Russia PROMOTION CHRISTOPHE NAVARRE HEC ULg Charles de Pontevès – September 10th.
-
Upload
agatha-cummings -
Category
Documents
-
view
214 -
download
0
Transcript of Russia PROMOTION CHRISTOPHE NAVARRE HEC ULg Charles de Pontevès – September 10th.
2
AGENDA
HISTORICAL MILESTONES
RUSSIA TODAY– Geography– Demographics– Social Mutation– Values Mutation
THE 5 KEY FACETS OF RUSSIAN LUXURY CONSUMERS
3
Historical Milestones: Imperial Russia
1547 Ivan the Terrible – First “Tsar of all Russia”-Conquered wide new territories-Beginning of the Russian Empire
1703 Peter the Great modernizes Russia- Opens Russia to European culture- Founded Saint-Petersburg, which becomes the capital- World’s 3rd largest empire, from Poland to Alaska
7
But in 2008, the end of the “Russian miracle”
• March 2008 : Despite his excellent ratings, Vladimir Putin must step down as PM and accepts to share power with Dmitry Medvedev (the Russian Constitution forbids three consecutive terms).• August 2008 : War with Georgia • Nov-Dec 2008 : Commodity dependent Russian economy is severely hit by global crisis, ending 10 years of rapid growth and consumers’ lavish spending.
9
Russia Today
9
• The biggest country in the world (Russia is 70 times bigger than UK): 17 M km²• 9 Time Zones (Moscow + 2 hours vs. Paris)• 143 M Inhabitants (-2 M in 10 years), at least 12 M in Moscow (the only “growing” city)
Russian language and culture are strong unity factors in a multi-ethnic country.
10
Russia Today - a large country with big Metropoles
1 Moscow 11,800,992
2 Saint Petersburg 4,900,520
3 Novosibirsk 1,397,191
4 Yekaterinburg 1,332,264
5 Nizhny Novgorod 1,272,527
6 Samara 1 164 900
7 Kazan 1 143 600
8 Omsk 1,129,120
9 Chelyabinsk 1,093,699
10 Rostov-on-Don 1,048,991
11 Ufa 1,024,842
12 Volgograd 1,021,200
13 Perm 985,794
14 Krasnoyarsk 947,801
15 Voronezh 843,496
16 Saratov 830,953
17 Tolyatti 720,346
18 Krasnodar 710,686
19 Izhevsk 611,043
20 Yaroslavl 606,336
11
Russia Today : Imbalanced demographics
• Very low Birthrate • High Mortality• Ageing Society (seems to stabilize lately)• Strong movements from Rural to Urban population
12
Russia Today : Economy
• GDP per Capita $16,000 (45% of France or UK)• Stable Rouble (1€ = 40 RUR), 4% GDP growth, but high inflation (9%) and huge capital outflows• After 1998 Crisis => return to growth but very relian on oil prices
13
Russia Today
• New Growth levers needed…strong competencies and opportunities
• Good global level of general education• Heritage of Soviet Union• 13% of State Budget• More then 50% of adult population with tertiary education (OECD average x 2)• Literacy rate 99%
Photos d‘universites
14
Russia Today
• From a “now society” to an “investment in the future” society
• New priorities:• Philanthropic Projects• Culture• Education• Real Estate
15
A wealthier Russian society due to a continuous growth (except for 2009)
Growth rate2000 + 10%,2001 + 5%,2002 + 4.7%,2004 + 7.2%,2005 + 6.4%,2006 + 6.7%,2007 + 8.1%,2008 + 5.6%,2009 - 7.9%,2010 + 4% (source: IMF)
The Putin and Medvedev years (2000s) saw the return of growth and a feeling of stability.
Party on a McLaren Mercedes yacht during the Millionaire Fair -
Russia 2010
Hence the emergence of an urban middle class which is the most dynamic within the Russian society
Social mutation: emergence of the middle class
16
The middle class represents ¾ of the population of the 15 most important cities in Russia
Social mutation: emergence of the middle class
17
Upper Middle Class + Upper Class = a potential of 12 million people who are younger, open-minded and western lifestyle oriented
Social mutation: emergence of the middle class
18
Values mutation: emergence of new consumption aspirations
An evolving system of values: from materialistic to human values
Recent data from the FOM Institute, the public opinion database, on Russians’ preferred values convey a clear return to so-called “bourgeois” values:
Family value preferred by 62% of respondents, Love (46%), Friendship (40%)
VS.
Money (38%), Career (28%),Work (16%).
Under Yeltsin, Money was the social value.
The successful international Patek
Philippe campaign on the theme of Father-to-Son transmission among wealthy Russian males.
19
Values mutation: emergence of new consumption aspirations
An evolving system of values: from materialistic to human values
An evolving system of values: from individualism to patriotism
Holy Russia Exhibition in Paris
Religious both stated and public is back
President Medvedev, shown accompanied by his wife at church; an image which went round the world
Orthodox church-going is on the increase in Russia
The Holy Russia exhibition opened by Medvedev in Paris.
20
Values mutation: emergence of new consumption aspirations
An evolving system of values: from materialistic to human values
An evolving system of values: from individualism to patriotism
A patriotic preference for Russian brands if the quality’s right“Even if Russians are becoming patriotic again and prefer local products, especially staples, if they’re poorer quality or don’t work as well as foreign products, they’ll have no qualms at buying the import if they can afford it” - GFG
21
Values mutation: emergence of new consumption aspirations
An evolving system of values: from materialistic to human values
An evolving system of values: from individualism to patriotism
An evolving system of values: from social to cultural distinction
UNDERSTANDING RUSSIAN ATTRACTION TO ART AND CULTURE
• Cultural roots• Deregulation in the consumption of works of art… …. and liberalization of forms of expression
22
This explain the emergence of news aspirations in luxury consumption = the unique model is over
Values mutation: emergence of new consumption aspirations
23
Values mutation: emergence of new consumption aspirations
NOWMULTIPLE LEVERS
23
This explain the emergence of news aspirations in luxury consumption = the unique model is over
24
The 5 Key Facets of Russian Luxury Consumers
1. Lack of Aristocratic Heritage
As a result, the class has a desire for ennoblement, expressed in highly elitist behaviors copied from countries where a real aristocracy does exist:
• Belonging to members-only clubs, with very complex codes,
• International schools for the children,
• Purchasing certificates of nobility,
• Consumption of unique, bespoke products
• Consumption cultural goods (Art),
• Charity business.
25
2. Patriotic LuxuryExpressed by:
• Re-launching brands of Russian origin, and valuing the latter, • Launching specifically Russian models for imported brands,• Using local celebs,• Rekindling interest in your own country (trips in Russia).
The 5 Key Facets of Russian Luxury Consumers
27
4. Defiance towards Luxury Goods
As a result, the brands that well-off consumers and upper middle classes love are indeed those belonging to the stable of big prestige brands (Chanel, Gucci, Dior,Hennessy,Rolex…).
New Brands entering the game has to prove before being adopted
The 5 Key Facets of Russian Luxury Consumers
28
5. Looking for learning about Luxury
The 5 Key Facets of Russian Luxury Consumers
This would be conveyed by:
Introductory courses (wine-tasting, perfumes)
In-situ demonstrations (restaurants)
Websites with tips and advice for consumers
Discovery voyages to sites of production.
In TSUM, Dior created the Perfume Ceremony for one week: defining the
archetypal perfume for its clients, make-up sessions, shows, and
champagne