Challenges for Branded goods manufacturers
Branded goods manufacturers are among the most successful and powerful contributors to the evolution of the Russian market economy. Today, thousands of branded goods, ranging from products famous the world over, to names freshly innovated by new Russian companies, are manufactured and sold in
Key challenges identified by the RusBrand members for 2006-2008
Protection of intellectual property rights
Production and sale of counterfeit products and gray imports remain serious problems in Russia. These products are potentially damaging to consumer health, defraud the State, and harm the reputation of legitimate brands. Overcoming widespread trade-mark piracy – illegal registration of well-known trademarks that are not yet actively promoted in Russia –will require a serious and concerted effort on the part of legislators, regulators, and manufacturers. “Look-alike” brands which come close to illegal imitation of legitimate trade marks are a relatively new phenomenon which confuse consumers and drain company resources.
Promoting a sustainable media environment
The Russian media market lags behind international industry standards in transparency, competitiveness, and self-regulatory tools. Media inflation rates are among the highest in the world. While progress has been made, most advertisers are far from using media as efficiently or effectively as possible. RusBrand will continue to educate its members and, on behalf of advertisers, advocate steps leading to incorporation of international advertising standards, including maximum industry structural efficiency in Russia.
Encouraging constructive industry-trade relationships
Rapid market evolution provides an opportunity for manufacturers and retailers to work together to ensure application of global standards and processes in Russia. Accelerating internationalization and consolidation of retailing has brought more professional partners and better organization of the retail trade. At the same time, retailer’s increased bargaining power means additional pressure on terms of trade. RusBrand will continue to promote Efficient Consumer Response (ECR) practices for the benefit of branded goods manufacturers, retailers and consumers, and its Trade Committee will serve members striving to succeed in an increasingly competitive and tough environment.
Supporting regulatory and administrative reform
Russia is radically reforming its regulatory environment, dismantling bureaucratic and administrative barriers, including barriers to innovation. RusBrand will advise regulators on issues within its sphere of expertise and advocate the position of an industry committed to positive changes in Russia’s business climate.
Communicating with empowered consumers
RusBrand will seek out ways to educate Russian consumers about the value and unique advantages of brands. RusBrand will also continue to find common ground with Russian consumers and consumer organizations, which have become bolder in asserting their rights and speaking out. The continued dynamism of the Russian market provides responsible branded goods manufacturers an opportunity to work together with consumer organizations on a range of issues, from regulatory to self-regulation, for the ultimate benefit of consumers.
These challenges were identified by RusBrand members in a June 2005 survey as the most significant issues the industry would face over the 2006-2008 period. Inevitably, in such a fast-changing environment, issues will continue to emerge, and RusBrand will seek to address short term problems while maintaining its focus on long term industry challenges.
Rusbrand Strategic Plan 2006-2008
