The country joined the World Trade Organization in August, and its economy is among the top 10 by size globally. But how is the AV market faring in Russia? We asked some key players for their views
STATE OF THE MARKET
Do you think general levels of confidence in the Russian installation sector are higher or lower than six months ago?
4.0%
Same/no answer – 58% Higher – 34% Lower – 8%
‘Though worries about the global economy do exist in Russia, the Russian
economy is in good shape. For digital signage, the penetration is quite low compared to Europe, so I believe in the next few years Russia will grow faster than Europe in
general. The upcoming [Winter] Olympic Games and [Russian] Soccer Cup will add an additional push to the activities in this area. Recent changes in the state regulations (like restrictions for outdoor
advertising, etc) will result in growing interest in digital indoor solutions.’
‘The market in Russia is imperfect. Moreover, the top management of IT companies created a system of business
processes that has led to a misallocation of financial flows in this area. In the end, this results in an even greater stratification of society on economic grounds. The whole IT
market in Russia is corrupt and in most cases only a means of money laundering.’
WHAT ADVICE WOULD YOU GIVE TO A MANUFACTURER LOOKING TO ENTER THE RUSSIAN AV INSTALLATION MARKET?
‘The potential capacity of the Russian and CIS market is huge – though it's necessary to take into account specific Russian features. Business in Russia is not open and
transparent, it has its own unwritten rules and without understanding those rules it's quite difficult, if not impossible, to conduct business here.’
‘Do not forget about complete localisation: drivers, firmware, trainings, manuals etc. Also we need local repair centres.’
‘I would advise them to develop products more adapted to the Russian market.’
‘Pay attention to quality and service. Choose the right person for the account manager for Russia (or separate regions of Russia).’
… AND TO AN INTEGRATOR LOOKING TO ENTER THE MARKET?
‘In most cases, local integrators outperform foreign companies. So if a European integrator is looking to enter the Russian market they should either become local (that is to create a local entity) or should partner with a Russian integrator.’
‘The majority of the clients are not willing to pay for integrators' work.’
‘Pay attention to the quality of your solutions.’ November 2012 41