Offline electronics retailers are increasingly frustrated by the uncompetitive prices on marketplaces, which are achieved through excessive discounts.
On February 6, the Association of trading companies and manufacturers of electrical household and computer equipment (RATEK) sent a letter to the Federal Anti-Monopoly Service (FAS) of Russia complaining about the low prices set by marketplaces on electronics.
According to the association, this pricing strategy makes it difficult for national retail chains to compete. RATEK is asking the service to evaluate the legality of marketplace actions under antitrust laws.
Retailers argue that marketplaces are driving prices down to unsustainably low levels, sometimes even at their own expense. RATEK members believe this constitutes illegal dumping and interference in the pricing policies of third-party sellers, which harms the rights and interests of industry participants.
“Such dumping by marketplaces has led to a shift in customers to their platforms, resulting in a 16% decline in sales of electronics and household appliances in retail stores in 2024,”
the letter, seen by RBC, states.
By the end of the first half of last year, marketplaces had become the primary sales channel for smartphones, accounting for 36% of the market in unit terms. Previously, federal networks like “M.Video-Eldorado,” DNS, and others were market leaders, but their share fell from 40% to 34% during the same period.
According to a RATEK representative, the price difference between marketplaces and physical stores ranges from 20% to 70%.
“Marketplaces unjustifiably lower prices, often making them even below the cost of goods. This is a negative anomaly in the Russian market that leads to dramatic consequences for sellers,”
the representative emphasized.
As a result of the dominance of marketplaces, retail chains are forced to scale back their operations to optimize costs, including closing stores, reducing product ranges, and switching to an agency model (selling goods from third-party vendors).
The association representative explained that this not only leads to job cuts and reduced tax contributions from retail companies, but also to a decline in the quality of the shopping experience — lower availability of safe and high-quality products, difficulties with meeting warranty service conditions, and so on.
A representative from FAS confirmed receipt of the association's letter, noting that the appeal will be reviewed according to the established procedure.
Source: RBC
