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Сompany today

Obuv Rossii Group is a a nationwide shoe retail chain ranked among top two Russian footwear retailers (according to Discovery Research Group) . The Group is the leader of the mid-price segment of the shoe market.

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In October 2017, Obuv Rossii raised 5.9 billion rubles in an IPO on the Moscow Exchange (ticker: OBUV), the issuer being OR PJSC, and became the first publicly listed company on the Russian fashion and footwear market.

Obuv Rossii was established in 2003 with head office in Novosibirsk.


Obuv Rossii in a nutshell

As of 31.08.2019

884 stores
throughout Russia

RUB 11.53 bln revenue in 2018

60,682 sq.metres
total DOS selling space

Key business areas of the Group include

Retail sale of footwear and related products.

Omnichannel sales and e-commerce.

Financial Services.

Production of footwear.

Our brands

The company incorporates five shoe retail chains, casual footwear brands All.go and S-TEP as well as outdoor retail brand Snow Guard. In September 2014, Rossita and Lisette brands became part of the Obuv Rossii Group . Thus, one of the leaders of the footwear market in the Urals and Siberia regions — Rossita company —joined Obuv Rossii.

Strategy

Obuv Rossii operates in the mid-price segment of the footwear market and in its strategy focuses on developing brands with unique positioning and building long-term relationships with their customers.  That is what allows the Group to sell not only shoes, but also a big range of related products, to offer various additional services to customers. All company’s products including innovative ones are popular with targeted audience. Ideas for the brand and customer relationship work in different formats of interaction with customers — offline, online, mobile, social networks, etc. This Obuv Rossii’s competitive advantage helps the company be a leader on the market.

Highlights

Obuv Rossii forms the collections of its stores according to total look concept that opens new opportunities for stock development. Now a range of non-footwear goods under private labels include more than 8000 SKU, these are apparel, bags and leather goods, shoe care products, tights, home goods,  a range of foot care creams, etc. In 2018 the sales of related products (including apparel) in Obuv Rossii stores grew by 6%, the share in the retail revenue amounted to 35%.  

Therefore, Obuv Rossii sales outlets are not classical shoe stores any more, they are branded stores offering a wide range of products for certain seasons to form a whole fashionable look.

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To promote its brands, Obuv Rossii regularly launches large-scale advertising campaigns, some of which feature celebrities. Famous Russian singer Valeriya has been the face of Westfalika since December 2010. Obuv Rossii is constantly working to improve its range of products. Since November 2011, Thomas Frank, a German designer, has been a chief designer for Westfalika, overseeing all new collections and developing the brand further.

An innovation loyalty program Arifmetika (Eng. — Arithmetic) operates in Group’s stores, it combines traditional cumulative discount system and a number of additional services such as installment payments, cash loans, cash payments, etc. In 2018, the number of Arifmetika loyalty cards holders increased by 15% and exceeded 2.2 mln. Arifmetika is an ecosystem that forms comfortable environment for interaction of customers and company’s brands.  

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Obuv Rossii develops omnichannel sales aiming at maximum synergy of different sales channels — offline stores, online platforms, a channel of mobile sales. Obuv Rossii manages five online stores: westfalika.ruemilia-estra.ru , westfalika-home.rulisette.me and rossita.com. The company constantly improves functioning of its online-stores, optimizes online-orders processing, and implements complex approach in promotion. In 2018, online sales grew by 10,3%, their share in retail revenues reached 13%. Obuv Rossii prioritizes developing its own online stores, it also cooperates with online multibrand platforms such as Wilberries and Lamoda. 

Since 2018, Obuv Rossii has been implementing the strategy of integration into logistic infrastructure of the Russian e-commerce market. In 2018, Obuv Rossii started cooperating with big logistic operators of this market PickPoint and DPD and opening pickup points in Group’s stores. New project will allow attracting additional foot traffic in Obuv Rossii’s stores and will contribute to service quality and online sales growth. In 2019, the Group will extend cooperation with the current partners and add new ones.

Obuv Rossii develops its own manufacturing of footwear and components. Currently, the Company’s production facilities are located across two manufacturing sites in the Novosibirsk Region. Obuv Rossii manufactures shoes utilizing all main types of sole construction techniques including adhesive, direct and combined construction methods. All stages of production are fully automated, using high-quality equipment by some of the leading international manufacturers such as DESMA, Newlast, Orisol etc. Obuv Rossii manufactures footwear under its own brands S-TEP, all.go, Pioneer of Arctic Travel and sales it through its own retail chains as well as cooperates with wholesale clients, deals with corporate segment producing and delivering special purpose footwear.  

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To ensure sustainable business development, Obuv Rossii uses various financial instruments including bank loans, a bond financing program and equity capital. The Company has three bond issues circulating on the Moscow Exchange with a total volume of RUB 3.5 bln. In September 2018, RAEX (Expert РА) confirmed the creditworthiness rating of Obuv Rossii Group at ruBBB+ level, a «stable» forecast.

 

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