The rapidly evolved Fast Moving Consumer Goods (FMCG) sector had, historically, enjoyed predictable and steady demand. More recently, this sector has been hit badly by the global economic downturn which has halted its double-digit growth and created serious cash problems. These issues have been made even worse by shifts in consumer behavior and by decreasing demand.
However, this drop in demand might transform the retail and distribution landscape in Russia faster than some have imagined. Some companies might see a slight recovery, and those that respond correctly to behavioral changes should be better positioned for the future.
In our view, the best positioned companies will be those that successfully align strategy with key market trends such as:
Modernization of trade, including product portfolio adaptation, distribution consolidation, and cost savings
Increased professionalism, including the adoption of category management and the use of more sophisticated trade terms
Industry consolidation, with an optimization of routes to market
Increased emphasis on brand, with companies benefitting from successful brand development efforts
Our practice
The Boston Consulting Group has worked with a broad range of Russian and international companies to navigate Russia's changing business environment. In recent years, we have successfully completed projects such as:
Restructured distribution systems and increased sales force effectiveness
Brand development and positioning
Portfolio strategy, including SKU rationalization
Bringing international companies onshore
Beyond our project work, we have provided the following intellectual leadership for Russia's FMCG industry:
Consumer Boom in Russia: Is the Party Over?—a press-conference based on recent consumer research
Supply Chain in Russia—a study outlining ways in which companies can unlock the potential of improved supply-chain networks in Russia
Russia—Out of Stock—a retail audit demonstrating the serious loss of value—due to poor supply chain management—to both Russian and Western FMCG companies operating in Russia
Trading Up—a Russian-language version of BCG senior vice president Michael Silverstein’s book, with a special introductory chapter focused on Russian examples
Trading Up in Russia—a seminar for more than 150 managers of FMCG companies based in Moscow, featuring a keynote address by Mr. Silverstein
Contact us
Learn how BCG can help your company. Contact BCG Moscow’s FMCG practice leader Stephan Dertnig at +7 495 258 3434.