In Russia 72% of regional enterprises have never had experience in selling their own products outside the country. Only 28% of small and medium enterprises have sold their goods at foreign markets.

These conclusions were made by experts of the analytical center of Synergy University after conducting surveys among 5.2 thousand owners of small and medium businesses.

At the same time, it turned out that during the pandemic the share of companies that sell products abroad increased. Thus, for the 9 months of this year the growth was about 25%.

As follows from the study, the majority of surveyed entrepreneurs live and do business in the Central Federal District (26%), the Volga (19%), Siberian (15%), the Urals (11%), by 8% in the Far East and South, in the Northwest (7%), in the North Caucasus (6%).

Groceries are produced by 22% of entrepreneurs, 12% - materials for construction and repair, 6% each produce textiles, automotive products, clothing, furniture, interior decorations and decorative accessories, and 5% each produce goods for creativity, electronics, perfumes, household chemicals, clothing and goods for children.

Most companies (30%) sell their products in their city, 27% - throughout Russia, in their region - 18%. Products are sold in Russia and exported abroad 14% of respondents, another 10% sell their products in several regions. Only 1% of Russian companies export.

Impact of the pandemic

The majority of Russian entrepreneurs (83%) pointed to the importance of exporting during the pandemic.

At the same time 85% of the surveyed entrepreneurs stated that they intend to start exporting in the nearest future. Of these, 40% plan to sell abroad within two years and 25% plan to do so in 1.5 years. Nearly one in five (18%) intend to start supplying goods abroad in six months and 17% in the next two months.

51% of businessmen said they would like to trade on international marketplaces. Almost half of respondents (41%) plan to launch sales abroad on online and offline platforms. To sell their goods exclusively offline in retail stores 8% of respondents intend to.

As stated by more than half of the entrepreneurs (60%), the pandemic and quarantine restrictions had a significant impact on their decision to expand markets. The remaining 40% did not associate the crisis in any way with the desire to sell abroad.

What slows down the development of exports

Almost half of respondents (48%) admitted that they know nothing about the mechanisms of export, approximately the same number of owners (40%) have only superficial information. Only 12% are well informed on this topic.

Entrepreneurs whose plans do not include exporting abroad (39%) stated that their lack of such desire is due to their lack of understanding of the specifics of promoting goods abroad.

Nearly every fifth (22%) is put off by ignorance of foreign markets, the same number of owners (23%) have no idea how to organize logistics. Large costs associated with the launch of sales abroad is feared by 16%.

Approximately two-thirds of respondents (63%) have not been trained to promote products outside of Russia. At the same time, one in ten is familiar with the tools of trade in other countries.

One quarter of businessmen (24%) intend to study the subject in the future, while 3% have no plans to do so.

E-commerce

The vast majority of entrepreneurs in Russia (85%) want to focus on online sales in the near future.

Prior to the pandemic, 20% of entrepreneurs sold their products on marketplaces, while 70% did not go to such sites. One in ten owners traded both on marketplaces and offline.

After the pandemic was announced, the share of companies which sell goods online increased to 25%.

Made in Russia // Made in Russia

Author: Ksenia Gustova