WAYS TO IMPROVE THE EFFICIENCY OF FOREIGN TRADE ACTIVITY OF FOREIGN MANUFACTURERS’ DISTRIBUTORS IN RUSSIA

M. A. Egurnova (), E. A. Rozhanskaia () and A. A. Prikladova ()

International Trade and Trade Policy, 2021, vol. 7, issue 2

Abstract: In comparison with national manufacturers, distributors have an advantage in providing wellknown brands and might receive financial or information support by foreign manufacturers in marketing campaigns in the local market. At the same time distributors have a lack of independence in producing and pricing policies, so they are limited in the tools for reducing the costs of production and increasing the profitability of sales. Nevertheless, distributors, as well as other companies, are focused on increasing their economic efficiency. Based on the study of the activities of the company «SK Energy», the authors identified the characteristic problems associated with the implementation of foreign trade operations. Their overcoming is mainly focused on decreasing the costs associated with the transportation of goods to the territory of the Russian Federation, reducing currency risks that limit the ability of the importing company to increase competitiveness in the local market due to the price factor. The authors propose ways to solve the identified problems, confirmed by estimates of the economic efficiency of imports based on actual data on the foreign-trade transactions of «SK Energy» and calculated values, considering the possible implementation of such measures. Considering the specifics of «SK Energy» business, it is identified the possible ways to increase revenue through changes in the company's sales policy and in the conditions of cooperation between the distributor and the foreign manufacturer. The results obtained are sufficiently general and can be used in different industries by commercial organisations that are already engaged in import activities, as intermediaries between foreign producers and consumers on the national market, or only plan to develop an international direction.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:acl:journl:y:2021:id:452

DOI: 10.21686/2410-7395-2021-2-119-132

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