Russia has been 'open for business' for over 20 years and the

iron curtain is long gone. But even now it is often seen as a

bit of a mystery – with its own alphabet and opaque political

structure. In this context, it’s easy to turn a blind eye to the differences,

find the most obvious common denominator and wishfully

think that Russia (and especially Moscow) is nevertheless 'a

bit like Europe'.

 Konstantin Pinaev, our Moscow-born Head of Co-creation at

Thinktank, put together a list of 10 things that marketers

should keep in mind when they think about Russia.

Russia has been 'open for business' for over 20 years and the

iron curtain is long gone. But even now it is often seen as a

bit of a mystery – with its own alphabet and opaque political

structure. In this context, it’s easy to turn a blind eye to the differences,

find the most obvious common denominator and wishfully

think that Russia (and especially Moscow) is nevertheless 'a

bit like Europe'.

 Konstantin Pinaev, our Moscow-born Head of Co-creation at

Thinktank, put together a list of 10 things that marketers

should keep in mind when they think about Russia.

10 THINGS MARKETERS NEED TO KNOW ABOUT RUSSIA

#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 until the early 1990s. A tranche of consumers still remember the days when there were no ads or brands.  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. What’s more, the consumer is more fickle and harder to hold on to.

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 there were no ads or brands.  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. 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 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 higher and habits and media consumption are nothing like the rest of the country.

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.  Here the differences really are huge: income levels are multiple times higher and habits and media consumption are nothing like the rest of the 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.

What’s the most popular search engine? It’s Yandex (Google is way behind). What is the most popular social network? It’s ‘VKontakte’ (‘in contact’). Facebook is not even the second – it is way behind ‘Odnoklassniki’ (‘Classmates’).

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 behind). What is the most popular social network? It’s ‘VKontakte’ (‘in contact’). Facebook is not even the second – it is way behind ‘Odnoklassniki’ (‘Classmates’).

#4 Russians consume conspicuously.#4 Russians consume conspicuously.

As in many developing markets, attitudes to consumerism are less 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 aren’t apologetic or self-deprecating about material success and aspirations: if you've got it, flaunt it! So should luxury brands try to be more understated? Of course not!

As in many developing markets, attitudes to consumerism are less 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 aren’t apologetic or self-deprecating about material success and aspirations: if you've got it, flaunt it! So should luxury brands try to be more 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 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 much earlier than in the West. Meanwhile, in a booming economy, careers can progress very rapidly, meaning social standing can be hard to pin down. So a 25 year old can be a CFO - and be just as likely to be single as to have three kids.

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 university. People tend to move in together, get married and have kids much earlier than in the West. Meanwhile, in a booming economy, careers can progress very rapidly, meaning social standing can be hard to pin down. So a 25 year old can be a CFO - and be just as likely to be single as to have three kids.

#6 Young Russians rarely watch TV. #6 Young Russians rarely watch TV.

If 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 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 lifestyle choice, and young Russians (especially the affluent and educated urban audience) tend to say goodbye to their TV sets willingly. Besides, with piracy being far more prevalent and monetized than it is in the West, the most popular TV shows and films are easily accessed online.

If 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 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 lifestyle choice, and young Russians (especially the affluent and educated urban audience) tend to say goodbye to their TV sets willingly. Besides, with piracy being far more prevalent and monetized than it is in the West, the most popular TV shows and films are easily accessed online.

#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 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 that ethical or environmental claims tend to be missed or even misunderstood by many consumers.

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’ about conditions in the developing world are often quite muted. This means that ethical or environmental claims tend to be missed or even misunderstood by many consumers.

#8 Russians buy in different ways.#8 Russians buy in different ways.

It 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 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 trust in financial institutions. Even in 2012 Russia remains a cash or digital cash economy on a day-to-day basis.

People can pay cash for anything - including property and luxury cars. 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.

It 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 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 trust in financial institutions. Even in 2012 Russia remains a cash or digital cash economy on a day-to-day basis.

People can pay cash for anything - including property and luxury cars. 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.

#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 texting and using stored value cards) are more common and more sophisticated than they are in many Western markets.

Strong WiMax networks and free WiFi in most places also mean that the mobile Internet and mobile marketing are more advanced.

The underdeveloped banking system also means that mobile payments (by texting and using stored value cards) are more common and more sophisticated than they are in many Western markets.

Strong WiMax networks and free WiFi in most places also mean that the mobile Internet and mobile marketing are more advanced.

#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 a market where consumers will easily ‘play the game’ and speak effortlessly about their feelings about products or brands, setting aside the rational answers that can sometimes frustrate research buyers.

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 or campaign idea is. That’s where we come in.

Russians - culturally - were never asked for their opinion. Russia is still not a market where consumers will easily ‘play the game’ and speak effortlessly about their feelings about products or brands, setting aside the rational answers that can sometimes frustrate research buyers.

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 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 consultancy based in London. We pride ourselves on marketing thinking inspired by real people and have extensive knowledge of emerging markets (among them, Russia!).

If you’d like to find out more about how we help our clients in international markets, contact konstantin@thinktank.uk.com or find us at:http://www.thinktank.uk.com/http://www.thinktank-international.blogspot.co.uk/https://twitter.com/thinktank_int

Thinktank is an international qualitative research consultancy based in London. We pride ourselves on marketing thinking inspired by real people and have extensive knowledge of emerging markets (among them, Russia!).

If you’d like to find out more about how we help our clients in international markets, contact konstantin@thinktank.uk.com or find us at:http://www.thinktank.uk.com/http://www.thinktank-international.blogspot.co.uk/https://twitter.com/thinktank_int