On May 31, 2021, the Trade Representation of the Republic of Kazakhstan in the Russian Federation together with JSC “Center for the Development of Trade Policy” QazTrade “with the support of the Ministry of Trade and Integration of the Republic of Kazakhstan held an online conference on the topic” Familiarization with the peculiarities of the work of Russian retail on the example of “X5 Retail Group “. The conference was attended by representatives of the National Chamber of Entrepreneurs” Atameken “, industry Associations of Kazakhstan and the business community. More than 100 people in total.
Opening the event, Vice Minister of Trade and Integration Kairat Torebayev said that the trade industry began to actively recover after last year’s recession.
“In the first quarter of 2021, we see a positive dynamics of trade recovery, which grew by 14% compared to the first quarter of 2020 and amounted to $ 4.8 billion. At the same time, Kazakhstan’s exports to Russia grew by 19.3% and amounted to $ 1.4 billion. “, – said the vice minister.
He also said that large-scale work is being carried out in Kazakhstan to promote exports to foreign markets. Including, on the withdrawal of enterprises to large foreign trade networks, including the Russian direction.
“We are witnessing large-scale qualitative and structural changes in the retail sector, due to the steady growth of network forms of retail organization – retail chains. Chain retail is actively developing and replacing traditional retail structures, which are customary to include independent retail operators and open markets, ”said Kairat Torebayev.
He also clarified that “a feature of the modern period is the gradual overcoming of the unsystematic nature of the formation of network retail, the strengthening of its influence on the consumer market, reduction of the lag behind world trade standards and the provision of trade infrastructure facilities while maintaining the national specifics of domestic retail chains, activation of network processes in the trade business. -space “.
The Trade Representative of the Republic of Kazakhstan in the Russian Federation Nurlan Borambaev spoke about the work of the Trade Representation of the Republic of Kazakhstan on the withdrawal of Kazakhstani goods to the X5 Retail Group network, which is interested in deliveries from Kazakhstan: fruits and vegetables, textiles and clothing, food products, including baby food, groceries and drinks.
“Today’s conference is one of many steps towards the goal set – to start joint trade in Kazakhstani goods on the territory of Russia,” Nurlan Borambaev said.
Director of the International Department, Department for Development of Relations with Government Bodies of X5 Retail Group Maria Eksler and Head of Sourcing Department of X5 Retail Group Denis Sinitsyn spoke about the conditions of access to the Russian retail market and the conditions of operation of the X5 Retail Group with direct suppliers.
The company is currently developing cooperation with suppliers from the Republic of Kazakhstan.
Recently, representatives of the company visited Kazakhstan, where they got acquainted with the work of 10 enterprises.
“Thank you very much to the Trade Representation of Kazakhstan, which organized this trip,” said Denis Sinitsyn, head of Sourcing at X5 Retail Group. He also said that X5 Retail Group is currently “in constant contact” with these companies.
Mr. Sinitsin also said that X5 Retail Group “has a single entrance window for any supplier – the supplier search management. At the same time, the priority for Kazakhstan is obvious. This is due to the length of the border, and the generality of production standards, and the characteristics of consumption. “
However, the company noted the existing shortage of suppliers from Kazakhstan.
“There are several reasons for this situation. Local suppliers are not sufficiently informed about the international quality standards that are applied in the Russian Federation. This applies not only to fruits and vegetables but also to textiles, groceries, and other goods. The second reason is the company’s policy of moving away from the shadow market. Large companies such as X5 Retail Group are non-cash payers. All goods that are bought directly from manufacturers are paid only by bank transfer, ”said Denis Sinitsyn.
Representatives of the Russian retailer noted that in working with retail chains, the manufacturer can build a long-term cooperation program, fix the projected demand volumes. And also, which is very important, move away from local supplies.
Some Kazakh exporters are already working with large buyers from Russia. Including federal trade networks.
Berik Moldagali, Director for Export Sales and Business Development of Kazakhstan’s MCC Trade Company LLP, spoke about his experience of working with the Russian retail market.
Kazakhstani entrepreneurs were able to ask the representatives of X5 Retail Group all their questions. The parties exchanged contacts and agreed to continue negotiations on cooperation.
For reference:
X5 Retail Group is a leading grocery retail company in Russia. Manages a portfolio of brands of chain stores Pyaterochka, Perekrestok, Karusel, Chizhik, digital businesses Perekrestok Vprok, Okolo, 5Post, as well as its own logistics services, direct import, and a number of digital services for partners. The company owns 43 wholesale and logistics centers.
X5 Retail Group shares in the form of global depositary receipts are traded on the London Stock Exchange as well as on the Moscow Exchange under the ticker “FIVE”.