a starting designer, how will you find place to sell your collection? Will you open a new store? That can be a challenge.

The educational gap can be a big issue for a designer

In Russia, it is quite difficult to find fashion education that is in-tune with the global fashion market and also have affordable fees.

There are a few institutions in Russia to study fashion such as the Moscow State Textile University 'A.N. Kosygin' (see link) and a recent entry the British Higher School of Art & Design (see link).

The confidence issue

There are many talented designers who have creative vision but how many of them make this vision happen? How many are there  who can make it happen by staying in the market for at least three years? Not so many. Apart from other obstacles the designer faces, the psychological barrier is just one of the strongest ones and it concerns self-confidence and having the tolerance to wait sometimes while you are establishing your name as a brand.

NO money for marketing? Free press, advertising and the word of mouth.

How do you advertise your brand in Russia if you have limited financial sources ?

The main trend these days is doing free social media marketing ("SMM"). This doesn't  actually work for every brand that implements it. SMM is not about sales but about buzz and connection and also a conversation between the brand and potential client. SMM is about strategy not 'shouting in the space' about your product. It takes time and a good craft.

Online marketing in Russia compared to the UK is a bit different. There are some issues that are relevant to the Russia - for example, in Russia online stores exist but not as many as you see in the UK. Part of the problem is that there are not many people ready to pay online in Russia. It is an issue of trust and also online banking development across the whole country.

There does not yet exist 'a signature Russian style' that can recognized internationally

At the conference, UK fashion marketing experts asked designers to consider the following questions:

What is Russian fashion?

What is the Russian identity? Is it a folklore?

What is unique about the Russian fashion identity ? How is it different from the rest of the Fashion world?

Will your "Russian brand" will be recognized abroad because it is Russian?

How would you position 'Russian brand abroad' ? Will you position it to the Russian people living abroad or to the locals?

One question was about the future of the ethical brand development in Russia. One designer half- jokingly said that it won't work in Russia and we are not ready for it. Let's define what an ethical brand is.

TERM: Ethical brand is associated with minimal harm to or exploitation of humans, animals and/or the natural environment. From the expert fashion presenters I get that by talking about 'ethical brands' they were talking about  'green and organic brands'.

(I think that, the word 'ethical' can  be perceived as confusing word for Russian business environment, instead of using 'green').

Is there a future for the 'green' brands in Russia?

I personally believe that green brands should exist in Russia. Many think that Russians are  'living in the past' and are not concerned with being green. On the other hand, from the global/planet point of view, Russia is one of the biggest countries on planet and with  awareness and education  the Russian consumer will want to be green too. Of course it will take time to do. I think that you might be surprised by the positive outcome  - 'if you don't create the change first - than change will create you' - meaning that becoming a pioneer in the green brand establishment in Russia - will almost definitely have a positive impact on your customers.

I just came across this Russian brand "Low Fat" (see link) that positions itself as 'green'. 'Low Fat clothing uses eco-friendly materials like organic cotton, hemp, and fabric from recycled plastic. They also focus on natural dyes such as powdered natural minerals, juice, fruit, and pollen. They stick to recycled materials for their packaging and marketing, as well' (source). The Body Shop Russia (see link) is doing it. It's only a matter of time.

Source: PRACTICUM: BRITISH FASHION-2, image source, Personal observations


Additional readings - The Russian Fashion Retail Market.pdf (see link)

This Is Russia

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This is a very good work, this video ad explains in short what to expect from working with Russians.  

This is Russia

Tochka Opory

Russia: A Journey with Jonathan Dimbleby

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In order to understand how to market to Russians, you need to get a cultural understanding of Russia. Russia is very diverse and multicultural. Russia is not Moscow and Moscow is not Russia. Russia is its people and people have different faces in Russia.

This is a very good DVD about Russia that covers many Russian cities and explores Russian lifestyle. It was very interesting to see how Russian cities are that far away from Moscow and St. Petersburg, however, this DVD doesn't cover Southern part of Russia, which is very different from the rest of Russian cities. Overall, this DVD can be a short introduction to the Russian culture.

"In television's first comprehensive journey through the vast and varied landscapes of Russia, the resourceful Jonathan Dimbleby makes an epic journey from one end to the other, killing cliches and revelling in the unpredictable. Across nine time zones and through all extremes of weather, he seeks out the people of this strange and extraordinary land. From the Arctic Circle where the summer sun never sets to the subzero wastes of Siberia, from white witches to hirsute masseurs, from oil wells to shamans, Dimbleby's journey by boat, train, truck and foot is heart-warming, entertaining and compelling. From outside, Russia is both forbidding and enticing. Inside it becomes an exhilarating adventure," Source, (c) Image source (see link). 

• Release Date: 16/06/2008

There are some episodes from a Journey with Jonathan, have a look

Location @Arctic Circle

Location @Ekaterinburg,  in a Russian pub

Location @Siberia, plays computer games in Academgorodok

Location @Moscow, in a Russian bath/Баня

Click here to see more video episodes 

Plombir & Ice-Cream Nostalgia

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When I am thinking about Russian ice-cream, the first names that comes to mind are Plombir and Eskimo

Plombir as it was during soviet times

Image Source and this

Today the closest one to the original is "Plombir" by Pure line as seen in the first picture below. The other plombirs in the pictures below are sold today.

According to wiki, Plombir (Пломбир) originally came from France and the Russian version of "Plombir" is slightly different from the  French version.

Source: Utkonos, Tan-ayran, Rusholod, Kraistorg, Store checks

Another example of Today Soviet ice cream nostalgia is to use Soviet cartoon characters, such as the cat named Matroskin and the polar bear named Umka.

Source: Store checks 
Cat Matroskin (soviet cartoon hero), watch this video

Umka, polar bear (soviet cartoon hero), watch this video

Here is an example of an Ice-cream ad during Soviet times

Image Source

Another marketing strategy is recreating the feel of  Soviet ice-cream by making a brand name with  the word "Kopeek"

Ice-cream in Soviet times was always priced by the number of kopeeks and  the price was stable.

Nowadays, you can buy brands named as "7 Kopeek", "11 Kopeek", "20 Kopeek", "28 Kopeek" 48 Kopeek".

Source: 7 kop, 11 kop, 20 kop, 28 kop, 48 kop

For Example, a Nestle Ice-cream ad today

The  Brand "48 kopeek" from Nestle, plays on nostalgia from childhood times (message "as in childchood").

In this ad: a happy couple remembers their best childhood days when they enjoyed ice-cream. Since that time there have been a lot of changes but ice-cream "48 kopeek" remains even more tasty than from childhood times. This ad brings up warm memories from the Soviet childhood - Rabbit-boy suit, Snow-flake suit, soviet film (Усатый нянь/Mustached nanny, 1977) and old friendships

I'd love to get any comments you may have