BRANDS LEAVING AND STAYING IN RUSSIA: VCIOM: Russia Public Opinion Research Center

BRANDS LEAVING AND STAYING IN RUSSIA

Russians understand why foreign companies leaving the Russian market embarked on the brand name change but they are afraid that the product quality may deteriorate.

30.08.2022

MOSCOW, 30 August 2022. Russian Public Opinion Research Centre (VCIOM) presents the findings of a survey about new owners and names of the foreign companies in Russia.

Amidst economic sanctions many foreign companies had to leave the Russian market and sold their businesses to the Russian business. As a result, the companies we are familiar with have acquired new owners and names (“Vkusno I Tochka” instead of McDonalds, “Stars coffee” instead of Starbucks). Russians tend to perceive this strategy in a positive way (43%). They are less likely to have neutral opinions (39%). And only every seventh respondent does not appreciate such changes in the Russian market (15%).

Differences in answers are shaped by generations. Positive attitudes towards running foreign businesses under new names are mainly expressed by older Russians (49-53% of those aged 45+), whereas young respondents aged 18-24 are more likely to have negative opinions (31% vs. 9% of those aged 60+).
Perceptions of running an “old” business under a new name also correlate with the urbanization rate. Every second rural area inhabitant perceives the idea favorably (47% vs 39% of residents of Moscow and St Petersburg). The share of metropolitan residents who dislike this idea is twice as higher than the number of rural area inhabitants (25% vs. 11%).

Every tenth respondent believes that the quality of goods and services has improved after the ownership was changed (11%); this opinion is popular with Russians who appreciate the idea to run a foreign business under a new name (17%). One-third of respondents are undecided (33%). Roughly the same number of persons point out deterioration in quality (30%). This stance is often shared by men (38%), young people aged 18-34 (55-48%), residents of Moscow and St Petersburg (41%) and million-plus cities (37%). A quarter of respondents have not mentioned any changes (27%). Russians are predominantly sceptic in this issue; however most of Russians have not made up their mind regarding the quality of goods and services.

VCIOM-Online Russian nationwide telephone survey was conducted 20-23 August, 2022. A total of 5,000 Russians aged 18 and older took part in the survey. Respondents selected through stratified random probability-based sample completed an online questionnaire. Probability-based panel participants are recruited on a daily basis during Sputnik CATI survey; survey is based on a random sample of mobile phone numbers from a complete list of telephone numbers in use in Russia.

Some foreign companies have recently started to sell their business in Russia; new owners run their business under a new name. For example, “Vkusno i Tochka” instead of McDonalds, “Stars Coffee” instead of Starbucks. How do you generally perceive this practice - positively, negatively or neutrally? (closed-ended question, one answer, % of total respondents)
	Total	Men	Women	Ages 18-24	25-34	35-44	45-59	60 +
Likely positively	43	41	45	23	32	41	49	53
Neutrally	39	38	40	45	43	41	37	36
Likely negatively	15	19	12	31	23	16	11	9
Don’t know	3	2	3	1	2	2	3	2

In your opinion, will the quality of the same goods and services improve, deteriorate or stay the same after the foreign businesses have been sold? (closed-ended question, one answer, % of total respondents)
	Total	Men	Women	Ages 18-24	25-34	35-44	45-59	60 +
Improve	11	8	12	2	9	12	11	12
Deteriorate	30	38	24	55	48	32	22	17
No changes	27	24	28	25	23	26	28	28
Don’t know	32	30	36	18	20	30	39	43

Topics:

Economy