One of the justified criticisms of the import reform that was launched on June 1, and of which the Minister of Economy and the Minister of Finance are proud, is that it does not at this stage deal with toiletry products.
This, while the price level in this market is significantly higher than those in Europe and the USA, and this is due to the lack of competition. Almost every product category is largely controlled by one central player - who is also an exclusive importer.
The competition authority data based on data from the "Stornext" company that reached "Israel Hayom" show how concentrated the toiletry products market is in Israel.
Thus, the categories in which the importer Diplomat controls more than 50% of the market share in monetary terms are: razors with no less than 91% market share;
shampoo and conditioner (71%);
feminine hygiene products (55%);
Dishwashing liquid (51%).
According to the same data, the Shastovitz importer has a market share of about 51% in the sales volume of toothpastes.
We note that the part related to the import of perfumes in the import reform is supposed to enter into force only on January 1, 2023, in order to facilitate the import of some toiletry products.
This is a reform that is, among other things, the responsibility of the Ministry of Health, which takes a very cautious approach regarding the quality of products imported into Israel.
According to the reform, the importers who will enter will not need a marketing license and will be able to content themselves with a declaration of product safety.
The Minister of Innovation, Science and Technology, Orit Parkash-Cohen, says in a conversation with "Israel Hayom" that precisely the expensive products that the public uses every day will be included in the import reform only in 2024, and she calls for them to be included in an easy import route immediately as well as to expand the list of products that including
Minister Parkash-Cohen says in a conversation with "Israel Today" that "an expansion of the list of products for competing importers is required immediately. These issues have been neglected for years until this government, out of choice. We have all witnessed in recent months the hand-wringing between the exclusive importers in the State of Israel and the marketing chains on the issues The rising prices of food products and our consumption."
According to her, "Citizens should not be dependent on the wishes of any of the parties, but the public deserves a competitive market in which no player will have monopoly power to control the prices of our consumer products. This government has passed an important reform on imports, but unfortunately, the list today does not specifically include the products The most concentrated. An expansion of the list of products for competing importers is required immediately. I look forward to the completion of the expansion by the Ministries of Health and Economy urgently."
In addition to this, the minister proposes to promote clear legislation and powers for the government and the competition authority to reduce the power of those who have centralized control over the prices of various products, including by limiting exclusivity agreements and limiting the number of products that a single player owns.
"These issues were neglected for years until this government, by choice. Without a consistent and strong government policy, things will not change."
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