CHINA

Consumption pattern –

Market sales in China entered a stable stage in early1990s. The total value of consumption products by
the whole of Chinese society in 1991 was US$3739.7 billion; after taking price rises and inflation into
account. This total consumption reflects an annual increase of 10%. The purchasing power in China is
amazing. The low income and high consumption in China is a new trend. Chinese people have a long
tradition of saving money for later use, but consumption also facilitates economic growth. Consumption
by the population comprises 80% of the total consumption, becoming the dominant determinant of
economic growth. In the past, China’s consumption went through several basic stages. Between 1978
and 1984, Chinese consumption was mainly on food, although consumption in urban areas was slightly
more advanced. In 1992, production in China first went into surplus. The Chinese consumption market
changed in 1996 from a demand market to a supply market. In the future, the pattern and trend of
consumption will have new characteristics. For example consumption in restaurants and on traveling
will increase. The increase in consumption is not even. The weight of consumption in urban areas will
increase as a result of two factors—the increasing population and the increasing per capita level of
consumption. In energy consumption, the level of energy wastage is very high. China’s unit energy
consumption is 30 to 90% higher than the level of developed countries. Coal consumption for electricity
is 30% higher than the international standard of the industry, and coal consumption for cement is 5%
higher than the industry standard. The amount of coal reserves is enormous in North China but less in
South China, more in West China and less in East China. China is gradually developing other kinds of
energy. China’s energy production and consumption must coordinate with the conditions of economic
growth and natural availability of energy resources. The production of energy in China is increasing to
meet the demand.

As a developing country, China’s per capita GNP ranks very low in the world. The purchasing power in
China is, however, amazing. In 1999, the total expenses on commodities came to US$450 billion, which
is three times as high as the figure in 1993, with an annual growth rate of 18%. The low income and high
consumption in China can be explained as follows. First, Chinese people have many subsidies due to the
communist system; the average purchasing power is estimated to be 100-200% higher than the average
income. Second, a small number of people who have just become rich have very high levels of
consumption. These people in general are young, following closely the market trend. Third, Chinese
people have a long tradition of saving money for later consumption. The high consumption in the 1990s
was partially a result of spending the money earned in the 1980s. By the end of 1998, China’s total bank
saving was more than US$5000 billion, that is 200 times as high as the saving before the reform in 1977.
To demonstrate the success of economic reform in China, one can simply check the change in personal
saving. The change in personal saving is 25.5 times between 1952 and 1977 (25 years), while the change
in personal saving was 200 times between 1978 and 1998 (only 20 years). This rapid increase in personal
saving to such a
China’s rapidly expanding consumption offers significant further opportunities to both domestic and
foreign players China’s rapidly expanding consumer market—confident, becoming richer, increasingly
sophisticated, and willing to experiment—offers a strong link between China and the world. It is not only
the prime engine for economic growth but a huge opportunity for international businesses. By 2030, 58
percent of Chinese households are likely to be in the “mass affluent” category or above, surpassing
today’s South Korean share of 55 percent. 27 The spending profile of urban Chinese consumers is
converging with that of their counterparts in cities around the world. Chinese urban consumers are
devoting a greater share of their income to discretionary spending. Spending on food declined from 50
percent of total household consumption in 2000 to 25 percent in 2017. This is already similar to urban
consumers in developed countries today—Japan at 26 percent, South Korea at 29 percent, and the
United States at 17 percent. Multinational corporations in China face a changing competitive landscape
China’s consumer markets are already heavily integrated with the world. Since it joined the WTO in
2001, China has gradually reduced barriers for foreign firms operating in China, and in 2004 it began to
allow foreign investors to operate retailers across all parts of its domestic market. It also opened up
distribution, allowing foreign distribution companies to apply for national licenses.28 As a result,
multinational corporation penetration in China is considerable. Our analysis of top 30 brands across the
ten large consumer categories suggests that foreign multinational corporations’ average penetration in
China was 40 percent in 2017, compared with just 26 percent in the United States. In some categories,
penetration is even higher; for instance, in beauty and personal care, multinational corporation
penetration is as high as

Laws

We can’t force the global brands to accept the particular Chinese name given by others, however,
from their frequent occurred trademark disputes, appa rently they do need to reflect and improve
in some aspects. For example , ( 1 ) if a global brand does not approve a particular Chinese name
given by others at the very start, it needs to take active interference accordingly, promptly
promotes the name chosen by themselves and uses it along with the brand.

Meanwhile, it is needed to make clarification to the public, states the difference between the
particular name given by others and the name they had chosen.

After a while, the particular name given by others will be replaced by the name they had choosen.

Under such circumstance, if the public have already knew the difference, there is no value of the
particular name even it is registered by others. (2)To avoid unnecessary disputes, once the global
brand notices a particular Chinese name given by others, it can register the name promptly though
it does not acknowledge the name. This can prevent others from using the particular Chinese name.
The global brand can have a second thought on whether it will use the name or not in future.
(3) If the global brand does not take the two actions above, at least i t should avoid having
connections with the particular Chinese name regist e red by others in their business events,
especially reminds the marketing and planning departments of the company, to prevent legal
disputes. (4) If the particular Chinese name is registered by others, the global brand can pay to get
the trademark right. For example, Apple Inc. purchased the iPhone trademark from Hanwang
Technology at a price of 3.65 millions USD. However, global brand should not make the same
mistake that Apple Inc. had made over the iPad trademark. (5) If the above-mentions methods do
not work well, the global brands should change the Chinese names.

I f keeping use the particular Chinese name given by others, it will end in a failure. (6) Though many
global brands monitor the the trademark protection status of their target markets, there is still one
aspect they might miss, which is how the local media and the public use their own language to refer
to the global brands. Now the importance of the information on this aspect become prominent.

Observing from an opposite angle, what the global brands have experienced during their markets
expansion in other countries have reference significance to the Chinese brands on their way of
going global.

#1 Localise Your Product

Many companies reach out to us, wanting to create a local version of their product. Often,
they seek to do so by merely translating for the Chinese market. This approach is already
flawed. It is based on the assumption that product-market-fit persists when entering China,
and that the only concern is people being able to access it in their language. Most of the time,
this is not true.

When entering China, you must assume that you have lost product-market-fit and need to
rediscover it. It is crucial to start with a beginner’s mindset and test your current solution in
the new market. Start with a Riskiest Assumption Test (RAT) or Minimum Viable Product
(MVP) mindset in order to validate what is and is not working.

You might find that geographic differences make your product useless. For example, a
company producing high-tech fishing equipment can be successful internationally where
most lakes are natural, but will find itself at a roadblock in China, where many lakes are
artificial and do not have the same ecological or physical features.
Similarly, you might find that while you have been successful in your home market, you are
too early or too late for China. The myriad of customer loyalty tech companies who entered
and failed in the early 2000s were too early. At the time, all retailers had to do to attract new
customers was to open a new outlet. No one was investing in loyalty when the money was to
be made by expanding as quickly as the consumer market that was being created. Customer
loyalty concepts only gained traction later when the market grew crowded, making
competition more lucrative than expansion.

When entering a new market that is as different as China, starting with a beginner’s mindset
is a must. Being overconfident has cost many companies their entire expansion budget
without any success. The secret to success is to test early, test cheap, be open and adapt.

Photo by Nicolas Ladino Silva on Unsplash

#2 Know Your Chinese User: Cultural Context

As a design-centric company, the user of a product or service is always the most important
reference point for us. Users come with all kinds of complexity, including their
demographics, pain points, intentions, and cultural background. The only way to find real
product-market-fit is to be user-obsessed and understand them as well as possible.

Users in China are very different in many ways from those in the West or in other parts of
the world. One key difference lies in cultural background, where Easterners are more
concerned with collectivism than individualism. This makes all kinds of experiences more
inherently social, one big example being online shopping. For Chinese consumers, it is a very
social experience, versus the more mission-driven approach used in the West. Another
aspect is the complexity of Chinese written characters, which leads to a different set of UX
patterns being preferred for their simplicity when dealing with Hanzi (汉字).

It is important to discover these differences in the target audience and design products and
services that deliver value to this specific context. Starting with user research is often a good
first step, followed by prototyping new potential solutions and testing them. Having a strong
customer support is critical, as Chinese users are often quite vocal about their experiences
and expectations. It is both a great way to show that you care and to gain market insight and
intelligence. Let the user tell you about their experience, learn from it, and adapt your
solution accordingly.

Photo by Meiying Ng on Unsplash

#3 Prepare for Technical Difficulties

Depending on how your product is built, it might already not work in China. It is common
knowledge that many international services are blocked by the Great Firewall of China. Yet
there are intricacies native to the technological landscape that one needs to be aware of.

We found out the hard way that any use of APIs, SDKs or similar plug-in services from
abroad can be a key problem. We built a project that required us to port a service to China
with part of our development team in Berlin. We regularly deployed builds and closely
communicated with the customer for testing and acceptance. At some point, the website
went into a never-ending loading loop. After some troubleshooting, we discovered that a
team member had inserted a call of a Python repository that ran through a Google library,
the end result being that it created a dead-end for the loading process. We ran into similar
problems with push messaging services, map services and other standard tools.

Server setup is another important consideration. Even if you are hosting your site on a
whitelisted IP, your service might slow down unpredictably, stop being accessible or prove
largely unreliable. Being serious about operating in China means hosting there.

If you have services catering to customers who move between countries including China, it
means setting up both a global and local solution, and figuring out the relevant amount of
mirroring required to satisfy the customer expectation.

Lastly, depending on the kind of tech you have, you might not be able to get the right license
in China on your own. In some areas of SaaS, ICP licenses are very restricted, and your best
bet to enter the market is to find a local partner who will allow you to operate under their
license on the condition that you share the profits.

#4 Find a Local Partner

The barriers to entry are manifold in China, including language differences, the lack of
access to a business network, connections, and the local regulations on foreign investment
and setup. Having a Chinese partner will help you to tackle many of these factors more
easily, and increase the chances of your success.

In Shanghai, we were unable to find a local partner for the longest time, which meant we
worked to lay all the groundwork and faced the unique challenges of the market alone.
When we finally met an experienced American-Chinese returnee who had been working in
the local business world in a similar field, we quickly reached an agreement to collaborate,
and soon saw a flow of high-profile deals that we did not have access to before.

Another example lies in our work as a digital partner to one of our portfolio
companies. BottlesXO is one of the start-ups we helped to build in Shanghai. They achieved
the strong user adoption and presence they have today by operating with a Chinese partner
from the very beginning. This helped to ease many things, including dealing with authorities
and being able to invest in a restaurant space which houses the fantastic XO bar on the
ground floor.

While entering China alone as a foreign start-up is possible, and given that the legal and
financial landscape has become friendlier in recent years, the barriers to entry are still
considerable. A local partner can help you to navigate these waters and be an invaluable
asset in the long run.

Photo by Denys Nevozhai on Unsplash

#5 Switch to Local Platforms and Ecosystems

Whether your product is a mobile application in your home market or your own online
store selling a physical product, bringing your platform to China means that you will most
likely need to change it. Adapting your product to the local context means examining where
people are used to consuming similar products or services, and adopting that format.

If you are selling products online, it means offering your product through popular channels
such as taobao, and cooperating with a local taobao partner in order to make that possible.
There are many companies specialised in setting up and operating taobao, TMall, JD or
Alibaba stores, which come with all the services you need in order to get started straight
away. Trying to get people to use your own website to buy your product will result in
enormous marketing costs and low sales numbers if you deviate from the channels the
locals are familiar with.

Similarly, many services that enter China, possibly being a native mobile application in their
home market, will need to create a WeChat application as their main engagement channel.
Download rates for international mobile applications are negligible, abandonment rates are
high, and people are already used to consuming a wide range of services (booking taxis,
paying, ordering alcohol, etc.) through WeChat. By approaching users in a familiar
environment and integrating the services they prefer (such as WeChat Pay), you remove
barriers to adoption of your product and increase your likelihood of success.

In addition, many of China’s large technology companies have whole teams and
infrastructure dedicated to your company’s success. By being open to the Alibaba or
Tencent ecosystem and by taking advantage of the opportunities available, you are
dramatically increasing your chances of succeeding by tapping into some of the largest
platforms in the world.
#6 Adapt your Marketing Strategy

We have seen many companies entering China and sticking to a marketing playbook they
created and perfected through roll-outs in various global markets. However, these efforts
often fall short of expectations and fail to deliver the usual results, racking up large bills
without any return on investment.

When marketing your business in China, the key is to adapt your social media strategy to the
local channels and to the different ways in which they are used. Unless you want to target
only the young, tech-savvy and international Chinese, Facebook is not the place to promote
your product. Applying your Twitter strategy to Weibo wholesale will also fail, as people use
the platform differently. Incorporating WeChat into your playbook is a must, given that the
consumer-facing service is also widely used as a platform for corporate marketing.

Another reality is the different roles of social media in China, where it is crucial for every
business to be active on social. Even German B2B industrial companies, some of which are
our clients, have a WeChat presence that they use to interact with their Chinese business
partners and clients. From publishing product catalogues to promoting events and sharing
interesting content, even B2B companies can profit from a strong social presence and actual
engagement, as it is expected and appreciated by the Chinese market.

Before deciding on a marketing strategy, it is also worth observing how other companies
use the local social media platforms for marketing, and set aside smaller budgets for testing
several different channels and measuring the returns.

Photo by Hannah Pemberton on Unsplash

#7 Hire Local

Over the years, we have seen so many foreigners enter the market, believing they know
better. More often than not, that has turned out to be the opposite. China is different and the
only ones close to being experts and knowing it well are the people who live and work there.
Whether it is about the language barrier, the cultural barrier or simply knowing how to
work around certain hurdles and thinking differently, a local team is simply a must-have.

This does not only include the operational employees, but first and foremost the
management and upper levels of the local entity. We have found many extremely bright
people who have made all the difference. They are confident, smart and creative, and run
things in a way that no foreigner in China could.
Hiring for cultural fit is as important as it is abroad. Whatever your company’s values are
and however you define the culture, make sure to maintain that standard and reflect it in
the office you choose, the processes you run and through the people you hire. It is easy to
feel disconnected from your headquarters when everything runs differently locally, so
keeping to global standards ensures that people stay committed and buy into your culture.
It also helps to fight the extensive employee turnover rates which are higher than average in
China.

#8 Pivot and Re-Evaluate in Shorter Cycles

By now it is almost common knowledge that Chinese companies work harder, move faster
and operate more cheaply than their Western counterparts. They are obsessed with success,
learn fast and innovate with enormous speed. Once you have entered the local market and
find a business opportunity for yourself, you can also be sure that local competition will
emerge to take advantage of it.

This will again test your ability to pivot in order to keep your product-market-fit. Instead of
evaluating your business model and value proposition every few years, you must be ready
to make changes to your business regularly. The market shifts constantly and competition
moves quickly. While you may be a valued partner or supplier today, you might not be able
to sell the same proposition tomorrow.
India
The past decade has witnessed a range of changes in global trade paradigms, unveiling new
emerging markets and channels for global business expansion. International exports have
witnessed significant growth. Global merchandise exports grew at 3 per cent CAGR and commercial
services exports grew at 5 per cent CAGR from 2006 to 2016. Global goods trade volumes are set to
further grow by approximately 2-4 per cent in 2018 driven in part by key emerging markets,
offering players ample international business opportunities. A geographical shift is being witnessed
with rising contribution of developing economies in world trade. In value terms, share of
developing economies in global trade stands at approximately 41 per cent of merchandise trade
and approximately 36 per cent of commercial services trade, today. Rising demand from emerging
nations also offers unexplored opportunities for players, which is yet untapped. India’s position in
global trade has seen a significant shift over the last 25 years, evolving both in product mix and
destination markets. As opposed to traditional exports (gems, precious metals, mineral fuels),
Indian exporters are now increasingly focused on technology based, value added products.
Moreover, India’s export destinations are more diversified today, offering a wider spectrum of
opportunities. In this changing context, Indian brands need to reinvent their international focus.
Focus on traditional export markets such as the U.S. and the U.K. is set to witness change. With the
rising digital influence on consumers globally, online as a channel for trade is witnessing growth.
Global cross border B2C e-commerce is set to rise at 25 per cent CAGR to approximately USD1.5 tn
in 2022. Driven by lower prices and brand availability, over one-third of the total global online
shopper-base shop from websites outside their home country. On the technological front,
innovations have enabled easier global physical trade of goods. RFID sensors, IoT sensors, enhance
cost efficiency and improve global product distribution. A widening range of digitally trade-able
goods enable sales across borders with minimal distribution and transportation costs. Emerging
economies present an evolved customer base with rising spending power, and thus opportunities
exist to address these markets with customised products. Tapping high growth markets with a
digital, mobile-first strategy is a key differentiator. Key regions such as Asia-Pacific constitute
attractive markets for expansion - B2C travel and tourism e-commerce market in the region is set to
grow at 18 per cent CAGR till 2022, while apparel, jewelry sectors are to see substantial sales

India is one of the most diverse countries in the world with an amalgamation of various cultures,
thoughts, and beliefs. With 20+ official languages, hundreds of dialects, dressing styles, food habits
and beliefs, the country is a melting pot of different influences. With 30 states and 6 union
territories, India as a marketplace is more like Europe rather than being a homogenous market.
This cultural diversity gives global brands entering the Indian market an opportunity to establish
themselves and form a local connect with their consumers. However, it can be challenging to
formulate strategies for so many different needs. What should global companies keep in mind while
planning to enter India?

Be a part of India’s cultural zeitgeist

Indians love cricket, movies, politics, music, festivals, and food. A global brand will be able to find its
place in the cultural zeitgeist of India immediately if it is able to smartly ride on any of these
opportunities. Companies entering the Indian market need to think what approach can be used
during the next big cricket event. Is there something they can do to ride the wave of the next
elections or can they use the next big festival season in India? This will instantly give a brand
identity that Indians can relate to and establish a more personal connect with their target audience.

Identify the early adopters

Global brands should identify individuals and institutions aligned to their brand’s mission and
under the value proposition. They are typically the ones who are relentlessly in search for
something new and innovative. Feed their hunger to try newer opportunities. Strike win-win
partnerships with such individuals/institutions, and make sure that these are successful. It is
important to celebrate the success of these partnerships so that it inspires the rest of the
ecosystem. Airbnb has successfully used influential personalities from different walks of life to
become part of social conversations and eventually drive usage of their services.

Localise the playbook

India suffers from superficial market entry syndrome. Every other company is attracted to the big
numbers India has to offer. It is easy to get million-odd users, especially for tech companies. But if
you want to make it big in India, prepare yourself to immerse. Have a strategy to win Tier II and III
cities and smaller towns. What works in metros will not work in smaller towns because of cultural
nuances and different market conditions. Think beyond English as the Indian language market is
much bigger and is growing at a faster pace. All global brands have playbooks of success, which
work across markets, but when in India, it's important to localise the playbook to suit the local
culture. Coursera has started offering courses from top-tier Indian institutes like ISB, and this has
resonated well across metros and smaller towns.

Aim for government partnerships

purchase products on credit and pay tomorrow for what they use or buy today. The Indian
consumer market has never had it better. According to a 2007 report by McKinsey & Co., India is set
to grow into the fifth largest consumer market in the world by 2025. There is need to understand,
formulate and successfully implement the changing concept related to consumer behavior because
there are few resources and other constraints to meet the basic requirements of running business.
This study focuses on significant attention of the practitioners and academics researchers which
emphasized on market place ambience, conventional shopping wisdom of consumers, long term
customer services, technologically-

RUSSIA

“Russia remains a critical emerging market for global companies that understand the nuances and
needs of this complex consumer economy,” said Ivan Kotov, a BCG partner who leads the firm’s
Consumer practice in Russia. “Companies that align their strategies with the desires and budgets of
Russian households will find significant growth opportunities.”
The study found evidence that Russian consumers are adapting to the new reality that the economy
is unlikely to soon return to the booming growth it once enjoyed when oil prices were high and the
ruble was strong. After several years in which inflation far outstripped GDP growth, the buying
power of average households has declined—especially for imported goods and foreign travel.

Among the key findings:

 While most Russians are cutting back on goods they perceive as nonessential, such as
alcohol and ready-to-eat foods, nearly half say they intend to spend more in product
categories they regard as important for their well-being. Asked what they value most, an
overwhelming majority of 83% cited “family and home,” while 78% cited “health” as a top
priority.

 Russia’s once-strong devotion to famous brands is fading. Only 24% say that brands reflect
on themselves and their values. But consumers still think brands are important in
categories such as digital media and electronics.

Russia’s health care sector illustrates how shifting consumer attitudes and behavior present
opportunities—as well as challenges—for foreign companies. Soaring prices for imported drugs are
forcing consumers to make hard choices. Sixty-six percent say they try to save money on
medications and 78% on medical services; 33% report that they sometimes don’t buy prescribed
drugs at all because they are unaffordable. The study also found that many Russian consumers are
dissatisfied with the quality of health care services available.

“These findings suggest there is high demand for affordable, high-quality medical services in Russia
that’s not being fully met by public programs,” said Stefan Tushchen, a BCG partner who leads the
firm’s Health Care practice in Russia. “They will increasingly be met by private investors.”

A number of foreign providers, including the Italian medical holding company GVM and
Macedonia’s Acibadem Sistina, are investing in Russian clinics. Others are becoming partners in the
Moscow International Medical Cluster, an initiative that aims to improve access to global treatment
methods. Israel’s Hadassah Medical Center, for example, will open a clinical diagnostic center and
oncology therapy center.

The study also indicates that Russia will remain a dynamic travel and tourism market for
companies that bring the right value proposition. Cost leadership and customer centricity will be
among the key sources of advantage for travel companies seeking to capture the Russian growth
opportunity,” said Nicolas Boutin, a BCG partner and global leader of the firm’s Travel and Tourism
practice. “To win in Russia, companies should use the current economic reset to seize competitive
advantage.”

Russia’s middle class is undergoing phenomenal growth and is predicted to represent 86 per
cent of the population by 2020 with a spending power of $1.3trn. Savvy brands are entering the
market now to target this next big opportunity.

Russia has been, if not in the hearts, then in the sights of Western brands over the past two decades,
as they have sought to gain a foothold in the world’s biggest country while negotiating the political,
economic and cultural difficulties posed by the evolving superpower.

In the past year a number of major brands have made their move, with Apple, Asos and Debenhams
launching in the country, as well as super-franchise Peppa Pig. Meanwhile, Amazon has reportedly
filed documents to open its first office in Russia after online auction site eBay opened an office in
Moscow last year.

Although political relations between the West and East remain tetchy at best, the business case for
entering Russia appears increasingly attractive. Earlier this year, market research firm Nielsen
noted that “stable gross domestic product growth, declining inflation and a record-low
unemployment rate are pointing to positive consumer purchasing power in Russia”.

According to the Brookings Institution, the Russian middle class will grow by 16 per cent between
now and 2020, at which point it will represent 86 per cent of the population and amount to $1.3trn
(£852bn) in spending, up 40 per cent on 2010. Russia, along with other BRIC countries Brazil, India
and China, could contribute to a combined economy larger than the world’s richest countries by
2050, according to Goldman Sachs.

While some brands have stayed away, put off by the challenges of this complex market, others are
targeting Russia as their next big growth opportunity, encouraged by the rise of the middle class
and the government’s efforts to project a more presentable face to the world through events like
the Sochi 2014 Winter Olympics and the FIFA World Cup in 2018.

Marks & Spencer, which is growing quickly in Russia and now has 38 stores there, benefits from the
country’s lack of home-grown fashion chains and a rising demand for its affordable retail offer,
explains international director Jan Heere. He says that the company’s biggest competitors are other
western brands such as River Island, Topshop and H&M, rather than Russian-owned outlets that
are more likely to specialise in luxury goods.
 While it’s unlikely that Russia will soon return to the booming growth it once enjoyed—
back when the ruble was strong and oil prices hit record highs—the economy today shows
signs of stability following the financial crisis of 2014-2016. In fact, many Russians are
ready to spend more than they’ve done in the past on goods and services that matter most
to their quality of life.

At the same time, however, the financial crisis left its mark on Russian households—
personal finances are tight and inflation has outpaced income growth. As consumers
adjusted over the past decade to that new economic reality, they’ve grown more cautious,
pragmatic, and value-conscious.

Yet substantial opportunity abounds in this still-critical emerging market, especially for
global companies that understand the nuances and needs of Russia’s complex consumer
economy. Despite its serious economic pressures, Russia remains a market of 147 million
people with per-capita income around one-third higher than China’s. And although much of
this vast, dispersed nation has some traits of a developing country—such as outdated
infrastructure and insufficient health care—its consumers exhibit characteristics of buyers
in more mature economies.

These findings suggest that companies need to approach Russia differently than they have
in the past. They should develop more sophisticated, customized product and go-to-market
strategies and a deeper presence on the ground. In this report, we examine how Russia’s
new economic reality is influencing consumer behavior, and where consumers say they
intend to spend more and cut back. We also explore how Russian consumer sentiment is
likely to affect three important industries: health care; travel and tourism; and automotive.