Industry-2022: Astkol-Alpha

Russian version

The first to answer our questions about how the situation with prices and deliveries is developing now, and what to expect in the foreseeable future (if someone can predict it), were the representatives of the wholesale company Astkol-Alfa.

What difficulties have you already encountered since the imposition of sanctions?

The difficulties are the same as for everyone else: to anticipate the logistics in order to deliver goods that are already on the way, without much additional costs.

What is the supply and inventory situation? Are there any backup plans to secure them?

Our company always keeps a good stock and tries to calculate the optimal reserves. From the point of view of the stock of goods, we are in a good situation.

Are there internal agreements with foreign partners on how to continue working in the current conditions?

Yes, we immediately entered into negotiations with partners and can say that almost everyone understands the current situation and offers support options.

Will you be able to maintain the pricing policy or have you already raised your prices?

All of our import costs are, unfortunately, highly pegged to the dollar, so we can't completely avoid price increases.

How do consumers react to the current situation, what is happening with demand?

It's no secret that many have taken a little time out to see how the situation develops. In any case, our products have regular users, perhaps they will buy less or switch to more budget models, but our product will remain among the most in demand.

Will a change in the refinancing rate to 20% affect your activity, and how exactly?

Yes, it will, as the company has been leveraged, and now, like many others, we are forced to choose between an exorbitant rate or a reduction in working capital and operating within our own funds.

Are preparations for Taifest going on?

We do not stop preparing for the mini-Thaifest. There may be a slight change in the format, as we understand that almost none of the brand representatives will be able to come in person, but there are other means of communication and opportunities that will be used to the maximum so that the trainings are effective and all participants can communicate, albeit remotely with brand representatives.

Thank you for your answers!

We continue to monitor developments and communicate with market participants.