Research of cleaning products market in Russia. Sample report, study dated October 2011. Full and updated report can be provided upon request

1. Cleaning products
market research
BRIF Group| http://en.brifgroup.biz | October 2011

2. Table of contents
Project scope 3
Key findings and conclusions 4
Distribution 6
Offered product lines: existing product groups (market niches) of cleaning products in
Russia
7
Offered product lines: other products distributed in the same channels as cleaning
products
9
Product groups competing with cleaning products/technologies that are distributed by
the largest distributors
10
2BRIF Group | http://en.brifgroup.biz

3. This report is a part of a more comprehensive study.
The full report contains 25 top cleaning products distributors in Russia selected using the following
criteria:
1. They sell cleaning products to customers in various sectors,
2. They sell cleaning materials in specific market segments,
3. They have a strong market share and/or strong presence in specific market segments.
Distributor list includes data on top 25 distributors in Russia: company name, website address, address,
contact person, phone, fax, email, market share estimation, regions of supplies.
Please email info@brifgroup.biz for purchasing the full version of this report. The research can be
updated upon request.
Project scope
Project scope was defined by an EU producer of cleaning products that was considering an opportunity
to launch sales in Russia.
Project scope includes analysis of Russian market trends based on expert interviews and desk research:
1. Market survey of cleaning tools, products and materials. Market development steps, trends, major
differences from European market, professional associations and their tasks.
2. Distribution options: major and minor distribution channels for local and foreign products, product
flows between companies of different profiles existing in the market (e.g. distributors, wholesale,
contracting companies etc.).
3. Offered product lines: existing product groups (market niches) of cleaning products in Russia; other
products distributed in the same channels as cleaning products; product groups competing with
cleaning products/technologies that are distributed by the largest distributors.
BRIF Group | http://en.brifgroup.biz 3

4. Key findings and conclusions (1/2)
Sales volume of cleaning companies amounted to USD 1 billion in 2010 in Russia. (1, 2)
Moscow currently holds significant market share of approximately 50% of Russian cleaning services
because the market started to develop from this region 10+ years ago. (2)
Cleaning services in St-Petersburg began to develop in 2003-2004. (2) Cleaning services in other
regions began to develop later due to regional expansion of Moscow retail chains that had been
outsourcing cleaning services in their Moscow supermarkets and head offices. (1)
Demand for cleaning services will probably increase by 20% in 2011. (1)
Demand for cleaning products and tools will probably increase by 40% by 2014-2015, according to
Procter and Gamble’s forecast. (3)
Cleaning market growth drivers are:
• Delayed demand from the companies that preferred to insource cleaning services during the
2008 crisis;
• Demand in markets which have reached pre-crisis financial status – e.g. hotel market,
construction market. (1)
Owners of offices and commercial property consume 80% of cleaning services in Russia. (4)
Cleaning companies are not using cleaning technologies (neither cleaning supplies, nor cleaning
equipment) as competitive advantages in their promotion materials. (5)
Needs for professional cleaning both inside and outside buildings are higher in Russia than in
Europe, due to:
4
Demand for cleaning products and tools will probably increase by 40% by 2014-2015 in Russia.
 More severe climate (longer winter);
 Roads in winters are often scattered with chemicals (not gravel) which are brought inside buildings on shoe soles.
Interest to Green cleaning* is emerging in Russia. The topic appeared in Russian mass media in 2006 and is discussed until now.
However, there are no cleaning companies specialized in Green cleaning yet. The most advanced cleaning companies apply standards
HACCP and INSTA 800 (1, 5, 6, 7).
Sources: (1) Cleaning market review, (2) R-trends.ru review, (3) «Stationary»
magazine, products review, (4) Websites of 10 leading Russian leading companies, (5)
Article at news.mail.ru, (6) Hazard analysis, Wikipedia, (7) Article at egecarpet.com
BRIF Group | http://en.brifgroup.biz
52%
28%
20%
Russian market for cleaning
services (4)
Moscow
St-Petersburg
Other cities

5. Key findings and conclusions (2/2)
Processes and performance
Salaries amount to 75% of costs within Russian cleaning companies. Wrong choice of cleaning
equipment and materials increases labor intensity. Therefore training on correct choice of
cleaning equipment and materials is crucial for cleaning companies business success. (1)
Such training is usually provided/ sponsored by cleaning tools and supplies producers and
distributors. This is an efficient way to communicate with customers (cleaning companies) and
to increase their loyalty to cleaning products.
Locally produced cleaning supplies are approximately 20% cheaper than imported. (2)
Local producers cannot compete with Western brands within specialized market niches, for
example, protection of floor coating. (2)
There are 2 major cleaning industry associations in Russia, both of them established by
producers, distributors and other companies operating on cleaning market (3, 4):
1) Association of Russian Cleaning Companies (ARUK) established in 2000. ARUK participates
in development of industrial legislation in cooperation with the Government of Russian
Federation, in implementation of national and regional industrial projects;
2) International Cleaning Companies Association (ICCA) established in 2002. ICCA promotes
cleaning in Russian regions, introduces international experience and achievements in
Russia, provides legal support to its members.
Distribution
There are less than 100 companies that distribute cleaning supplies and tools in Russia.
Some of these companies concentrate on equipment distribution, or cleaning services, or are
focusing on mono brand sales.
5
Locally produced cleaning supplies are 20% cheaper than imported and are usually of lower quality.
Sources: (1) Interview with Alexander Doroshenkov, manager Vileda
Professionals, (2) CleanNow forum, (3) ICCA members, (4) ARUK
members
Example of cleaning tools promotion (1):
Vileda Professionals provides free training to
cleaning companies management on efficient
choice of cleaning equipment.
Vileda Professionals provides free training to
cleaning companies field workers on cleaning
technologies use. Vileda Professionals has 2
training managers as members of staff in
Moscow.
BRIF Group | http://en.brifgroup.biz
75%
25%
Russian cleaning companies
costs structure
Salaries Other

6. Distribution
6
Foreign and local cleaning materials are usually distributed via specialized distributors. Exclusive
distributor deals are frequent on the market.
Sources: (1) Interview with Ekaterina FEdotova, manager Vileda
Professionals, (2) Tana Professional, (3) SpetsSintez, (4) Creoline
Local
producers
Foreign
producers
Distributors
Contracting
companies
1 2
Vileda has a representative office in Russia, but is not selling directly to cleaning companies. Sales are
implemented only via distributors. (1)
1
2
3
4
Minor channels
Major channelsRussiaOther
countries
End customers
4
5 3
5
Large contracting companies are able to directly purchase supplies, tools and equipment from largest
producers.
Promop is a Russian company producing cleaning tools. It also distributes Tork & Vileda.
CJST “MS FinStyle” is an exclusive distributor in Russia of Tana Professional cleaning supplies, ICCA
member. (2)
Specsintez and Creo distribute their chemical products via dealers. (3, 4)
BRIF Group | http://en.brifgroup.biz

7. Offered product lines: existing product groups
(market niches) of cleaning products in Russia (1/2)
7
Distributors most frequently include 2 brands in each product group
3 major product groups within Russian cleaning market supplies are: cleaning supplies (or products), daily cleaning materials (or tools), cleaning
equipment. (1, 2) Typical product groups of large cleaning products distributor include:
Cleaning equipment Cleaning tools Cleaning supplies
■ Cleaning carts and buckets
■ Sponges, brushes, mops etc.
■ Wiping materials
■ Means of individual protection (gloves, glasses
etc.)
■ Mudguards
■ Professional cleaning supplies (so
called “chemistry”)
■ Cleaning supplies and materials for
kitchens
■ WC hygienic products and equipment
(liquid soap dispensers, towels
dispensers, liquid soap, tissues etc.)
■ Cleaning equipment (vacuum cleaners,
washing and drying machines etc.)
■ Ceaning circles for floor washing
machines and spare parts for vacuum
cleaners
Sources: (1) Interview with Konstantin Zemlyakov, Cleaning Director, Premier
Service (2) CleanNow, (3) websites of top cleaning materials distributors
Distributor Cleaning equipment Cleaning tools Cleaning supplies
Clean Market Ready Machines Vileda •EcoNobel
•Hygiene products (Lime, Tork)
Clean Master •Johnson Diversey
•Rubbermaid Commercial
Products
Vileda Professional, 3M,
Kimberley-Clark Professional,
Rubbermaid Commercial Products
3M, Kimberley-Clark Professional, Rubbermaid
Commercial Products
Axioma Trading •Cleanfix •Vileda •SpetsSintez
•Hygiene products (Lotus, Tork)
Vikont •Columbus
•Gmatic
•Vileda Professional
•Unger
Buzil, Farmos, Ecolab, Johnson Diversey, Lotus, Tork,
Kimberley-Clark)
Table 1: Sample product / brand portfolios of leading distributors
BRIF Group | http://en.brifgroup.biz

8. Offered product lines: existing product groups
(market niches) of cleaning products in Russia (2/2)
8
There are 393 disinfectant suppliers in Europe (4), and only 6 major
disinfectant suppliers operate in Russia. (1)
Disinfectants are sold as a separate product group by few distributors
in Russia, e.g. Detergo, Axioma Trading, Alians Plus.
Examples of cleaning product brands positioning in different market
segments (11, 12)
Premium
Medium
Economy
Franklin, Ecolab, Kiehl,
Hagleitner, Envirodri,
Promop
Spartan, local production
Quantity of disinfectants’ suppliers vs. size of population
Disinfectant brands Products profile
Uralstinol Bio Medical institutions, food production, home use (5)
Orion Medical institutions: tools, surfaces, skin,
specialized (6)
Velt Group Food production, medical institutions, transport,
personal hygiene etc. (7)
Metropolitan 168 Distribution of Chinese disinfectants (8)
Lad Company S.R.O. Industrial chemicals (9)
Bentus Laboratories “Sanitelle” antiseptic hands gel (10)
Table 2: Activity profiles of companies selling disinfectants in Russia
Sources: (1) Disinfictants1.com, (2) Wikipedia, (3) Wikipedia, (4)
Disinfictants1.com, (5) Uralstinol Bio, (6) Orion-Med, (7) NPO VELT, (8)
Metropolitan 168, (9) LAD Company, (10) Bentus Laboratories, (11) Forum
CleanNow, (12) Forum CleanNow
Prochem,
Butchers,
Chemspec,
Vileda
Russian market is less saturated with disinfectant
brands than EU markets
BRIF Group | http://en.brifgroup.biz
6
7
10
11
19
20
49
50
112
142,3
8,3
10,8
60,4
47,1
64,7
81,8
16,6
62
0 50 100 150
Russia
Austria
Belgium
Italy
Spain
France
Germany
Netherlands
UK
Population, mln people (2, 3)
Disinfectant suppliers (1)

9. Offered product lines: other products distributed
using the same channels as cleaning products
9
Cleaning products are often added to office suppliers product portfolio. Cleaning products distributors,
in their turn, add various non-cleaning products to their offers.
Office suppliers
Retail “stationary” companies specialized in corporate office supplies
usually add cleaning products to their product portfolio alongside with
household appliances, food, souvenirs, dishes and house wares. (1)
Cleaning products sold via “stationary” companies are usually non-
professional and consist of: cleaning supplies (“household chemistry”) and
tools. (1)
Mass promotion of professional cleaning products started around 2007 in
Russia. Cleaning carts were introduced in 2008. (1)
75% of non-professional cleaning products are imported (1)
Cleaning tools
■ Tools for dry and wet floor
cleaning,
■ Accessories for cleaning of
windows,
■ Tools for cleaning of open
air territories
■ Etc
Cleaning supplies
■ Hand washing products,
■ Floor and carpets
cleaning products
■ Window and furniture
cleaning products
■ Products for canteen and
dishes cleaning
■ WC cleaning
■ Laundry
■ Air fresheners
Cleaning products distributed via “stationary” suppliers
Product groups Sample
distributor
•Books and posters
•Materials/equipment for cleaning industrial
zones (blades, scrapers, squeegees, brushes,
buckets etc.)
•Trash bags
•Ashtrays and trash bins
•Hand dryers
Azbuka Chistoty
•Cleaning tools for glass Cleanfix
•Household (non-professional) cleaning supplies
and tools
Vikont
•Tools for cleaning outside (in the street)
•Ventilators (fans) and heaters
•Office and hotel interior design elements
Vse dlya uborki
•Shoe cleaning machines
•Snow removing machines
•Laundry supplies and materials
Detergo
•Materials for interior design
•Table cloths and napkins
Alians Plus
•Glass mats Axioma Trading
Table 3: Product groups distributed via cleaning products
distribution channels
Sources: (1) «Stationary» magazine, (2) web-sites of top cleaning
materials distributors and stationary distributors
BRIF Group | http://en.brifgroup.biz

10. Product groups competing with cleaning
products/technologies, that are provided by the
largest distributors
10
Consistent distribution policy, above average product added value and clear communications with
distributors and contracting companies resulted in Prochem’s winning Russian market (2009-2010)
Chemspec Prochem
Product: Chemspec is considered a high quality brand, premium segment.
Cleaning experts appreciate its product portfolio, including niche products
such as enzyme stain remover, RX All Purpose removing even old blood spots.
Chemspec products need to be carefully outwashed. It requires more powerful
cleaning equipment than an average contracting company uses in Russia.
Chemspec Formula 90 caused cough and throat spasms to may users. (1)
Imitation (forgery) of Chemspec products by Chinese producers resulted in a
negative impact on product perception by customers. (2)
Product: Prochem is considered a high quality expensive
brand, premium segment.
Prochem’s competitive advantages consistently promoted by
Radnik are ”quality, availability, regular supplies, additional
services from the distributor”. (3)
Distribution: Chemspec was distributed by Training & Resource Bureau (TRB),
cleaning supplies distribution was not its core business. Chemspec’s client
service was poor (e.g. client manager would be on vacation without a
substitute; products were unavailable regularly and average delivery terms of
2 weeks were uncompetitive. (3)
Another distributor Rotex cleared Chemspec stocks in 2009.
Distribution: Prochem’s leading distributor Radnik used to
concentrate on selling supplies for regular cleaning. (3)
Price (3): Textile Rinse 5L RUR 614.25 dilution 1:100
Formula 321 Traffic Lane Cleaner RUR 1166.25 dilution 1:32 no wool-safe sign
Concentrated Liquid Defoamer 5L RUR 1064.25 dilution 1:200
Browining Treatment 5L RUR 463.50 ready to use
Proce (3): Fibre & Fabric Rinse RUR 973.00 dilution 1:2—1:30
Prespray Gold RUR 1429.12 dilution 1:32 wool safe
Liquid Defoamer RUR 1375.84 dilution 1:500
Browning Prescription RUR 916.96 dilution 1:5, 1:1
Prochem’s products have higher prices and higher
concentration, than Chemspec’s. (3, 4)
Present market position: Currently chemspec is distributed in Russia by
another company Procarpet.(5)
Present market position: Currently Padnik continues to
distribute Prochem in Russia, delivers seminars and consults
contracting companies online. (4)
Sources: (1) Cleaningclub.ru, (2) Cleaningclub.ru, (3) CleanNow, (4)
Radnik, (5) Procarpet
BRIF Group | http://en.brifgroup.biz