Analysis of Key Sectors of Russia | Opportunities and Investments |
Analysis of Key Sectors of Russia: Infrastructure, Retail, Automobile Market, Tourism, Financial Services (2015-2020)

PUBLISHED

DEC 2017

Analysis of Key Sectors of Russia: Infrastructure, Retail, Automobile Market, Tourism, Financial Services (2015-2020)

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Russia, a country riddled with a troubled past, a recent catapult to prosperity, is indisputably a land of opportunities. The leading country in Emerging Europe, Russia is no stranger to international politics affecting its economy. Indeed, the recent annexation of Crimea, a part of Ukraine by Russia has resulted in disgruntled sentiments across the globe, most particularly in the West.

The fall in Ruble registered after the Ukraine crisis has increased cost of imports, inflation, interest rates, recession and joblessness, and an overall slump in the economy. The Russian Trading System, calculated in terms of the US dollars suffered a drop of about 4%. Even with the MICEX having risen by about 2% in this time, investors remain wary and trade continues to be sparse. The current Ruble value of about Õ”50 against US$1 is a stark comparison with the average of Õ”32 at the start of 2014, registering an average devaluation of about 40% since 2014.

Exacerbating the situation is the drop in price of oil. The Russian economy’s dependence on oil can only be called precarious. Russia has about 87 billion barrels of oil, and about 1163trillion cubic feet of natural gas reserves. Making up about 70% of all export value, and contributing about 30% to the country’s federal budget and a quarter of the GDP, oil’s contribution to Russia’s GDP is projected to further increase to 50% in the coming decades.

It is the increase in global prices of oil that drove the growth of Russian economy between 2000 and 2010, catapulting it to the foremost position in the list of Emerging European countries. The drop of price of oil from US$110 a barrel to about $60 a barrel has resulted in an increase in demand with a simultaneous decrease in investment for new production, leaving the Russian economy vulnerable.

Furthermore, the sanctions enforced by the US moderately impact new exploration and production of shale due to loss of technology Western firms would have introduced, and a more severe restriction on software transfer. While alliances with Asia can solve the latter problem for Russia, over the longer term, its dominance as a world leader reliant on the oil business can be seen diminishing.

However, this also gives the country to strengthen and optimize for output other sectors that have the potential to grow. Markets not closely related to imports have registered only a marginal decline. Despite ranking low on key parameters: 92 out of 112 on Ease of Doing Business, 67 out of 144 on Transparency International, being on the USTR IPR watch list, and being infamous for corruption and unnecessary bureaucracy, Russian markets have much to offer.

A determined drive towards domesticating and localizing production across sectors will account for high growth in the respective domestic industries.

Drivers

Government focus on infrastructural development in transport as well as other sectors in view of the upcoming World Cup 2018 will drive growth in infrastructure. Saturated retail markets in big cities will give way to interior smaller cities. The government’s determined drive to localize production and to increase trade relations with Asia will bring about interesting economic changes.

Constraints

A weakening Rouble, falling investor sentiments, increasing level of sanctions and trade barriers will impact the Russian economy. Furthermore, tighter purse strings will be an effect of the resultant recession, affecting all sectors, from retail to automobiles.

What the report offers

This report will contain micro & macro factors that affect Russia’s market on both Global and Regional scale. It will provide insights pertaining to specified topics and key drivers & restraints for the market particular to each mentioned sector and sub-sector. The report will identify factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a global and regional scale.

It also contains competition analysis on global & regional scale providing region specific assessments. Competitive landscape will contain profiles of multiple companies along with their strategic initiatives and market shares. Finally, it offers a comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.

1. Introduction

                1.1 Report Description

                1.2 Research methodology

                1.3 Definition of the Market

                1.4 Areas covered

2. Executive Summary

3. Key Findings of the Study

4. Market Overview

5. Introduction

6. Economic Indicators

                6.1 GDP

                6.2 GDP Growth

                6.3 Inflation rate

                6.4 Interest Rate

                6.5 Jobless Rate

                6.6 Fiscal Deficit

                6.7 Current Account Deficit

7. Market Segmentation

8. Investment Opportunities

9. Market Dynamics

10. Infrastructure Market

                10.1 Drivers

                                10.1.1 FIFA World Cup 2018

                                10.1.2 Energy Strategy 2030

                                10.1.3 Rail Transport Development Strategy 2030

                                10.1.4 Tier-II Cities Grow

                10.2 Restraints

                                10.2.1 Corruption

                                10.2.2 Select Vendors Benefit

                                10.2.3 Lack of Qualified Engineers

                                10.2.4 Resistance to New Technologies

                                10.2.5 Prohibitive Administrative and Regulatory Barriers

                                10.2.6 International Sanctions

                10.3 Opportunities

                                10.3.1 E-Commerce for Bidding

                                10.3.2 Retail Construction

                                10.3.3 All-Round Investment for Upcoming Games

11. Retail Market

                11.1 Drivers

                                11.1.1 Increasing Per Capita GDP

                                11.1.2 Positive Consumer Perception towards FMCG Market

                                11.1.3 High growth in Small Cities

                11.2 Restraints

                                11.2.1 Crisis Pushes Conservative Spending's

                                11.2.2 Lower Profitability

                                11.2.3 Recession, Inflation

                11.3 Opportunities

                                11.3.1 Online Retail

                                11.3.2 Storage and Distribution

12. Automobile Market

                12.1 Drivers

                                12.1.1 Currency Exchange Value

                                12.1.2 Car and Truck Scrap page Scheme

                                12.1.3 Government Initiative's in developing Local Market for Production

                12.2 Restraints

                                12.2.1 Lower Relative Income

                                12.2.2 High Production Costs

                                12.2.3 Increasing Borrowing Costs

                12.3 Opportunities

                                12.3.1 Low Cost Purchase of Production Units

                                12.3.2 Used Cars Markets

                                12.3.3 Impetus to Local Sourcing

                                12.3.4 Stakeholder of Automobile Companies

13. Financial Services

                13.1 Drivers

                                13.1.1 Skilled Labours

                                13.1.2 Increasing Banking Needs

                                13.1.3 Robust Economic Growth

                                13.1.4 People Tend to Save Money

                                13.1.5 Investments

                                13.1.6 Growing Secondary Market

                13.2 Restraints

                                13.2.1 Low Interest Rates

                                13.2.2 High Non Performing Assets

                                13.2.3 Closed Stock Market for Foreigners

                13.3 Opportunities

                                13.3.1 Broker in Stock Exchange

                                13.3.2 Demat Services

                                13.3.3 Merchant Banking/Investment Banker

14. Tourism

                14.1 Drivers

                                14.1.1 Increase in Online Bookings

                                14.1.2 International Travel Pushed by Depreciating Ruble

                                14.1.3 On Arrival Visa facility to most of the countries

                14.2 Restraints

                                14.2.1 Bankruptcy of Local Tour Operators

                                14.2.2 High Fares

                                14.2.3 High Overall Construction Cost

                14.3 Opportunities

                                14.3.1 Broker/Advisor

                                14.3.2 Travel Agents

                                14.3.3 Resorts/Hotels

15. Industry Value Chain Analysis

16. Industry Attractiveness – Porter’s 5 Force Analysis

17. Industry Policies

18. Infrastructure Market

                18.1 Summary

                18.2 Key Findings

                18.3 Sales

                18.4 Consumption pattern

                18.5 Exports

                18.6 Imports

                18.7 Prices

                18.8 Major Companies

                18.9 Commercial Construction

                                18.9.1 Statistics

                                18.9.2 Key Findings

                                18.9.3 Major Companies

                                18.9.4 Projects

                                18.9.5 Upcoming Projects

                18.10 Industrial Construction

                                18.10.1 Statistics

                                18.10.2 Key Findings

                                18.10.3 Major Companies

                                18.10.4 Projects

                                18.10.5 Upcoming Projects

                18.11 Infrastructure Construction

                                18.11.1 Statistics

                                18.11.2 Key Findings

                                18.11.3 Major Companies

                                18.11.4 Projects

                                18.11.5 Upcoming Projects

                18.12 Institutional Construction

                                18.12.1 Statistics

                                18.12.2 Key Findings

                                18.12.3 Major Companies

                                18.12.4 Projects

                                18.12.5 Upcoming Projects

                18.13 Residential Construction

                                18.13.1 Statistics

                                18.13.2 Key Findings

                                18.13.3 Major Companies

                                18.13.4 Projects

                                18.13.5 Upcoming Projects

                18.14 Market demand to 2020

19. Retail Market

                19.1 Summary

                19.2 Food Products

                                19.2.1 Key Findings

                                19.2.2 Sales

                                19.2.3 Consumption pattern

                                19.2.4 Exports

                                19.2.5 Imports

                                19.2.6 Prices

                19.3 Non-food Products

                                19.3.1 Key Findings

                                19.3.2 Sales

                                19.3.3 Consumption pattern

                                19.3.4 Exports

                                19.3.5 Imports

                                19.3.6 Prices

                19.4 Major Companies

                19.5 Prices

                19.6 Market demand to 2020.

20. Automobile Market

                20.1 Summary

                20.2 Key Findings

                20.3 Production

                20.4 Consumption pattern

                20.5 Major Companies

                20.6 Imports

                                20.6.1 Key Findings

                                20.6.2 Major Exporting Countries

                                20.6.3 Prices

                                20.6.4 Major Companies

                20.7 Export

                                20.7.1 Key Findings

                                20.7.2 Major Importing Countries

                                20.7.3 Prices

                                20.7.4 Major Companies

                20.8 Market demand to 2020.

21. Financial Services

                21.1 Summary

                21.2 Key Findings

                21.3 Financial System

                21.4 Stock Market

                                21.4.1 Key Findings

                                21.4.2 Major Players

                                21.4.3 Major Companies

                                21.4.4 Government Regulations

                                21.4.5 Index and Its Performance

                                21.4.6 Market Volatility

                                21.4.7 Foreign Investment

                21.5 Commodity Market

                                21.5.1 Key Findings

                                21.5.2 Major Commodities

                                21.5.3 Major Companies

                                21.5.4 Government Regulations

                                21.5.5 Market Volatility

                                21.5.6 Foreign Investment

                21.6 Mutual Funds

                                21.6.1 Key Findings

                                21.6.2 Major Commodities

                                21.6.3 Major Trends

                21.7 Insurance

                                21.7.1 Key Findings

                                21.7.2 Major Commodities

                                21.7.3 Major Trends

                21.8 Market demand to 2020.

22. Tourism Market

                22.1 Summary

                22.2 Key Findings

                22.3 Tourists (Country Wise)

                22.4 Major Locations

                22.5 Major Companies

                22.6 Market demand to 2020.

23. Competitive Landscape

                23.1 Existing Companies

                23.2 Upcoming Companies and Projects.

24. List of Figures

25. List of Tables

26. Abbreviations

27. Works Cited

28. DISCLAIMER

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