Franchising in Russia: facts and figures, the Expo

Despite the country’s dependence on oil prices, Russia has some positive potential for investment. In many cases the break-even year can occur already in the first year of investment. Due to globalization, Russia will have to effectively use resources and improve its competitive environment. The country is intensively promoting international economic links and establishing conditions to attract foreign investments.

Nowadays Russia is facing a franchising boom. Euromonitor evaluated the Russian fast-food segment at $6,66 bln and predicted 200% growth by 2014. Businesses and entrepreneurs turn to franchising models. This market has quit a good potential for overseas players.

Doing business in Russia is often associated with certain risks, and it is usually recommended to have a reliable partner. Franchising can be a key to establishing effective partnerships and it is the right time to seek for franchises in Russia.

Foreign franchisors form 35 % of Russian franchise market. Many international brands are very popular in this country. The Fashion retail segment is still growing. The number of chain-stores may increase by up to 20-25%. Most franchising companies in Russia mainly represent the restaurant and fast-food sectors, footwear, clothing and accessories shops. It is quite likely that other areas will find niches in Russia.

Moreover, favorable conditions are created in Russia to give impetus to creating new small and medium enterprises. SMEs are likely to enjoy serious political support from the Russian authorities. Franchising is a perfect way to promote SMEs.

Lately franchisors have started expanding into smaller towns and cities with a population of 200,000 - 500,000. Nevertheless big cities are still attractive for investments. For example Moscow, a city of 18 million, so far has only about 300 pizza restaurants — compared with 4,000 in Manhattan, which has a population of about 1.6 million.

BUYBRAND Expo - one in kind all-CIS franchising venue is the biggest Franchise exhibition in CIS countries and Eastern Europe. BUYBRAND gives its visitors the opportunity to get a good feel for the franchising industry in Russia as well as the Food & Beverage industry in the market. During ten-year history (2012 BuyBrand will celebrate a jubilee) exhibition has become a launching pad for dozens of successful franchising projects and one of the most important events for partnership and franchise business in the world is. Visitors of BuyBrand - is, first of all, entrepreneurs interested in finding a business partners. As well as exhibitors, visitors come to BuyBrand from all regions of Russia and abroad.

The exhibition is always accompanied by an extensive business program. For example, in 2011, Business Round table was attended by heads of franchise associations, executives of major international networks, representatives of state structures. Outstanding event exhibition program is the traditionally awarding of winners of National Award in the field of franchising "Golden Brand".