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Westfalika selling platform: a network of sales and service outlets and an online platform

OR GROUP develops the Westfalika selling platform, which comprises a network of sales and service outlets throughout Russia and an online platform of the same name. On the platform, the Company sells both products of its own brands (private labels) and products of partners (marketplace). In 2020, the share of online sales accounted for 19.9% of the selling platform revenue.

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In 2020, the Group transformed the fashion store into a sales outlet with a universal range of goods, which has a positive effect on the conversion and the number of items in the receipt. As of 31 December 2020, the Group's retail network comprised 840 stores (175 of them — franchise stores) in more than 330 Russian cities. 67% of the Company's outlets are developed in a street format. Large Company’s footprint in small towns gives OR GROUP a competitive advantage in terms of the development of online trading and new services in these localities. 

Company’s footprint, as of 31.12.2020. 

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The Company has transformed the retail format and significantly expanded the range due to the transition to the marketplace model when dealing with suppliers. In 2020, the Group achieved significant results on this project: by the end of the year, the Company cooperated with 750 partners; over the year, 2,105 million partner products were sold. Household goods became the leaders in terms of growth rate; among them 80% accounted for kitchen utensils, textiles, and small appliances. Textiles are the most high-margin product category. 

All interaction with partners is automated within the Продаем.рф (Prodayom.rf) platform. Client’s profile on platform is constantly improved, new functions are added, which allows the partner to manage the movement of goods online. The Prodayom online platform for interaction with suppliers (www.продаем.рф) received the Best Regional Project award of the Project of 2020 competition, organized by the GlobalCIO| DigitalExperts IT community (www.globalcio.ru).

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Since 2020, OR GROUP has been rotating the product assortment as well as fashion collections in stores more frequently. Now the Company forms an assortment matrix for each month, which allows capturing seasonal fluctuations, short-term surges in demand for certain goods, and, as a result, increasing sales.

Omnichannel model

In its strategy, OR GROUP relies on the development of omnichannel trading, where the client is able to make purchases using different channels and tools while switching from one channel to another is «seamless» and the customer's interaction with the Company's brand becomes the priority.

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In 2020, the Company significantly improved the operation of online platforms. Pandemic restrictions that caused an explosive growth of online trading also triggered these changes. In the 4th quarter of 2020, the Company launched a new mobile application westfalika.ru, and an updated version of the westfalika.ru site in the marketplace format started to operate so that now all partner products are presented on the Group's online platforms. 

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The share of online sales in the revenue of the westfalika.ru selling platform reached a record-breaking 21.7% in the 4th quarter, and 19.9% for 2020. In 2020, the share of the marketplace in online sales increased by 15.5 percentage points, and the number of sellers (suppliers) increased by 1,426.5%. The growing popularity of the mobile app and the development of online marketplace will allow the Company to continue to actively increase the volume of online sales: in 2021, the Group plans to increase their share in the selling platform revenue to 30%.

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At the end of February 2021, OR GROUP moved the Westfalika.ru online platform to its server facilities in Novosibirsk as part of its online sales development strategy. This will allow the company to significantly improve the performance of the site, its manageability and efficiency; more flexibly and promptly implement changes; collect and process analytics on the online platform operation; organize a simpler and faster exchange with the company's databases; synchronize updates on the site and in the Westfalika mobile application.

The Westfalika.ru online platform is an extension of the Westfalika sales and service point, offering a wider range of products. To ensure the integration of online and offline sales channels, the Group develops a project of online order terminals in stores, where the customer can immediately place an online order for any product that is not in the store. At the same time, the shop-assistant will provide all the necessary consulting support, help to place an order. Thus, a more conservative audience, which does not have such experience yet, and customers from small towns, where online trading is still poorly developed, are involved in online shopping. All of the Group's stores are now equipped with online order terminals. 

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The Company is expanding its cooperation with marketplaces such as Wildberries, OZON, Lamoda, Tmall (part of Aliexpress Russia). In 2020, the Group started to cooperate with Beru (now Yandex.Market) and Goods platforms under the Click&Collect system, where the customer selects the product on the marketplace website and picks it up in the store of OR GROUP. 

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