More than 18 global brands have entered the Russian market since the beginning of 2019. We’ll see how the foreign companies will promote themselves. Tomorrow surely holds something interesting for us. In fact, among the new brands that appeared in Russia are the famous Rains, A Bathing Ape, DKNY Sport and Hackett. At the beginning of the year, the legendary Opel car from the French car giant PSA Group officially returned to Russia.
Announcement of the return of the German shoe retailer S.Oliver to the Russian market became yet another dramatic event of the industry. The company intends to set up about 40 stores in the Russian Federation by 2022. S.Oliver closed all of its retail points of sale in Russia in 2005. However, the company intends to set up 15 corners in Yekaterinburg, Perm, Voronezh and Nizhnevartovsk as early as this year. The first fully-fledged brand store will be launched in Voronezh in 2021.
In the current marketing year, the watch brand Richard Mille, jewellery store Giovanni Raspini, and a KFC-controlled restaurant chain in fast-casual Sanders Grill format were also spotted on the Russian market.
However, in general, this year may not be considered the most successful in terms of investments. Over the last few years, the global companies expanded in Russia slowly: 55 brands opened stores in 2016, 27 in 2017, and 23 in 2018. The reasons are the unfavorable investment climate and sanctions.
2020 may reverse this trend. Part of this is due to the positive trends in the country's economy and the intentions of the government to improve the conditions for foreign investors.
By the projections of experts, the volume of foreign investment into the Russian Federation will grow by 50%. The positive outlook is caused by the government’s announcement to increase the country's investment attractiveness. In particular, hopes are riding on the implementation of projects to improve the business climate: control and supervision reform, including the “regulatory guillotine” and adoption of a protection of investment act. In particular, the record-breaking commissioning of new retail space in the country over the past 3 years may be an attractive factor for retailers.
Our PR agency is always open for cooperation with new and returning to Russia foreign companies. If we've got to promote you, we'll do it with a flourish!