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Autumn trade shows


8-12 October 2018
Expocentre, Moscow

The key event in the food processing industry the trade show encompasses 19 thematic sectors uniting 800 manufacturers and distributors of equipment, raw materials and ingredients from 37 countries.

In the context of import substitution program, food processing industry is one of the fastest growing in Russia.  USD 3.2 billion were allocated by the Russian Government for its development in 2017. Volume of investments into the industry is expected to reach USD 37.1 billion by 2020. Constantly improving production capacities of food processing machinery, the country still imports 86% of the equipment.

Golden Autumn

10-13 October 2018
VDNH, Moscow

Attracting over 300 thousand industry professionals, featuring 1,500 suppliers from 15 countries and 68 Russian regions, Golden Autumn is the most reputable agricultural trade show in CIS.

Held by Russian Ministry of Agriculture the trade show turns 20 and the anniversary year promises to be even fuller of events than ever before. The trade show is an excellent opportunity for companies to demonstrate their business potential and engage with prospective partners and clients.

Integrated Systems Russia

24-26 October 2018
Expocentre, Moscow

The Russian edition of famous Integrated Systems Europe show is the only trade show in CIS demonstrating latest highlights in professional audiovisual, electronic systems integration, IT and Digital Signage industries. The trade show unites 100 brands and yearly attracts over 13 thousand industry professionals.

Integrated Systems Russia provides exhibitors the opportunity to experience the full range of conferences, special expositions, tech tours, training and networking events that take place during the show. The comprehensive learning and networking events are open to all exhibitors.

Interlight Moscow

6–9 November 2018
Expocentre, Moscow

Powered by Light+Building, Interlight Moscow is the largest Russian event in decorative and technical lighting, LED-technologies and electrical engineering, smart homes and building automation.

Last year the trade show gathered almost 500 leading manufacturers and distributors from 23 countries attracting thousands of visitors from almost all Russian regions. How many of them could have become your clients?

Woodex Moscow

3-6 December 2018
Crocus Expo, Moscow

Woodex Moscow 2019 is the 16th International trade show of equipment and technologies for woodworking and furniture production. Over 300 manufacturers from 30 countries take part in the show presenting their products to thousands of industry professionals, negotiating with potential partners and representatives, signing contracts for supply of woodworking machinery and equipment.

Russian Healthcare Week

3-7 December 2018
Expocentre, Moscow

The Russian healthcare week unites a series of trade shows, forums and conferences for healthcare, medical engineering and pharmaceuticals. Zdravookhraneniye 2018, Healthy Lifestyle 2018, MedTravelExpo 2018 and Apteka 2018 trade shows are part of the week. Scientific forums cover stomatology, sports medicine and healthy lifestyle.

Most important five days of Russian healthcare industry create great opportunities for manufacturers of medical equipment and pharmaceuticals to promote innovative products among Russian health care professionals, government and business representatives.

Entrust GNC with your visit preparation or meet us at one of the trade shows to discuss the ways to increase your presence in the Russian market.

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Import substitution

2014 was marked by the mutual sanctions between Russia and a number of Western countries provoked by annexation of Crimea. A wide range of fruit, dairy, meat and fish products were banned for import to Russia. Import substitution program opened a whole new market for equipment and machinery fostering local production.

Following the sanctions, the Government Commission on Import Substitution was created to develop economic strategy which would allow to locally manufacture products prohibited for export and import to Russia. Since than Russia has been taking targeted steps to reduce imports of goods from countries with which Russia has sensitive political relations and substitute them with domestic goods. 800 selected products in 19 industries are expected to be manufactured locally by 2020. Apart from food industry, the most affected by import substitution are the automotive sector, the defense industry, engineering, electronics and pharmaceuticals. The total cost of the import substitution program is currently estimated at around EUR 35 billion.

The import replacement program provides substantial support to local manufacturers. Legislation of public (State) procurement was altered to privilege locally manufactured products. The procedure depends on industry. However, in most cases domestic products have 15% price advantage in tenders. To put it simple, in order to compete with domestic products, foreign products have to be at least 15% cheaper.

However, the goal of the import substitution policy is not a ban of foreign companies and not even a total replacement of import by local production, but a scale down of dependence on import.

Western technologies are required for the modernization of the Russian industry. While denying export chances to some manufacturers, Russian import replacement program creates massive opportunities for others. The growth of local production causes the rising demand for the machinery to equip new and expanding production lines, as well as for components of high quality at reasonable price.

Import substitution also fosters production localization, as local manufacturers can very well be foreign companies that have localized production in Russia.

Import substitution is an attempt to diversify Russian economy which is heavily dependent on raw materials and energy resources. It has been one of the topics of discussion in Russia for a long time, sanctions have only accelerated the process. There are strong chances the current order of things will last and become the new reality.

While at first sight, it might seem to be the bad timing for venturing in the Russian market, a thorough market study will help you weigh all risks and opportunities and take the right decision. After all, numerous companies have gone this path before you and achieved success at the market of the largest country in the world.

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Expanding to Russia

Doing business to Russia

Expanding to Russia is every year getting less and less difficult. Many foreign businesses are discouraged by the Russian reputation of a corrupted and ruleless country difficult to operate in. However, international organizations constantly point out that Russia gets business environment under control. As an example, in 2018 the Russia is number 35 out of 190 countries in World Bank’s Ease of Doing Business ranking.

Russia’s economy is the 8th economy in the world. With 142 million people, it is the largest consumer market in Europe. Demographic trends in the country have been constantly improving and the population continues to grow.

Moreover, Russia shares the common market with other members of Customs Union and Eurasian Economic Union created for the establishment of free movement of goods, services, capital and labor. At the moment the Member-States of the Union are Russian Federation, Republic of Armenia, Republic of Belarus, Republic of Kazakhstan and Kyrgyz Republic. Expanding in Russia also means the first step on your way to the markets of the Commonwealth of Independent States (CIS), due to the large number of similarities that exist in countries’ consumer behavior and business culture.

Russia and Europe. Sanctions.

Deterioration of geopolitical situation followed annexation of Crimea by the Russian Federation in 2014. The western world and Russia implemented mutual sanctions. These measures stopped export to Russia of arms and dual purpose technologies, restricted export of high tech goods and services in the energy sector. Russia imposed embargo on import to Russia of a large list of food and agricultural commodities.

On one hand, the sanctions had a bad impact on manufacturers of the above-mentioned goods. On the other hand, they have stimulated the launch of import replacement program in Russia. The country is currently working on reduction of its reliance on raw materials favoring development of a large number of industries that require instrumentation of production units. Shall you be manufacturing industrial equipment or looking for a new place to localize production, it’s the ideal time for expanding in Russia.

Russian foreign trade. First half of 2017.

Foreign trade turnover of the Russian Federation in the first half of 2017 showed 28.3 % growth in comparison to the previous year, exceeding $268B. Import grew 27.1 % reaching $101.8B. Industrial and laboratory equipment, aircrafts, vehicle spare parts, pharmaceuticals and food commodities accounted for a large part of  the Russian import. Stronger ruble was one of the reasons for import to grow. Among other reasons there was inflation decline and consumption growth which, according to experts, recovered to 2014 level.

Challenges of expanding in Russia

Russia represents a rich opportunity for a large number of foreign businesses. However, it is important for foreign companies to get well prepared before expanding in Russia.

Russia is the largest country on our planet, spanning eleven time zones. Its area is roughly equal to the surface of Pluto. With such a size, it has remote areas difficult of access, varying in infrastructure, level of life and industrial development.

Russian business culture vastly differs from West European or American. To succeed foreign companies need to attune to this culture.

Language barrier is the issue number one. A large part of Russian businessmen do not speak English, and even if they do, they are reluctant to discuss commercial matters in foreign languages. Sometimes, companies involved into foreign trade have interpreters in-house. However, it’s not a standard. We highly recommend to attend all business meetings accompanied by your own reliable interpreter. Many foreign companies have found it useful to hire Russian speaking managers to coordinate business in Russia and CIS.

If you plan visitting the market for the first time do not have inflated expectations. First meetings are essentially about getting-to-know your business. Your potential partners would assess your credibility and decide whether your offer is worth of further consideration. You should be ready to defend competitive advantages of your product or service and “persuade” your interlocutors into working with you. Be sure you are up to speed on technical side. It also often helps to have presentation materials both in English and in Russian languages.

Once you are through with the first stage, you can rely on your Russian partner to put all efforts for your company’s success in the Russian market.

Personal relations are crucial for building trust in the Russian business environment. Socializing might become a part of negotiations and a routine of your trips to Russia. Feasting is an indispensable part of Russian hospitality.  Partners will likely invite you to dinners that often imply drinking.

Due diligence is a must both in regard to potential partners and when potential customers are concerned.

It’s highly recommended to sell EXW (ex-works). Russian distributors master cost-optimization of logistics and customs clearance. You will hardly be able to calculate true to life DDP (delivered duties paid) prices without experience of importing to Russia.

Finally, until the long-term relationship is established, insist on the total prepayment of goods. Letter of credit is also an option. However,  it is not all Russian companies are used to.

Russia is not a market for everybody, but GNC Group Russia can make expanding in Russia process smooth and accessible.

Contact us for a consultation




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GNC Group invites you to attend the Russian construction market trade show, BATIMAT RUSSIA, taking place in Moscow on 3-6 April 2018.

BATIMAT RUSSIA is the largest construction industry event in the country, uniting local and foreign manufacturers and distributors of construction and finishing materials, designers and architects.

More than 950 companies representing around 2 500 brands annually attract more than 90 000 unique visitors interested in architecture, design and decor.

BATIMAT RUSSIA is your corner event, if you are involved into production of:

  • construction materials and equipment
  • floor and floor coverings
  • plumbing and bathroom interior
  • windows, facades, roof
  • wall coverings and wall-paper
  • stone
  • doors and fittings
  • ceramic tile
  • technoceramica
  • integrated solutions for interior

Shall you be willing to enter the Russian construction market, BATIMAT RUSSIA is a trade show you should attend as a participant or as a visitor.

Visit the website of the trade show

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INTERCHARM Professional

We are happy to announce two major upcoming events of the Russian beauty market.

INTERCHARM Professional, the largest beauty trade show in CIS will take place in

  • St Petersburg on 8-10 February 2018
  • Moscow on 25-27 April 2018

Every year Russian and foreign brands use INTERCHARM to present their developments in the field of professional cosmetics and cosmetology, makeup, hairdressing, nail service, spa and aesthetic medicine.

INTERCHARM is a major meeting point for manufacturers and distributors, business owners and beauty professionals in Russia. Annually, it gathers around 500 exhibitors from 20 countries and 40 000 visitors come to discover novelties of beauty industry, purchase materials and communicate with current partners and potential suppliers.

Russian beauty market is constantly growing. Consumer audience is large. Besides, average Russian woman statistically spends on personal care and beauty products much more than an average woman from any other country in the world.

Do not miss the opportunity to introduce your brand to the Russian market or come as a visitor and walk the show to explore the market situation, its trends and your competition. We are at your service for organization of participation or visit of the trade show.

Visit the website of the trade show