16 December 2011

Russian mobile phone retailers Svyaznoy and Euroset are set to face more intense competition from regional retail networks. Ten small companies, including Tsifrograd, Technolux, Technomarket and Banzai with a total of 620 stores in 15 Russian regions, have formed a consortium. The aim of the link-up is to negotiate more favourable terms with suppliers, vendors and mobile phone operators in order to be more competitive and keep up with major players like Svyaznoy and Euroset. 

A spokesman for Svyaznoy said: “We welcome this initiative as we believe it will have a positive impact on the further development of the mobile retail market.”

Ulyana Smolskaya, of Euroset’s public relations department, said: “The market share of these players is less than 1.5% and we don’t expect the market balance to change with that development.”