Why do Russians need a state marketplace: experts evaluate the pros and cons

The Federation Council proposed creating a state marketplace. Only domestic goods should be sold on such a platform. The initiative itself came from Deputy Chairman of the Economic Policy Committee Ivan Abramov as part of a round table on regulating online trading. Who and why needed a new player in the market, and a state one at that? Can the authorities artificially restrict the activities of other marketplaces in order to attract consumers to the new site? How will the innovation affect Russians making online purchases? Experts told MK about this.

Alexander Balakirev, specialist at the Intercession law firm:

“It is too early to talk about this initiative seriously, because it was made only in the form of an oral proposal and was not put into the format of any document. Based on the available information, the state marketplace should promote domestic manufacturers. At the same time, in the current conditions, the domestic manufacturer does not look deprived. How much he really needs another marketplace and how much the consumer needs it is an open question.

You can attract consumers with price, user-friendly interface and quality service. For the seller, this is the number of potential buyers, clear promotion algorithms, low commissions, transparent regulation with fines.

Marketplaces need additional regulation. Both in the buyer-seller relationship, and in the marketplace-seller and marketplace-buyer relationship. Reimbursement systems, fines, etc. – as the market grows, new situations arise that also require legislative regulation. The main thing is to do this not to the detriment of the industry.

It is doubtful that someone can become a key player in online trading from scratch. Even the state, with all its resources. We now have a competitive market where there are two clear dominant companies, as well as those who seek to compete with them. Next are various smaller profile players.

It is hard to believe that this proposal will be supported, so the most realistic time frame for its implementation is never. Or the project’s ambitions will be somewhat more modest.”

Petr Shcherbachenko, associate professor at the Financial University under the Government of the Russian Federation:

“The creation of a state marketplace for the sale of only domestic goods can be motivated by supporting domestic producers, strengthening the national economy and reducing dependence on imports, as well as creating new jobs. The initiative may cause dissatisfaction on the part of private companies, may create unequal conditions of competition and interfere with the free choice of the consumer. For people, this initiative can expand the market for high-quality domestic products, as well as increase consumer confidence in national brands.

Over the past year, the authorities have been working hard to regulate the work of marketplaces, which is associated with the development of online trading and the growing number of claims by sellers and consumers against marketplaces. In 2023, the number of purchases on marketplaces increased by 63%. The total volume of spending on marketplaces in 2023 is almost 1.5 times more than in 2022.”

Alexey Krichevsky, economist, author of a project about finance and investment:

“Why this is needed is actually not completely clear. The authorities, of course, have some kind of demand for everything Russian, but the thing is that a lot of goods sold on marketplaces are already produced in Russia. That is, in essence, this is reinventing the wheel – instead of helping existing companies develop and operate, someone, perhaps out of personal interest, needs to create a new one, with purely Russian goods. True, there is a possibility that in the end they will still be at least partially Chinese. Therefore, there is no global meaning in this.

Limiting existing players will also be extremely problematic. The question is that existing sites have a dominant position in the regions, but almost every order delivery point is a franchise, that is, a separate legal entity. Therefore, such restrictions will simply kill small businesses in the regions. If this is the goal, then go ahead, but it is unlikely that this will somehow help the development of the state.

And it is extremely undesirable to touch other marketplaces, although the authorities are diligently trying to create conditions under which the platforms will be forced to both reduce commissions and pay “tribute.” It will end badly anyway. So, at least for now, it will be better for everyone if a new player does not appear in the near future, because there is not even a concept for his work.”

Maxim Odintsov, founder of the marketplace analytics service LikeStats:

“Marketplaces have transformed from obscure online stores into a whole industry. Now these are the key players in online trading who have been able to “infiltrate” the lives of the majority of citizens of our country. Marketplaces provide jobs and income to a huge number of people, set trends in doing business, and encourage entrepreneurs to establish contacts with foreign suppliers. Until recently, the activities of sites were poorly regulated, which led to a real boom in complaints from buyers, sellers and contractors. Therefore, the state’s interest in this segment of the economy is understandable.

I don’t think anyone can force a consumer to buy from a store just because it’s state-owned. Another thing is that now it can be very difficult for domestic manufacturers to break into marketplaces due to the large number of cheap foreign-made goods. Perhaps the emergence of a new platform will force marketplaces to reconsider their ranking algorithms and still give the green light to local producers.

It is now difficult to judge how this will affect consumers. It all depends on how this project will be implemented: how convenient it will be, how it meets modern requirements, how profitable it will be to sell and buy there.”