Founder of “Footwear Russia ” is about sales opportunities related products.

For a long time we did not attach much importance concomitant production of goods , because not only did not bring much profit, but also brought a lot of trouble. Change your attitude and take more seriously the production of these goods have caused the decline in the economy – we had a chance to review all the business processes and the production of laces insoles were no exception . First, we sought to optimize the material and labor costs. But then our goal has changed dramatically – we began to consider the possibility of expanding the production of related products, flesh before committing them to a separate area . As a result, we have earned on related products is 7 times more than usual, which amounted to 10 % of the retail sales of goods, and now we are planning to increase these figures .

An unfavorable production

More recently, we frustrated by the fact that consumers tend to find in the store is not only shoes , but also a variety of creams, laces , brushes, socks , stockings , etc. toge this category of goods provided we are only 1-1.5 % of retail turnover product , but it took on a lot of energy , as all these little things should have packed in special small boxes to keep them under certain conditions , to inventory . And at the end of each month, the remains were formed , which had to be utsenyat or write off .

This category of non-essential goods was considered far , and so her team studied the formation of each store. After a ridiculous deal in goods that benefit only 1% of revenue , and more important tasks we have had quite a few . It would have lasted longer if it had not the crisis of 2008, when , in order to survive , we had to analyze each business processes in our company, and accordingly restructure its operations .

The crisis in the business of helping

Then we noticed the related products. Decided to change the category , but rather to reduce costs but most possible limits – why spend time and money on such a non-profitable products . The first thing we decided – is to conduct centralized procurement of all types of goods . It also helped that the purchase price was down and we were able to develop a single set of range for the entire network , and store managers no longer need to waste time on the formation of the range. After that, we started thinking – can I have some way to make this segment .

In addition, we analyzed the needs of customers , and as it turned out , the assortment in our stores are not fully satisfied customers , there are some problems. Thus, we decided that the sale of related products is a function of the service . So we started does not seek to earning , and to keep customers happy , so we decided to take apart this direction. To do this, we have identified a specialist that only related products , has analyzed not only the buyers’ requests , but also the existing experience in the world market . The decision was such – in order to make more money to expand the product range.

Are establishing service

We made the purchase of an additional batch of related products. The result was more than successful – in 2009, revenue from sales of this category increased to 3 %, which is 1.5 times. Inspired by this success , we decided to further expand the range of products. Soon we recruited a team of experts , which included marketing , goods and technology .

Then it was decided to focus not on ordinary products, such as shoe polish , and new , and even unusual products for the domestic buyer. But here, there were some problems – our distributors have not heard about many of these things. So we decided that we need to promote these items yourself. Then we engaged in the development of new products our Chinese partners , and together with them we were looking for a new design solutions . We have developed an anti-slip stickers for shoes , dry deodorant for shoes , foam -cleaner and gel insoles . Now we sell these products online ” Vestfalika .” Today we have more than 100 items related products, but we are constantly creating something new.

In addition, our creative department never tired to offer ideas . It was developed a number of interesting new products, but only a few of them have been approved. So, for example , has launched a line of care products for the feet called ” Vestfalika .” We also conducted an analysis of the market and saw that the stores offer cheap or creams for the feet of domestic production, or expensive overseas – the average was not.

We chose this niche . Our idea was to offer the consumer cosmetics, proper quality foreign counterparts , such as , Dr. Scholl or Gewohl ( retail price about 400 rubles), but a lot cheaper. We have addressed domestic manufacturer of white makeup to develop their own unique recipes . The result is a series of his own cosmetics ” Vestfalika Medicine “, in which the average cost of one tube was 89 rubles in retail. Since the test sales were successful, we launched a large batch production of cosmetics . This year we plan to sell 300,000 units sold . To date, we have developed 15 unique recipes of goods , by the autumn plan to release 6.

New ideas

Only recently have we realized the full potential of certain categories of goods. So, for example , happened to leather goods : belts, wallets, business card holders , handbags , wallets , and even tights and stockings. After analyzing this product category , we came to the conclusion that it is necessary to do the development of this direction under its own brand. First, we launched a number of bags Emilia Estra and sold them in the network ” Vestfalika .” After that, we opened a separate network Emilia Estra, which offer the buyer a lot of accessories , including not only handbags and belts, but hosiery products to youth style , which we hope will find their buyers. The first store we opened in Tyumen, and the year we plan to open 5 more such stores in large cities in Siberia .

But some of the experiments and had to give up . For example, we sell spirits throughout the whole year . It was sort of a pulse option, and if women customers were any money after buying shoes, they could buy more and perfume. The project was quite successful and we managed to sell all of the party spirits, but in the future we still gave up the idea . Much excitement was not observed , there was only a smooth , quiet demand, and we wanted more .

After analyzing the related products segment , we found a lot of benefits. For example, small items can make the maximum mark-up , and thus it is possible to make good money . In addition , the wholesale price for such products is low, and even the high mark-up will be especially noticeable to customers. Who else will stop price 05.10 rubles. Another advantage of such products is that you can promote your own brand through the production of private label.

Conclusion – we should have just abandon the stereotypes that related products – it unprofitable to focus on the needs of customers , revenue growth was immediate . As of the first quarter of 2012, revenue from sales of related products reached 10 % , and now we are planning to increase this figure to 15%