Jobbers are on the retired list
Today we can witness the redistribution of retail oil products market. Owners of filling stations, who worked under boards of huge oil companies, today found themselves standing at the crossroads. Former partners are not interested in cooperation any more, and jobbers continue either to work independently or sell their business.
Well arranged ties with suppliers, the quantity of not less than 30-40filling stations, business diversification at the expense of trade and attendant services – all these are conditions for survival on the market of small filling stations. The strategy of oil giants had changed. The majority of small stations figure on the development of own networks. Painted in bluish colors TNK’s, red “Lucoil”s or green “Neftegaz” stations are working without familiar logotypes.
Only few years ago it was considered as prestigious to work with upright integrated companies, which extract and remake oil. The peak of popularity of jobbers contracts fell at 2001 and 2002 years. Numerous independent networks were obliged to save themselves, concluding contracts for regular oil supply by big player of oil market. This scheme was proposed first of all by Russian companies. For them it was the quickest way to consolidate their grip on Ukrainian market. All this we saw 5-6 years ago, when stoppages of oil supplies took place. As it was mentioned before, nowadays almost all companies try to create their own networks.
To find out an exact number of former jobbers is not an easy task. Operators say the figure between 4000 and 6000 filling stations. Approximately a third is presented by large-scale structures, each of which holds not less than 140 stations. All last are independent retailers, who prefer to keep aloof. The young ex-jobber company must negotiate about oil supplies. Though Ukrainian oil-processing factories avoid working with small networks as they give lots of trouble. If they were working under the brand of large firm, now filling stations should make re-branding. This procedure demands time and money. In addition, they have to fight for the quality and service. It has become noticeable to transform filling station into service complexes. This helps to receive higher income.
Not having an opportunity to carry business independently, jobbers are often forced to sell it. This had already done the filling station “Ekoil” - the former jobber of “Naftogaz”. It was bought by “WOG” company. This step doesn’t contradict the strategy of “WOG”; however company’s main goal is to form its own network under “WOG” brand. The further development of branch is connected with buying of working stations, or creating new ones. Among all oil-traders the jobbers network will preserve as it seems only “TNK”. Jobbers do not have any difficulty, they can easily sell their business. The market is not saturated yet. An active conversion takes place today. The steady growth of motor transport, an increase in oil consuming make this branch enough attractive. This phase, according to businessmen forecast, will last about 5 years. At the end of this period the rash flow of foreign capital will happen. The first foreign guest on the market of oil retail trade is “Shell” company. The Ukrainian market is especially attractive for West European producers, who supply oil in Ukraine by wholesale.