Even Russian entrepreneurs complain that it is extremely difficult to get their goods on the shelves of large retail chains. What can we say about foreign companies, which, in principle, are not familiar with the specifics of Russian retail.
It is important to understand that entering Russian retail chains is, first of all, an expensive and rather lengthy process. The retailer is a difficult partner, but this path opens up access to a huge pool of Russian consumers.
So what should a supplier do when entering Russian retail:
Step 1. Find and select a retail chain
First of all, you need to check whether this chain actually exists. It is not uncommon for fraudulent intermediaries to offer retailers that do not exist or are in the process of being liquidated.
Study the basic information about the retailer and assess your compliance with it (by offer, by price segment, production characteristics, logistics capabilities, etc.).
You should also visit a retail chain store, look at the shelves yourself and evaluate the real traffic. Study suppliers in their category, analyze, find weak points.
Step 2. Analysis of your own capabilities
Step 3. Analysis of sales geography
Step 4. Preparation of a commercial offer
Compiled based on the points described above. See what exactly you can be useful to the retailer, what gaps on the shelves you can fill with your offer. You should not be afraid to think over and offer your solutions to the retailer, to formulate marketing activities.
Remember, the retailer receives dozens of commercial offers every day. He is not obliged to do the calculations himself, estimate the volumes and plan marketing based only on your price lists.
Step 5. Negotiations and contract conclusion
Step 6. First delivery
The work does not end at contract signing - it is just beginning! The first delivery must be flawless. Ideally, you yourself get into the truck with the freight forwarder and drive to the distribution center. This allows you to see how everything works, how the goods are accepted, what documents are checked, what is the task of the forwarder, what difficulties arise, how the goods are given and received. If this is a product that requires a special temperature regime, you need to check to be taken to the refrigerator.
It is also worth looking at your product in the store, paying attention to how it is sold, talking with customers and observing their interest.
Step 7. Sales report
After some time, suppliers receive a report on their sales. As a rule, suppliers have a personal account, where they see all their statistics and sales dynamics for specific stores. Failure to meet planned indicators (turnover of goods, timeliness of delivery, level of order fulfillment, write-off of goods, etc.), is fraught with withdrawal from the assortment. A retailer can offer to reduce the price, hold a promotion, and reduce a purchase volume.
Entering retail is not a quick process, especially if you are doing it for the first time and in an unfamiliar market. In the first months, you will have to communicate with retailers, make any mistakes, analyze your strengths and weaknesses, make promotions. Anyway you will pay for all mistakes yourself.
If you do not want to waste your time and money, seek professional help. For more than 10 years the RAUIE has been helping foreign companies to enter the Russian market, including through retail chains and electronic marketplaces. To get a free consultation, leave a request through the feedback form on the website ("Ask a question" on the right side of the page) or through the contacts below:
Maxim Kuznetsov - vice-president of the RAUIE
investment@raspp.ru
WeChat: maximkuznetsov
