How to Stop the Russian “See-saw”?

How to Stop the Russian “See-saw”?
Dr. Stanislav Malinskiy
General Director, Business-Inform, Russia

The non-OEM cartridge market share in Russia is like the familiar see-saw you see in children’s playgrounds. However, the market share swing between high quality and low quality compatible cartridges is anything but “child play,” and could have a detrimental impact on market share. Take a look at what is happening:

In the years 2010-2012 there was a rapid growth in the sales of cheap, new-built cartridges. The number of buyers grew. They lost interest in remanufactured cartridges. By 2012, Russian buyers focus on the price alone, that being the only advantage of the cheap, new-built cartridges.

Between 2012-2014, there was a reduction in the procurement of cheap poor quality, new-built cartridges. The share of quality, remanufactured as well as quality, new-built cartridges grew. As a result, the non-OEM cartridge market in Russia grew. It appeared a possibility that a new market segment was born—Quality, Compatible Cartridges.

in the last 2 years, 2014-2015, we again saw a growth in demand for the cheap, new-built cartridges. With the local currency crash, the number of buyers grew for the cheaper product again and quality cartridges (both remanufactured and new-built) are rejected again ….

In 2016, I expect to see a further growth in demand for the cheaper, poorer quality cartridges in the Russian market. Then, after that, the dynamics of 2012-2014 will be repeated.

The Russian market is constantly in “see-saw” mode.

So, how do we put a stop to it? What can be done to prevent the inevitable downfall in the procurement of quality, compatible cartridges? Educating customers, changes in the legislation, appearance of new players on the Russian market?
In my view, it is a critical time to emphasise the importance of quality compatible cartridges to stabilize the growth of this market sector.

(Source: Issue 73, Recycling Times Magazine (English))

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