Kartell Furniture Company, BRIC countries analysis, RUSSIA swot alaysis
Leading design company, symbol of the Made in Italy.
Kartell was created by Giulio Catelli in 1949. It represents the italian excellence throughout the world. Kartell addresses an
international clientele with its particular and colored home accessories. The Italian company has become part of the
domestic landscape and icons of contemporary design .
Kartell now has more than 130 single-brand store
, 250 shop- in-shops and 2500 retailers in (more
than )130 countries .
- Federal Government of Brazil, Democratic Republic.
It’s bicameral: Federal Senate with The Chamber of
- No political instability now, but things can change
especially during elections
- The country has a very big issue: corruption, which is
worsening. According to a survey, Brazil is ranked 72nd
out of 180 countries.
- Corruption: the causes are many for example when
businesses are seeking government contract, or when
business must deal with government regulatory
bodies; new entrants may be forced to commit
bribery to obtain contracts
- High potential for growth and the gap between rich and
poor is declining steadily.
- Central Bank has reduced the risk of currency devaluation
and has brought inflation under control.
- The corporate tax, for import, is set at 15% and there are no
incentives for leaving profits in the country.
- In 2010 the total value of imports in Brazil was USD 187.7
- The 45% of total exports is about raw materials and
intermediate goods and the partners are: China, US,
- The jobless rate in Brazil increased to 7.6 percent in August
of 2015 from 7.5 percent in the previous month, breaking a
fresh five-year high
- Tax levied at a state level. Intrastate transactions are taxed
between 17 and 19 percent, interstate transactions are
taxed at 7 percent or 12 percent, and most imported goods
are taxed at a rate between 18 percent and 25 percent.
- There is a social inequality, the 20% of the population
lives under the poverty line and a huge segment of
people with minimal incomes.
- They still have to create better-quality jobs.
- Portuguese is the language and the urban distribution is
in the major urban areas of Brazil.
- Brazil, in the fashion world is considered modern and
aware of big brands and are keen to buy expensive and
- The development of the country falls behind other
developing economies (China/Russia) and many
companies are reluctant to invest in Brazil’s economy.
- Brazil possesses a weaker technological infrastructure than
Russia’s ones and US, even if there are efforts to push the
development of technology centres.
- Brazil’s IT sector currently ranks 53rd in the world.
- Brazil is a world leader in petroleum exploration in deep
water, also leads researchers on 1st and 2nd generation
biofuels. 80% of the vehicles sold are equipped with biofuel
- - The domestic furniture industry has an important role in
Brazil, in the last ten years, the productivity of this segment
has improved, allowing a strong growth regarding export.
Brazil is characterized by a combination of several
production process, involving the most different raw
materials, whose result brings a variety of sophisticated and
- China is the world's second economy in the world.
- The PRC is governed by the communist party that remains
secure in its position as a sole political part.
- Over the past few years, the government focused on the
development of e-commerce.
- There aren’t any regulations supporting the privacy,
recognition of digital signatures, consumer rights and
validation of electronic contracts yet.→ risk for foreign
companies. But now Chinese government is giving more
protection to the private sector.
- Chinese corporate governance is weak and non-
transparent→ risk for foreign companies in choosing the
right social partner.
- Over the past five years, China’s economy experienced
significant GDP growth rate.
- China’s GDP rate suggests that each citizen is adding more
and more values to the society→ This is in turn increasing
consumers’ purchasing power.
- The labor cost in China is extremely low→ companies tend
to hire workers from the country. But now china is
experiencing rising labor costs promoting some investors to
turn to cheaper destination.
- The growth rate is impressive, but it can slow down due to
the Some of the high inflation rate and high property
- China is the leading global manufacturer with a supply of
USD 183 billion.
- In 2013 China was the second importer in the world. (The
total importation from Italy is about 0,89%).
- Chinese population growth and age distribution fluctuate.
These can alter social trends and cultural values because
family size and social behaviors often impact on decisions.
- There are 420 million Internet users in the country. As there
is internet access, Chinese people often shop online.
Taobao is the largest local e-commerce website, and many
people spend a lot of their things from the site.
- E-commerce has changed how local consumers see
- Corruption, inequalities and rural poverty have lead to an
increase in social unrest.
- The growth of the Chinese market have led to higher life
standards increasing the demand for interior design
elements, but the interchange is still below expectation
with a 3% demand.
- A major technological problem in China is that the
development of the B2C industry does not have a
safe and stable online payment system.
- The increasing awareness of environment protection
promotes how e-commerce causes less pollution and
restricts the damage to the environment.
- Airports, roads, and railways station in China
knowing an extraordinary expansion in recent years.
Thanks to this expansion they provide services to the
- The indian government is a federal republic.
- President has no legislative power in India, he is a
figurehead, Prime minister is head of the government
- The electoral system is based on the American
- In the last 5 years in state and general elections 89
candidates facing corruption charges were given
tickets to go forward as candidates despite these
- The political environment is greatly influenced by
factors as a result, the business environment in India
is affected by multivariate political factors.
- Government debt of GDP is currently 68,05% with a
real growth of rate 5.90%.
- The indian rupee has fallen 27% against the dollar
since 2012 july.
- Due to the deficits foreign investors have become
anxious about entering into the indian market
- The economy of India has been significantly stable,
since the introduction of the industrial reform policies
- The taxation system is well-developed and several
taxes, such as income tax, services tax and sales tax are
imposed by the Union Government.
- India has a population of more than 1.2 billion people
with about 70% between the ages of 15 and 65.
- English language being widely spoken in India has help in
fostering the industry’s relationship and interaction in
India and on the global stage.
- India is one of the few countries to have an increasing
share of working population, since there is great
availability of both skilled and unskilled labour force.
- Potential employment opportunity for women in this
- Large number of universities and institutes. Indian labour
is not only cheap but is technically skilled too. İndian
society is influenced by the 2000 year old caste.
- Family Structure is still very important to Indians İndian
business culture is influenced by their religious heritage.
- India is served with both 3G and 4G technology which
has facilitated several of their technological projects.
- The country also possesses one of the strongest IT
sectors in the world, promoting constant IT
development, software upgrades and other
- Recently, India has also attempted to launch their
satellites into space.
- In the last 10 years India has been falling behind in
terms of their technology infrastructure. Only 10 % of
Indians have access to the internet.
- India is expected to have a social media audience of 88
million this year
- Russia is a federation but there is still the involvement between the central government and the region or local government.
- Open foreign relationship strategy.
- It is a good opportunity for the trade and economic of the country.
- The political instability of the Russian Federation often creates dangerous situations for foreign trade, such as the embargo of
certain products, the least of which the one of fruit and vegetables coming from European countries.
- Russia depends mainly on the natural resources (oil and gas).
- GDP rank -10°. Too dependent on the price of crude oil.
- Its economy is not comparable to other countries.
- The Russian tax system includes federal, regional and local taxes, federal taxes are payable in all Russian regions.
- Regional and local taxes are applicable to companies in the relevant region.
- In terms of Italy exports to Russia, the mechanical engineering sector remains crucial, representing over 40% of our sales.
Then the sector of semi-finished products with 20% is also decisive and, in addition, consumer goods and the Made in Italy:
agricultural and food-beverages (10%), fashion-accessories (9%) and furniture-building (5, 7%).
- In 2013 the average ad valorem duty amounted to 17.2% plus the non-ad valorem duty. After joining the WTO (which for
many furnishing products is expected in 2018) the average estimated duty of 9.8% will be increased by the non-Ad valorem
component calculated on each kg of product
- Russian is the common official language throughout the Russian Federation. National of Russia have additional official
- According to the 2002 census, 99.5% of the populace above age 10 was educated.
- Health care is free in standard not in private sector.
- The difference of age live gap of man and women (women 9-12 years longer than men)
- The large turnout shows that for Russian buyers that Italian furniture means excellence. The recent MadeExpo represents a
major change. We’ve also opened to the interior architecture to give more opportunity to our companies.
- Substantial evidence indicates that Russian capabilities to develop and produce renewable energy technologies are excellent.
- Over the last several decades the Soviet Union conducted research and development on several forms of renewable energy
(including solar thermal, solar photovoltaic, wind, geothermal)
- Russia has also grown and it expands the sector of industry as it provides complete range of mining and extractive industries
producing oil, gas, chemicals, and metals.
- Made in Italy, has been targeting East Europe: first of all Russia, which occupies the third place in furniture market ratings.
- Italy brought to Moscow the main event for design and forniture: WorldWide Moscow
- Russia and China covered the 48% of total tax free buyers in Italy.
- Federal Service statistics underline that only in 2004 the value of all the furniture imported was 1.095,2 million of dollars.
- Furniture sector in Russian market is very strong because of its steady development
- Money exchange, which is high and stable.
- Local industry in Russia is not able to satisfy the demand neither in quantity nor in quality
- 4.8 point on 7 and 35° in infrastructure ranking
- 6° in the Marketing size ranking
- Economy instability.
- The increase of taxation on import.
- In general, the average level of Russian duties, amounting to about 11-12%, is already in line with that of other WTO member
countries. Russia, however, still requires high tariffs in some sectors of our interest (furniture, footwear, clothing, furnishings,
- The Russian system of certification and standardization, customs regulations, phytosanitary, the procedures for registration
and licensing are either complex and expensive. These procedures are non-transparent and not harmonized with international
- One of the challanging problem that Italians investors must face is the still imperfect rule of law operation, the absence of a
secure legal framework and the weakness of the legal order
- The rapid increase of population (from 8 million to 14 million) led to an unprecedented boom in building.
- Statistics reveal that by 2016 new houses for approximately 100 million of mq will be built.
- Income tax deduction of 50 % of mobile purchasing intended for housing and housing renovation
- Total absence of local design brand.
- This market expectations in this country are very high thanks to the increase of income in middle class
- Being present in Russia means opening to new market in a different growing countries like Kazakistan or Azerbaijan.
- The Russian government has accepted the proposal of an Italian institution "guardian which could help the Italian companies
to prevent and, where necessary, solve economic and trade disputes.
- Russian market is worth 1 billion euro and 10 % of exports. For us as italians it’s absolutely strategic.
- There are more than 494 Italian enterprises for design and real estate market.
- International sanctions , oil prices lowering and structural weaknesses of the country have decreased the GDP and
- Bad organization of Finance sector that is inefficient.
- Corruption into the private sector.
- There are many competitors for Russia which have developed their production and commercial system. In particular, we are
talking about Ucraina, Kazakistan and Bielorussia.
- In order to be exported to Russia, the products must comply with a set of security standards. These need to be different either
from the ones in the European market (known with the acronym EC) and in the international market. Only by getting a specific
certificate of suitability Russian you can perform exports in this nation.
FUTURE PROSPETIVE: the future of the Russian furniture market is looking positively bright. Government, in Russia, is planning
big investment to modernize and expand the country’s infrastructure. The Russian market surely will grow.
- The Centre for Industrial Studies CSIL forecasts a +4% furniture consumption growth in real terms for 2013 and for 2014
- Russia has a market with good potential and a very large and rapidly developing furniture market, it offers great potential for
- The market is more attractive when compared with the other main European markets, which are slowly stagnating.
- Moscow is the largest regional furniture market. Besides Moscow, also Saint Petersburg, Samara, Kazan and Nizhny Novgorod
are attracting foreign players with their growing economy.
- The best way to import furniture to Russia is to do it through a local distributor, and most of the foreign manufacturers
operate this way. Another way is to enter the market is to set up a Russian subsidiary or a representative office.
- Russia has very bureaucratic customs procedures, which must be studied carefully. Customs procedures include a payment
(15-45% for furniture) and VAT (18%). It is expected that customs will gradually decrease, and only this will help penetrating
into Russian market.