M. Video looks at the root

    Kozma_PrutkovTraditional sellers of technology every day pay more and more attention to online. Many of them urgently revise their development plans in favor of online sales. Moreover, this year the retail of equipment and electronics is at a more disadvantageous position, because the market, unlike previous years, is not growing, but falling.

    Given 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 brings competition to a new stage of evolution. Due to current trends, retailers are forced to look for acceptable forms of change in their activities.

    So, a major retailer of M.Video equipment last year preoccupied with restarting its site, which allowed to increase online store traffic to 4 million visitors per week, which is reportedRBC almost doubles the flow of customers in stores.

    President of M.Video Alexander Tynkovan told the publication that the retailer is currently becoming an online company. Although at the moment, the conversion in retail is still higher.

    “According to the results of the first quarter of 2015, more than 10% of purchases were made through the 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 the reporting emphasizes the company's concentration on the most advantageous locations in terms of pickup of goods ordered online.
    In general, according to the results of 2014, the volume of the Internet trading market in Russia grew by 27% and exceeded 683 billion rubles. The two largest players grew faster than the market: Eldorado’s sales on the Internet by the end of 2014 increased by 61.6% to 17.8 billion rubles, while M.Video’s immediately increased by 90% to 18 billion rub. In the first quarter, M.Video’s online sales, taking into account home delivery orders and pick-up from stores, increased by 31%, to 4.8 billion rubles.
    Analysts believe that today positioning the company as an online retailer is a very right strategic step to increase the value of the business, since traditional retail in the segment of household appliances and electronics is perceived by investors as a stagnant topic, and online is considered to be a fast-growing promising market for which there is a future.

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