The children’s goods market, like many other consumer segments, has been affected by Western sanctions. The supply of toys from Japan has stopped, and some companies from unfriendly countries have also stopped selling their products to the Russian Federation. However, domestic manufacturers and retailers managed to maintain and even increase sales levels and product quality. Among the first in this series is the Detsky Mir holding, which has existed since Soviet times. The company recently changed its main owner – the founder of the Korablik chain, Alexey Zuev, became the owner. Izvestia spoke with the businessman about the prospects for Detsky Mir in the new economic situation and the situation on the children’s goods market in general.
— Why did you decide to become a co-owner of Detsky Mir?
— As it is now fashionable to say, by purchasing a share in Detsky Mir I conditionally “closed the gestalt” – the fact is that once In the 1990s, I worked as the commercial director of Detsky Mir and was already its shareholder. But then I had my own vision of the business and plans for its expansion, which were at odds with the ideas of the co-owners. And now it’s as if life offers a second chance.
— You bought a stake in the company during the process of its transformation from market to private, do you approve of this choice?
— The retail market, including the children’s goods segment, is going through hard times right now. Instead of publicity, it would be better to focus on business sustainability, such as maintaining jobs. After all, Detsky Mir has more than a thousand stores throughout the country. The moment when social responsibility prevails.
— But if the industry is now in a difficult situation, and the forecasts are also not optimistic, then did it make sense to acquire a new asset?
— A period of turbulence is a good time to buy a business. The company is a market leader, it continues to develop, it has an excellent management team. I really like her focus on ESG; it meets the needs of the times and the new generation. In addition, anti-crisis ideas have been introduced there for a long time – the number of intermediaries is decreasing, the private label segment (private brands) is expanding, and there is more unique assortment.
— How does the focus on the ESG agenda manifest itself?
— The company encourages customers to strive for responsible consumption. For example, when handing over unwanted clothes and shoes for recycling, they receive an additional 15% discount on this category of goods.
— What can you say about future plans for the development of Detsky Mir?
— Detsky Mir plans to further expand online and offline sales channels and lead in prices. The marketplace is showing good growth rates. I think that not only the company but also the suppliers like it. There are already results from the first half of the year, and it is clear that the online assortment of the marketplace has increased to 1.5 million unique product items, and its share in the total volume of online sales has grown to 15%. To support our suppliers, the company has waived the first month commission for new marketplace sellers since March and reduced the second month commission.
Detsky Mir has a separate direction that is not directly related to the children’s goods industry. Now the discounter format is becoming increasingly popular, which is why a pilot retail project was launched – the “More” discounter, where more than a thousand products are cheaper than 99 rubles. There you can find food, household goods, hygiene and care products, clothes and shoes, toys and cosmetics. In fact, this is not only an anti-crisis story, it is also a request from society. Because the quality of goods, service and infrastructure in such stores has increased significantly compared to the recent past, and along with it, people’s attitudes towards the format itself are changing. Discounters are becoming popular and in demand due to society’s desire for reasonable consumption. If a person knows that he can buy a product of similar quality much cheaper, then why overpay for the prestige of the sign.
— What can you tell us about the Zoosaur strategy?
— There, too, the network is scaling, the range is expanding, and the range of services is increasing. So that the owner of the pet comes not only for food or a toy, but also brings the pet with him to the doctor to show him and do grooming. As they say, comprehensive turnkey services.
— How did the Detsky Mir team perform in the new conditions?
— Having become the main investor, I did not change managers, I am very pleased with the current team. They are deeply immersed in the process, know the market and correctly assess its prospects, making decisions on time. Therefore, in operational management, I fully rely on their professionalism.
— What is the main difference between “Children’s World” and “Korablik”?
— Detsky Mir’s business scale is incomparable. We recently opened our 1000th store. The company went through the pandemic, learned lessons for itself, and has anti-crisis experience.
— Do you buy anything at Detsky Mir yourself?
– Yes, but not in the app, I go to the store the old fashioned way. For me, going to a store is a ritual, plus I check the organization of work there (I go to different stores in the chain every time). I have a loyalty card, I keep an eye on promotions, it’s a thrill to buy cheaper.
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