IE Singapore's Moscow mission reaps US$50mln sales projection

Mission aimed to provide Singapore companies better understanding of needs of Russian buyers and uncover opportunities.

The first-ever IE Singapore-led consumer electronics mission to Moscow, Russia concluded with promising results. US$50 million worth of sales have been projected for the next 12 months by the delegation of six leading Consumer Infocomm (CI) companies (Hexon Technology Pte Ltd, Bluetree Electronics Pte Ltd, Christel Innovation Pte Ltd, Avov Technologies Pte Ltd, TravelPac Resources Pte Ltd and Trek2000 International Ltd) as a result of the visit. IE Singapore has also identified more than 20 opportunities where they will work closely with the companies following the mission, according to an IE Singapore report.

The three-day mission which took place in April this year allowed participating companies an opportunity to meet with Russian market consultants and businessmen, and to get to know the Russian retail market. The delegation also showcased their capabilities and solutions at the Singapore Innovative Consumer Electronics Showcase, held on 20 April, to key distributors and retailers in Russia.

Some of the offerings displayed included products like Trek2000’s newly unveiled FlucardTM. The FlucardTM is positioned to be the world’s first wirelessly-enabled “insert-and-play” device which enables users to transfer information wirelessly on a peer-to-peer basis or among a community of FlucardTM users. The FlucardTM has also caught the attention of Toshiba who will lead in the formation of a consortium to support the distribution of the FlucardTM. TravelPac Resources also unveiled two new products, the Curve Mouse and the Mushroom Speakers. The Curve Mouse features innovative touch-sensor technology and ergonomic design while the Mushroom Speakers aim to provide ultimate mobility and sound to the user.

Results of Mission
Christel Innovation, a Singapore company focusing on wireless communication is one of the companies that is optimistic about the outcome of the mission as it managed to link up with numerous Russian companies through this showcase.

Christel is now in discussion with various Russian companies to discuss the development of GSM mobile applications. 3.5G mobile multimedia internet communicators, 3.5G Android Smart Phone, HDTV Personal Media Player and more.

“The recent mission up to Moscow has shown the Russians’ interest in the offerings of Singapore companies. Through the contacts that we have made, we are eager to start working with the Russian buyers to introduce our products to consumers,” said Mr Augustine Yap, CEO and CTO of Christel Innovation.

Since the mission, the company is seriously considering Russia as one of the areas to market its products. The mission introduced to this relatively unfamiliar market. Said Mr Sem Chong, Director of Bluetree Electronics, "Our team has gathered very real market pulses and exposure through this business mission to Russia. We now have a more concrete plan on how to best penetrate the local market to address the opportunities identified.”

Optimistic outlook for inroads into Russia
According to Business Monitor International, Russia’s consumer electronics devices market is estimated to be worth some US$17.6 billion in 2010. The consumer electronics market is expected to increase at a compound annual growth rate (CAGR) of around 8.3% to US$24.2 billion by 2014. The Russian market is also attractive because of its large population of 140 million and a relatively low penetration rate in product groups such as computers and digital cameras at the moment.

While not necessarily the cheapest, Singapore companies are nevertheless big on quality – a feature that resonates well with a growing population of brand and quality conscious Russians, tech-literate population in big cities and European Russia with rising replacement rate and demand for high-end products.

The mission was organised for Singapore companies to better understand the needs of Russian buyers and uncover specific business opportunities. “We are pleased that our first Russian mission has concluded with promising projected sales. Through the opportunities secured by our participating companies, we hope that this will pave the way for future delegations up to Russia,” said Ms Lena Ng, Divisional Director for Infocomm and Media Division, IE Singapore.

IE Singapore also has an overseas centre in Moscow that facilitates partnerships between Singapore and Russian companies, including distributors, agents, retailers and manufacturers.