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 The Turnover of Obuv Rossii's Marketplace Exceeds RUB 1 bln in Three Months

The Turnover of Obuv Rossii's Marketplace Exceeds RUB 1 bln in Three Months

Obuv Rossii Group is reviewing the results of the operation of the marketplace and Prodayom online platform launched by the Company at the end of 2019 to deal with suppliers. The turnover of the Group's marketplace for three months made up RUB1 bln. The Company has over 300 suppliers from such commodity segments as children's toys, household goods, cooking ware, small appliances, cosmetics, etc. There are suppliers from Moscow, St. Petersburg, Rostov-on-Don, Kazan, Krasnodar, Omsk and others. The Concept Group (Concept Club women's clothes brand) is a new big partner of Obuv Rossii.

Obuv Rossii has been developing the clothing line since 2014. First, only outer clothing under the own Snow Guard brand was represented in Group's stores – down coats, jackets, and raincoats. Since 2017, the stock has been expanded with jumpers, cardigans, dresses (so-called, mid-layer). Currently, the mid-layer clothing collection includes over 1,000 items.

"In 2019, sales of mid-layer clothing increased by 69.5%. Due to high results, the Company decided to expand the stock in its stores using clothing of other brands," says Olga Danilova, head of the Related Goods Department of Obuv Rossii Group. "Unique design and bright models – that's what attracts in Concept Club's products, therefore we are sure that they will be popular with our customers."

In March, about 250,000 items of the Concept Club company appeared in all stores of the chains that are part of Obuv Rossii Group. The products include lingerie under the Infinity Lingerie brand, as well as home clothing.

"The company has much experience in the fashion industry, and we are glad to offer Obuv Rossii, one of the biggest Russian retailers, a joint project in selling trendy clothing. The range of women's clothing and lingerie developed in own design buro, will be made with the consideration of chain's customers demand," comments Natalia Privalova, Chief Operating Officer of Concept Group.

In November 2019, Obuv Rossii announced the change of its business model: the Company provided up to 50% of its sales areas to outside suppliers, pushes the boundaries of the fashion segment and reformatted its stores to be omnichannel marketplaces. As a result, Obuv Rossii will increase the stock two times due to new product categories. According to the Group's plans, the marketplace development will allow the Company to increase the proceeds of the operating stores by over 30%, to grow conversions by 1.5 times and to smooth seasonality that is typical for the fashion market.

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