There are no direct competitors for the herbal chest pack. This is a big plus.
The economic situation allows planning alliances with the local healthcare companies. This may help decrease production costs and gain stability on the market.
Russian Healthcare Industry is very complex for foreign companies to enter. The potential of the market is very high; there is a lack of innovative medicine. Russian local producers are not able to satisfy customers’ needs, that is why a lot of foreign companies want to enter the market with their products. However, not all of them succeed in this, because the regulations are complex, laws differ from the European very much and it is hard to understand how it all works
There exists a tendency of increased attention to health products. This is the result of healthy lifestyle that is so popular nowadays in Russia. Herbal chest pack fits to this concept perfectly well and is very likely to become popular among people who are living the “healthy way of life”. .
Russian people, especially of the older age trust the medicine that was used or is still used by their parents. People are afraid to try something new; they are convinced that if a certain pharmaceutical helped their parents, it will definitely help them. Changing habits is difficult. It is very hard to combat this conservatism, and younger generations in this term are easier to work with.
Traditional Medicine implies that there are no artificial ingredients in the product. This is a great opportunity for promotion, because there are no chemicals in the herbal chest pack.
There is big increase in the number of people suffering from respiratory organ’s diseases which indicate the growing potential for the market.
Very fast-developing technologies of indirect competitors
Technologies develop very fast. Despite the fact that local Russian producers are in lack of financing, there is still a possibility of new products and technologies on the market. Foreign companies may also be interested in exporting their innovations to Russia.
As mentioned before, government has a Long-Term strategy of development the Healthcare industry; it is concerned about innovative products. If our company will form the strategic alliance with a Russian producer, there exist possibilities of financing the medical researches, which may become the next stage of the development.
Russian climate is very tough, especially in the central Russia, with all Siberian autumns and winters. Every year a great number of people get ill. And it is actually very easy to become sick in every season. So, the demand will be stable with some signs of boost during the epidemics.
Growing herbs in the artificial conditions is quite expensive. Besides, sometimes it is impossible to grow them in these conditions. In Russia there are a lot of forests in almost all the regions. Moreover, herbs that are gathered naturally are valued more.
The patent is needed for production, because there are no direct competitors and it is necessary to certify the exclusivity of the production. However, the procedure of getting a patient is very complicated in Russian Healthcare industry and this may become a serious obstacle.
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