Finnish kiosk chain expands to Russia
And although supermarkets in Russia are growing in number, it doesn’t mean they’ll be selling a greater share of newspapers and magazines.“I would say, there is a lack of understanding between distributors and publishers. There are no mechanisms of self-regulation and publishers do not have a common position on prices and relations with trading chains. Of course, it all has a negative effect. In Russia it is very expensive to sell press in supermarkets, whereas this practice has proved to be efficient in Germany for example,” says Gennady Kudy, Federal Agency for print and mass media, Moscow.End-prices for publications vary across the country and within regions. But kiosks have more difficulties to overcome. While a regular retail outlet might come with a higher rent, kiosks are not cheap to run.
A kiosk costs around $US9,000, while hooking it up to electricity can cost another $US7,500.“Local authorities do not take into account the social value of press and do not give any benefits to its distributors. But what's more important is that publishers need to have access to different outlets. Like selling healthcare newspapers in pharmacies. This would go a long way to improving press accessibility,” says Gennady Kudy.In the meantime, readers bear the burden.Russia has relatively few newsagents or press retailers. Poland has one for every 600 people. The U.S., one for every 1600. In Russia, that figure rises to 3,000 people per outlet. And that is not because Russians read less. Now, Rautakirja is ready to take on the challenge, believing it’s found one of Russia’s key growth areas.