Like representative offices of the manufacturers operating in Russia, all these distributors are based in Moscow. In addition to pharmacies there are 50 thousand small pharmaceutical kiosks. Russia has only about 10 pharmacies per 10,000 of people, compared to 14 in Poland and 30 or more in Western Europe. The number of pharmacies may be a key area of growth in the near future. Western firms typically enter the Russian market by initially working through local distributors and buyers and, if this goes smoothly, possibly broadening their activities to include joint production agreements with local partners.
Some companies start by opening representative offices to market their products in Russia.
If they wish to, they can later form a Russian legal entity with the right to directly buy and sell within Russia. Some doctors have started to work as distributors of pharmaceuticals and medical goods, especially vitamins and food additives. Doctors often agree to become distributors because they are underpaid at their primary place of work. U.S. companies may note that working with and promoting your product through Russian doctors has already proven an effective marketing approach. Pharmaceutical products are subject to mark-up limitations imposed with the purpose of holding retail prices.