Virtual exhibition BUSINESS-INFORM 2020-2022

Sergey Kuzin, the Head of the Expert Council on the Remanufacturing Industry of the AQCMS, 

answers the questions of Information Agency «BUSINESS-INFORM»

- The Association of Quality Consumables Manufacturers and Suppliers (AQCMS) has got an extensive media coverage in newsfeeds and professional publications. Could you tell us more about the activities of the Association as an insider? To be more precise, we would like to know more about the Expert Council. What are the main problems which are the focus of the Council that you are the head of?

The list of tasks for the Expert Council is defined by the actuals of the remanufacturing industry. If we are to categorize them, we can define provisionally 4 blocks which are: information and analytics; supervision; prospective development and interaction with authorities. Let’s take a look at the information and analytics. The Council is having the database on the state of the market, on the domestic and foreign experience; etc. updated. In order to do this we conduct researches; monitor the market, exchange information with foreign associations and expert communities. Supervision implies various activities connected with the relationships on the market of remanufactured products, development of quality assessment criteria for them, keeping modern technologies registry as well as ranking the market players. The perspective development implies the activity on expanding of the Expert Council throughout the country; attracting experts from other fields to solve industry issues as well as analysis of perspective initiatives and proposals of the field members. Finally, let’s look at the 4^th block which is interaction with authorities. The name speaks for itself. It implies all the issues that affect the industry and its members.

- Does the scope of the Expert Council on the Remanufacturing Industry enable to solve the above mentioned issues?

The scope of the Expert Council is the scope of the Association, of all its members who have practically 30 years of experience in the industry, recognition and brands, wide international contacts, accumulated Russian technologies and methods. During the past years we have managed to establish cooperation between the market players and build up a unique information field.

- What Councils of the Association do you have the closest cooperation with?

As for Association’s practical arrangements, we cooperate with all the Councils equally. As for particular matters, we mostly consult with 2 councils: the Council on Quality and Certification and the Council on Environmental Issues. Quality and sustainability are the key concepts and, if you wish, main arguments in favor of refilling and remanufacturing industry. Nowadays, when products of questionable quality prevail on the market, a customer often gets a printed document with evident flaws. In my opinion, it is a token of disrespect to a client and leads to reputational and subsequently financial losses. Our mission is to support high quality product manufacturers. You are not to skimp on customers.

- What are the core activities to be performed by the Expert Council on the Remanufacturing Industry this year?

Well, for instance, we are planning to conduct a massive research of the Russian market. Lately some serious phenomena and events have occurred such as an economic crisis and COVID-19 pandemic. As soon as we conduct the research, it will become clear what we will have to adjust in terms of internal regulations of the market, its prospective development and interaction with authorities. This year we are also planning to meet with several profile International associations of the industry to establish working relationships and get access to credible information concerning the latest news of recycling industry. Moreover, we are going to actively participate in the assessment of the results of an international competition organized by the Association of Quality Consumables Manufacturers and Suppliers together with the Information Agency «BUSINESS-INFORM».

- In your opinion, what are the main changes on the market of new and remanufactured consumables that have occurred for the past 3 years?

The market of remanufactured consumables has remained quite stable facing no drastic changes of the hierarchy or logistics. Product differentiation has become more defined. Perception of product and service quality has changed as well as methods of its assessment. Some Russian brands have started winning international competitions, getting high scores and recognition from the expert community and consumers.   

The main changes for the market were connected with the competition between OEM manufacturers and Chinese manufacturers of new-build cartridges. It can be stated that in the segment of smaller office machines new-build compatible cartridges are the leaders even in certain segments of remanufactured consumables. It can be explained by the lack of a clear policy in terms of printing quality and ecological safety for consumers. With to the lack of internal industry regulations Federal laws 44 and 223 in my opinion became the reason of low quality cheap products’ domination (including products from Russian counterfeiters).  There are a plenty of cases when not very scrupulous “certification organizations” supplied equally unscrupulous market players with fraudulent papers, allowing entering tenders; thus damping the prices that were already low. In the end it all led to lowering of business lucrativeness and loss of interest to the business on the whole. Nowadays absolutely all the suppliers of ready solutions, both OEM and non-OEM manufacturers, complain on small volumes of the market and its low profitability. As it is said in these cases, they got what they bargained for…

A situation on the remanufacturing market is much better. The market was able to quickly adapt to the market changes due to technologies and manufacturing experiences. The market players can still remain partly independent from external regulations and current market conjectures including currency exchange rate.  At the same time, the goods of poor questionable quality that are still presented in the market negatively affect all market players including remanufacturers.

I cannot omit that our industry has become strong during the last few years due to the competition with Chinese new-build cartridges. A whole range of successful and effective business models has been created. A digitalization of activities has been performed and a unique subculture based on the realizing the importance of our mission has been built. The Expert Council on the Remanufacturing Industry has enthusiastically entered this process, and we hold no doubts that the knowledge and experience of Association’s experts will enable us to find solutions that will be accepted by the overwhelming majority of votes.

Details: BUSINESS-INFORM Review (issue #27, 2020)