News
In 1H 2020 Obuv Rossii’s marketplace turnover exceeds RUB 2 bln
Novosibirsk, 28 July 2020: Obuv Rossii Group presents marketplace and Prodayom online platform performance in the first half of 2020. The platform turnover for the six months exceeded RUB 2 bln. The total amount of new products sold by the Company through the marketplace is more than 600 thousand. During the six months, the Group attracted over 500 new suppliers from such product categories as glassware, small household appliances, cosmetics and makeup, toys, books, etc. As a result, the range of goods has expanded 2 to 2.5 times, while the share of the products sold by the Company under the Prodayom project achieved 30% in retail revenue. New products are represented both in sales outlets and in the Westfalika.ru online store.
The new business model and the diversification strategy made it possible for the Company to return to the pre-crisis sales within a short period: the Group reached the level of the similar period in 2019 in like-for-like sales already in June. “Online retailing has changed the consumer behaviour: customers expect us to offer them a varied and regularly changing stock of products they are used to seeing online. No one is surprised that there are glassware and cosmetics next to shoes. Therefore, we increase the buying probability. Also, all products, including partners’ ones, can be purchased on instalments, which also helps us maintain and increase sales,” says Anton Titov, CEO of Obuv Rossii Group.
The average ticket structure in Group’s stores has changed. The share of household products has grown as the range of goods is significantly wider now. “The most popular household products include glassware, its share in the turnover of all household products made up 30% in July. The second place is occupied by small household appliances – 22%; the third place – by toys with 12%. Toys are worth mentioning: their choice in our store is very big now, they are especially popular with women,” says Olga Danilova, Head of Related Products Department of Obuv Rossii Group. “To drive demand and to attract attention to novelties, we launched some campaigns offering our customers advantageous terms for purchasing certain products. We have new campaigns every month to maintain customer’s interest. Special offers demonstrate the efficiency and increase sales on average 2 to 3 times.”
Obuv Rossii announced a change of store format and a transfer to working with partners using the marketplace model in November 2019. Since December, the Prodayom online platform for suppliers has been successfully operating. Company’s stores are now mini general stores; most small-size sales outlets are represented in the street format. As for the sales geography, a significant share accounts for small towns with the population from 15 to 250 thousand people.
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