Orcanta in Russia

Résumé du document

Russia is one of the largest markets in the world. As the western culture slowly infiltrated the eastern mentality many young people began adopting western culture and appearances. In the past few years Russia has not only began to accept western ideas and fashion, but has developed an energetic and affluent middle class. This has increased the demand for luxury markets that had been closed to the western world. In this environment Orcanta has found a lucrative opportunity to expand its operation and allow more people to enjoy the high quality products that it sells. The business environment in Russia has experienced many changes in a relatively short amount of time. Until recently the government was in charge of all production; and western goods were unable to be sold to the populace. After the fall of the Socialistic government several new barriers arose to hinder foreign investment. Besides normal, expected risks, Russia has unique and important qualities that should be addressed. We have divided the risks of entering the Russian market into political, legal, banking, logistical and competitive barriers.

Extraits

[...] c. Banking During the first years of capitalism in Russia many banks failed, creating a severe distrust of monetary institutions. This has slowed the integration of credit cards, bank loans and proper saving policies into Russian culture. According to Kristofor Pavlov Russia is one of the riskiest banking countries in Europe. See appendix Banking System Risk Vs Country Risk d. Currencies It's very important to know the exchange rate between ruble and euro because it can influence the sales price. [...]

[...] For example a items which cost France will cost in Russia 26.25 with the of logistic cost. Despite the presence of similar retailers in the Russian market, we will set our own prices at the upper end of the lingerie market, because our product is a premier luxury item, made with the best quality materials * + 5 = 26.25 Distribution: All the products will be collected and stored in a French warehouse; then, they will be sent, in bulk, to the French and Russian Orcanta retailers through private transporters. [...]

[...] In order to make this enterprise successful there must be extensive and accurate market research to make sure that there is a significant market for this product. In 2004, the rise of the real incomes of the Russian population was almost generating a significant increase in consumption of 12%. So the retail sales increased by 12% in 2004 in 2003) and the imports, which cover half of the demand of the households, by 25%. The current economic context of Russia is rather favourable. [...]

[...] The Brands Ocanta offers their customer a very large range of high quality French lingerie brands such as: Anita: Maternity underwear especially produced for pregnant woman. Armor Lux: A luxury brand which specializes in pips and camisoles. Aubade: Aubade produces provocative, sexy lingerie, mainly bras, panties, boxer shorts, basques and garter belts. Chantal Thomas: Sexy and very feminine underwear Huit: Classic and natural feminine underwear Lejaby: sells a large range of underwear from classic to sexy Lise Charmel: A very high quality product, Lise Charmel collects the most beautiful materials. [...]

[...] See Appendix map of Russia 4. Internal Analyze Orcanta is a member of the Chantelle Group. They have a turnover 300 million euros, among which more than 60% is realized in the international market. The chain of lingerie Orcanta was created in 1996 and runs 64 shops in France. In 2005, the turnover of Orcanta was 49 million euros[4]. In order to be competitive with the intense competition in the lingerie industry, The Chantelle Group relies on its expertise of their high quality beauty and feminine body products, and on its know-how of the creation and the distribution of their products. [...]