Adang a Brand Marketing Strategy. How to Enter the Russian Market?

International brands are continuing to resume operations in Russia. Eleven retailers from Turkey, China, South Korea, Italy, Spain, and Germany have entered the market for the first time since the beginning of 2024. The majority of these retailers are manufacturers of clothing, footwear, electronics, and home goods. Most of them have commenced operations in shopping centers in Moscow, as well as in St. Petersburg and Kaliningrad. Up to 20 new foreign brands are expected to enter the Russian market in 2024. In addition to the 11 brands that have already entered the market, at least three more companies have announced their intention to start work in Russia. These are Panier des Sens (France) offering cosmetics, 8 Seconds (South Korea), and Semir (China) both offering clothing. 

All of these retailers are already active in the Russian market, leveraging local marketplaces and popular points of sale (shopping centers) to expand their presence and adapt their products and services to local conditions. This article will examine how to a adjust a global strategy to local markets and gain the trust of Russian customers.

Localization: A Strategy for Russification

In order to achieve success in the Russian market, it is essential to adapt the product and marketing materials. Local businessmen have also taken this approach, purchasing shares in brands that were compelled to exit the market. As an illustration, Unilever has registered the brands "Дав" and Syoss, which is now called "Сьěсс". Coca-Cola HBC has renamed itself Multon Partners and launched "Добрый Cola". Additionally, Levi's was revived under the JNS brand with an updated positioning strategy. The Starbucks brand was rebranded as Stars Coffee.

Localization is the process of adapting a product to align with specific requirements and preferences. In order to successfully enter the Russian market, brands must ensure that their products reflect the preferences and expectations of Russian consumers. For instance, modifications may be required in regard to packaging and product naming. Furthermore, marketing materials must be adapted and russified, as we did for Blackview. 

We employed a DOOH (Digital Out-of-Home) strategy to conduct a campaign to localize and promote the Blackview brand in the Russian market. Before product launch, we tailored Blackview's promotional materials for Russia. This involved translation and cultural adaptation slogans and visuals.

 

 

English client version. Blackview Tab 16. It's 11-inch Tablet, and 11-inch PC. Bigger than Bigger.

Russian language adaptation. Blackview Tab 16. Экран 11 дюймов - еще больше, чем вы ожидаете. Планшет и ПК в одном устройстве. / The 11-inch screen is even bigger than you'd expect. Tablet and PC in one device.

English client version. Blackview BV 9300. One-Of-A-Kind Precise Measurement/Superbright Rugged Lifestyle. Charge for 3 Hours, Last for 76 Days.

Russian language adaptation. Blackview BV 9300. Уникальный точный дальномер и ударопрочный корпус. Для ярких впечатлений и суровых условий. Заряжается 3 часа - работает 76 дней / Unique precision rangefinder and shockproof housing. For vivid experiences and harsh conditions. Charges in 3 hours - lasts for 76 days.

What else needs to be done to enter the Russian market?

Entering strategies for the Russian market

It is essential to perform a thorough analysis of the market and competitive landscape before embarking on the localization process. Do comprehensive market research to gain insight into customer needs. Furthermore, it is essential to:

• Сonduct local branding in a way that resonates with Russian audiences. 

• Adapt digital marketing strategies to include Russian social networks (VKontakte, Odnoklassniki), search engines (Yandex), and other digital platforms.

•  Interact with local influencers in order to increase brand awareness and consumer trust. 

And, of course, it is essential to consider economic conditions and purchasing power when determining product and service pricing, as well as the most effective distribution channels, including online ones.

For instance, we developed a website and connected social media for Ascensia Diabetes Care, a global company focused on improving the health and lives of people with diabetes. We tailored the content to the Russian audience, including adapting texts and product descriptions. 

 

VK post about using the Contour Diabetes mobile app on Contur's official VK community | Simply About Diabetes| Ascensia Diabetes Care

Russia's digital ecosystem: focus on what?

The digital ecosystem in Russia differs slightly from that of other countries. Therefore, it is essential to consider these nuances before developing a strategy.

 

Search engines

At the outset of 2024, we witnessed a surge in e-commerce search activity across all pivotal metrics. The monthly number of queries reached 3.2 billion, representing a 40% increase compared to figures from a year and a half ago. The average number of searches per person rose to 35, representing a four-query increase. The median number of days users conducted search activity was 9.1, which is up by one day. Additionally, the average number of product categories of interest increased to 5.7, marking a 0.5-unit uptick.

Search activity is expanding rapidly across all demographic groups, with notable growth among young and older populations. The most significant one is evident in settlements with a population of less than 100,000.

The e-commerce market remains highly competitive, with a relatively small share of unique users on the largest marketplaces. The product categories demonstrating the most significant growth are those related to clothing, footwear, home and garden, DIY, food, and household chemicals.

 

 

In Russia, the most popular search engines are Yandex and Google. To ensure effective promotion, it is essential to consider the algorithms and specificities of each system, as well as the distinctive features of the global system in Russia. Therefore, although Google has officially ceased operations in Russia, there is a way to circumvent the restrictions and advertise in the Russian Federation and beyond. This can be accomplished by establishing a confirmed foreign account. However, there is one aspect that requires further consideration. Advertising will be shown only to users with a connected VPN. One significant drawback is that, when evaluating the efficacy of campaigns, it will not be possible to ascertain the precise number of Russian users. All users will be attributed to the country with which they are connected, for example, France or Germany. 

Consequently, for official search promotions, we are left with one search engine, it's Yandex. Alternatively, we can work on an effective SEO site in Google, as 31.93% of Russian users still use this system as of July 2024.  

With regard to Yandex, it represents the largest digital ecosystem in Russia, offering a number of possibilities beyond paid ads. The ecosystem presents a range of compelling avenues for promotion and brand awareness. 

One such example is Yandex Dzen. This is a platform for publishing articles and news. Additionally, native advertising and articles can be leveraged to promote content and attract audiences. Another option is the Yandex platform. The Advertising Network provides the opportunity of placing advertising banners and videos on partner sites. Additionally, Yandex offers two streaming services, Yandex.Music and Yandex.Video, which provide platforms for promoting audio and video content. Another valuable resource is Yandex's own movie theater, Kinopoisk, which offers the option of integrating commercials. Furthermore, in July of this year, Yandex released updates. As an illustration, it is now feasible to conduct a promotional campaign on Yandex Maps.

 

T-Bank advertising in Yandex Maps

Social Media

The most popular social networks in Russia are YouTube, VKontakte, Telegram, Dzen, TikTok, and Odnoklassniki. Video services represent 22% of total Internet activity, while social networks and messengers account for 22% and 18% of user engagement, respectively. On average, Russians dedicate 47% of their time to social networking. Further details on the characteristics of these platforms can be found here. 

It is also crucial to tailor the content to the Russian audience and consider cultural nuances when promoting foreign brands on social media. For comparison purposes, we will examine the social media presence of the global company Ascensia Diabetes Care. In Russia, we have created a group for promotion on the popular Russian social network Vkontakte, an Instagram* account in Russian, and a Telegram one for this company. They have a presence on the international market via Facebook, Twitter, YouTube, and Instagram*. We will now compare two of their Instagram accounts to illustrate the importance of content customization.

The Russian account's content is primarily focused on promotions, special offers, and diet cooking, reflecting the fact that a significant proportion of Russian households prefer to cook at home, in contrast to the US market. In VKontakte, we implemented a similar approach. For instance, in response to the post inquiring about the most frequently prepared dish, the group's audience demonstrated heightened engagement.
 

 

 

 

 

Посмотреть эту публикацию в Instagram

 

 

 

 

 

 

 

 

 

 

 

Публикация от Ascensia Diabetes Care Russia (@contour_ru)

The English-language account focuses on recreation, eco-business principles, and the prevention of diabetes in pregnancy. In short, the content caters to the interests of foreign audiences. It should be noted that these topics are not particularly relevant to the Russian-speaking audience.
 

 

 

 

 

Посмотреть эту публикацию в Instagram

 

 

 

 

 

 

 

 

 

 

 

Публикация от Ascensia Diabetes Care Contour (@contour.us)

 

Influencers and Celebrities

Collaborating with Russian influencers and celebrities can be an effective strategy for enhancing brand awareness. 

When selecting an appropriate platform and bloggers in Russia, please take into account the following:

• Instagram*. Good for visual content and fashion brands. Micro-influencers here often create authentic and trusted recommendations.

• VKontakte. Suitable for paid advertising and working with bloggers through video format.

• YouTube. Ideal for in-depth reviews and gamer bloggers.

• Telegram. Popular for breaking news and integrations where audience engagement is high.

• Odnoklassniki. Growing in popularity, especially among older audiences, can be useful for B2B communications.

The decision between celebrities and bloggers should be made based on the campaign goals, target audience, and budget. Further details on the most suitable candidates and the process of identifying the optimal opinion leader in Russia can be found in this article.

Legal regulation

In 2022, significant amendments were made to the law of 13.06.2006 No. 38-FZ on Internet advertising. All online ads must now be labeled and information about them must be transferred to the Unified Registry of Internet Advertising (ERIR) via an Advertising Data Operator (ADO). This applies to all parties involved in the advertising process in Russia, including advertisers, agencies, platforms, and bloggers. 

A unique identifier, or token, must now be included in all advertisements to show who ordered the advertisement and who placed it. The token must be provided as a clickable link or incorporated into the text of the advertisement. Exceptions are made for social ads and ads that have been duplicated from other media, such as television or radio. All data pertaining to advertising publications is stored in the ERIR and is accessible to supervisory authorities.

The labeling of online advertising can present a significant challenge for the promotion of many brands, particularly foreign brands, in Russia. You can entrust all of these challenges to the experts at RMAA. Also, we have prepared a dedicated article on the labeling of digital advertising in Russia. 

Key Insights

Adapting a global strategy for the Russian market is a complex and multi-stage process. It includes localization of products and services, russification of content, and consideration of the peculiarities of the local digital ecosystem. Upon completion of these steps, we can effectively integrate any international brand into the Russian market, thereby winning the trust of consumers.

Since 2008, the RMAA team has been assisting foreign brands in adapting their strategies to the Russian-speaking audience with great success. To contact our manager, please complete the contact form. 

 

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*Meta's activities are banned on the territory of the Russian Federation.