In May 2015, KupiVIP sales grew by 65%, in June - by 55-60%. KupiVIP CEO Vladimir Kholyaznikov sees this as a profound reason: the crisis in the Russian fashion industry, which began in the fourth quarter of 2013, when people began to think more about savings. Another reason was two warm winters - at that time of the year major money was made. Since 2009, many things in Russia have been sold at a discount in order to revive traffic after the crisis. Later, retail tried to return to full price mode, but in 2013 it all started again. KupiVIP helps to get rid of unsold collections.
In an interview with Kommersant-Money, Vladimir Kholyaznikov
told about the peculiarities of Russian Internet commerce.
KupiVIP company is a discooter, to which brands, their franchisees, wholesalers and manufacturers apply. 70% of purchases at the moment are in Russia. The main sales are now last year’s collections, delivered before the 2015 crisis. Now Brioni and Diane von Furstenberg are side by side with a cheap mass-market, and discounts reach 80% of the recommended retail price at the beginning of the season.
The company's revenue grew due to an increase in the number of purchases and an increase in the average check. Higher prices could not greatly affect the company's revenue. For example, in the first half of 2015, prices rose by only 6-7%. But things imported this year have risen in price by an average of 30%. European manufacturers made concessions - made a discount, cheapened materials. Otherwise, the rise in prices reaches 70%.
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In fact, from the very beginning, KupiVIP is a marketplace. The company sells alien goods from foreign warehouses. Own warehouse provides only 30% of all sales, but mostly it is used as a distribution center.
We call our model end-to-end. This means that we somehow control the process: we undertake descriptions and photographs on the site, as well as the supply chain. eBay or AliExpress are arranged differently: you place it yourself - you deliver it yourself.
Russian online retail is more expensive than foreign, even after the devaluation of the ruble - some things are cheaper to buy in New York or London. The reason is that Russian online retail is much less profitable. You need to pay for rent more than in developed countries. Delivery costs 10% of all KupiVIP costs.
The difference in the selling price between Russia and Germany is 15-17%. In order not to overpay and buy some things in Russia, the company opened an office in Berlin.
Because we, the boobies, have been willing to pay for many years. Go to China - there is a suite of another 20-25% more expensive. Some brands have already begun to lower selling prices. This is the influence of the Internet. In addition, many travel regularly and have the opportunity to compare.
Several years ago, with the filing of the founder of KupiVIP, Oscar Hartmann, Russia began to discuss a radical reduction in the duty-free import of foreign parcels, and at the St. Petersburg Economic Forum this year they discussed a special tax system for foreigners. Vladimir Kholyaznikov noted that this is not about the preferences for Russian companies, but about the fact that foreign companies already have preferences - they do not pay 18% VAT. The economy from the introduction of this tax for foreign companies will benefit, as Russian companies create jobs and pay money to the budget.
The company imports all products to “white” in Russia, it is necessary to obtain certificates, conduct tests and tests at customs. At the same time parcels from foreign stores with the same things go along the green corridor. In Germany, this problem is solved by a minimum declaration of € 25.
In Germany, for example, the minimum declaration is € 25. Do you want to buy a charge on the Chinese site for € 1? You are welcome! Just to get it, you will need to come to the customs authority, fill out three forms and pay a fee.
Kholyaznikov noted that the time when investors were ready to give money for fast development was gone, and the company entered the phase of active healthy growth - 30% per year.