4. Krasnodar City Info

Basic Krasnodar city information:

Territory:  873 sq.km.

Population (2005): 1 million people.

Retail Turnover per Capita (2005,F): USD 1,240.-

Average Annual Income per capita(2005F): USD 3,600.-

In general, Krasnodar’s population shows a strong purchasing power.  The economic data from the city suggests a relatively high average income of the employed population.  According to the State Statistic Services average wages in Krasnodar exceed USD 300.- per month (or USD 3,600.- per year); this shows that Krasnodar has exceeded the Russian wage average of USD 3,360.- per year).  Independent research shows that the (real) net average salary in Krasnodar is about USD 400–450.- per month.  The 2005 increase of income of Krasnodar inhabitants is approximately 20%.  This creates a strong basis for the consumer market development.  Approximately 60% of Krasnodar residents belong to the Russian middle-class.There are several indicators that indirectly demonstrate a prosperous well-being and sufficient purchasing power in Krasnodar:

·                    250,000 registered cars (almost every family has a car);

·                    High density of mobile phones;

·                    2.5% of population (40,000 people) of Krasnodar people use Internet daily (one of top 10 Russian most active Internet-using cities);

·                    Price level for apartments in Krasnodar vary between USD 1,100-1,300.- per sq.m[1].  Top apartments are sold at USD 1,400,- per sq.m. and higher[2].  This price range is the same as in other leading regions of Russia such as Nizhny Novgorod, Kazan and Perm.

In first nine months of 2005 the Krasnodar retail turnover increased by 17% compared with the same period in 2004, totaling USD 2.3 billion.  As GRP per capita grows, the volume of retail turnover also rises.  In per capita terms, retail turnover may be easily compared with the biggest Russian cities, Moscow and St. Petersburg (USD 3,800.- and USD 3,360.- per capita in 2004, respectively).

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[1] October 2006 data[2] October 2006 data