Consumer market

Consumer market

The positive tendencies in material production gave a great impulse to development of consumer market of Krasnodar Territory.

The sphere of trade and services gave a rise to formation of the competitive environment, to which the diversity of management forms became incidental, the leading part is performed by the small-scale business, the most mobile kind of entrepreneurship. It holds 85% share of the goods and services realization.

The growth in money incomes and in the living standards of population is significative of the consumer disbursements structure. The recent years have seen the steady decrease in population’s share of expenditures on the purchase of foodstuffs and respectively the increase in the share of expenditures on the purchase of nonfoods and paid services. Mostly the means are spent by population for the purchase of meat and meat products, dairy produce, alcoholics and beer and among the non- foods — for the purchase of sewing and knitted goods and medicines.

The structure of consumer sphere is composed by trade, catering and services. In Krasnodar Territory 25 thousand retail sales outlets (among which 16 thousand engaged in the foodstuffs and 9 thousand — in nonfoods realization), 11 thousand wholesale distributors, 7 thousand refreshment places, more than 1 thousand consumer service establishments are in operation. 15% of all able- bodied population of the Territory are occupied in the goods and service trades.

In 2002 the revenues to the RF budget system provided by trade and catering of the Territory grew by 17 % and added up to 3 milliard rubles.

Trade and catering. In 2002 the retail trade turnover through all the channels of realization mounted to 110 milliard rubles that goes to make up 187% in current prices as compared with 2001. The sale volumes of the foodstuffs and nonfoods were practically the same. The commodity supplies security of the turnover comes to 38 days.

The retail turnover kept 11% in the structure of the gross regional product. In 2002 it amounted to 110 milliard rubles that is, making readjustments, 22 thousand rubles per head.

Within the span of January through May of 2003 the retail turnover through all the channels of realization mounted to 45,320 million rubles, the growth as against the respective period of the last year will account for 110.9% in comparable prices.

The state and municipal enterprises form only 3.5% of turnover, where as the private property organizations provide 85.8%.

The basic tendency in the industry is the strengthening of positions of the organized market subjects (trading organizations). The streamlined trade enterprises grow in number.

The largest enterprises of the industry are as follows:

  • The «North Caucasus Trade Company» LLC that has opened a network of supermarkets «Tabris» in Krasnodar. Their floorspace is in the range from 600 to 1000 sq.m. The assortment numbers 17 thousand names of food and nonfood goods.
  • The «Trade House «Rossiyanka», having floor- space of about 100 sq.m.
  • The «Kubansportservice» LLC, represented in some regions of the south of Russia by 9 specialized «Vysshaya Liga» sports shops;
  • The «SBS» Company — the network of the modern trade centers in the largest cities of the North Caucasus. In the city of Krasnodar the company manages a trade and recreative centre with the floorspace of more than 30,000 sq.m., on which the goods of more than 12.5 thousand names are set out. Along with the trade activity the company is engaged in production of cabinet-type and upholstered furniture.

The wholesale trade turnover ran as high as 94 milliard rubles in 2002. About three quarters of volumes are due to the sale of consumer goods, the remainder falls on the sale of production engineering products.

In catering the turnover amounted to as much as 3.7 milliard rubles in 2002; in the period from January till March of 2003 it attained 1310 million rubles, that is 0.2% higher than for respective period of 2002 in comparable estimation.

The specific structure of the paid services provided is multivarious, with the new kinds particular for market economy appearing in the recent years. Included in their number are auditing, advertising, consulting, information and computer, insurance services, etc. The market of services provided for population, was complemented by realtor, appraisal services, services of gambling houses. The expenditures of population on the socially meaningful services (medical, educational) that had been furnished to population earlier free of charge, got the rise. Currently the expenditure pattern of population is 75% built by the services liable for payment (passenger traffic, communications, personal services, housing and communal services).

In 2002 the volume of personal services grew by 12% as against 2001 and is at the level of 4.8 milliard rubles. In January through May of 2003 the realization of services exceeded 2 million rubles.

The services such as those of photographers’ studios, barbers’ shops and hairdressing salons and repair of vehicles appeared to be in the greatest demand. Tailoring, dressmaking, shoemaking, repair of clothing and footwear, services of laundries, washhouses, repair of domestic appliances decreased in their volumes. Despite the continued growth of prices for the «prestigious» kinds of paid services (communications, education, medicine) the growth of their volumes is evidenced primarily due to consumption by the well paid groups of population.

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