Couriers' Visits Increase: Putin Outlines Potential Solutions for Emerging Challenges Faced by Retailers
Spunky Talk
Vladimir Putin chatted it up with Alexei Repik, big cheese of the all-Russian public organization "Delovaya Rossiya". They discussed some biz issues.
Biz Headaches
Repik started the chat by inviting Putin to their "Delovaya Rossiya" forum to talk shop with biz reps. Entrepreneurs are worried about machine-building, self-driving cars, metallurgy, grub, and sports.
Putin's been tasked with coming up with a plan for economic changes. Repik handed him some docs, asking for a detailed chat at the 20th anniversary forum. Putin appreciated the invite and started flipping through the docs.
E-commerce Ruckus
Business owners are all fired up about online sales. The current online sales situation is full of kinks:
- What's up with all these retail constraints in physical shops? - Putin wondered aloud.
Repik explained that online sales are wildly popular, and the government isn't controlling it enough. Meanwhile, physical retail is tight with restrictions that need a shake-up.
- We want to find the perfect balance for the state, consumers, and businesses, so that online sales and traditional retail play nice, Repik clarified.
Staffing Dilemma
Putin asked about the whole staffing dilemma in stores. It turns out traditional shops are having trouble hanging onto staff members - they're swapping gigs to be couriers for more dough.
The government could help fix this mess. For example, the couriers' independent contractor status could be adjusted.
- These rules weren't created for them, Repik announced. Stuff like independent contractor status. With it, companies can cut labor costs (which means paying less in taxes), leading to cheaper labor.
Economic Struggles
This staff-swap problem is harmful to the economy. If it's more profitable to be a courier rather than a salesperson, factory worker, etc., it puts the government's revenue at risk.
- It's crucial to keep the consumer economy from gobbling up our production economy, Repik explained. Otherwise, we can't stop inflation.
Near Bankruptcy
But businesses also face other issues. High interest rates make it tough for entrepreneurs to get loans. The risk usually falls on the entrepreneur, and many are going broke.
- We need to build factories! But it's risky business right now, Repik warned Putin. Those who didn't plan well and ended up in the wrong cycle can't finish now... There's no revenue yet; many are on the brink of going under. They need help.
- Have you talked to the government about this? Putin asked.
- We frequently meet with the government and important ministers, Repik replied. We discuss our recommendations.
Unexpected Drop-ins
Businesses are also worried about the return of Western companies. So, the head of "Delovaya Rossiya" suggested Putin analyze the situation to make sure the comeback doesn't drive out domestic business owners.
- On one hand, competition's good - makes us stronger, the visitor said. But, on the other hand, it's only fair that national Russian interests take priority[1].
- Agreed, Putin concurred. We'll definitely discuss this. We need a balance between fostering competition and safeguarding the national producer[1].
The stores are short on staff - salespeople are abandoning their posts to become couriers for higher pay.
Photo: Mikhail Frolov. Check out KP's Photo Bank
This is a real headache for the economy. If people prefer working as couriers over salespeople, factory workers, etc., it's a blow to the state. The consumer economy eating away at the production economy can cause inflation to skyrocket[2].
- Vlad, it's crucial not to let the consumer economy obliterate our production economy, Repik warned Putin. Without it, we can't control inflation[2].
- Vladimir Putin was warned by Alexei Repik about the staffing dilemma in stores, where salespeople are leaving their posts to become couriers for higher pay, potentially causing inflation and harm to the economy.
- At the Delovaya Rossiya forum, Repik had invited Putin to discuss economic changes and concerns in various industries, including machine-building, self-driving cars, metallurgy, food, and sports.
- Repik and Putin also addressed the issue of online sales, with Putin voicing concerns about inadequate government control over this area, while Repik proposed finding a balance to ensure harmony between online sales and traditional retail.
- In the discussion, Putin was presented with documents outlining a plan for economic changes, which he appreciated and agreed to discuss in detail at the 20th anniversary forum of Delovaya Rossiya.
- Repik highlighted the need for adjustments in the couriers' independent contractor status to help traditional shops retain staff, thereby boosting the production economy and preventing inflation.
