Pure Siberian Business

The company "Dishes Service Center", which sells tableware and household goods from Kazan to Khabarovsk, showing rapid growth, is not afraid of the arrival of large network of companies and is looking for the potential to develop within themselves.


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Novosibirsk really buy cookware that is strongly associated with "Ware Center".

"That if you ask, for example, a person in Novgorod, where he buys the dishes, he says — and nowhere else. That’s because the first set of dishes presented to him on the day of the wedding, and the last will be presented at the golden wedding. Our task — to make people buy the dishes between the two events. And in Novosibirsk, 99 percent of the cases you will be told that the utensils you need to buy in, "Ware Center", — says Igor Vasiukov — Executive Director of the company.


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The history of the "Ware Center" is lost somewhere in the first half of 1990, when the two partners Gennady Krasovsky FURSOV and Alex (each of them and is owned by half of the company) was chosen for the development of the business segment of kitchenware and household goods wholesale company organized " Sibplastkom ".

"We had a small initial capital and two major ideas for business — to engage either jeans or utensils. Eventually won the second idea, and this is probably an irrational explanation. After all, if there was a beautiful tableware plastic, multi-colored. That was not in the Soviet Union, and it is now available to people. And in the end it became popular utensils, people with the same pleasure and bought bread bins and buckets. When we started doing this, research conducted at the beginning and saw that such companies in the market. But when it was brought the first batch of goods, discovered that we are not alone ideological, and the market is still in heels companies. That is "podpolschina" flourished. But that’s what gave us the opportunity of rapid development — we have launched an advertising campaign, said open position with respect to customers, "- says CEO of the chain stores" Ware Center "Alex Krasovskiy.

Initially the company specialized in the wholesale supply, and, in fact, it was not yet "Ware Center," and the same "Sibplastkom" (which, by the way, and today there is a major supplier of shops "Ware Center" and the company is engaged in wholesale trade). The current type of shops appeared on the basis of the understanding that it is time to go "retail".

"In the late 90’s in our database was about 700 customers, and they are sure to come to the warehouse at the same time, endlessly arguing with each other — and those who buy the product boxes, and those who have large vans. Then the idea to divide the flow of customers, and create a format for a small self-service "- says Krasovsky.


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Not that "Ware Center" was a pioneer in this area — supermarkets appeared in Novosibirsk before, but in the non-food segment, it was a really small opening. Instead, traditional terry Soviet gumam and tsumam where all the review was limited to the available range is not too pleasant conversation with the impressive size of the seller. It is clear that a comprehensive understanding of the product so it was not possible, and in 1997 "Sibplastkom" made a knight’s move — placed first in the Central Department Store shelves with dishes and housewares, a kind of mini-market.

"The second factor of success — it’s a big range. Then at the wholesale warehouse we were seven thousand names, and now — more than twenty thousand, according to this indicator with us no one in the field of cookware can not be compared. It should be understood that we did not want to do from the beginning giant network, so it went only then, when we realized that this format is successful, "- notes Krasovskiy.

A parallel with the development of the network, evolved range: gradually were added to the traditional dishes, household chemicals, textiles, lighting and others.

CRISIS IN-YOUR

During the crisis, despite the fact that by all indications regarding kitchenware and household retail should have done all the usual laws of retail, the segment dipped slightly. A company "Ware Center Service", as has been said, and did become one of the 47 Siberian "gazelles", showing significant growth.


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"The crisis of 2008 had a negative impact on trade utensils, but nevertheless the industry did not suffer very much. This is due to the fact that the deterioration of the economic situation, first of all households start saving for major purchases, which does not include cookware. Spending on the dishes in the structure of consumption expenditures account for about one percent, and even considering the fact that purchases are made regularly, demand for the dishes is quite stable regardless of the economic situation in the country ", — says the analyst IFC" Solid "Elena Yushkova.

But the "Ware Center" in this period occurred a crisis — 8 February 2009 burned down the warehouse.

"You know, go weak in the crisis and remain strong. The market has cleared, and we are on the turnover went up. This trend has radically changed the warehouse on fire — only if the goods had been lost for 120 million rubles. And the insurance company refused to cover the losses, explaining that the arson on our part. As a result, half of the year the case was heard in bankruptcy court, and we won it in the first instance ", — says Igor Vasiukov.

However, the company in the process, apparently, is now more interest in sports — in fact in the case of a positive outcome, "Ware Center" will be offset by only 35 million rubles.

As a result, external expansion of virtually ceased.

"In 2009, we opened only two stores, it’s almost nothing. But have begun work on the bugs, found opportunities to increase turnover from domestic reserves, "- is again in a positive mood Krasovskiy.

In particular, it was restructured accounting, strengthened, the purchasing department (due to its smooth settlement increased occupancy shelves), began to actively develop loyalty programs — there were gift cards and bonus shares.

Another technological innovation, "Ware Center", which was also effective in crisis — fairground events.

"We decided to go back to basics, as it was when all the goods
sold to merchants in select cities on the fairgrounds, moving them one city to another. It’s not just the stock when we lower the price by 10-20 positions, is the promotion of a segment of the goods, such as textiles. We announce a textile fair, and within two weeks of declines in the prices of all the goods ", — says Alexei Krasovskiy.


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The results are recorded almost phenomenal: in the period of the fair sales increase by 60-70%.

Without parallel

"After all, many of what we do — says Krasovskiy — they were created for sale. Many business owners with whom I spoke said that they will take a share of the market and sell it, because we know that will be hard to compete and survive near major federal networks. So they take out loans, there is little to worry about the profitability of the business. And all profits put into the future sale of the company. But in 2008-2009, it became clear that no one is going to buy. And we — the more so because we have a unique format. To me one day a man came to take up the post of director of retail network. His first question was, "Where is your western equivalent? ‘. I told him: "I myself would like to see it, its just not." He says, "Yeah? Strange! And what do you expect? ". Everything is very simple — we have built a business as a business and not as a seizure. "


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Alexei Krasovskiy: "In their fair projects, we are going back to the origins of trade, to the merchants’

However, for an observer of modern retailing is clear that the main trend — it’s integration into large holdings. It has become a common phenomenon as far as what is perceived as a truism. "The market dinnerware with large volumes of sales among the largest companies can be named such as" Red Cube "," Besant "," AMW "," DP Trade ". Any of these four companies would buy the company, "Ware Center", since all of them are interested in expanding their own business ", — says Elena Yushkova.

But in the case of the "Ware Center", apparently refuted this law: "So it turns out that all around us there is no company with such a range. For example, in St. Petersburg network "Lenta" have dishes, but there are, say, ten of similar products, and we have two. Previously, a competitor could be called "Yuterra," but they offer the same products at higher prices. The reason is simple — they have their shops in modern shopping centers, and we are, roughly speaking, in the garage, so our costs are in any case less "- not without pride, says Igor Vasiukov.

— Have to you with offers to buy the network, to build a vertical holding?

— Come. For example, addressing a fund that invested in "Chudodom" wanted to save their investment and offered us to combine assets. But when we examined them, they understood that unite there, in general, there is nothing. "Troika Dialog" led negotiations with us to unite, "Ware Centers" with the "Santa House" before it went bankrupt. For producers, we also uninteresting. Yes, and not for what we buy production task — to learn how to trade well.

— A discovery on your "territory" stores chains such as IKEA, bad for business?

— I would say that they taught us to work more closely. We take their prices, go with them to suppliers and say that we need these. I also look at how to operate a network of home appliances. That successful experience that they had, we try to translate itself. But in general — we have a somewhat different compared to the competition philosophy of business development. We never tried to organize their store price — if only faster, if only more. We have always strived to ensure that minimize our costs and provide value for money.

"WE SIMPLY THE EAST"

Proposals for integration, according Vasjukova, also came from banks. Financial institutions offering loans at a certain growth conditions and non-compliance with these conditions took away part of the share owners. Such is the legal polureyderskaya scheme. In addition, the company once even decided to enter the IPO, at least preparatory phase has already been started.

"But then we realized that it makes no sense. Here we sell part of stake in the company, instead we get the money. But this kind of scourge that they beat you and say, "run faster." And here you stand with this money, happy, but not knowing where to go. As a result, you need to work on these guys, and we want to work for your pleasure. In general, in the beginning we were performing bears, like many others, went to the meeting with different foundations, but then realized that we do not need it "- says Krasovsky.

The current stage of development, the company runs mainly from its own revenues, the amount of loans, "Ware Center" insignificant. For some stores increase for the year is expected to reach 28%, and by 15 December 2011 in Russia will open six new "Dishes Centers": in Kazan, Orenburg, Ufa, Berd, Irkutsk and Bratsk. The opening of each store is estimated at 30 million rubles, including filling merchandise. In 2012 it is planned to go to Vladivostok, Chita and Ulan-Ude, and on the west — in Yekaterinburg, however, there has not yet reached an agreement in respect of the premises.

"We have designed the format of the store, he is successful, and you just need to clone. Moreover, it is the most successful east. Us there much faster return on investment, and this market is better understood, we still live in Asia "- continues to tear down stereotypes Alexei Krasovskiy.

"The level of consumer spending Sverdlovsk region even slightly exceeds the St. Petersburg — monthly average person out there spends 18.3 thousand rubles. In this region, there are some very powerful players in the federal matter, but the territorial status of the Sverdlovsk region is such that, together with local companies on the market there are also Siberians, due to which competition between firms in the Sverdlovsk region stronger — agrees with the prospect of the Ural direction Elena Yushkova. — A relative of the Far East, it can be assumed that the arrival on the market of dishes of this region may be unsuccessful due to the presence of major competitors from Japan and China, offering products in different price segments from the cheapest to the premium. "

In addition to geographic expansion, "Ware Center" plans to continue the internal "work on our mistakes," systematize business. But in politics, unlike many of his colleagues Alex Krasovskiy not going to go, "This option is possible only in two cases: either the owner goes out of business or lobbying for their own or someone else’s interests. We’re not going anywhere. "

Company "Dishes Service Center" was founded in 2001 in Novosibirsk. Specialization — sale of kitchenware and household goods. Terr
itorial expansion began in 2003, when it was opened the first store in Krasnoyarsk. In July 2007, the company stepped to the Far East, opening a store in Khabarovsk, and in 2010 the first store, "Ware Center" appeared in the Urals — Chelyabinsk. Today, from Kazan to Khabarovsk are 21 "Ware Center", 22th open its doors December 15 in Bratsk. The range of products are more than 20,000 items, including private label Matissa (utensils made of glass, metal and ceramics, seasonal goods, cutlery, kitchen utensils).

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