Trade networks' role in Belarusian market increasing

Trade networks' role in Belarusian market increasing

Fair competition was discussed on June 16 at the Ministry of Antimonopoly Regulation and Trade of Belarus. The ministry notes that trade networks are playing an increasing role in the Belarusian market.

While in 2015, top ten leaders in food products occupied about 30% of the market, now their share is already 40%.

Often, large players do not behave honestly. There are even facts of discrimination in access to the shelves of some manufacturers. Retailers even set a price for an advantageous place on the shelves. Today, more than 100 businessmen - representatives of trade networks and suppliers - gathered in the Ministry to discuss the latest trends and problems.

Irina Narkevich, Deputy Minister of Antimonopoly Regulation and Trade of the Republic of Belarus:
It is necessary to return to mutually beneficial cooperation and not to violate the law. Eliminate the so-called "pay for shelves", "testing", unreasonable discounts, bonuses and more. The new amendments to the Law on Trade include points on the liberalization of business conditions, and barrier-free entrance to the retail market for all.

Restrictive measures will be taken against those who use market power and who build relationships only from the position of market power.

Several suppliers have complained of discrimination on the part of trading networks. Various enterprises have had difficulties accessing shop shelves.

Sergey Anyukhovsky, director of a confectionery enterprise:
Our appeal was related only to one retailer. We were simply denied access, we were replaced by a Russian company (whose products are not of a very high quality: there was misleading information). Our factory conducts a balanced commercial policy, an honest policy towards all networks.

When one retailer begins to break the market, he begins to break sales across all other networks.

Vitaly Tatarov, executive director of the Association of Retail Networks:
The mechanism should be market-oriented. Only market conditions will have a beneficial effect on the market.

Retail networks have recently entered the stage of competition and are forced to raise criteria for the selection of goods.

The networks are confident that an increase in these selection criteria will have a beneficial effect on producers as well - they will increase the quality of their products.

In the near future, trade inspections will conduct checks to verify the complaints received from suppliers. It is expected that after that there will be offered some mechanisms to support producers who make import-substituting and competitive products.