The Jews open a business in Moscow
BOYCOTT ISRAEL
30.05.2016
Israeli companies enter the Russian market, despite sanctions against Russia and the falling living standards and consumption patterns of the population. From medicines to cosmetics, from premium chocolate to café-kiosks, in which "all 50 rubles," – how Israeli companies are working in Russia, read the material Jewish.ru.
Last week it became known that an Israeli chain of cafes and grocery stores Cofix, which sells all their products for 5 NIS, enters the Russian market. In the Russian cafe company a single price for goods will be almost twice below Israel: coffee, drinks, sandwiches and pastries, meet the season, will be sold for only 50 rubles – significantly lower than in conventional network Moscow institutions of this class.
In the first phase will open three budget cafe in Moscow. They will work on the terms of the franchise: the owner of the network, the company Urban Cofix, has already signed a contract with the co-founders of the Russian project. Launch date is still unknown, but if the first step is successful, the company plans to open in Moscow to 300 cafes, and up to 700 outlets across Russia.
Cofix assumes that over the day in each of their Russian cafes will sell about 2000-2500 items. "We expect that sales volumes will be the same as in Israel. If will be sold less than 500-600 units per day, then it's a failure," says Vice President of Cofix on issues of Commerce and procurement Hagid Snobar. Unlike Israel, which features a Bar Cofix, in the Russian chain of alcoholic products will not sell.
The chain Cofix, was launched in Israel in 2013, and now the company, in addition to dining, also includes Super Cofix supermarkets with fixed prices on goods in 5 shekels. This winter the company has received an investment of 50 million shekels from the Green Lantern Group and, apparently, right now is the expansion of these funds. Network Cofix quite successfully competes with the street coffee-stalls, but with a cozy cafe where you can sit with a tablet or eat in the company of friends, it is hard to compete.
Probably, the owners of Cofix was inspired by the success of other Israeli brands that, despite sanctions against Russia, falling incomes and living standards of Russians, and hence of purchasing power, decided to enter the Russian market and did it very successfully. And examples of these a lot. For example, Israeli bars chocolate brand Max Brenner has opened in 2014 at the franchise on the Colored Boulevard and in "metropolis" and focused on consumers in the higher price segment.
The main focus of the legendary network of chocolate bars does not a coffee, and cocoa products: chocolate range of sentences here is stunning – from thick, rich chocolate to chocolate pizza, fondue and chocolate cocktails. However, according to the official website of the company on the Russian market Max Brenner released flagship only menu chocolate and sweets, and breakfasts, business Lunches, children's range and seasonal offers decided not to run. Today, the brand, named after the founding fathers of max Fichtman and Oded Brenner, is working in eight countries, including Australia, USA, China and Japan. But just for the single European market – in Russia. The prices the company adapts to the market: for example, if the classic European chocolate fondue in Moscow costs 550 rubles, then in new York – already 22.95 dollar, in Israel – shekels 89, however, the set of ingredients there is a little bit different.
In 2001, the Max Brenner brand joined the business Corporation Strauss Group is the second largest manufacturer of products in Israel. Except chocolate brand Max Brenner at Strauss is a portfolio of more than 50 other brands, most of them grocery. Some of them are sold in Russia: for example, the same coffee Ambassador. However, to call this brand an original Israeli product can not be – it was originally designed for the market of Russia, Ukraine and Moldova, and until the summer of 2011 belonged to the Swiss coffee trading house Sucafina, which successfully sold it to Strauss and decided to focus on raw materials and not the final product. The total purchase price then was $10.4 million, and $8 million from them, the Israelis paid for the brand Ambassador.
Hoping to restore the sales of the brand after the crisis, Strauss seems to have taken over the distribution of coffee throughout existing distribution channels, but in October 2012, the media reported that Strauss Group is negotiating the sale of its Russian subsidiary with the main players in the coffee market is Nestle, Kraft Foods and Sara Lee. It was expected that from the sale of the Russian division of the company could fetch $ 200 million. However, Strauss Group is either not found, then the buyer or are unable to agree on the price, but the brand Ambassador is still owned by an Israeli company.
Other examples of the successful release of Israeli companies on the Russian market is, of course, cosmetic brands. Among the most popular cosmetic brands hailing from Israel – AHAVA, Dead Sea, Moroccanoil, GIGI and Christina. In Russia they have their own boutiques, but there are official representative offices or distributors who supply stores and beauty the original product.
The scale of the use of Israeli cosmetic products on the Russian market is that given the huge number of dealers who sell goods without coordination with the headquarters of the brands to establish the exact volume of sales and output time stamps for the market is almost impossible. But something you can still find: for example, the same brand of cosmetics GIGI, existing in Israel since 1957, in Russia officially only imports company LTD Amedis – she represents the brand since 2002 and works with regional representatives across Russia. Exclusive rights to distribute the famous brand of tools and accessories for hair Moroccanoil, founded in 2006, Russia has, "<url> beauty", which already has a network of more than two dozen regional companies representatives.
For the Israeli company Teva is one of the world's largest producers of pharmacological and main generic manufacturer – Russia remains one of the largest markets, despite the scandal that erupted last year.
Then a Russian court ordered Teva to pay its Russian distributor "Biotek" 408 million rubles of lost profits for failure to cooperate in a five-year framework agreement for the supply of the drug "Copaxone-Teva" from 2010, organizing the supply of Russian pharmacies through its new subsidiary, OOO "Teva". Anyway, we remain big plans for the Russian market:in March 2016, the head of the generic pharmaceuticals division of Teva Siggi Olafsson said that now the company is going to focus on consumer healthcare business – now on sales in Russia in this segment in eighth place, and in the prescription segment for the fifth.
The Russian market has not been easy for the Israeli clothing chain Castro, in 2011 she had to close its franchise in Russia, opened in 2004. This happened after one of the Russian partners network, the company "Plaza-Groups", has not paid her required contributions to the $ 1 million voluntarily, and had to return on account of Bank guarantees. And although Castro turned his physical presence on the territory of the Russian Federation, on its website, the network is still officially accepts orders for delivery to Russia.
From a competitor of the network – the Israeli company Fox – business on the Russian market are better. In 2007, the network of shops of casual wear has successfully entered in Russia by opening several of its stores, and then began to open stores in the franchise. Now it has nearly 20 outlets in Moscow, Chita, Yakutsk, Irkutsk, Tver and other cities.
How well it takes root in Russia marketing model Cofix "all 50 rubles," will become clear soon. In any case, among the Israeli companies in the Russian market of competitors it still there physically.
source : http://www.jewish.ru/theme/cis...
