Russia's Svyaznoi Handset Retailer Shuts Bulk Department
MOSCOW, Nov 23 (Prime-Tass) -- Russian mobile handset and services retailer Svyaznoi has closed down its wholesale department, the company's Press Secretary Yelena Nogotkova said, Biznes daily reported Wednesday.
"We closed down the business due to losses and plan to focus on retail sales," Nogotkova said.
However, a market participant told Biznes that Svyaznoi closed down the department after the customs service and the police made inspections aimed at fighting illegal mobile handset imports to Russia.
Maksus, Svyaznoi's wholesale department, used to be a leader in the country in terms of bulk sales of mobile handsets and audio devices, the newspaper said, citing the Agency of Mobile Marketing.
Some market participants suggested said that Maksus was subsequently forced out of the market by other competitors after its started focusing on sales to Svyaznoi disregarding the needs of other retailers.
Anton Vasilyev, spokesman for the Agency of Mobile Marketing, said that other mobile handset retailers are expected to close down their wholesale departments soon and start cooperating directly with mobile handset producers.
It was not clear which mobile retailers currently have wholesale departments.
Mobile handsets used to be mostly illegally imported to Russia before August. In August the customs service and the police made a number of raids eliminating several major channels of illegal mobile handset imports to Russia. Following the raid, major Russian mobile handset retailers announced their plans to stop working with illegal importers.
In September, as part of a campaign aimed at fighting illegal imports, the customs service asked foreign producers of mobile handsets to provide information on prices of various handset models imported to Russia and a list of official dealers they cooperate with.
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Posted to the site on 23rd November 2005
