What are the main issues in selling into Russia?
In addition to the issues of payment/delivery terms and finding a good local partner, the main issues is distribution and retail space. Russia’s distribution system is still greatly underdeveloped. This is partly a result of infrastructure problems (poor transportation links in some cases), cost (high transportation costs), lack of local/regional wholesalers, etc. The situation is certainly improving – the computer industry, for example, is now showing characteristics (distributors, dealers, VARs, etc.) that are immediately recognizable to foreign marketing professionals. However, companies in other fields, such as consumables, have found it necessary to set up their own nationwide distribution. Smaller companies who cannot afford this are probably well-advised to consider a local strategy — build up a presence and market share in one region — and use that as a jumping off place for a nationwide strategy. Moscow and St. Petersburg were the first obvious choices for a first jump into
