Low entry threshold - for players with great patience
11.11.2015 6010

Low entry threshold - for players with great patience

The depreciation of the national currency against the dollar and the euro, the fall in labor costs, the flexibility of rental rates and the natural selection of the struggle for survival in the crisis open up great opportunities for foreign players. The threshold for entering the Russian market is almost equal to the smooth surface of the floor tiles of the shopping center.

Of course, European companies have a much better chance of seizing the opportunity, but not all of them either. As Daria Yadernaya rightly notes, “opening any business, whether in a crisis or in a booming market, means the first 12-18 months of work at a loss, since large initial investments in goods, shops, repairs and marketing seriously outweigh sales, even if customers and willingly come to shop. In this situation, there is no significant difference between starting a business in crisis or at the end of it. ”

We dare to assume that this is precisely why we are not now observing the massive entry of new foreign brands into the Russian market. Such phenomena are now perceived by local players as the basis for returning faith in the prospects of the market and hopes for an end to the crisis, rather than as new reasons for panic.

Optimists predict enlightenment on the horizon in a year and a half and pessimists in only five years. So newcomers, even the most affluent, will have to be patient. But to reassure themselves, according to Daria Nuclear, they will be able to think that "investing in recognition, mass coverage and brand formation - all this today will cost much more affordable than during the period of market growth." All who come to it now and stand firm will secure a basis for future growth and long-term advantages at a new stage in the country's development.

The depreciation of the national currency against the dollar and the euro, the fall in labor costs, the flexibility of rental rates and the natural selection of the struggle for survival in a crisis open up great opportunities for ...
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