Parallel imports - substitution of Western brands

The Synergy.Online platform hosted a webinar "Parallel Imports: Current Trends, Implementation Practices, Risks". Event participants  discussed the pricing of products within the framework of parallel imports and situations where parallel imports can be an effective solution. The webinar was attended by Vitaly Mankevich, President of the Russian-Asian Union of Industrialists and Entrepreneurs, Anna Fomicheva, Vice President of the Russian Union of Industrialists and Entrepreneurs, co-founder of the DigitalVED business platform and Natalia Zolotykh, Vice President of the All-Russian Public Organization of Small and Medium Enterprises OPORA RUSSIA.



“We are faced with the so-called price scissors, when distributors are forced to provide additional costs for parallel imports through third countries, purchase lots are split up, as a result of which distributor discounts are “eaten up”. At the same time, we see that Russia at the same time risks losing a number of incomes: iPhones or other electronics are no longer cleared through customs in Russia, but in Kyrgyzstan, Armenia or Kazakhstan, and retail sales are declining. Due to a significant increase in the cost (up to 50%), Russian consumers prefer shopping tours to Kazakhstan or Armenia to purchases in Russian retail,” Vitaly Mankevich noted in his speech. .

As part of the discussion, the participants noted that it cannot be ruled out that European manufacturers in their contracts with distributors will not prescribe conditions under which the latter will be prohibited from selling goods to Russia.