The Russian fast-moving consumer goods (FMCG) industry made strong gains in 2011, with an 11 percent rise in total sales along with a four percent boost in volume, as Russian consumers increased spending in the second full year of economic recovery. While promotions and a new assortment of package sizes from FMCG marketers, particularly upsized value pack offerings in household goods and personal care products drove most of volume gains, significant double-digit spending increases in large food categories were the primary factors behind the rise in total sales.
Growth rates, however, slowed in the fourth quarter with most of the gains realized in the first part of the year. Stabilizing sales growth is not entirely unexpected, especially in core categories, in the wake of two years of hyper growth during the recovery. Thus, as FMCG brands and marketers look ahead through 2012 and beyond, there are three core strategies to extend recent gains.