Children’s retail strategy during the period of fast transformations

Anastasia Vasilkova, development director of TM Choupette, took part in the NR LIVE online conference "Development strategy for the children's goods market in a period of rapid changes". Anastasia spoke live about the investment franchise, the pros and cons of marketplaces, whether consumer behavior has changed and how the pandemic has affected sales.

At the conference, experts touched upon the topic of the “new reality” of consumer behavior. According to Anastasia Vasilkova, digitalization, new technologies and omnichannel appeared several years before the pandemic, and during the period of self-isolation, the retail sector did not change much. Smart consumption trend was revealed mostclearly during quarantine - Anastasia believes that if there are no further tough conditions, it will also develop gently.

If we talk about the demand in the summer months, then August exceeded the brand's expectations, as Like-For-Like amounted to + 18% compared to last year. However, this demand is countervailing as sales were significantly lower in the previous months.

Anastasia also spoke about the investment franchise - a new format that the brand has recently launched.

“Of course, we are not the first to come up with an investment franchise, but in the fashion industry it is almost never used. In our interpretation, it is based on the main postulate: the partner invests and bears the investment risks - and the franchise owner manages the store. However, Choupette's task is not to just take management into their own hands - we want to teach how to manage a store. Over the course of several years, we will develop the necessary skills in our partner through the investment franchise format, and then we will transfer it to an independent mode. This is our perfect vision of the picture. That is why we do not just manage, but advise and offer ready-made solutions, which we discuss with the franchisee and jointly implement. Thus, the partner actively participates in the process. This format has already shown good results during the pandemic and is now continuing to evolve. The advantage of an investment franchise is that it correlates well with market demand: people are willing to invest, but are afraid to manage due to a lack of expertise . Thus, the Choupette brand embodies the dream of all new businessmen - to invest in business, do nothing and receive dividends".

During the conference, such an important topic as marketplaces was touched upon. According to Anastasia, they cannot be ignored, because they increase brand awareness and give good sales. However, the downside is that you cannot control the pricing policy of certain online retailers, for example, Wildberries. Each brand develops its own strategy for mutually beneficial partnerships with such large aggregators.

In conclusion, Anastasia Vasilkova shared her thoughts on what should be paid attention to in the next three years. In her opinion, the channel between the manufacturer and the end consumer is getting shorter, so now it is important to understand consumer behavior and make the most of your knowledge in this direction.