Les cahiers de Intima - Milavitsa - (Page 14)

Focus on Milavitsa Milavitsa’s Retail Development A Very Dynamic Growth Over 350 branded stores in 12 countries: about 190 in Russia, 65 in Ukraine, 44 in Belarus, 15 in Moldova and the rest in other countries including Cyprus, Latvia, Armenia, Kazakhstan and Germany. The goal set by Milavitsa Vice-Chairman Sergei Kusonski, is quite ambitious “We target to reach 700 stores by 2015 with a main focus on Russia. It seems a lot but if you consider that in the year 2010, despite the crisis, we will end by opening, directly or in association with our retail partners, over 70 new stores… this suddenly sounds realistic!”. Most of the stores in Belarus are operated directly by the company, while foreign operations are managed by local trading partners “this is the most cost-efficient and effective way to work” says Milavitsa Chairman Dmitry Ditchkovsky, who explains this decision by the need to react rapidly, despite the huge distances separating the different stores in large countries such as Russia or Ukraine. With more than 350 existing stores mainly in Eastern Europe and Asia, Milavitsa has been developing a real know-how on merchandising and logistics and there was no reason not to try to move west. It is achieved with their franchised store just opened in Dortmund, Germany. Let’s learn more about this winning retail concept. even, a very useful tool to train new partners. The minimum investment for a store varies significantly from country to country, on average it requires about €40,000. Milavitsa’s Store Concept The Minsk flagship store, inaugurated in February 2008, is a very pleasant 330 sqm space designed by a famous British retail design company. All on the same floor, the wide store is divided into different areas to give guests a more intimate feeling: an extremely bright entrance providing general view of the inside, and more particularly on the central display, where the latest arrivals or best selling styles are shown. The main room shows a vast selection of styles from Milavitsa’s Fashion collection and Alisee toplevel line merchandised per color themes. Each article is presented on hangers, in different sizes, to facilitate the choice. More everyday and basic items, such as t-shirt bras or unwired comfort bras, are also available in the store from Milavitsa Classic line situated on the left side. Every woman can find her perfect bra here, since almost every line gets to D and E cups or even to 115 G for specific models. A second area is dedicated to welcoming and relaxing with comfortable couches, magazines and a plasma screen showing recent fashion shows… just by the fitting rooms, to make it easy for friends or couples to take part in the choice of the best lingerie set. Separate from this central area but visible are the nightwear and beachwear collections, plus some men’s underwear and hosiery. To complete the relaxing atmosphere, a direct entrance takes the guests to a nice cafeteria where you can taste coffees and teas or be tempted by a Napoleon, one of the nation’s most popular cakes. In terms of BARNAUL pricing, Milavitsa really wants to cater to every woman and you can find, within their different brands and styles - from casual to special occasion - a wide range of prices, from more accessible to relatively more expenMINSK sive. Brand Value and Training The average size of Milavitsa’s stores ranges from 40 to 90 sqm, but the ideal recommended size in 75 sqm. The assortment can be decided in cooperation with each partner and it is possible to introduce complements to the main Milavitsa offer, such as hosiery or accessories, as well as complementary brands covering specific needs, as long as the total does not go beyond 30% of the Milavitsa offer. One of the main reasons of this very dynamic growth stands in the company’s involvement in the cooperation with new partners, offering training, merchandising materials, supporting them with promotion actions and advertising for NIZHNY NOVGOROD newly opened stores. “The brand recognition by the consumer is really high, and represents a huge advantage in terms of sales” explains Mr. Kusonski. The profitability of each location is precisely estimated by a store calculator set to break STAVROPOL 12

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Les cahiers de Intima - Milavitsa