In the past three years, declining oil prices and international sanctions have taken their toll on the Russian economy, plunging the country into financial crisis. Between 2014 and 2016, GDP fell by 1.5 percent per year on average, and private consumption by 7.1 percent. Recently, there have been glimmers of recovery—driven in part by a modest rebound in oil prices, a growing agricultural sector, and increased trade with China—and growth is expected to be as high as 1.5 percent in 2017. Still, consumer spending remains substantially below precrisis levels, and purchasing power has weakened due to the devaluation of the ruble.

Russia’s changing retail and consumer landscape brings new challenges but also new opportunities. The most successful companies will be those that can best make data-driven decisions, manage their customer relationships, and keep costs under control.

Here's how companies can win in this evolving market.