Russia is a huge country and also a market very difficult to open up. Eleven time zones and an average population density of 8.5 people per square kilometer are not exactly encouraging for small and medium-sized entities (SMEs) to venture into this market. However, it seems to be quite interesting a calculation to compare Moscow having a population of more than ten million people with a big German city: With 10.400 inhabitants per square kilometer there are more than four times as many people living there as compared with Hamburg.
If you consider the city and region of Moscow, the total population of this area reaches a number comparable to that of North Rhine-Westphalia. Another important aspect is represented by the fact that Russian consumers have an extremely low savings-to-income ratio which means that money earned is immediately spent. All this shows how much a potential Moscow provides in particular to SMEs.
German companies have an excellent reputation in Russia. Made in Germany is still an outstanding trademark from which especially SMEs may profit a lot. In combination with the capability of taking fast decisions due to low hierarchies – something which should not be confused with ill-considered and overhasty actions – small and medium-sized entities have a substantial competitive edge over blue-chip enterprises.
Looked at from this point of view Russia does very much represent a market worth being ventured into by German SMEs. Additional interesting aspects and facts can be gathered from an article worth reading by Mr. Ulf Schneider, managing director of Russia Consulting in Moscow, which is available on the Ost-West-Contact internet portal. 