Stemscale Georgia’s CEO Mikheil Kukava says that, beyond the factors mentioned in the parliamentary commission’s report on prices, there are many additional elements influencing product pricing, which his organization is actively analyzing.
Speaking to BMG’s TV-program “Analitics”, Kukava stressed that “the government should listen to business”, arguing that the private sector sees realities that state institutions cannot fully observe. He said the company works with the FMCG sector on optimizing business processes, noting that proper management is the most effective way to reduce prices.
According to Kukava, inefficient management of inventories, sales, and “sales mix” is one of many reasons prices remain high. He added that Stemscale Georgia works closely with businesses to identify pricing structures and show clients what drives costs. He also pointed to broader structural issues such as weak trust in the market and limited use of consignment sales, alongside logistics costs and exchange rate volatility.
Kukava welcomed that the parliamentary commission did not portray the business sector as “greedy,” saying the report correctly showed that high prices are driven by a combination of factors, including global prices, the lari exchange rate, logistics, and working capital costs. He concluded that expecting prices to fall significantly without addressing these structural issues is unrealistic.
