Market Area(s)
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Russia, Kazakhstan, Ukraine, Armenia, Azerbaijan, Georgia, Kyrgyzstan, Uzbekistan, Belarus, Moldova, Turkmenistan, Tadzhikistan
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Areas of Opportunity
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IT and Software Solutions
Healthcare and Pharmaceuticals
Consumer Goods
International Consulting Services
IT and Software Solutions:
As of September 2004, there are over 56 million mobile phone subscribers in Russia and 6 million Russians access to the Internet on a weekly basis. Mobile phone subscriber growth is currently running at over 2 million new subscribers per month and this situation is mirrored across the CIS, especially in Ukraine and Kazakhstan. Value added mobile services are increasing in both variety and level of sophistication. Several Irish software companies have already sold into the mobile space and others are working actively with local Systems Integrators. Key target areas are billing, content management and payments. The financial services and banking sector also represents a major opportunity for providers of banking and CRM systems. Russia has witnessed a major expansion in consumer finance and the emergence of an active mortgage market, however lending is proportionately only 2% of GDP with huge continuing growth potential..
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Healthcare and Pharmaceuticals:
Irish companies have already had significant success in Russia. With 144 million people, Russia is a huge potential market for Irish pharmaceutical and healthcare companies. There are over 19,000 retail pharmacies in Russia, most of which are privatised and developing into major retail chains. Over the past five year, pharmacies have expanded out of over the counter medicine and expanded into beauty and healthcare products
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Consumer Goods:
Russians have a high propensity to spend and proportionately spend more of their income than Western Europeans. Along with the ready availability of consumer finance and a general jump in living standards, Russia's burgeoning middle class of 20m has generated huge demand for high-quality consumer products. Russia has experienced a massive retail boom in the past five years and major local and international commercial chains, such as Auchan, IKEA and METRO are expanding out of Moscow and Saint Petersburg, and are setting up operations in Russia's 13 other cities with populations over 1m. Enterprise Ireland clients providing products such as domestic heating appliances, household products, and luxury goods have found a ready market for their goods. There is also scope for innovative Irish clothing, design, and luxury goods producers to carve out a niche in this sector as disposable income continues to rise.
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International Consulting Services:
Russia and the CIS countries offer major opportunities for Irish consulting companies in both the public and private sectors. The main sectors of interest are project management, engineering and construction. Significant opportunities exist with multinationals looking to establish or expand operations in the CIS. In addition, projects run by the World Bank, European Bank for Reconstruction and Development and the European Union are also of major interest to leading Irish consulting companies. Banking sector consulting, especially the mortgage and consumer finance sector, is set to rise as Russian begin to unlock the equity that is tied up in their homes and apartments.
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