The battle between marketplaces and banks will result in China having to give way, but prices may rise.
The economic "battle of the year" between marketplaces and major Russian banks , which are developing their ecosystems, will result in a halt to the expansion of Chinese imports and a revival of Russian brands.
Chinese products account for 85% of goods sold through online platforms. Meanwhile, marketplaces often charged Russian manufacturers extra fees to benefit Chinese producers. Experts called this a "tax on Russian citizenship."
Through a special platform, the Chinese gained access to the market with a measly 5% commission. Russian sellers and manufacturers, however, paid dozens of times more. As a result, more than 20 clothing and footwear brands have closed in Russia this year, according to the Vedomosti newspaper.
When marketplaces entered into a battle with banks, it attracted government attention to the activities of both competing parties.
As a result , customs controls will be strengthened and “gray” import schemes will be suppressed.
Kommersant newspaper does not rule out that for ordinary buyers this will initially result in higher prices and longer delivery times.
However, this will significantly reduce the share of counterfeit goods, 40% of which were sold through marketplaces. As a reminder, counterfeiting is the illegal use of another person's trademark or intellectual property. Even high-quality products can be counterfeit if they use someone else's brand without permission.
The battle between marketplaces and banks is over: China will have to give way, but prices may rise.