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ASSESSMENT OF THE CONCENTRATION OF THE LEASING SERVICES MARKET IN UZBEKISTAN
Muradova Nargiza Ulzhaevna, Samarkand institute of economics and service, Samarkand, Uzbekistan
E-mail: muradova.nargiza@bk.ru
Abstract. The article is devoted to the need to calculate the concentration of the market, through which the adoption of marketing programs is justified, in particular the introduction of the digital innovation platform Leasing Customers Database.
Key words: leasing services market, leasing services market concentration, concentration index, Herfindahl-Hirschmann index, Lorenz curve, Ginny coefficient, interactive platform, trading platform.
The concept of market concentration for marketing is of no small importance in the process of assessing the marketing macro-environment, which is part of the legal factors, since they can limit and direct the marketing activities of any enterprise and influence the adoption of general business decisions.
At the same time, it is important to emphasize that the concept of "market concentration" for marketing is not a special form or type of regulation, which implies the coincidence of the effective interest of lessors and lessees. Such an interpretation of the concept of "market concentration" is unlawful, since the term "market concentration" of leasing implies slight contradictions between the object of leasing and lease payments, which are resolved on the basis of the priorities of directing the leasing entity over the object of leasing before making a decision on leasing payments, also with the possibility of applying economic coercion to relation to the leasing object. At the same time, one of the main principles of regulation of leasing relations should be that the interests of a more general order are considered a priority.
Thus, the most important thing in the concept of "market concentration" in leasing is that it arises, firstly, in the presence of personal interests of lessors, and secondly, if such interest is jointly, i.e. lessor and lessee than each separately. It should also be borne in mind that the "level of concentration" in the broad sense of the word, as noted by V. Vaypan, M. Egorova, A. Kinev, D. Petrov, A. Gabov, is not only a quantitative indicator of market concentration, which characterizes market priorities
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individual entities, but also indicators of the number of competing enterprises, taking into account the market share of those operating in the relevant market [1].
The level of competition in foreign practice has rich experience in the application of standards, taking into account indicators of competition and market monopolization. For example, in the United States, public authorities act depending on the indicators of the market power of one or more enterprises. Therefore, the US measures market power through a concentration ratio, thereby measuring the share of the largest firms in an industry's output. The level of concentration increases in accordance with the absence of competition, and vice versa, with developed competition, the level approaches zero.
According to the instructions of the Antimonopoly Committee of the Republic of Uzbekistan, a monopoly is a company that can influence the state of competition, impede access to the relevant market for other business entities or otherwise restrict the freedom of their economic activities.
In the practice of regulating leasing relations, the position of those lessors is recognized as dominant, whose share in the cost of the object provided for leasing is 50% or more or is in the range of 35-50%. According to this approach, the value is recommended to set the following conditions for entering the market: if during the first year or more the share of the lessor in the total cost of leasing will be from 3550%; if there are no other competitors on the leasing services market with a share of more than 20% of the total cost of leasing; thus it is necessary to give the opportunity to enter this market as a new competitor. The solution of this issue will explain the growth in the number of participants in the leasing services market.
Even more transparent in this context is, in our opinion, the formation of reserves in the amount of 5 to 20% of the value of the lease object contract. This will make it possible to more effectively manage the liquidity risk of lessors. Along with this, it would be more objective to give them the opportunity to insure liquidity risks in the current conditions.
Implementation of this proposal within the framework of leasing relations will provide an opportunity to: change in the value of the leasing object and insurance companies, which will result in income (dividend) from the amount of the deposit, not profit, which will contribute to obtaining synergistic profit; the introduction of lower (compared to the level of 2020) taxation of lessors' profits in relation to the amount of investments in the deposit; exemption of both lessors and lessees from paying taxes if the object is innovative leasing equipment. This will provide an opportunity to raise their profits within the established benefits.
In most countries, when calculating the level of concentration, it sets the condition for limiting the number of enterprises, while ranking them in terms of the share of value, for example, if in the USA the shares of the first four, eight or twenty companies are calculated, then in England, Canada in England, Canada, Germany - are determined shares of the first three, six, ten companies [2].
Issue of analyzing the degree of concentration in the works of P.Samuelson and V.Nordhaus is estimated depending on the degree of concentration from the total volume, that is, a high degree of concentration exceeds 60%, while the share of certain enterprises is less than 20% with a low market concentration [3].
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Another economist, referring to this issue, considering the concentration of the leasing market, classifies the level of market concentration depending on the total market share of the first four leading market players reflects dense (compact) concentration and loose (spacious) concentration.
The growth of concentration, as noted by the Russian economist V.D. Gazman, becomes the reason for the formation of a monopoly, as a result of which the impeccable efficiency of the return of resources is lost. Having deepened the study of the issue of market concentration, V.D. Gazman believes that, firstly, concentration is not a sufficient condition for market monopolization; secondly, industries create complex innovative products, i.e. thus provide the consumer with innovative high -quality products [2].
Based on the above opinions, we decided to assess the concentration of the leasing services market in Uzbekistan. To begin with, the general market indicators for 2019 year 3976877.05 million sums and 2020 year 5269063.23 million sums were studied, which will be used to analyze the market concentration of leasing sellers [4].
In order to scientifically substantiate the determination of a further scenario for the development of the leasing services market, it was necessary to substantiate the mechanisms of concentration of the leasing services market in Uzbekistan according to the Herfindahl-Hirschman index of market concentration for the last period. Within its framework, the domestic market of leasing services indicates a highly concentrated index, but at the same time it was not very statistical in nature: hHi2020 = 1276; HHI2021 =1271.
Based on the data of the Leasing Association of Uzbekistan to analyze the market concentration of leasing services, ten top ones were selected, having more than half of the market share for 2020-year 2989582.9 million sums and for 2021 year 4320702.0 million sums [4]. Based on the indicators of the main top sellers of leasing services, a calculation was made to determine the concentration index - CR, i.e. characterizing the shares of the top 10 major players in the total leasing portfolio, where it was determined that in 2020-year CR was 75.1%, and in 2021- year 82%. This index showed a noticeable increase in high concentration over the analyzed period.
Although concentration is an important problem for ensuring the growth of the activity of the players in the leasing services market, its calculation within the framework of the concentration index is a calculated total value and thus literally denies the distribution structure between the companies that are included in the calculation of the concentration index. Although such indexation of concentration is not taken into account, for example, if in the USA it is used as a priority indicator when calculating the index, but instead they resort to using their own calculation, like the Herfindahl-Hirschman index. However, in market-developed European countries, the Lind index is used [4].
Based on such phenomena, the Linda index for 2021 year was calculated within the framework of top lessors to determine the "border" of the oligopoly. The Lind index measures the degree of inequality between market-leading sellers of a product. Since the top ten firms own more than 75% of the market, we made the following
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calculation for 2021 years to determine the "boundary" of the oligopoly, which amounted to 2.8812 [4]. Based on the results of the calculation, it can be argued that the oligopoly in this market is "vague" and is formed with the help of five leading lessors: UzagroLeasing; Uzmeliomash Leasing; Uzbek Leasing International; Kurilishmashlizing; Asaka bank.
LEASEUROPE (European Association of Leasing Companies) own methodology for determining the concentration of the leasing services market, the concentration of the leasing services market is determined by the number of leasing companies owning, in fact, 25%, 50%, 75% of the national leasing services market. In this case, the calculation is carried out at the cost of new lease agreements concluded during the year. Also, the Lorenz curve is used to illustrate market concentration [2]. We agree that the use of the Lorentz curve will give a more significant characterization of the real distribution of income between leasing sellers. It shows the ratio of the percentage of all income and the percentage of all their recipients [5].
Based on the survey data of the Leasing Association of Uzbekistan for 2021, an attempt was made to illustrate market concentration using the Lorenz curve in a graphical interpretation of the results of calculating the Ginny coefficient. At the same time, the calculated value of the Gini coefficient turned out to be 67.7%, which once again proves that most of the income of the leasing services market is in the hands of individual lessors.
From this we can conclude that in determining the level of concentration and its analysis has an important role in the first place to assess the competitiveness of the market, which takes into account the number of lessors and their relative size. By analyzing market concentration, it is also possible to suggest further decision-making on strategic cooperation programs.
Taking into account the above, and today's requirements of the economy in matters of transformation, in particular the formation of a digital economy, we have developed a project that takes into account the policy of business partnerships with the prospect of developing the activity of participants and increasing the competitiveness of lessors. This project considers practical recommendations for the development of leasing relations in the leasing services market through information software products in the form of an interactive digital marketplace platform aimed at creating a marketing information system among participants in the leasing services market.
The project of information technology, taking into account the current requirements of the economy in matters of transformation, in particular the formation of a digital market for leasing services with the help of Leasing Customers Database is like an interactive digital marketplace that takes into account the policy of business partnerships with the prospect of developing the activity of participants and increasing the competitiveness of lessors.
Launch of interactive digital marketplace Leasing Customers Database can allow the exchange of information about between participants in the leasing services market, improve the quality of service, optimize labor and time costs and ensure financial literacy and financial inclusion in decision-making, thereby establishing a connection with the Leasing Association of Uzbekistan. And also, in on-line and off-
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line mode, the client can always contact the leasing company, or leave a message, outside of working hours.
Interactive digital project of Leasing marketplace Customers Database has the following goals: to use the opportunity of IT; provide customers with a particularly valuable combination of leasing services with IT; timely collection of information about the needs of customers and its analysis to develop a marketing strategy for leasing companies; improving the quality of services and developing innovative leasing services.
During the implementation of the project of interactive digital marketplace Leasing Customers Database in the market of leasing services will provide: high technology; sociability; timely resolution of customer issues and requirements; the ability to effectively develop an approach to each client; high-speed data update operations; the possibility of monitoring during the fulfillment of the terms of the contract; integrated use of the CRM system; reduction of costs for marketing activities and time; continuity of marketing control; timely opportunity to conduct marketing analysis.
References:
1. Vaypan V.A., Gabov A.V., Egorova M.A., Kinev A.Yu., Petrov D.A. Economic concentration: the experience of economic and legal research of market and legal structures: monograph (responsible ed. Doctor of Law M.A. Egorova). -Yustitsinform, 2016 - 552 p.
2. Gazman V.D. Leasing: development statistics. Proc. allowance for universities. - M.: Ed. House of State University Higher School of Economics, 2008.
- 593 p.
3. Samuelson P. Economics / P. Samuelson, V. Nordhaus; per. from English. -M.: Williams. - 2015. - 1360 p.
4. The calculation was made based on the data of the Leasing Association of Uzbekistan. - URL: http://ula.uz/
5. Babich A.M., Pavlova L.N. Finance: textbook. - M.: ID FBK-PRESS, 2000.
- 662 p.
6. Fayoz S., Shakarbekovna N. S. CEO Promotion as A Tool for Internet Marketing // Eurasian Research Bulletin. - 2022. - T. 5. - P. 92-96.
7. Sanjarbek B. The Role of High-Tech Marketing in Improving the Efficiency of Marketing Services in Enterprises // European journal of business startups and open society. - 2022. - T. 2. - №. 2. - C. 120-125.
8. Usmanova Z.I. Features and trends in the development of tourist and recreational services in Uzbekistan // PhD diss. Abstract, Samarkand, 2018.
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