Assessment of the Impact of State Regulation of Retail Trade Networks Development on the Wholesale Sector

  • V.P. CHEGLOV Trade Policy Base Department, Plekhanov Russian University of Economics, Russian Federation
  • S.V. MKHITARYAN Marketing Department, Plekhanov Russian University of Economics, Russian Federation
  • L.A. DANCHENOK Faculty of Business and Additional Education, Plekhanov Russian University of Economics, Russian Federation
  • O.V. RYKALINA Marketing Department, Plekhanov Russian University of Economics, Russian Federation
  • T.A. TULTAEV Marketing Department, Plekhanov Russian University of Economics, Russian Federation

Abstract

The article is dealing with the issues of state regulation of the consumer market, where the interests of producers, wholesale intermediaries, and retail trade are traditionally encountered. The authors consider the features of state regulation of the formation and development processes of multi-object and omnichannel trading systems in Russia in the context of the country's entry into the global economy, the opening of the domestic market for foreign business structures, and commodity imports in a situation with a small business that is not fully established. The results of the conducted study complement the experience of the international community in regulating system formation in trade. The article analyzes significant differences in the state intervention mechanisms in the economic relations of retail chains and their suppliers, as well as the impact of stricter legislation on wholesale trade, and its place and role in the commodity distribution system. The authors prove that excessive regulation of the retail market causes negative consequences in its adjacent segments, justify the upcoming redistribution of the market between large retail chains and specialized wholesale companies in favor of the former ones, show the development prospects of the distribution, and the impact of this process on small retail businesses, as well as formulate proposals for optimizing approaches to regulating the transformation of the trade sector in the transition economy.

References

[1] Avdaševa, S. and Šastitko, A. 2012. Rules on retailer-supplier relationships in the competition policy of the Russian federation: How and why misunderstanding economics threatens the competitiveness of the sector. Competition Policy International Antitrust Chronicle, 2: 1-14.
[2] Barrey, S. 2006. The work of setting prices in hypermarket chains. Sociologie du Travail, 48(2): 142-158.
[3] Bekuviciute, L. et al. 2009. The functioning of the food supply chain and its effect on food prices in the European Union. EC Occasional Papers, 47: 1-37.
[4] Billows, S. 2016. The politics of legal ambiguity: Regulating business relations between supermarket chains and their suppliers. Sociologie du Travail, 58(1): 8-31.
[5] Black, J. 2005. The emergence of risk-based regulation and the new public risk management in the United Kingdom. Public Law.
[6] Borisov, A. 2019. Vmeshatel'stvo gosudarstva v otnosheniya hozyajstvuyushchih sub’ektov privodit k razbalansirovke rynka [State intervention in the relations of economic entities leads to market disbalance]. Retail Week, 9: 50-51.
[7] Braithwaite, J. 2006. Responsive regulation and developing economies. World Development, 34(5 Special Issue): 884-898.
[8] Brown, J.R., Dev, C.S. and Lee, D.-J. 2000. Managing marketing channel opportunism: The efficacy of alternative governance mechanisms. Journal of Marketing, 64(2): 51-65.
[9] Cheglov, V.P. and Cheglov, A.V. 2016. O prirode «nedobrosovestnyh praktik» v torgovle i mekhanizme regulirovaniya otrasli v usloviyah integracii [On the nature of unfair practices in trade and the mechanism for regulating the industry in terms of integration]. Bulletin of the Academy, 2: 45-53.
[10] Cliquet, G. 1998. Integration and territory coverage of the hypermarket industry in France: A relative entropy measure. International Review of Retail Distribution and Consumer Research, 8(2): 205-224.
[11] Diaconescu, A. 2018. Trends in the Development of International Trade Law. Journal of Advanced Research in Law and Economics, 9(1): 72-77.
[12] Etzioni, A. 1961. The comparative analysis of complex organizations. New York: Free Press of Glencoe.
[13] Gereffi, G., Humphrey, J. and Sturgeon, T. 2005. The governance of global value chains. Review of International Political Economy, 12: 78-104.
[14] Griffith, R. and Harmgart, H. 2008. Supermarkets and panning regulations. CEPR Discussion Paper 6713. C.E.P.R. Discussion Papers.
[15] Harrison, M., Flynn, A. and Marsden, T. 1997. Contested regulatory practice and the implementation of food policy: Exploring the local and national interface. Transactions of the Institute of British Geographers, 22(4): 473-487.
[16] Haskel, J. and Sadun, R. 2008. Entry, exit, and labor productivity in UK retailing. In Producer Dynamics: New Evidence from Micro Data, edited by T. Dunne, J.B. Jensen, M.J. Roberts, 271-302. Chicago: University of Chicago Press.
[17] Jones, P., Comfort, D. and Hillier, D. 2004. The regulation of street trading in the UK. Geography, 89(3): 248-253.
[18] Kelly, K. 1991. The antitrust analysis of grocery slotting allowances: The procompetitive case. Journal of Public Policy and Marketing, 10(1): 187-198.
[19] Kotelnikova, Z. 2011. Formirovanie ukorenennogo obmena meždu torgovymi setjami i ih postavščikami v Rossii: istočniki i posledstvija [La formation d'un échange intégré entre les chaînes de vente au détail et leurs fournisseurs en Russie: sources et conséquences]. Žurnal Sociologii i Socialnoj Antropologii, 14(5): 373-385.
[20] Nižegorodcev, T. 2012. Torgovaja sfera v ožidanii zakonodatel'noj revizii [Le Marché dans l'attente d'une révision de la législation]. Konkurencija i Pravo, 1: 14-15.
[21] Ofitserov, P.Yu. 2015. Postroenie regional'noj distribucii [Construction of regional distribution]. Moscow: RIP.
[22] Phillips, S. 2016. California fair trade: Antitrust and the politics of fairness in U.S. competition policy (Review). Business History Review Cambridge University Press, 90(1): 31-56.
[23] Radaev, V. 2014. Vremya pokažet? Srednesročnye effekty primenenija Zakona o torgovle [L'avenir le dira-t-il? Les effets à moyen terme de la loi sur le commerce]. Ekonomičeskaja Politika, 5: 75-98.
[24] Rozumnaya, N.V. and Belyaev, T.E. 2017. Prakticheskie aspekty formirovaniya cenovoj politiki predpriyatiya optovoj torgovli [Practical aspects of forming the price policy of the wholesale trade enterprise]. Russian Entrepreneurship, 18(21): 3375-3389.
[25] Schivardi, F. and Viviano, E. 2008. Entry barriers in retail trade. CEPR Discussion Paper 6637. C.E.P.R. Discussion Papers.
[26] Sharonov, A. 2019. Nel'zya vse nyuansy hozyajstvennoj deyatel'nosti regulirovat' na samom verhnem urovne [It is impossible to regulate all the nuances of economic activity at the highest level]. Retail Week, 9: 47-49.
[27] Tretyak, O. and Radaev, V. 2013. Market power and relational conflicts in Russian retailing. Journal of Business and Industrial Marketing, 28(3): 167-177.
[28] Viviano, E. 2008. Entry regulations and labor market outcomes: Evidence from the Italian retail trade sector. Labour Economics, 15(6): 1200-1222.
*** Federal law of 03.07.2016 No.273-FZ ‘O vnesenii izmenenij v Federal'nyj zakon ‘Ob osnovah gosudarstvennogo regulirovaniya torgovoj deyatel'nosti v Rossijskoj Federacii’ i Kodeks Rossijskoj Federacii ob administrativnyh pravonarusheniyah [On Amending the Federal Law ‘On the Basic Principles of State Regulation of Trading Activities in the Russian Federation’ and the Code of the Russian Federation on Administrative Offenses]’. Explanations of the FAS of Russia on some issues of application of the Federal law of 28.12.2009 No.381-FZ in the wording of the Federal law of 03.07.2016 No.273-FZ. https://fas.gov.ru/documents/562019
*** Federal law of 26.07.2006 No.135-FZ ‘O zashchite konkurencii [On protection of competition]’ (as amended on 27.12.2018). https://legalacts.ru/doc/FZ-o-zawite-konkurencii/
*** Federal law of 28.12.2009 No.381-FZ ‘Ob osnovah gosudarstvennogo regulirovaniya torgovoj deyatel'nosti v Rossijskoj Federacii [On the Basic Principles of State Regulation of Trading Activities in the Russian Federation]’ (as amended on 25.12.2018). http://pravo.gov.ru/proxy/ips/?docbody=&nd=102135141
*** National standard of the Russian Federation. 2017. GOST Р56876.2-2016. Rukovodstvo po dobrosovestnym praktikam vzaimootnoshenij mezhdu torgovymi setyami i postavshchikami potrebitel'skih tovarov [Guidelines on fair practices in relations between retail chains and suppliers of consumer goods], parts 1 and 2.
Published
2020-06-15
How to Cite
CHEGLOV, V.P. et al. Assessment of the Impact of State Regulation of Retail Trade Networks Development on the Wholesale Sector. Journal of Advanced Research in Law and Economics, [S.l.], v. 11, n. 3, p. 775 – 783, june 2020. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/5158>. Date accessed: 21 nov. 2024. doi: https://doi.org/10.14505/jarle.v11.3(49).10.