September 12, 2023
EEF
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The role of media in economic cooperation and development of Russian and Asian SMEs
On September 11, at the Eastern Economic Forum, business discussions on promising areas of business in the context of market transformation were held in the section “International cooperation in a changed world.” The session titled “Support and Development for SMEs: The Role of Media in Russia–Asia Economic Cooperation” was the central platform for discussing support programs for entrepreneurial initiatives and the role of media in scaling a business. Representatives from key structures involved in advancing Chinese partnerships, along with top media company executives and local business leaders shared their perspectives on the current situation.
The development of small and medium-sized businesses has become an integral part of the current agenda. Today, the SME segment is turning into a significant economic sector that attracts a lot of investments and provides extensive opportunities for growth. As a result of foreign companies withdrawing from the market, new favorable niches have emerged for both local and Asian players to develop.
Current economic conditions contribute to the effective cross-expansion of Russian and Asian branded products. Such mutually beneficial cooperation not only stimulates the development of domestic business, but also helps to form of a new product and economic landscape in Russia and Asia.
Alina Efimova, Deputy CEO of Sales and Business Development at Gazprom-Media Sales House, moderated the session.
At the beginning of the session, the participants discussed the development dynamics of the SME segment, government support measures and the strategy for stimulating this area in Russia.
“Micro, small, and medium-sized enterprises are quite literally the backbone of the world economy. They are the engines of economic growth and employment, accounting for 90% of the world’s enterprises, up to 70% of all jobs, and 50% of GDP globally. In today’s Russia, there are already around 6 million small enterprises, employing 30 million people,” said Alina Efimova.
The development of trade relations between Russia and China is showing rapid growth. Vitaly Mankevich, President of the Russian-Asian Union of Industrialists and Entrepreneurs, provided statistics on the interaction of Russia and China.
Over the past seven months, commodity turnover between Russia and China has grown by another 36.5%, reaching approximately $135 billion. Russian imports from China have increased by 73.5%, and Russian exports are also showing positive dynamics. Thus, trading is becoming now more balanced, having reached 19.5 billion dollars in July 2023.
Kirill Babaev, Director of the Institute of China and Contemporary Asia at the Russian Academy of Sciences, Chairman of the Academic Board, Doctor of Philological Sciences, talked about the trends and prospects for the further development of economic relations with Asian partners.
A turn to the East is a trend that—and that’s clear—will exist for a long time. But the sooner it starts, the sooner our companies go to Eastern markets, the sooner they will be able to interact effectively with our Eastern partners, the better it is for the country and for most organizations.
Zhou Liqun, Chairman of the Union of Chinese Entrepreneurs in Russia, also mentioned that he believes in building long-term partnerships with representatives of Russian media.
Mass media play an extremely important role in the development of enterprises, setting businesses apart from their competitors, and expanding opportunities for economic cooperation between businesses and nations. Media facilitate dialogue between participants in economic processes, exchange cultural values, and establish long-term friendly relations.
Moving on to the topic of media, the experts agreed on the importance of that aspect both in the development of long-term strategic economic relations between Russia and Asia, and in the SME segment.
According to Alina Efimova, traditional media such as TV, radio, and outdoor advertising play a key role in the entry of Russian companies into the Chinese market, as well as in the domestic development of SMEs.
Konstantin Mayor, the owner and CEO of Maer Media Holding, noted the growing demand for advertising opportunities, and also declared a renaissance in the media industry.
Over the past year, more than 30,000 new brands have emerged, and they all require media support. The market is actively recovering, and we now see a lot of enterprises occupy the niches left by foreign players.
Dmitry Mednikov, Managing Director of Russian Media Group, talked about the importance of media in brand building.
In my opinion, small and medium-sized businesses that do not aspire to become larger enterprises are not legitimate. In this sense, the path of such enterprises lies through the media. If a company works with people and a mass audience, then in any case, it can not turn into a great business without first building a brand and establishing stable relations with society. That’s why media create an ecosystem of relations between businesses and various communities that share interests and values. And the market transformation enables enterprises to expand nationally, and then internationally.
Igor Vetryuk, Chairman of the Primorsky Regional Branch of the All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses OPORA RUSSIA, also stressed the importance of media tools, saying that the type of promotion depends on the category, so the media effectively perform their work for a specific target audience.
All forms of advertising are important and sought-after, as each promotional channel serves its own unique purpose. Big brands required traditional media with wide reach in order to, first of all, maintain brand awareness. For suppliers, it’s better to build mutually beneficial relations with retail chains, while bloggers and advertising in digital resources with various targeting strategies do a great job as a performance tool.
Another discussion block was devoted to a dialogue with the SME segment. Business representatives shared their experience of using outreach tools to promote their products.
Denis Bykov, Chief Financial Officer of Etazhi-Vladivostok LLC, is convinced that a properly structured media mix makes it possible to support sales in the competitive real estate industry.
Refusing TV placement immediately results in a 15–20% decline in sales. Refusing outdoor advertising also results in a drop by 15–20%. Radio has less of an impact on us. When advertising campaigns end, demand decreases by 5%, which is a very high figure during the peak season. Therefore, traditional media have been present and will remain in our media mix for many years to come.
Valery Zhilin, Marketing Director of Azbuka Mebeli LLC, talked about business scaling.
We experimented extensively and found the ideal media mix for our needs, which includes TV, radio, and digital advertising. TV and radio are effective in boosting brand awareness. During a branded search, potential buyers visit an online store and express interest in specific products. Subsequently, we “catch” them by using retargeting tools and demonstrating relevant products. This strategy is effective for businesses with a large online storefront.
Mikhail Trufanov, CEO and founder of Yokee trading company and House Media agency, talked about a surge in demand for Chinese goods.
The demand for Chinese products is actually very high. Our commodity turnover increases two- or even threefold every month. People are actually ready to buy Chinese products.
The session ended on a positive note. Alina Efimova, Deputy CEO of Sales and Business Development at Gazprom-Media Sales House, presented Friday the Panda, an influencer of the Friday TV channel, to the Chairman of the Union of Chinese Entrepreneurs in Russia as a symbol of establishing productive relations between Russian and Chinese partners in the media segment.
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