Policy of Diversifying Trade Networks in Food Market in Terms of Economic Sanctions and Import Substitution

Abstract

The trading network, as a progressive form of retail organization, can be characterized by a high degree of competitiveness, an effective management organization, a well-constructed logistics scheme that integrates all the main functions: marketing, purchasing, inventory control, sale and advertising. The sanctions imposed by the West affected not only food buyers, but also retailers, especially those who imported products directly from Western partners. The sanctions imposed by the West affected not only food supplies buyers, but also retailers, especially those who imported products directly from the Western partners. The Russian retail trade networks are gradually adapting to the restrictions, carrying on a policy of diversification by replacing the prohibited imported foods products by the domestic goods. The article examines the mechanism of applying the diversification strategy by the trade networks on the regional food markets. It generally defines coordination of activities of the food products domestic manufacturers and the trade networks with the purpose of providing the population with the qualitative goods.