YOUR TRUSTED LOCAL REPRESENTATIVE in RUSSIA and CIS

During 2022 most part of Western brands and companies have declined participation in the new projects development, declined supplying products and decided to leave the Russian market. As a result, by the middle of 2022 a vacuum and a shortage of high-tech products had formed in the machinery building market. By the beginning of 2023 the industrial market began to be saturated due to parallel imports and alternative suppliers and brands from China, Turkey, India, Middle East and Latin America comes to the Russian market.

At the beginning of the summer 2023, the situation with an acute deficit for most of the nomenclature has been leveled and large OEM customers have become more attentive and careful in choosing from alternative suppliers.

Over the decades the Western companies presence on the Russian market, local OEMs have become accustomed to a certain level of service and support from suppliers. Here is the list of the main requirements to be successful on the market:

— high quality products and technical competencies;

— support in the systems development, not just the components supply;

— prompt requests processing and issuing offers;

— communication in local language;

— documents and drawings preparation and coordination in Russian;

— catalogs and reference materials in Russian;

— direct delivery from production site or from a local warehouse ability;

— support of a buffer inventory for a long production and delivery terms cases.

Resulting extremely high Central Bank base rate and focusing on defense related production increase last 2 years we had significant decreasing of machinery-building and special technics production. Therefore parts and components demand for industry has been lowered for several times. 

Considering current 2026 year forecast, it seems that restrictions against Russia will not be cancelled soon, Central Bank’s key rate will be slowly lowered to the end of the year, but it will not come to expected for industrial growth booming level yet. 

But even under the such conditions there are still presented demands for components and to be competitive for the sustainable sales development and market growth, it is required to have a qualified and reliable local native representative and contact person presence in the region.