Diversity is the language of commerce, and an increasing number of the world’s consumers are now located outside the United States. Marketing to a global customer base may prove challenging, but definitely rewarding. As a global marketing agency specializing in translation and other multilingual needs, E-ging wants to make it a little easier for you, and shine a spotlight on international markets. With the 2014 Winter Olympics now underway in Sochi, we figured we’d put a spotlight on Russia.

Five Reasons Why You Should Focus Your Global Marketing Efforts in Russia

Russia is a member of the BRICS nations and has one of the ten largest economies in the world. The economy is projected to accelerate to a 3.1% growth in 2014.

The population of Russia stands at 141.9 million people. This is a large pool of potential new consumers, as their middle class is growing. Their workforce is also very skilled and educated with a sophisticated consumer base.

Moscow is Eastern Europe’s most sought after destination for international luxury retail brands. According to this survey, Russia’s capital has become as popular as London, Paris, or Milan to set up shop.

Russia remains in the international spotlight as they were awarded two major international sporting events – the 2014 Winter Olympics that are happening right now in Sochi, as well as the 2018 FIFA World Cup.

Russia ranks 18th on Bloomberg’s list of “30 Most Innovative Countries” in the world. The Global Innovation Quotient uses seven determining factors: R&D intensity, productivity, high-tech density, researcher concentration, manufacturing capability, tertiary efficiency, and patent activity.

Challenges (And Solutions) For Global Marketing in Russia

Challenge #1 – Linguistic Challenges

English is not widely-spoken in Russia. Russian uses a Cyrillic alphabet, which is different than the Latin alphabet and has 33 letters instead of 26. The differences were highlighted in the Winter Olympics’ Opening Ceremonies where the nations were announced in alphabetical order – Russian alphabetical order. This definitely confused a lot of people! Because Russian is definitely far and away the official language, tailoring your marketing efforts accordingly will be a big part of your overall success. Make sure in matters of business that all printed material is available in Russian and English. Of course, E-ging can help with any Russian translationneeds!

Challenge #2 – Russia’s size and diversity

Russia is a country that spans 16 time zones. Most of the population (73%) is urban and this portion of the population makes up 85% of the purchasing power, according to this profile on Russia’s middle class from EY. While Russia’s middle class is the most prosperous of any BRICS country, it is important to note that there is great income inequality in rural areas. As a global brand, it is a good idea to focus on Russia’s growing middle class. In order to understand Russia’s diverse consumers, you must first understand Russia’s history from pre-Cold War days through the present.  Russia is also a collectivist culture. Understanding what this means will go a long way when looking to establish a business presence in Russia.

Challenge #3 – eCommerce

Ecommerce has never really been a big thing in Russia – but, according to Morgan Stanley, it will grow from 2 to 5 percent over the next year! While this may seem small, this growth will account for about $36 billion! One of the main obstacles in doing ecommerce business in Russia has been the import restrictions imposed in December 2013. Also, a lot of Russians do not use credit cards, and prefer alternate payments such as COD or eWallet solutions such as Yandex money, according to this Worldpay report. Shipping to Russia also proposes a challenge, due to these aforementioned import regulations. Be away of these payment and shipping obstacles when looking at Russia. However, it can be well worth it if projected growth continues the way it has been forecasted. A lot of Russia’s are online, about 61.4 million, according to Internet World Stats. Brands such as ASOS and eBay are already in Russia, and as mentioned before, Russia has become a big destination for luxury retail brands.

Challenge #4 – SEO and Social Media

First and foremost, the best way to get your site noticed by Russian consumers is to localizeyour website for a Russian audience. As mentioned in Challenge #1, most Russians speak Russian, and Russian only. Common Sense Advisory has found, in their survey “Can’t Read Won’t Buy,” that prospective customers are more likely to understand your message and buy your products or services when they are provided in their native language in a way that they would understand. In addition to localizing your website, when looking to optimize your website, it is important to note that Google is not the top search engine in Russia – it’s Yandex. You can use Yandex’s keyword tool to get started! Also, the top social network in Russia is VK.com. Incorporating this site into your social strategy to interact with Russian consumers is something that a lot of brands are doing for the Olympics. All of these things will help establish trust with Russian consumers and demonstrate your brand’s commitment to doing business with them.

Challenge #5 – A Lesson in Cultural Considerations

Learn a lesson from Campbell’s Soup. Their foray into Russia in 2011 was anything but “Mmm Mmm Good.” Their reasoning for entering Russia was as good one – there is a greater soup-eating population in Russia than in the United States. They even spent time researching the soup-making and eating habits, using anthropologists to research the culture for a two-year period.  However, all of this research went by the wayside because their product was not marketable in Russia. Homemade soup is a huge part of Russian culture, and Campbell’s was up against it when trying to market their ready-made soup products. They thought that a busier, growing middle class in large cities like Moscow might buy into their idea of starter soups which would save labor time, but they were wrong! Before entering into a market like Russia, assess the culture and decide if your brand will translate into a new culture. E-ging offers cultural consulting solutions on marketing acceptance for brands looking to expand overseas.