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The Kalashnikov Concern Has Announced Its Development Strategy And Introduced A New Brand

The Kalashnikov Concern, a subsidiary of the Rostec State Corporation, is introducing a new brand as part of a new development strategy for the company. Through this strategy, the Kalashnikov Concern is looking to expand global sales, revenue, and production volume. A unified brand portfolio has been developed, which includes the separation of familiar names into three distinct product roles: Kalashnikov for military weapons, Baikal for hunting rifles, and Izhmash for sporting rifles. The original press release in its entirety can be read below:

Brands

Concern Kalashnikov announced its development strategy and introduced a new brand

Moscow, December 2, 2014 – Concern Kalashnikov, a subsidiary of the Rostec State Corporation, has introduced a new brand. Rebranding will play an important role in the implementation of the Concern’s new development strategy, which is aimed at expanding the reach of global sales, growing revenue by a factor of four times, and expanding production volumes to 300,000 units per year.

Rostec CEO Sergey Chemezov noted: “Concern Kalashnikov occupies 95% of the Russian small arms market, and in accordance with the new strategy it will increase production to boost sales worldwide. However, in order to compete with world leaders, we need a clear, strong and recognizable brand.”

During the event, Concern Co-owner and CEO A. Yu. Krivoruchko announced the company’s development strategy through 2020. The main priorities include releasing a wide range of competitive products on the world market, improving the efficiency of production processes, and constructing a modern management infrastructure. The investment program of 4.5 billion rubles makes it possible to replace obsolete machines, which make up to 90% of what the company owns, reduce the production area, reduce costs and increase productivity several-fold. In order to develop the export potential for military products, the Concern identified 50 countries that have the greatest potential to acquire firearms. The Concern will focus on developing an international network of dealers and service centers for its hunting and civilian weapons, and it will also harmonize its product line. Due to restrictions on arms sales to the US, the Concern has made adjustments to its civilian products promotion strategy. It is now focusing primarily on supplying products to the Asia-Pacific region and Africa.The implemented rebranding represents a key element in the Concern’s expansion into new markets and the expansion of sales in the civilian sector. It will form the basis for the creation of a new visual identity and the creation of a consistent look and feel for distributor areas. It will also serve as the basis for a line of clothing and accessories.

As part of the rebranding, a unified brand portfolio architecture was created, including the Kalashnikov corporate brand and the following three product brands: Kalashnikov military weapons, Baikal hunting rifles, and Izhmash sporting rifles. Thus, the Concern’s entire product line has been unified. In addition to new corporate and product designs and brand books, the Concern has managed to develop a naming system for all weapon models that the Concern produces.

The rebranding of Concern Kalashnikov is part of a unified strategy of the Rostec State Corporation to update its image and rename its holdings and subsidiaries in order to strengthen their position on international markets and increase the capitalization of the state corporation over the long run.

www.kalashnikovconcern.com

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11 Responses to “The Kalashnikov Concern Has Announced Its Development Strategy And Introduced A New Brand”

  1. Chuck says:

    SSD, any intel on expansion into the United States? Perhaps as a way to skirt Executive Order 13662? How much of an “interest” does Kalashnikov Concern have to gain in order for the Executive Order to apply?

  2. mark says:

    Another option would be to partner with another country for the importation of sporting rifles, similar to what is being done with the Arsenal Strike One being made in Italy.

    For example, having the majority of the parts made in the Izmash plant, then having the receivers stamped and assembled in Finland by Sako/Tikka, then imported and distributed through Berretta.

    They need to find a way around it; it’s hard to imagine asian and african civilian shooters replacing the US civilian firearms market for Saiga’s.

  3. rob k says:

    “Skirting” EO 13662 isn’t as easy as a casual reader might think.. Sanctions via OFAC’s SDN and Blocked Persons list generally apply to any derivatives of the original holding company. The ‘teeth’ in a sanction is that any bank that interacts with the US (through say Fedwire or CHIPS) run a real risk of being fined heavily for enabling any banking with a Designated entity – even if that banking takes place outside of the US. Violations do, and will continue, to happen, but after HSBC got fined $1.9B in 2012 for sanctions violations banks arent turning a blind eye either..

  4. Chuck says:

    Interesting.