Companies that align their strategies with budget-conscious households will find many opportunities in Russia.

1. MAY 2018
Russian Consumer Sentiment 2018
Russian Consumers
and the New
Economic Reality

2. 1
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 1: Russians’ budgets squeezed by inflation outpacing income growth
11% 13% 5%
Inflation,
% year—on—year
Source: Russian Statistics Agency
1. Converted from RUB into USD using 2016 average exchange rate for comparability.
6,000
4,000
2,000
0
4,655
2013
4,986
+7%
+10%
2016
5,519
2015
+1%
5,470
2014
CAGR
2013-
2016
10%
6%+7%
+10% +1%
Average per capita
annual income
(USD1)

3. 2
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Text Unhealthy categories
-10%
20%
60%
40%
-20%
20%
0%
10% 30%-20% 0%
Restaurants
& outside food
Household goods
Alcohol
Confectionary
Soft drinks
Frozen goods
Bread &
pastry
Utilities
Personal
services
Drugs &
vitamins
Medical
services
Dairy products & eggs
Fruits &
vegetables
Education & self-development
Entertainment
Purchase of auto
Travel & tourism
increased spending in last 2-3 years
Baby food
Fish & seafood
Telephone &
internet
Medical insurance
plan to increase spending next year
Meat
Baby goods
TobaccoReady-to-eat food
Charity
Decreased and plan
to increase
Decreased and plan
to continue decreasing
Increased and plan to
continue increasing
Increased and
plan to decrease
GroceryServices Non-food
Exhibit 2: Consumers plan to cut back on “unhealthy” products but spend more
on fresh foods and education
Source: Russian consumer sentiment, 2017

4. 3
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 3: High-priced medicine means 33% go without
23
11
33
25
24
36
12
25
Don't buy
medications
Buy cheaper
alternatives or generics
9
4
Never (0%)Rarely (0-10%)Sometimes (10-30%)Often (30-75%)Almost always (>75%)
Source: Russian consumer sentiment, 2017
How often do you avoid buying
prescribed medicines because they
are too expensive?
33%
61%

5. 4
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 4: Consumers save on travel in several ways
46
44
42
33
33
32
31
19
9
-28
-31
-29
-35
-40
-43
-43
-59
-71... chosen more expensive travel destinations
... traveled abroad more often
... traveled within Russia more often
... traveled more on short-distance
... chosen more often car or train instead of airline
... planned and booked more journeys by myself
(w/o travel agents)
... chosen cheaper travel destinations
... decreased frequency of travel
... started planning in advance to save money
Source: Russian consumer sentiment, 2017
Note: Disagree = disagree and strongly disagree; agree = agree and strongly agree
Please indicate if you agree or disagree with the following statements: I have...
Agree Disagree % of respondents

6. 5
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
Exhibit 5: Russian consumers have become more positive about buying a car
12
19
-6
-5Next year
Last 2 to 3 years
Source: Russian consumer sentiment, 2017
% of respondents
% of respondents who…
decreased/ plan to decrease spendingsincreased/ plan to increase spendings

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