The press service of the Ministry of Industry and Trade told socialbites.ca that the Ministry of Industry and Trade does not expect a shortage of pads and diapers.
“90% of the domestic market is domestic producers, 10% is imports. The annual production of gaskets is 2.3 billion packages (327 billion rubles). No deficiencies are expected. The press service of the Ministry of Industry and Trade did not receive requests from retail chains regarding the lack of supply of such products to the Ministry of Industry and Trade of Russia.
Earlier, the Ministry of Industry and Trade noted that the demand for personal hygiene products is increasing. The department described the purchase of diapers and pads as “unreasonable and exaggerated.”
Procter & Gamble announced three weeks ago that it was narrowing its product range and price increases in the Russian market. P&G produces Prima diapers, Ariel, Tide, Lenor, Myth powders, Fairy detergent, Oral-B toothbrushes, Always, Naturella, Concealed pads, Tampax tampons. At the same time, the company did not specify exactly which goods will be limited in supply. But he stated that he has increased prices: for diapers – 47%, for pads and tampons – 33%, for some types of powder – almost 100%.
Ordinary consumers interviewed by socialbites.ca are faced with the fact that in one store there are literally hygiene products nearby, and in the other there are not. And their prices skyrocketed.
“There are two Dixies near my house. One is smaller and closer, the other is large, but 200 meters away from the first. In the morning the car comes first to a small store, then to a large store. The smaller but more open-ended Dixie has no gaskets. In the big one – a lot and for every taste, ”said the interlocutor of socialbites.ca.
Another resident of Moscow told socialbites.ca that in the shops and pharmacies of Pyaterochka, Podruzhka in the north of the capital, pads are no longer on sale. “I bought the last package from Azbuka Vkusa. For blueberries, I ordered two for 1,500 rubles each, ”the author said.
Hold and sell high
Aleksey Belyanin, head of the HSE International Laboratory of Experimental and Behavioral Economics, noted that first of all, the Russians are trying to provide themselves with a “survival reserve” in turbulent times.
“The rush demand was created by the consumers themselves. They try to buy the products of a certain manufacturer that they are used to. Changing the brand of hygiene products is not a substitute for a toothbrush, it is much more. Discomfort.
Stores in these conditions are probably trying to keep some of the goods in warehouses. Perhaps in these circumstances some hope to sell the product at a higher price. They can have such a charm,” Belyanin said.
He agreed with the Associate Professor of the Department of International Business and Customs of the Russian University of Economics. GV Plekhanova Anastasia Prikladova.
“The increased demand for certain categories of goods was driven by the uncertainty factor. The fear of running out of basic necessities, including personal care products, created a surge in the market despite the increase in prices. Retail chains have contracts with suppliers for certain volumes of products, and with a stable level of sales, there are no problems with supply. However, on the backdrop of rush demand, these plans are violated, which is reflected in the fullness of store shelves. If retail chains urgently change their purchasing plans, submitting additional requests for the supply of goods, the increased demand will be transferred to the wholesale market. As a result, purchase prices will rise, which will have an even stronger impact on the retail segment and accelerate inflation,” he said.
Prikladova also explained the situation with the uneven distribution of goods among stores in the same retail chain.
“This can be explained by the organization of purchasing activities. In particular, the degree of centralization and the frequency of delivery. In addition, the development of retail chains through franchising means greater independence, which in turn diversifies the assortment and availability on store shelves.
But empty shelves can also result from speculation by stores holding stock and increasing demand, as well as by individuals purchasing items for resale. Regulatory authorities should pay attention to such moments, ”explained the expert.
Prices will drop
Prikladova believes that in the near future the demand for hygiene products will decrease, their price will decrease.
“As part of the population stocks up on certain goods, the same personal hygiene products, a decrease in demand is expected in the near future. This should lead to a decline in prices against the backdrop of the ruble strengthening trend observed since the second decade of March. In this regard, the restoration of the normal trade regime is expected in the coming months,” he said.
FAS analyzes the situation with the prices of hygiene products.
“Retail markets for hygiene products are competitive. According to current legislation, both wholesale and retail prices of pads and diapers are not subject to government regulation. Retailers have the right to independently set prices for products sold based on supply and demand. FAS continues to analyze the information received by the hotline. The information received is used to take action against unscrupulous market participants, the agency’s press service told socialbites.ca.
According to representatives of the Federal Antimonopoly Service, the service previously asked the Detsky Mir group of companies for clarification on the reasons for the increase in the cost of diapers for children.
“As a result of the interaction, the company identified positions in the category of “diapers and hygiene”, where marginal margins decreased by an average of 16%. The retailer is committed to ensuring that these goods are available on store shelves, ”said the FAS press service.
The FAS noted that stabilizing the situation would be facilitated by government regulation as well as by market saturation with supply.
“This will lead to a reduction in the cost of goods. An effective tool to achieve such an outcome is the legalization of parallel imports – the importation of original foreign-made goods into the country by any market participant without the consent of the producer-rights holder.”