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WE WORK FOR FOOD

 

S.A. Ricci notes that a new savings strategy and jewelry work with it brands are in fashion. Considering that the buyer is not only trying to save money, but is more attentive to the choice of goods (instead of three cheap things, he buys one, but of higher quality and, accordingly, more expensive), the client is increasingly paying attention to the behavior of the staff and the appearance of the store.

 

 

"On the one hand, we should note that traffic has stopped falling in some shopping centers, the response to Black Friday is stronger than in previous years. But, unfortunately, buyers are still looking for a discounted product," says Denis Kosachenko, Sales Director at VF CIS. Yes, the buyer began to spend more, acting on the principle of "smart" consumption. Customers are not ready to give up the things they are used to, but at the same time they have reduced the frequency of wardrobe changes or buy cheaper lines in their favorite brands. Many consumers go to fast fashion or unknown brands, as price plays an important role for them. In general, we see a trend that young people are moving away from labels and trying to buy current and fashionable things, but at the same time they are not ready to pay a high price. Of course, if a brand is well-known and offers a high-quality product, then the consumer saves money, waits for a sale, but does not go into substitute brands. We have a wonderful brand, The North Face, which, thanks to its technology and uniqueness, is at the cutting edge of fashion. Despite the price segment in which the brand is represented, we see the excitement and recognition, many domestic pop stars love and wear our products. We ourselves have completely updated our approach to service: the S.K.A.T.E. program has been launched in VANS stores, which helps our consultants become ambassadors of the brand and its values and improve the level of service. In our work, we try to give the buyer the feeling that he is not just buying a thing in a store, but doing it in a circle of friends. This year we actively promoted wonderful collaborations: LEE & SashaUnisex, Wrangler & Peter MAX, VANS & Karl Lagerfeld; now in our stores you can find products where The North Face and VANS brands have combined their knowledge. Such activities attract new customers to our stores, and regular customers see something new in the brand, and it works: sales are growing.

 

Anna Panyukova, Development Director of Prime Management, is also convinced that the Russian buyer will not start spending without looking back soon. "In terms of service, of course, with our relatively young market, we are much inferior to Western countries, where the standards of customer service have been formed over the years," believes Ms. Panyukova. – Our retailers (not only in the fashion segment, but in general) always have one of the main problems – staff. How to reduce staff turnover, how to make the seller work for the result and other questions to employees often determine the success of a particular store. In my opinion, everything is decided by the store management. Sometimes a retailer changes its director and revenue starts to grow. There is one reason – « it is possible to turn away the buyer with a low level of services quickly, but in order to accustom the client to himself, long and painstaking work is required. Therefore, many retailers, especially with a small number of stores, need to pay attention to the training and preparation of staff to work with the client. If a guest enters the store, the seller's task is not to let him go without buying. We note that the mass market has grown very noticeably in terms of the quality of the stores: all new Gloria Jeans projects and three Melon Fashion Group brands were opened as a real decoration of shopping centers. Finn Flare updated the concept of the magician­zine, increased the format and changed the design. This is the news of the year for me. I have been following the success of my colleagues from this brand for a long time, they have built a beautiful history, made a business from scratch and do not rest on their laurels.

 

 

LEFT IN THE SHOP

According to VTsIOM, fears related to rising prices and international conflicts remain the main factors of concern in Russia. However, in general, consumer sentiment is improving: since the beginning of 2017, the share of those who consider the time for large purchases and loans favorable has been growing. "In conditions when the market is approaching the level of maturity, the battle for the consumer among its professional participants began much earlier than the crisis," says Elena Solovyova, Director of Marketing and Business Development of the Department of Real Estate Management and Operation of JLL. "We can say that, due to the turbulence of 2014, the market has become more fair: inflated and overvalued offers are in less demand. Of course, the offer of the "medium" and "medium minus" segments is in demand, especially in the regions, but the consumer does not save on everything. According to the results of our research, the greatest savings were made on non-daily demand goods, the purchase of which can be postponed, such as electronics, travel, jewelry and accessories, and other luxury items. As well as clothes and shoes, but not primarily. About 20% of consumers save on food. To a lesser extent or not at all save on goods for children. Yes, there are fewer spontaneous purchases, the buyer has rationalized, is waiting for discounts and special offers.

 

People increasingly want to feel special, so the alignment with high service will continue, S.A. Ricci is convinced. "But in general, I would not dramatize the situation," says Olga Valchuk, CEO of Region Development. A retailer's view from the inside can sometimes regard it as catastrophic, but these are just evidence of a changing market, both under the influence of new technologies and under the pressure of changing consumer behavior. Today and over the next 10 years, online and offline retail trade will be shaped by two main trends - digital and personalized.

 

 

The digital factor will have an impact on the area of determining more precise parameters of the client: physical, value, everyday and even minute-by-minute. And personification will allow not only to choose the most optimal option from the existing product line, but also to produce unique copies only for a specific client; soon factories will be able to process individual orders as quickly as mass orders. An individual approach will bring back to life the archetype of the shopkeeper, when the buyer can feel that he is understood and appreciated as a separate person, and not as a representative of the crowd. To translate personification into mass production will be one of the main tasks of retailers.

 

Text: Evgeny Arsenin

Photo: shutterstock.com