McDonalds to grow in Russia
Retail October 25th, 2007
When real growth happens the first ones’ to be very visibly present are McDonalds and Coke. These two are very powerful global brands.
Moscow Times reports a Bloomberg wire :
McDonald’s plans to open 30 locations in the country this year and accelerate the pace of expansion in the next two years, taking advantage of rising sales in the region.
“Russia will be one of the key countries where McDonald’s will see growth,” Ian Borden, chief financial officer for Russia and Eastern Europe, said Tuesday. “It’s a big country, the income levels of people are growing very quickly and the market is not developed yet.”
McDonald’s will continue to run all of its Russian outlets “in the short term” and will consider franchise openings “in the longer term,” Borden said.
The company’s two main challenges in the country are finding employees and rising competition, Borden said. “You have to develop people to fill positions as you grow,” he said. “There will continue to be more competition on the market. … It’s good as you want to be better, and consumers need choice.”
Economies 2.0
It is very true that western european countries are not the game changing market and the growth rate is very small. It is countries like eastern europe are the game changing market where retail and CPG industries are concentrating. Also with increase in consumption and changing lifestyle the buying patterns changes.