"RBC Daily": “RUSSIA WILL BE LEADING THE WORLD IN TEN YEARS’ TIME”
An interview with Michael Peters, head of the branding company Michael Peters and Partners
MICHAEL PETERS, a design and branding consultant and head of the Michael Peters and Partners (MP&P) company, is confident that now is the time for Russian companies to invest in their brands. In an interview with RBC Daily correspondent ALEXANDER KLENIN, he said the Russian market had a big potential and described how Russian top managers could succeed abroad.
Q: You have said many times that your business thrives in a crisis. Do you really believe the time to do the rebranding is now?
A: Yes, the time is just right. If a company waits until the crisis passes, it will be a latecomer. At the time of recession the rebranding can be done at the least possible cost and more effectively. I can already see that many Russian companies want to take advantage of a new post-crisis market.
Q: One of your postulates is that for a brand to be a success it must have its own niche. But is it always important for the brand to be different and have a niche of its own?
A: I like the example of Apple. Many stand to learn a lot from the way it developed its technologies, came to occupy its niche, and used design. It is cardinally different from its competitors. Russian companies should look to Apple and follow its lead, but in a different setting and with a new angle. Then they will be able to repeat its success. How can a company producing ordinary nuts and bolts compete with others? By being different from them. It is necessary to position your brand, use the right communication to set your brand apart and launch the right publicity campaign. This is what I understand by being in one's own niche. Today, in Russia, I will be even more revolutionary, because this fits with your country, which wants to make a quantum leap. Russians want to get rich, and quickly. And they have every chance to do so. They just should not fear taking risks.
Q: What kind of risks are your clients prepared to take?
A: Each case is individual. Everything depends on the economic sector. There are conservative and open-minded companies. But most companies already want to think along new lines. The so-called cloning stage is past and over. Now is the time for investing in your own brand so that once the crisis is over everybody sees you as the leader. Investments should be made both in creative things and in a strategy as a whole. I will be frank with you: Companies that have wound up their campaigns because of the crisis may disappear after the recession. And this is already happening, because a new generation of businessmen has arrived who say: "Well, this is a difficult time, but I believe in myself, in my company, in my values, in my staff, and I can project a future brand. I know how to do that."
Q: The USSR was one of the strongest brands in the world. Can you say that the "Russia" brand is a relaunch of the USSR brand? How much of the Soviet past should be left in Russia's image, and what must be discarded?
A: In the years that I have been coming to Russia I have spotted a business streak in Russians that is absent in many other nations. As I look at Russian businessmen today, I see their tremendous potential. I see an entrepreneurial spirit that had slumbered for years. It can be said that I have discovered Russian businessmen, their aspirations and their opportunities. Russian companies and the Russian Government should realise that branding is part and parcel of our communication. And if the state supports them, Russian companies will be really able to become global brands, such as Coca-Cola or Microsoft. I am confident that in the next five to ten years many of your companies may come to dominate the world. And Russia may turn into one of the largest brands as a state.
Q: Does the political situation affect brands with state ownership associated with a particular country? For example, following the episode with Georgia and the hysteria raised in the Western press, Russian companies might be labelled "red menace". How can they shake it off?
A: Of course, the political situation does affect business. And when the conflict erupted, I talked with many experts who were wondering if Russia was moving backwards, to its old sources. I am no judge of who was right in the conflict, but at least it showed that whenever a state, just like companies, does something that goes against the grain with others, business suffers. And that is natural. With companies, things are like this: From Russia they look at the world, and from the world, they look at Russia. It is a two-way process. Not one Government in the world is immune to a crisis, especially a political one. But by itself Russia is an excellent partner and one pleasant to work with. Many realise this. That is why I am here. Businessmen in Russia are good partners, they are interesting, they seek success. I am very positive about the Russian market. If I were a gambler, I would bet on Russia. She is a future world leader. This concerns Russian brands especially. You just wait and see: Very soon many Russian companies will become global.
Q: What do top Russian company managers need to become successful?
A: They must be open to everything new. They are all creative and your country has also always been creative. I like it when Russia wants to expand beyond its borders and break rules. To think unlike others. Not all nations have such a trait. Israel, too, sometimes tries to play different. Russia, on the other hand, strives for success, and wants to achieve it quickly. Russians are confident of their success. They want to be head and shoulders above others. And many foreign companies cooperate with Russians just because of this. This attitude appeals to them.
Q: How much has the West changed in its attitude to Russian companies in recent years?
A: A great deal. Just five to ten years ago the perception was quite different. Russia is a slumbering giant. Yet it is advancing against all odds. And the West does not see it as aggression, but views it more with surprise that Russia can pursue its ideas. And that it is doing this very quickly. Russian companies are smart and well informed. And they ignore many problems frustrating businesses in other countries. And learn from their mistakes. You have lots of energy and drive. Young companies will develop rapidly, especially with state support, and emerge beyond the boundaries of your country. I repeat: In ten years' time Russia will be leading the world.
Q: You have been a consultant to such a prominent political leader as Margaret Thatcher. Whom of the Russian leaders would you like to advise here?
A: I am very interested in Mr Putin. I like him because he believes in what he is doing, and wants to improve the state's image. He does a great deal by speaking on behalf of Russia and Russian companies. Mr Putin is a brand by himself. If he turns from policy to business, he can easily launch a commercial project. For me Mr Putin is like Margaret Thatcher: he is strong, determined and sometimes uncompromising, but he always comes out under the flag of his country so that everybody knows what Russia is. Margaret Thatcher has always done the same to advance Britain's case. I therefore equate Mr Putin with her. When we in Britain had a crisis, strikes and revolts, she was able to remedy the situation. In a sense she re-packed Britain, regaining for her country the respect it deserved. Russia, too, is facing lots of problems. And there is scepticism in the world towards Russia. But Mr Putin will all the same be seen as one of the greatest historical leaders. And perhaps historians, just like me, will compare him to Margaret Thatcher. In the impact he has on his country.
