INTERNATIONAL PRODUCTION IN RUSSIAN RETAILING

Abstract

The paper provides an overview of modern trends in Russian retailing with a special emphasis on the process of international production in the sector. The paper asserts that international production in Russian retailing is expanding despite the consequences of economic crisis. During last five years there were some news in the modes of penetrating and consolidating in the Russian market. Organic expansion of foreign retail chains to Russia proved to be difficult and costly. But Russia’s retail market continued to consolidate through M&A, particularly among local and foreign companies. Due to the character of value chain we assume that in Russian retailing there is developing the form of “foreign production” with elements of internal outsourcing. Under “foreign production” foreign retailers’ chains are working in Russian market as rather independent foreign affiliates. The specific feature of supply chain in modern Russian retailing is that the governance of the chain is carried out by the retailer but not by the supplier. DOI: http://dx.doi.org/10.5755/j01.em.17.1.2275