Russian consumers may like low prices, but premium retailing is on the rise, says IGD, an international food and grocery research organization. Besides helping to boost the country’s emerging label industry, converters in eastern and central Europe should also benefit from this polarization of the Russian retail market. The company ranks Russia as the third most important emerging market in the world, just behind China and India, and this is attracting the attention of many global retailers.
The French-based Carrefour organization is tipped to lead the way in entering Russia. “There are various methods by which it could enter the market, including franchising, acquisition of an existing player, or independent entry,” says Cecile Riverain, senior international business analyst, IGD. She notes that while investing in Russia would present a growth opportunity for Tesco — the UK’s largest retailer — it is heavily committed to developing other high potential markets like the USA and China.