For most Russians, however, everything related to the multi-level marketing or MLM in the Russian transliteration is always mentally associate with the MMM, the company knows that in the '90s became the flag of Russia by greed, in which the remuneration of the players involved depends entirely on the number new players, which have attracted.
According to the Social Information Agency, a non-governmental monitoring group, there are currently around 5 million Russians, or 6 percent of the country's workforce is directly related to around 10,000 businesses, livelihoods on Level Marketing manifold. And the turnover in the sector, many of whom are still in the shade, is estimated at $ 2 million a year. Russia MLM companies are the strong enough to regulate itself. In fact, dozens of Russian companies MLM "records" cases without blemish, said in early 2008, and several large companies MLM founded the Direct Selling Association of Russia, a lobbying group that is developing a code of business ethics.
As the healthcare enterprise and welfare of many cosmetic and nutraceutical MLM companies entered the largest market of Russia, using the same marketing strategies that brought them much success in their markets earlier. After only 2 years of normal operations, the companies Health and Welfare has reported annual sales of $ 1.5 million in sales. For example, in '06 and '07, said sales of Avon over 100 million dollars and that Mary Kay was about just under 75 million.
About 65% of Russian market of food supplements retail store not (by mail, door to door and MLM). Nutraceuticals and cosmetics are mainly sold in stores Health and department stores. With regard to email, media and tools are effective letterzines, infomercials and newspapers. Door to door and channels MLM-based Communication Rights in the event of an education as studio sessions and business seminars are very important. For the development of shops, the best products with the ingredients well known. Therefore, it is essential that recognition of the ingredients is obtained when presented on television and in magazines health. After the departure reputation on blogs often influence sales. Basically, the advertising companies is not a great impact on increasing sales. Moscow, produces 17% of the total value of cosmeceuticals and nutraceuticals in Russia.
Although the dynamic capital market, has seen the development during the review period, growth gradually decreases due to the relative saturation. Also, eligible local practices of industrial use MLM boast that their products are natural, often are not, with many companies simply using the word "natural" as a marketing ploy. Local manufacturers, which traditionally have a picture the current more natural products than their foreign competitors, the use of this advantage in promoting the brand. The low cost of labor and the actual market response network of combined MLM MLM commercial success in Russia. These issues proved to be a strong incentive for companies that leads to invest millions of dollars in development operations in Russia.
Zpryme Research & Consulting is a research-based business strategy firm providing business plans and advisory research services within North & South America, Asia, and Europe. Zpryme’s clients range from Internet start-ups seeking venture capital to Fortune 500 companies’ expanding into foreign markets. The success of the firm is measured by their client’s ability to confidently and successfully enter emerging global markets.
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