VIDEO: Products from ‘Wildberries’ are cheaper because they are purchased directly from the manufacturer, says Kerobyan

Trade is changing worldwide, and in the US, large retail companies have halted their operations alongside the development of online commerce. In response to complaints from traders about how their business has come to a standstill due to ‘Wildberries’, Minister of Economy Vahan Kerobyan stated during a dialogue with journalists:

“Last year, we created conditions for everyone to be in an equal tax field. That is to say, when ‘Wildberries’ imports goods or consumers buy products from ‘Wildberries’, the VAT obligation is already transferred to Armenia. ‘Wildberries’ must already pay VAT for sales, unlike small and medium-sized businesses. So, one could say that ‘Wildberries’ is in an unequal competitive position, negatively compared to local small and medium enterprises. Naturally, the price differentials present have been discussed for decades; large supermarkets sell products cheaper than the small shops buy those products.”

When asked if it is possible for ‘Wildberries’ to close in Armenia, Kerobyan responded, “We work in a liberal economic system, encouraging the flow of foreign investments into Armenia. Our goal is to ensure equal competitive conditions among all players by ensuring that those who are more innovative and inclined towards new, large investments can develop. Our proposal is to describe what unequal competitive conditions mean and appeal to the Competition Protection Commission. If a more accessible service has been established in Armenia, that is very good.”

For more details, watch the video.