Car Wash - Spring 2014 - (Page 84)

EMERGING RUSSIAN CAR WASH INDUSTRY AMID A GROWING DEMAND FOR CARS AND SERVICES, GOVERNMENT INTERVENTION COULD STALL INDUSTRY'S EXPANSION BY EUGENE GERDEN THE RUSSIAN CAR wash industry has potential investors looking at the market as a possible next investment in major growth in the car wash industry. However, there are challenges due to the plans of the national government to tighten the control over the activities of the national car wash operators. Since the beginning of 2000s, the Russian car wash industry has experienced a significant boom, amid the ever-growing consumer demand for these services, the rapid growth of car fleets in Russia, as well as an increasing number of investment projects in the industry. Last year total number of purchased new cars in Russia amounted to 2.78 million units. The demand for cars is steadily growing, amid the rising purchasing power of local consumers and national GDP, which in 2013 increased by further 1.3 percent, compared to 2012. This has resulted in the establishment of car wash complexes throughout the country, 84 WWW.CARWASH.ORG | many of which were built without proper permissions from city authorities. CAR WASHES IN DANGER According to plans of the Russian government, car wash complexes - especially those located in the largest cities of the country - will become a subject of inspections. This will be mainly due to the recent tightening of town-planning policy in the Russian cities, which involves the demolition of property units and buildings where construction was not unauthorized by public and state bodies. According to expectations of analysts of Russia, Russia's public organization, in Moscow alone up to one-third of the city's 1,500 car wash complexes may be destroyed as a result of the inspections. The new Moscow government believes that land plots, which were provided to investors by the previous government, were provided with serious law violations and should be destroyed. CAR WASH MAGAZINE | SPRING 2014 Alexei Nebolsin of OPORA, the AllRussian non-governmental organization of small and medium-sized business, said many Russian car wash operators are very concerned with the current situation, which could result in huge losses for them. In addition, this could result in a shortage of car washes in the country and a significant price increase for such services. "In 1996-1997 the Moscow city government launched a program for the building of car wash complexes on the streets of the city. In order to implement these plans, the government allocated land plots for investors, who started building of car wash complexes on their territories," said Sergey Makarenko, head of Megapolis Company, one of the largest networks of car wash complexes in Moscow and Russia. "At that period of time, no permissions were required." In addition to operators, the Moscow Fuel Association is concerned with the current situation and representatives http://WWW.CARWASH.ORG

Table of Contents for the Digital Edition of Car Wash - Spring 2014

Letter From the ICA
Meet the Board
By the Numbers
Overheard Online
Look Out! Self-Driving Cars Heading Your Way
On the Road, but Still Online
Finding Your Way Through the Mobile Landscape
Take a Tour
Stay Ahead of the Curve
Car Wash Industry Celebrates Centennial Milestone
ICA 2013 Annual Report
Getting to the Point of Biometrics
Fighting for Innovation
Take It From Tech: Entrepreneurial Lessons Courtesy of Google
You Don’t Have to Fail
100 Years
The Innovator’s DNA
Emerging Russian Car Wash Industry Faces Challenges
Rise to the Top
Does a Company Really Need to Innovate?
Watersavers Program Reaches Out During Drought
Blast From the Past
Download It!
Marketing Minute
Ask Champ
Index of Advertisers
Focus on the Member

Car Wash - Spring 2014