Entering foreign markets: which companies need it and why. Russian companies operating abroad


For real successful business does not have to be local; truly big ideas can be scaled and developed in any country. The Russian market is only 1.6% of the world market; clients, foreign currency earnings, investors and partners are waiting for business outside the homeland; you just need to have the courage and knowledge to offer them your product. “The Secret of the Company,” together with the program of the Moscow School of Management SKOLKOVO, tells the stories of seven entrepreneurs who managed to invent and make an original product or service, bring it to the international market and achieve success there. You have already heard about some of them, but you are learning about others for the first time.

"Argus-Spectrum". Wireless fire safety systems

In 1995, Sergei Levchuk, together with his fellow students at the St. Petersburg Polytechnic Institute, saw demand in the market for electronic security systems: owners of large real estate complained of constant thefts - unemployed technicians made a living by easily hacking primitive security systems.

Then Levchuk and his colleagues developed a complex security system, which simultaneously combines thermal, infrared and sound sensors. The Ministry of Internal Affairs liked the developments of young specialists; they were offered to modernize fire safety systems. Fire protection systems the old generation died down as soon as the first sensor melted and failed, the Argus-Spectrum team came up with wireless technology, which allows the alarm to continue until the fire destroys the last sensor station.

In 2001, the company thought about entering the West: Argus had almost no competitors there with similar technology. A focus on foreign development would help diversify revenue and earn money not only in rubles. “The international market is an opportunity to be in shape. If the company was able to take off abroad, then the product and the team deserve attention,” says Levchuk. His son Mikhail took up foreign development; he worked for his father from his youth. They decided to exit through the most complex and regulated market - the UK.

Sergey Levchuk

The hardest thing, according to the younger Levchuk, was getting certified. Argus began negotiations with the Devonport naval base, but the British military was skeptical of the proposal, believing that radars and other military equipment would jam the Levchuk devices. Nevertheless, the younger Levchuk managed to convince the British to test the system. The test installation was successful, and the company received new large orders: the London Parliament building, the University of Cambridge, and the Queen's castle in Scotland. Levchuk considers the installation of Argus systems in Big Ben to be his last major success.

Despite the number of projects, the company began to make a profit from orders from the UK only after 7 years. The Levchuks do not give exact figures, but they admit that they lost a lot of money due to slow delivery (for almost four years Argus worked only from Russia) and poor design. The first problem was solved by opening small offices in all local markets, the second - by building our own factory in Italy, where they produce monochrome components that are invisible in the interior.

While the company was adapting to Western markets, costs were offset by orders from Russia: the Vostok station in Antarctica, the Mission Control Center in Vnukovo, the Tretyakov Gallery, the Hermitage and other important buildings in Russia are equipped with Argus systems. Today the company protects about 100,000 points (including apartments), earning, according to SPARK, about 1.5 billion rubles a year. Revenue from foreign markets, according to Levchuk, is comparable to revenue in Russia.

Argus considers Australia, Arab countries and South America to be the most promising markets, but plans to continue development in Europe: according to Mikhail Levchuk, Western competitors are still noticeably inferior to them in experience.

BioFoodLab. Manufacturer of fruit and nut snacks Take a Bite

While studying at the SKOLKOVO business school, Elena Shifrina was able to get an internship at the Massachusetts Institute of Technology in Boston. She was just looking for an idea for own business in area healthy eating. Elena liked the energy bars made from dried fruits that were sold in the university cafeteria. Returning to Russia, Shifrina left her job at TNK-BP and in 2012 opened BioFoodLab, a company producing sugar-free snacks.

Shifrina immediately decided that in the future 15-20% of the total turnover should come from international sales in order to receive revenue in foreign currency and reduce the risks associated with the volatility of the ruble, so the name (Take a Bite) was chosen in English, and for the packaging they drew “international design".

Two years later, the company gained a foothold in Russia, and Shifrina decided to enter the European market. Today she is reluctant to talk about the details of the first attempt, considering that step ill-considered: without local partners in the new market, the company ultimately lost a significant amount. Since then, the entrepreneur has made it a rule to look at a new market only after she has found reliable distributors there.

The second attempt was Kuwait. The wife of the future Kuwaiti partner followed the company’s Instagram account, and when he arrived on a business trip to Russia, she asked her husband to contact BioFoodLab. We agreed on supplies after the first meeting.

Then they stormed China. The recipe had to be adapted a little: the Russian bars seemed too sweet to the Chinese. The launch was successful, but Shifrina realized that she had to conquer Asia differently. According to her, the Japanese market is considered the most demanding in terms of product quality in Asia, and getting there greatly facilitates entry into the markets of neighboring countries.

Elena Shifrina

Now BioFoodLab is actively promoting in Chinese federal networks, so the packaging had to be completely localized. The product for France has also changed: in French “Bite” means an obscene expression, so the product there was renamed Morceau (“Piece”).

Shifrina considers the UK to be her main foreign market: according to her, even US manufacturers are guided by the tastes of the British and the quality of products. This had its difficulties. For example, for a product to be considered a source of vitamin B in the UK, the amount of vitamin in it must be at least 15% of the daily requirement (in Russia 13% is enough). I had to hire a nutrient specialist and change the composition. But thanks to the design, buyers mistook Bite for a local manufacturer.

The most expensive thing in terms of finances was obtaining an international certificate: they spent whole year and 10,000 euros (the certificate must be renewed annually). Otherwise, all the bureaucracy is handled by BioFoodLab’s foreign distributors.

Despite the fact that opening factories in some local markets would be cheaper than paying for logistics, BioFoodLab decided to leave production only in Russia: for Shifrina it is important to develop production and pay taxes here. According to SPARK data for 2016 (there are no more recent data), revenue in the parent market is 150 million rubles, another 10-13%, depending on the season, comes from abroad.

Now the company is represented in 14 countries, including the UAE, Saudi Arabia, Hong Kong, and Canada. In the next two years, Shifrina does not plan to expand the geography of Bite; she will increase her presence in grocery chains and introduce other products. For example, plant-based milk and children's breakfast cereals will soon be imported into Israel.

BTW Barrier. Filters for water purification

In the late 1980s, Baumanka graduate Viktor Saprykin was engaged in supplying studded tapes for the Ministry of Internal Affairs. One day he went to Laos and returned with two thoughts: firstly, he learned that clean water could be very rare, and secondly, he realized that it could be sold. So Saprykin came up with the idea of ​​selling home cleaning filters.

He picked up the shape of the jug from the German manufacturer Brita, but decided to improve the technology. His company, Mettem Technologies, built a laboratory to selectively remove arsenic from water, remove bacteria and adjust pH levels. New company called "Barrier".

By the mid-2000s, when the product was already well known within the country, Barrier decided to expand in order not to slow down the growth rate due to the saturation of the Russian market. Moreover, since the 90s, distributors from the CIS countries and of Eastern Europe who were looking for an opportunity to open their own business. The company relied on them.

There was no need to study the Eastern European market and somehow adapt the product - it was enough to simply translate all the labels on the packaging into English language. The Latin alphabet convinced buyers that they were looking at a quality product.

The next logical step, according to Saprykin, was to enter the markets of East and Southeast Asia, where access to clean water is difficult, and there were almost no competitors who would produce simple filters for everyday life. This is how Vietnam, Thailand, Indonesia and the Philippines appeared on the company’s strategic map. Barrier says that they took a risk by investing in certification: they were embarrassed not only by the costs (several tens of thousands of dollars for each certificate, since water purification standards are different in all countries), but also by bureaucratic delays, including those related to language and cultural barrier.

Viktor Saprykin (center)

Thus, in the Philippines they did not buy black jugs at all, although in Germany they were awarded a design award consumer goods. It turned out that Filipinos really love White color, only they associate it with purity. Partners from the USA, in turn, criticized the classic Barrier packaging with the image of a jug surrounded by white flowers. The company believed that the design was attractive to married women, the main buyers of filters in Russia. In America, focus groups showed that the main buyers of such filters might be health-conscious millennials, but they were not happy with the conservative design. Realizing that studying local markets on its own was too costly, Barrier left it to its foreign partners. They now handle sales and marketing.

At first, the company opened subsidiaries in other countries, but soon abandoned all offices except for the Ukrainian one, one of the first. This allows you to save on business trips; distributors who are engaged in sales in different markets themselves come to the Barrier headquarters in Korolev.

The company considers the loss of the Indian market offensive. The stereotype that India is an “unsanitary country” in need of clean water has not been entirely justified. Ordinary Indians are simply not used to drinking crystal clean water, and those who use filters buy mainly large stationary models - families in India are large. Promoting filter jugs to small, young families required too much investment in marketing. Therefore, Barrier, like its competitor Brita several years earlier, had to leave the Indian market.

Now Barrier is represented in more than 20 countries, but Russia is still the main market: it accounts for 90% of revenue (2.7 billion rubles for 2016). The company plans to expand further, capturing the markets of Thailand, Cambodia and Indonesia. And also increase the distribution network in markets with the greatest potential - the USA, China, Vietnam and Malaysia.

Schulz. Folding bike manufacturer

Alexander Ivanov

Photo: © Dmitry Tsirenshchikov / “Secret of the Firm”

When Alexander Ivanov, a graduate of the University of Aerospace Instrumentation and the owner of a bicycle rental company, had his second child, the family wanted to travel outside the city more often. We needed bicycles that were not too heavy, but reliable, that could be easily folded to be carried in public transport or in the trunk of a car, and that were easy to attach child seats to. On the market suitable models there were few, and they were too expensive for a young family. Then, together with his mechanic friends, Ivanov designed a model of the Goa-3 folding bicycle from Chinese components. Ivanov’s acquaintances wanted the same bicycle, then their acquaintances, then he made several dozen bicycles and opened a small store in St. Petersburg. Gradually the line grew, the brand received a new name - Schulz. Ivanov opened branded stores in Moscow and St. Petersburg. They worked mainly to order, earning about 3.5 million rubles a month.

In 2015, Ivanov realized that he was ready to sell more, but Russian market fell following the fall of the ruble. People stopped spending money on unnecessary purchases like bicycles. Then the Ivanovs decided to go to Europe. International exhibitions became a promotion tool. First of all, the bikes went to the largest of these events - Eurobike in Germany. It was a risk; Ivanov spent 25,000 euros from his personal savings to participate in the exhibition. But the investment paid off; by the end of the year, the exhibition brought Schulz orders for 700 bicycles. Then there were parties for France, Germany, Israel, Chile and other countries.

Ivanov says that he would love to make bicycles from Russian components, but it is too expensive, and the prestige of a Russian brand is not always related to the country in which the product is made, if it is made reliably. Chinese production, by the way, caused Ivanov a lot of trouble. The workers soon began to slack, because the customer was far away and almost never came, and there were a lot of defects in the batches. In total, Ivanov had to change five manufacturers. But there was no need to adapt the product for foreign markets. The only difference is that in the West, thin tires are in great demand: in Europe there are many more bicycle lanes, and in general the roads are smoother.

Working with foreigners has several difficulties. The markup on Schulz's cost in Russia is 50-70%, but European partners are not willing to pay that much. Ivanov generally agrees: in the West there is a really large offer for compact bicycles. This does not prevent Shulz dealers in Europe from multiplying the Russian retail price tag by 1.5-2 times.

The big difficulty was that most foreign dealers require deferred payments from six months to a year. Therefore, Ivanov decided not to cooperate with large wholesalers, and instead works on pre-orders, sending goods to partners directly from factories.

"Doubleby." Coffee chain

Anna Tsfasman

The founder of the Doubleby coffee shop chain, Anna Tsfasman, got into the coffee industry in 2008 when she came to work for the Cofein company. In 2013 she left leadership position at Caffeine due to disagreements with investors. They were not going to spend money on high-quality coffee beans, which categorically did not suit Tsfasman. Then she and her partners decided to open a coffee shop with premium beans – specialty. Specialty is freshly roasted Arabica coffee with a minimum number of defects. Over five years, Tsfasman’s business has grown into a network of more than 80 owned and franchised coffee shops.

In 2015, 11 Doubleby coffee shops operated in Moscow, and Tsfasman started thinking about going abroad to prove that her project was in no way inferior to European ones. At first I decided to open a coffee shop in Germany, but after studying the market, I realized that the tax on the sale of roasted coffee in this country is too high, in the Czech Republic it is much less. In March 2015, a coffee shop with a roasting shop “Doubleby” opened in Prague; Tsfasman invested about 130,000 euros in the launch. The menu was no different from the chain's establishments in Russia - the same coffee and tea. The main problem was marketing; in Prague there were no popular urban lifestyle media familiar to Muscovites that would write about the openings of new coffee shops.

Many companies, having reached a certain level of development, decide to go beyond the national market and conquer the international one. There are several ways: export, organizing the assembly of products abroad, creating a joint venture or acquiring a foreign company. But many rely on franchising development.

And this choice is justified. Developing independently in other countries is problematic both from a financial point of view and from the point of view of a lack of information about the market. If there is an interested partner in a given country, the task becomes much easier. Easier for franchisees to explore local market, he invests his funds in development, and he is interested in the success of the enterprise. Of course, there are a number of difficulties in this development model, but the advantages are nevertheless more significant.

Let's look at specific examples Features of business development abroad through franchising.

Tasty markets - choosing a target

Russian entrepreneurs-franchisors, as a rule, begin conquering the international market from nearby countries post-Soviet space: Kazakhstan, Ukraine, Belarus. It is believed that the characteristics of demand among consumers in these countries are not very different from those in Russia. For example, the furniture company “opening in Turkmenistan, Kazakhstan and Belarus” did not prepare for this in any way. She simply received inquiries from franchisees and sold them the franchise. However, when entering Germany, Poland and Romania, the company is already planning to make changes to the business model.

In its turn, CEO chain of discount bars "" Dmitry Evseev says that, from a technical point of view, there is no difference between entering the CIS and European markets. But from the point of view of the mentality and characteristics of the audience, of course, there are differences. For example, the mentality of the residents of Kazakhstan is strikingly different from the “Russian” one.


It is worth noting that the choice of which country to start development in also depends on the product that the company offers. Thus, for children's goods and services, the markets of the UAE and the USA are a priority; the income level of the population in these countries is high, and people can afford to spend a lot of money on children. Thus, “”, opened as a franchise in Dubai, is very successful, and the franchisor’s team is preparing to launch children’s clubs in Miami and Beijing. By the way, children's development centers are a very popular format for international franchising. In addition to Baby Club, another Russian company “” entered the foreign market. It is opening centers in Cyprus and plans to open in Israel.

But, for example, for the pharmaceutical business and the food industry, developing countries are priority: Vietnam, Africa, India, also CIS countries, etc. They have not yet divided spheres of influence, as in Western Europe, and besides, if we talk about the pharmaceutical business, there are acceptable conditions for registering medicines.

Regarding the question of how foreign entrepreneurs learn about Russian franchises, as a rule, when traveling, they encounter either their own or franchise points of companies. Having become interested in the idea, potential partners contact the franchisor and negotiate business terms and further actions.

Another option for disseminating information about yourself is the participation of Russian companies in franchise exhibitions, including foreign ones, for example, Franchise Expo Paris or Franchising Fair. During which, our domestic entrepreneurs find partners in other countries.

The value of information

When entering a foreign market, companies naturally carry out marketing analysis. Information about competitors (local and foreign) is collected, the market capacity*, its receptivity to a given product or service, and countries’ attitudes toward imports are determined.

*Market capacity is the volume of goods or services of a certain type that can be sold at the existing price level for a specific period.

Market receptivity - market acceptance of a particular product (service), is determined by trial sales, and subsequently the consumer reaction is analyzed.

It should also be noted that Finns are not as impulsive in their purchases as, for example, Russians. They will never buy clothes with their last money; all purchases are made carefully. Another interesting fact is that a significant proportion of children's clothing buyers in Finland are women retirement age, which is associated with strong social support for the disabled population. Accordingly, all these factors were taken into account by the company when building its marketing strategy in this country.

“The success of any enterprise, and especially entering the international market, depends on taking into account the characteristics of this market, clear positioning, correct pricing and, of course, on the product itself,” comments Dmitry Plyusnin.

In turn, a representative of another company - "" - spoke about what was important to consider when opening a store for their franchisees in Los Angeles. The company specializes in selling clothes for newborns and babies, and comfort and quality for a child at an affordable price is what every parent needs, regardless of their country of residence. “The only thing is that before launching the project, we had to study the new market and logistics issues for a long time, since we are used to exporting oil, gas and timber, and children’s clothing does not fit into the pipe,” comments Anastasia Vasilkova.

The foreign children's clothing market is much more diverse (especially in the USA), and the buyer is more spoiled than in Russia.

Therefore, the success of going international, according to the representative of CHOUPETTE, largely depends on the franchisee’s approach to business, his experience, intuition, activity and financial preparedness. In a new market for a brand, a partner must gain brand recognition and develop loyal customers - and this requires time, money and constant work.


Adaptation to new conditions

After analyzing the market in new territories, companies have to change their franchise offerings. First of all, franchisors must adapt their business idea so that it does not violate the laws of a foreign country, translate materials into other languages, possibly change the range of products provided, etc.

Thus, the company "" engaged in the production of 4D attractions, before selling the franchise abroad, studied various foreign franchises and adopted their standards. For example, the cost of the Yotto Group franchise offer for different countries is different. This is due to the fact that in each of them the cost of starting a franchise and, accordingly, the currency in which royalties are charged are different. On the legal side, in the United States, manufacturer liability insurance is required by law, and in Italy, you must undergo an expensive inspection to obtain permission to operate the attraction.

In turn, the owners, adapting the project for franchisees in Dubai, had to invest significant resources in translating all materials into English. A new brand was also created for English-speaking countries. Cool Science" The franchise agreement was drawn up in several languages, and the number of nuances that arose weighed heavily on the shoulders of the company’s lawyer.


The GULLIVER company has developed a separate Commercial offer, which provides the option of shipping seasonal collections from a consolidation warehouse. This means that the parent company bears the logistics costs for the delivery of goods independently. This allows partners to reduce production costs and accordingly increases their markup to the recommended retail price. Also, due to climatic differences and religious considerations, GULLIVER allows partners to slightly adjust the store’s assortment.

The editors of the site have collected in one material 10 companies developing on international market and having connections with Russia. The list included both companies that entered foreign markets and those that were created by Russian citizens in other countries, but did not include giants with state participation and public companies.

Easy Ten

Russian company Easy Ten, which developed mobile app for studying foreign languages, is a graduate of the second cohort of the accelerator of the Internet Initiatives Development Fund. In January 2016, the company qualified for the 500 Startups acceleration program in San Francisco and raised $125 thousand.

The company's revenue in 2015 was $1.3 million, and Easy Ten's key markets at the moment are Russia and Brazil. In 2015, users of the service complained about an allegedly opaque subscription model: Easy Ten offers a free seven-day period, after which it debits money allegedly without the client’s knowledge. The creator of the project, Dmitry Zaryuta, then said that this is a standard monetization tool offered by Apple.

Ecwid

Ulyanovsk entrepreneur Ruslan Fazlyev launched the Ecwid online store builder in 2009. In 2011, the venture fund Runa Capital invested $1.5 million in Ecwid. Now the company has offices in Samara, Ulyanovsk and San Diego, employing 100 people, and its products are used by 900 thousand entrepreneurs from 175 countries.

Fazlyev, summing up the results of 2015, wrote in his blog that he received offers to sell the company, but he rejected them.

"Dodo Pizza"

The revenue of the Dodo Pizza pizzeria chain established in Syktyvkar in 2015 amounted to 1.086 billion rubles, of which 1.013 billion rubles came from the Russian market. The company also operates in Romania, Kazakhstan, Uzbekistan, Lithuania and Estonia, and in 2016 entered the US market.

In 2013, the creator of the network, Fyodor Ovchinnikov, decided to raise funds through crowdinvesting from attracting venture capital investments in business development.

GetIntent


Initially, they created a service in which the client could set up and launch an RTB advertising campaign himself. “Russia does not have a very large advertising market and the programmatic market in particular, so GetIntent immediately chose the largest advertising market in the world - the USA. In the United States, the volume of the programmatic advertising market in 2015 amounted to about $10 billion, and in Russia, according to different estimates- from 2 to 4 billion rubles,” the company told the website.

The American office opened in 2014. “Entering the US market in 2014 allowed us to generate revenue of $2 million and overcome the break-even point,” GetIntent said.

In total, GetIntent attracted $1.5 million in investments from business angel Igor Ryabenky and the Buran Ventures fund, created with the participation of Boris Mints. The eValue fund of Thomas Falk, founder of Falk Solutions EG, also participated in the second round. GetIntent's revenue in 2015 amounted to $6.9 million. 90% of revenue comes from the American market. By the end of 2016, GetIntent predicts triple growth compared to 2015. The company employs 35 people.

Group-IB

The company, specializing in the investigation and prevention of crimes in the IT field, was founded in Moscow in 2003. In 2016, 29-year-old founder of Group-IB Ilya Sachkov was included in the Forbes ranking of the brightest entrepreneurs under 30 years old. The company employs 150 people; revenue figures for 2015 are not disclosed.

Currently, the company has offices in London and the Middle East, as well as in Innopolis. In the near future, Group-IB plans to increase its presence abroad, the company reported.

Luka

The recommendation service in 2015 was the former editor-in-chief of the Afisha website Evgenia Kuyda and Philip Dudchuk, who previously worked at RIA Novosti. The Luka application was accepted into the Y Combinator accelerator. Kuyda and Dudchuk live and work in the USA. In April 2016, it became known that the service received $4.4 million from Sherpa Capital, Y Combinator, Ludlow Ventures and Zynga co-founder Justin Waldron and started developing chatbots.

Nginx

In 2002, Rambler system administrator Igor Sysoev began developing the Nginx web server. The first publicly available release came out in the fall of 2004. According to Netcraft, in April 2016, the number of sites served by Nginx exceeded 143 million, making it the third most popular web server in the world, after Microsoft and Apache products.

In July 2011, Sysoev created the Nginx company to develop commercial products. The main office is located in San Francisco, another one is in Moscow. In April 2016, the company attracted an investment of $8 million from the Australian telecommunications giant Telstra. Previously, Runa Capital and the family fund of Dell founder Michael Dell MSD Capital, as well as the New Enterprise Associates fund and the head of Box.com Aaron Levy, invested in Nginx.

Revolut

A British project created by Nikolai Storonsky, a graduate of the Russian School of Economics and the Moscow Institute of Physics and Technology. The service is intended for those who regularly use different currencies. It allows you to exchange one currency for another without bank fees, converting funds at the average market rate.

“In 2013, [Storonsky] quit his job at Credit Suisse and began testing the viability of his business ideas. I thought about short-term lending with an eye on Russia, but quickly realized that borrowers may not return the money, because there are no tools to force them to repay the funds. I settled on the second idea - a multi-currency card,” RBC wrote about Revolut.

Revolut provides users with a MasterCard card with three currency accounts. They are managed through a mobile application. The company offers free service and does not charge customers any commission on transactions. The company has existed for less than a year and during this time has attracted more than 100 thousand users and $4.8 million in investments.

Softline


IT holding Softline was founded in 1993. Today, foreign business brings the company 40% of revenue. “Our plans for the near future are to increase its share, both through organic growth and the acquisition of local players in dynamic markets. The company is present in 28 countries, the key regions in addition to Russia and the CIS are Latin America and Southeast Asia, as well as India - what is commonly called BRICS+,” the company told vc.ru.

26.04.2018 13:00

After the fall of the ruble, Russian goods and services became more competitive abroad. But how to reach foreign clients with them? Here are some recommendations that will help open new horizons for your business.


Hire a foreign top manager

One of the most important things to consider when entering a foreign market is the mentality of local customers. We need to build relationships with them in the format and on the terms that are familiar to them. A simple solution arises: hire a local top manager who knows the specifics of his country well. Also, allocate a budget for marketing research and promoting your product.

Without a foreign manager and a good marketer, you will not understand even basic things: which products sell best, how much they can cost, how the distribution system works and how expensive it is. Someone needs to go shopping and exhibitions, and it is better if it is a native speaker, an expert in local traditions.

So, let the Swedes work with the Swedes, and the Italians work with the Italians. You will control the process and gain experience communicating with foreign clients.



Buy a local company

If you plan to establish a foothold in the country for a long time, you can not limit yourself to hiring your representative, but also purchase ready-made company. It doesn’t have to be a large one; a small but local business familiar to your potential clients can also serve as a “springboard.” Better - profile. But it could just be a rented office with a telephone, a fax machine and a couple of employees answering calls.

Many Russian organizations are resorting to buying businesses abroad. Thus, the power tool manufacturer Interskol acquired the Felisatti factories in Italy and Talleres Casals in Spain, the Vostok-Service group, which produces workwear, became the owner of the Czech Cerva, and so on. Judging by the experience of these enterprises, this approach works well.

Interskol Development Director Vladimir Skityaev noted that his company was able to quickly understand European requirements and certification standards, study the laws of business turnover and the principles of forming product lines. And thanks to this, she avoided expensive mistakes in an unfamiliar market.



Promote products under a local brand

Another plus in favor of the decision to purchase a foreign company is the possibility of localizing your product. And the point here again is in mentality. For example, the Swedes love everything local and are very suspicious of imports; the Germans also prefer their own brands. And in most others European countries, as in the USA, people are more willing to choose a “domestic manufacturer”.

The Russian origin of a product or service, unfortunately, rarely provides a competitive advantage. In most cases, you should not emphasize made in Russia, unless you are Kaspersky or represent the defense industry. Your bargaining chip may be a better price, but it's best to act on behalf of a local business.

“Our slogan is to be our own,” explained Albert Gilyaev, vice president of Vostok-Service and head of the board of directors of Cerva. - For example, in Italy and Hungary we try to maintain the image of a “national company” with a parent company in the Czech Republic. The languages ​​of the treaty are also selected taking into account the relations between countries.” Advertising management service Aori followed a similar path, opening an office in Sweden. “We have learned to present ourselves as an Irish company. The site was completely translated into Swedish and they stopped showing anywhere that we are not “native Swedes,” said General Director Tatyana Kostenkova.



Work with industry experts

For a product to sell, it needs to attract attention. You can use classic paid advertising, but a different approach often works - close interaction with subject matter experts. In every industry there are international and national associations that unite all significant players: manufacturers, investors, clients, government agencies. In these communities it is easy to find people whose opinions are respected. Bringing them on your side will help you recruit that very pool of initial clients that everyone so needs at first.

Internet marketing company Complead conducted a free audit of advertising campaigns for a large local agency when entering Brazil. “We shared our experience and advised what to optimize. After that, agency representatives began recommending us to their partners and clients, with whom we did not compete,” explained Complead founder Andrey Smurygov.



Use networking

As a rule, searching for clients abroad involves contacting many people. Personal meetings are good, but in many countries (and in particular in the USA) they are difficult to organize - everyone values ​​their time. It's good if you manage to talk to the right person at a conference or other event, but convincing him to communicate with you in a two-way format can be much more difficult.

The situation is saved by the fact that in Europe and the USA there is a more positive attitude towards networking than in Russia. It is quite possible to establish interaction with clients or partners through Facebook or LinkedIn. This will be a classic cold promotion, but it really works and allows you to reinforce the usual marketing moves. Using LinkedIn, for example, it is convenient to connect with owners of similar businesses. Perhaps their concepts will seem interesting to you and would be suitable as a franchise. And vice versa: there are things that Russians do better - say, they organize round-the-clock trading. Therefore, there will definitely be mutual interest.

The company Natura Siberica, which supplies cosmetics to 50 countries, recommends paying close attention to social networks. And the key platforms for interacting with potential clients abroad are Facebook and Instagram.


Methodological approaches to developing strategies for international companies entering the Russian market

IN modern conditions the dynamism and intensity of international economic integration contributes to the development of the international market and national markets of individual states. In this regard, large international companies are striving to enter national markets and the markets of individual integration groups of countries. Russia is attractive to international companies due to both the capacity of the national market and the capacity of regional markets. Large European and Asian companies operate on the Russian market; the influx of the latter into the Russian market will increase in connection with the creation of the Eurasian economic union. Foreign companies are entering the Russian market and consolidating their positions on it requires the development of strategies using appropriate methodological approaches.

Reasons for entering the Russian market

The entry of international companies into the Russian market is due to a number of reasons: the intensification of integration processes in the context of the development of globalization; search for new sales markets that increase demand for manufactured products and reduce production costs as a result of using the wide potential of qualified work force on the Russian labor market; obtaining additional benefits through the use of economies of scale and competitive advantages over national companies related to the production of high-tech products; the entry of international companies into the growing, capacious domestic national markets of the country makes it possible to increase the capitalization of international companies and adapt to the conditions accepted Russian regions, working out and transferring results achieved to other divisions of the existing structure of the international company as a whole. At the same time, international companies have the opportunity to use various methods business practices practiced by them, based on the specifics of regional development.

Determining prospects for business development and consolidating their positions in the domestic national markets of host countries, international companies see their main task as developing and implementing a business strategy, increasing their multinational flexibility and strengthening competitiveness. To maintain a balance between the functioning of international companies and Russian companies in the Russian market, as well as to reduce competitive risks for national Russian companies, it is extremely important to identify the methodological approaches used by international companies to choose a strategy for doing business abroad, as well as criteria for classifying the strategies of international companies.

Methodological approaches to choosing a company's operating strategy

For international companies, the choice of strategies for doing business in the host country is extremely important when they enter into competition with national producers in the domestic market and other international companies in the global market. In this case, the main methodological approach to choosing a company's operating strategy is based on a competitive approach, designed to ensure low operating costs and access to the national markets of the host country, taking into account their national diversity. Taking into account multinational competition, existing differences in the economy, politics and cultural conditions of the country, the need to differentiate production in connection with the adaptation of products to local demand, focusing on the formation of subsidiaries for operating activities in each specific country, determining the level of autonomy of subsidiaries in accordance with the current situation in a specific market.

Competitive approach

The competitive approach to developing strategies for international companies is based on identifying distinctive social economic features host country and is based on the principles of rationality and efficiency and individualization of production and economic activities of international companies and their structural divisions localized in the territory of other states.

Global approach

Along with the competitive approach, a global approach is used when developing strategies for international companies. Unlike the previous one, the global approach focuses international companies on coordinating the strategies developed by the company in the markets of different countries, as well as ensuring low-cost, profitable production in all countries where subsidiaries or other structural units international companies. By achieving a low level of production costs, international companies have every chance of beating national companies in the competition both in the domestic and global markets. The global approach allows international companies to carry out the same type of differentiation in the production of goods in all countries, which helps to gain and strengthen their competitive advantages on a global scale and coordinate actions in the operational activities of international companies in the markets of foreign countries.

The global approach usually finds effective application global focusing strategies, the purpose of which is justified by the need to occupy identical niches in strategically important markets in countries hosted by international companies.

Based on the above, it should be concluded that if the global approach is aimed at developing strategies for focusing international companies, then the previous, competitive approach should be considered as a methodological approach to developing strategies for the functioning of international companies.

In modern conditions, when developing strategies for international companies, increasing attention is paid to the development of hybrid strategies aimed at studying the interaction of international companies operating in the national markets of the countries where international companies are localized. The main methodological principle when developing a hybrid strategy for an international company is the selection of partners and determination of the degree of competition between them. When entering the world market or the markets of foreign countries, international companies must follow the rule that states that competition is possible with national manufacturers in the countries where international companies are localized. As for the interaction of international companies themselves in foreign markets, they should act as partners. Based on this, international companies operating in the markets of foreign countries must develop a hybrid or partnership strategy to consolidate their strategic positions in the international market and in the national markets of localization countries.

An important methodological principle in the development of hybrid strategies is the principle of balance between cooperation and competition, eliminating the possibility of conflict between partners.

Hybrid strategies are based on a combination of cooperative and competitive strategies. In our opinion, the methodological approach to developing strategies for international companies can be conditionally designated as a hybrid approach.

Hybrid strategies are attracting increasing attention due to the need for development various forms cooperation between international companies entering foreign markets. Hybrid strategies acquire particular significance in the context of overcoming global crises. When it is necessary to join forces as powerful companies with a margin of strength and competitive advantages. So do companies that have mastered foreign markets well, navigated the external environment and the macroeconomic situation in the countries received by international companies. Hybrid strategies of international companies include competitive strategies and cooperation strategies. It should be noted that when developing a cooperation strategy for international companies as a component of a hybrid strategy, international companies that rely on their own strengths are more interested. These companies occupy leading positions in their respective industries, taking into account the competitive advantages of international companies among partners. Hybrid strategies are designed to strengthen competitive advantages companies. Promote the development of the most popular and valuable technologies that confirm the company’s competitive advantages, and the development of technologies of secondary importance should be left to partners.

Practice of developing hybrid strategies

The development of hybrid technologies is carried out by large international companies. They produce science-intensive products and high technologies. Competitive strategy as part of a hybrid strategy, it is aimed at implementing auxiliary, secondary functions of international companies.

Thus, the methodological approach to developing a hybrid strategy for international companies is based on methodological postulates that ensure coordination of actions. Combination, participation, development of strategic alternatives taking into account analysis external environment and the competitive state of the company. Methodological postulates market approaches occupy a secondary position in the development of hybrid strategies. The main advantage of hybrid strategies is that international companies maintain leading positions in international alliances. Participation in large projects based on partnership interaction.

As practice shows, the development of hybrid strategies is currently being carried out by large international companies engaged in the production of computers, microprocessors, and the production of high-tech products. On the Russian market, international companies implementing hybrid strategies are represented by Fujitsu, Toshiba, IBM, Apple, and HP. They are engaged in R&D in the field of computer technology and the development of microprocessors.

The problem of dependence and independence of international companies

The problem of dependence and independence of international companies during the period of their interaction and cooperation is important, as noted in the works of K. Bartlett and S. Ghoshal. Effective cooperation between companies cannot be achieved using only an administrative mechanism for managing cooperation. Since independent companies strive to protect their independence in every possible way, avoiding administrative influences. Companies with high degree dependencies believe that the spirit of cooperative cooperation appeals to them more than cooperation based on the fact that they must fully agree with the arguments of those on whom they depend.

The interdependence of companies in the process of their cooperation and interaction means a change in the content and forms of relations between them, ensuring the self-sufficiency of each partner to achieve their own interests. This, in turn, means a transition from control as a function of managing cooperation to coordination and cooperation. When developing hybrid strategies, it is necessary to take into account not only the degree of interdependence of international companies. In the process of cooperation, the mechanism for managing cooperation should be based on coordination and cooperation, which significantly increases management costs, but ensures the efficiency of achieving final results.

In international practice, the following types of strategies of international companies are known: multi-country, international, global and transnational:

  • A multi-country strategy is focused on compliance with the legal and market conditions of the country where the international company is based and operates. A multi-country strategy is developed on the basis of a competitive approach and is focused on winning the competition with national companies. It uses, as a rule, the resources of its home countries.
  • The global strategy is developed on the basis of a global approach, the subject of analysis of which is the international global environment and national, worldwide consumer values. Global strategies strive for global efficiency and internal integration.
  • International strategies typically involve the transfer of experience and knowledge accumulated by an international company to foreign countries and their adaptation to local conditions.
  • Transnational strategies are the object of development by transnational companies.

Large foreign companies entering the Russian market, as a rule, use the above strategies with a focus on the macroeconomic and political situation developing in Russia, as well as on the international economic and political situation. According to Forbes magazine, which publishes a list of large foreign companies in Russia, the French Groupe Auchan, with its Auchan and Atak stores, is recognized as the leader of 2016. Second place was taken by the German Metro Group with its controlled projects Metro Cash & Carry and Media Markt. The Japanese tobacco company Japan Tobacco International closes the top three in 2016.

Table 1. Analysis of the activities of foreign companies

Company name Revenue 2016 Revenue 2015 Field of activity
Auchan/Groupe Auchan 414 372 Trade
Metro Cash & Carry and Media-Markt-Saturn/Metro Group 305 294 Trade
J.T.I. Russia/Japan Tobacco International 245 222
FMSM/Philip Morris International 234 194 Production and sale of tobacco products
Toyota Motor/Toyota Motor 230 249 Mechanical engineering
IKEA/IKEA 200 184 Trade
Volkswagen Group Rus/Volkswagen Group 171 231 Mechanical engineering
PepsiCo Holdings/PepsiCo 172 171 Food industry
Mercedes-Benz/Daimler 157 148 Mechanical engineering
Leroy Merlin East/Leroy Merlin 152 124 Trade

Analyzing the table data, you can see that the majority of the largest international companies represented on the Russian market are engaged in the field of retail(retail). Retailers actively practice a widespread class approach. They focus on consumers with different income levels and are therefore ready to offer goods of various levels - from economy to luxury. Given the pronounced social differentiation in the country, retailers satisfy the needs of different segments of the population with different income levels. Also leading in the Russian market are companies engaged in the food industry and in the production and sale of tobacco products.

An analysis of the industry specialization of international companies in the Russian market allows us to draw a conclusion. Foreign companies entering the Russian market are focused primarily on using a global strategy using individual elements of multi-country, international and transnational strategies.

The global strategy involves the development of the following strategic goals:

  • achieving efficiency in daily and current operations, which is due to the study of differences in the cost of production factors in different countries;
  • risk – management to identify risks in individual countries;
  • training and innovation, while training takes into account the cultural characteristics of the country of localization of companies.

However, in modern conditions it is necessary to develop new methodological approaches to developing strategies for international companies. Based on the fact that modern stage In the context of the formation of international alliances and integration associations, international companies increasingly have to solve the problem of standardization or adaptation in world markets that are formed within integration associations.

The development and classification of methodological approaches to the strategies of international companies is important for analyzing the essence of strategies and classifying both existing and newly developed strategies. Distinguishing and highlighting methodological approaches to analyzing the strategies of international companies will allow us to identify their specific features for different countries. Predict the emergence of new types of strategies in the future, taking into account possible options mixed strategies.

The classification of existing strategies may change due to their transformation. The identified features of known strategies can be supplemented and acquire new features, combining the advantages of globality with local advantages. For Russian companies, it is important to correctly navigate when analyzing the strategies of partners or competitors in the process of interaction in the Russian market.

Foreign economic activity weekly: international projects, new old sanctions, supplies of Russian weapons, non-resource exports. Part 2

Part 2 Supplies of Russian weapons Russian weapons continue to be competitive and in demand on the world market. Not long ago, Burundi...

06 March 2019

Foreign trade activities weekly, week 7-8: international projects, new old sanctions, supplies of Russian weapons, non-resource exports

Part 1 International projects The construction and development of the new transport artery “One Belt One Road” will continue to cause heated discussions among scientists,…

Editor's Choice
Your Zodiac sign makes up only 50% of your personality. The remaining 50% cannot be known by reading general horoscopes. You need to create an individual...

Description of the white mulberry plant. Composition and calorie content of berries, beneficial properties and expected harm. Delicious recipes and uses...

Like most of his colleagues, Soviet children's writers and poets, Samuil Marshak did not immediately begin writing for children. He was born in 1887...

Breathing exercises using the Strelnikova method help cope with attacks of high blood pressure. Correct execution of exercises -...
About the university Bryansk State University named after academician I.G. Petrovsky is the largest university in the region, with more than 14...