A list of 10 things that marketers should keep in mind when they think about Russia; put together by Konstantin Pinaev, Head of Co-Creation at Thinktank International, London based qualitative research consultancy.

1. 10 THINGS MARKETERS NEED
TO KNOW ABOUT RUSSIA
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2. #1 Russians are still in a brand new world.
#1 Russians are still in a brand new world.
Brands in the way we understand them in the West did not exist in Russia
Brands in the way we understand them in the West did not exist in Russia
until the early 1990s. A tranche of consumers still remember the days when
until the early 1990s. A tranche of consumers still remember the days when
there were no ads or brands.
there were no ads or brands.
That means that the picture has yet to settle; the brand universe is far more
That means that the picture has yet to settle; the brand universe is far more
dynamic, heritage is often slender and reputations are easily lost and won.
dynamic, heritage is often slender and reputations are easily lost and won.
What’s more, the consumer is more fickle and harder to hold on to.
What’s more, the consumer is more fickle and harder to hold on to.
#2 Moscow is another country.
#2 Moscow is another country.
It’s fair to say that London is not the UK; New York is not the US and Paris
It’s fair to say that London is not the UK; New York is not the US and Paris
is not France. It would be even fairer to say that Moscow is not Russia.
is not France. It would be even fairer to say that Moscow is not Russia.
Here the differences really are huge: income levels are multiple times
Here the differences really are huge: income levels are multiple times
higher and habits and media consumption are nothing like the rest of the
higher and habits and media consumption are nothing like the rest of the
country.
country.
#3 Don’t underestimate local competitors.
#3 Don’t underestimate local competitors.
You’ll also be surprised by just how strong local champions can be.
You’ll also be surprised by just how strong local champions can be.
What’s the most popular search engine? It’s Yandex (Google is way
What’s the most popular search engine? It’s Yandex (Google is way
behind).
behind).
What is the most popular social network? It’s ‘VKontakte’ (‘in contact’).
What is the most popular social network? It’s ‘VKontakte’ (‘in contact’).
Facebook is not even the second –– it is way behind ‘Odnoklassniki’
Facebook is not even the second it is way behind ‘Odnoklassniki’
(‘Classmates’).
(‘Classmates’).

3. #4 Russians consume conspicuously.
#4 Russians consume conspicuously.
As in many developing markets, attitudes to consumerism are less
As in many developing markets, attitudes to consumerism are less
conflicted than those in the West. It is important to remember that Russians
conflicted than those in the West. It is important to remember that Russians
did not have the pleasures of consumerist societies for over 70 years, so
did not have the pleasures of consumerist societies for over 70 years, so
aren’t apologetic or self-deprecating about material success and
aren’t apologetic or self-deprecating about material success and
aspirations: ifif you've got it, flaunt it! So should luxury brands try to be more
aspirations: you've got it, flaunt it! So should luxury brands try to be more
understated? Of course not!
understated? Of course not!
#5 Young lifestages are very different.
#5 Young lifestages are very different.
In Russia, fitting consumers into life stages can be trickier. ‘Gap years’ do
In Russia, fitting consumers into life stages can be trickier. ‘Gap years’ do
not exist and most students live with their parents when they go to
not exist and most students live with their parents when they go to
university. People tend to move in together, get married and have kids
university. People tend to move in together, get married and have kids
much earlier than in the West. Meanwhile, in aa booming economy, careers
much earlier than in the West. Meanwhile, in booming economy, careers
can progress very rapidly, meaning social standing can be hard to pin
can progress very rapidly, meaning social standing can be hard to pin
down. So aa 25 year old can be a CFO - and be just as likely to be single as
down. So 25 year old can be a CFO - and be just as likely to be single as
to have three kids.
to have three kids.
#6 Young Russians rarely watch TV.
#6 Young Russians rarely watch TV.
IfIf you think it is tricky to target youth in the UK – it’s even harder in Russia.
you think it is tricky to target youth in the UK – it’s even harder in Russia.
Local terrestrial schedules there are heavily dominated by government
Local terrestrial schedules there are heavily dominated by government
propaganda, TV remains analogue and is widely pitched at an older,
propaganda, TV remains analogue and is widely pitched at an older,
mainstream audience. This means that to not have a TV is now a hip
mainstream audience. This means that to not have a TV is now a hip
lifestyle choice, and young Russians (especially the affluent and educated
lifestyle choice, and young Russians (especially the affluent and educated
urban audience) tend to say goodbye to their TV sets willingly. Besides,
urban audience) tend to say goodbye to their TV sets willingly. Besides,
with piracy being far more prevalent and monetized than itit is in the West,
with piracy being far more prevalent and monetized than is in the West,
the most popular TV shows and films are easily accessed online.
the most popular TV shows and films are easily accessed online.

4. #7 Fair trade? Never even heard of it!
#7 Fair trade? Never even heard of it!
Russia is also unusual in having had an imperial, but no obvious colonial
Russia is also unusual in having had an imperial, but no obvious colonial
past. So the whole concept of Fair Trade and concerns or ‘liberal guilt’
past. So the whole concept of Fair Trade and concerns or ‘liberal guilt’
about conditions in the developing world are often quite muted. This means
about conditions in the developing world are often quite muted. This means
that ethical or environmental claims tend to be missed or even
that ethical or environmental claims tend to be missed or even
misunderstood by many consumers.
misunderstood by many consumers.
#8 Russians buy in different ways.
#8 Russians buy in different ways.
ItIt would be easy to assume that living in a G8 country with a fairly high GDP
would be easy to assume that living in a G8 country with a fairly high GDP
per capita income would mean that people had bank accounts and be used
per capita income would mean that people had bank accounts and be used
to online payments, but... as always Russia has its own way. The financially
to online payments, but... as always Russia has its own way. The financially
unstable 1990s and a number of bank collapses long undermined people's
unstable 1990s and a number of bank collapses long undermined people's
trust in financial institutions. Even in 2012 Russia remains a cash or digital
trust in financial institutions. Even in 2012 Russia remains a cash or digital
cash economy on a day-to-day basis.
cash economy on a day-to-day basis.
People can pay cash for anything - - including property and luxury cars.
People can pay cash for anything including property and luxury cars.
Online transactions are still more of an exception rather than a rule. Online
Online transactions are still more of an exception rather than a rule. Online
shops will deliver products by courier, who collect the cash from customers.
shops will deliver products by courier, who collect the cash from customers.
#9 Money on the other hand is more mobile.
#9 Money on the other hand is more mobile.
The underdeveloped banking system also means that mobile payments (by
The underdeveloped banking system also means that mobile payments (by
texting and using stored value cards) are more common and more
texting and using stored value cards) are more common and more
sophisticated than they are in many Western markets.
sophisticated than they are in many Western markets.
Strong WiMax networks and free WiFi in most places also mean that the
Strong WiMax networks and free WiFi in most places also mean that the
mobile Internet and mobile marketing are more advanced.
mobile Internet and mobile marketing are more advanced.

5. #10 Not the easiest consumer to study.
#10 Not the easiest consumer to study.
Russians - - culturally - were never asked for their opinion. Russia is still not
Russians culturally - were never asked for their opinion. Russia is still not
a market where consumers will easily ‘play the game’ and speak effortlessly
a market where consumers will easily ‘play the game’ and speak effortlessly
about their feelings about products or brands, setting aside the rational
about their feelings about products or brands, setting aside the rational
answers that can sometimes frustrate research buyers.
answers that can sometimes frustrate research buyers.
For this reason, marketers need to be mindful of how they approach
For this reason, marketers need to be mindful of how they approach
research, whom they target and what the best format for exploring a brand
research, whom they target and what the best format for exploring a brand
or campaign idea is. That’s where we come in.
or campaign idea is. That’s where we come in.
A few words about us.
A few words about us.
Thinktank is an international qualitative research
Thinktank is an international qualitative research
consultancy based in London. We pride ourselves on
consultancy based in London. We pride ourselves on
marketing thinking inspired by real people and have
marketing thinking inspired by real people and have
extensive knowledge of emerging markets (among
extensive knowledge of emerging markets (among
them, Russia!).
them, Russia!).
If you’d like to find out more about how we help our
If you’d like to find out more about how we help our
clients in international markets, contact
clients in international markets, contact
konstantin@thinktank.uk.com or find us at:
konstantin@thinktank.uk.com or find us at:
http://www.thinktank.uk.com/
http://www.thinktank.uk.com/
http://www.thinktank-international.blogspot.co.uk/
http://www.thinktank-international.blogspot.co.uk/
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