The Analytical Center has issued a new report on the development of competition in the country, which concludes that competition in Russia has increased for the first time in four years.
Business Needs to Take Regular Measures to Improve Competitiveness
Elena Kovaleva, Head of Department for Competition Policy of the Analytical Center, told the Kommersant why as competition increases the number of competitors declines as well as what's been going on with competition in the country in general.
"More than half of the respondents admit that business needs to take regular measures, at least once a year, to boost the competitiveness of their products and services and come up with new ways to hold on to their market share," Ms Kovaleva said. Meanwhile the share of those who believe there is little competition has gone down to 22% in 2019, compared to 27% in 2018.
Entrepreneurs operating in such spheres as entertainment, sports, recreation, textiles and sewing, food stuffs and manufacture of non-metallic products noted strong competition in their sectors. The traditionally monopolistic fuel and energy companies, power companies, water and gas utilities as well as chemical, healthcare and social services companies noted limited competition.
However, it's not just the number of competitors that affects the level of competition but also the amount of effort that market players are putting into competing with each other. "The sustained growth in the demand elasticity to price is confirmation that competition is increasing: manufactures are less sure they can sell their product if they raise the price," Ms Kovaleva notes. Thus, 61% of the entrepreneurs said that if the price of their product was to go up 10-15% their sales would go down 10-15% or more.
The Analytical Center presented a report on the competitive environment in Russia at the Krasnoyarsk Economic Forum. 1.3 thousand people took part in the survey with 79% representing very small businesses.
Source: The Kommersant