Payback period for business in Russia is increasing
01.07.2015 3624

Payback period for business in Russia is increasing

European companies doing business in the Russian Federation expect an increase in the payback period of the business and predict a further decline in investment. The complex index "AEB-GfK", reflecting the sentiments and expectations of European entrepreneurs regarding business in Russia, decreased by 2014 points compared to 9 and amounted to 106 points out of 200 possible. In 2014, this indicator was 115, in 2013 - 144 points, in 2012 - 159.

55% of top managers of companies who took part in the survey claim that the turnover of their companies has grown over the past year, but in 2014 the turnover growth was noted by 69%, and in 2013 - 78% of participants.

5% of companies say they are directly affected by EU and US sanctions, and 16% partially. Moreover, 70% of all respondents report their negative impact. Russian countermeasures directly affected 2% of companies, partially - 7%. 38% of all companies felt a negative effect from them. The devaluation of the ruble (81% of respondents) had the greatest negative impact on the business of European companies in Russia.

A decrease in the positions of Russia and Russian companies in international ratings negatively affected the state of business in 47% of companies. But the improvement in Russia's performance in the Doing Business ranking turned out to be unnoticed by European companies: 82% said that the improved result of Russia does not affect their affairs.

Among the main obstacles to business development in Europe today, European companies still call regulatory restrictions and the lack of qualified personnel, although the situation is somewhat better than a year earlier. A noticeable deterioration occurred in such an indicator as supply chain reliability. 2015% of respondents (versus 26% in 18 year) indicated its shortage in the 2014 year.

In 2015, 55% of companies believe in business growth in comparison with 72% in 2014. In addition, European entrepreneurs are revising their estimates for the timing of breaking even and return on investment in Russia. Now the share of those who believe that the deadlines for reaching the break-even level will be 1-3 of the year has decreased from 56% in 2014 to 49% in 2015. The share of those who believe that breaking even will take up to 4-5 years has grown to 25% in 2015 from 15% in 2014.

73% of participants in the study rely on strong growth in the Russian economy. Despite a rather significant deterioration in a number of indicators and a decrease in expectations of Russia's economic growth in the short term (1-2 years), in the long term (6-10 years) 73% of the study participants expect a steady growth in the Russian economy.

European companies doing business in the Russian Federation expect an increase in business payback periods and predict a further decrease in volumes ...

Latest News

Lamoda cancels the fee for goods acceptance and increases the shelf life

Online retailer Lamoda, specializing in the sale of Fashion category goods, announces changes in work with partners who work with the marketplace using the FBO (Fulfilment by operator) model, that is, with those who store…
13.06.2024 134

Hey Dude x Lee collaboration released

Crocs Inc-owned moccasin brand Hey Dude has released a collaboration with denim brand Lee. A small capsule collection dedicated to summer and beach holidays, consisting of seven items, including men's, women's and unisex clothing, accessories and…
11.06.2024 260

The collaboration between Ecco and Natasha Ramsay-Levi was presented by Julia and Anna Peresild

Danish footwear brand Ecco continues its collaboration with designer Natasha Ramsay-Levi, former creative director of Chloé. A new limited collection of shoes from a sensational collaboration in Russia was presented by Yulia Peresild and her daughter...
11.06.2024 314

Swiss sportswear and footwear brand ON has chosen Zendaya as its ambassador

27-year-old American actress and singer Zendaya became the ambassador of the sportswear and footwear brand On, founded in Zurich in 2010 by Olivier Bernhard, David Alleman and Caspar Coppetti. Such a partnership is an application of a young...
10.06.2024 375

MICAM switches to a three-day format

Italy's leading international exhibition of footwear and accessories MICAM returns to a three-day format, the next event will be held from September 15 to 17, and not to September 18 as previously announced. The venue is the same - Milan...
10.06.2024 374
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning