2009-05-20
It all actually began in 1997 when I was employed at the EF and on a project in the U.S. when someone asked if I could go to Moscow and to start the new office.
I am a curious person, I chose to do it. I was there for one year and then came into contact with the real estate market and continued with that. It was a market that changed significantly in Moscow after the millennium shift.
Then I ended up in London and Amsterdam for six years, but felt that Moscow attracted me - especially since I felt that I wanted to realize my own dream to achieve something and the period from 2002 onwards has created one million square meters of new offices per year .... It was then easy to realize that these surfaces should be decorated and be "softer" - in my case with plants. That is why I went back to Moscow in 2003.
Swedish media has a distorted image of that Russia is difficult, bad and corrupt and that people are still queuing to buy the minimum required. Either they show or write about the poor or the extremely rich Oligarchy industries, which is really strange because Russia has a huge middle class, which very much reminds me of the Swedish with the difference that the Russian has a greater need for different products and services.
This middle class is of significant size compared with Swedish standards. It is that target group that should be very interesting for Swedish companies!
Swedish companies have historically chosen to focus on agents, I would try to build up my own business even if it means more time and effort - it will ultimately be easier to control the brand and easier to make money.
My own observation is that the Swedish furniture industry and security products (where the demand is great all over the world not only in Russia) has a great potential here in Russia, and many types of service companies. But even for those who manufacture products such as light metal to transport goods - that product we have not found here however.
Today, many companies choose to establish their company in China. I think you should think twice if you're going to establish production operations in China because it is widely known that China often copy successful products. That problem does not exist in Russia for several reasons.
A major problem in Russia is to recruit good sellers! Good sellers are hard to find in Russia, at least in the age group of 30 and older. It seems almost like that gene that has been lacking among Russians. It is important to find young people who do not have these characteristics.
I think the Russian economy will survive well due to the fact that the need for products and services among businesses and individuals is so large. I consider the economic downturn we now see is only a notch in the curve. However, there are concerns: Some are global in nature as of increased unemployment, others more local due to the fact that the cost of imported products is increasing because of the rubles´ fall.
Finally, I would like to advice all Swedes looking to establish operations in Russia to say that Russians in general are quality conscious and are not satisfied with secondary or used products. There are probably many foreigners who have experienced this.