M.Video view to root

Traditional sellers of equipment with each day more and more attention is paid online. Many of them urgently revise their development plans in favor of online sales. Moreover, retail equipment and electronics are more disadvantaged this year, because the market, unlike in previous years, is not growing, but falling.

If we take into account this fact, we can assume that the growth of the market share of any seller is possible only at the expense of another, and this leads competition to a new stage of evolution. Due to current trends, retailers are forced to look for acceptable forms of change in their operations.

Thus, a major retailer of M.Video last year attended to restarting its website, which allowed the online store to increase its traffic to 4 million visitors per week, which according to RBC, almost twice the flow of customers in stores.

M.Video President Alexander Tynkovan told the publication that the retailer is currently moving into the category of online companies. Although at the moment, the conversion in retail is still higher.
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"In the first quarter of 2015, more than 10% of purchases were made through an online store, and in Moscow, the share of online sales in the company's revenue exceeded 20%."

In this regard, the company is restructuring its business, which has already led to the closure of a number of stores, and reporting emphasizes the company's concentration on the most advantageous locations in terms of self-delivery of goods ordered online.

In general, by the end of 2014, the volume of the e-commerce market in Russia grew by 27% and exceeded 683 billion rubles. The two largest players grew faster than the market: sales of Eldorado on the Internet in 2014 grew by 61.6% to 17.8 billion rubles, while M.Video - by 90% at once, to 18 billion rub. In the first quarter, M.Video online sales, taking into account orders for home delivery and pickup from stores, increased by 31% to 4.8 billion rubles.

Analysts believe that today the positioning of the company as an online retailer is a very strategic step, which allows to increase the value of the business, as investors regard the traditional retail segment of home appliances and electronics as a stagnant topic, and online is considered a fast-growing promising market for which the future.