Detsky Mir Group (Children’s World) is the leading children’s goods retailer in Russian and Kazakhstan. As of the end of 2017, the Group’s market share by revenue in Russia amounted to 20%, while its online store covered 9.6% of the market.
Vladimir Chirakhov, CEO of Detsky Mir, gave an extended interview to leading Russian business daily Vedomosti about the company’s plans, expansion to Belarus and ambitions to enter a new business segment – pet products.
Detsky Mir opened its first shop in Kazakhstan in 2011. In H1 2018, revenue from Kazakhstan stores amounted to nearly RUR 1 bln ($15 mio). By the end of 2018, Vladimir Chirakhov expects revenue may increase several-fold. In Russia, Detsky Mir plans to further expand its network and open at least 300 new stores in addition to the existing 600.
As well as further developing its business in Russia and Kazakhstan, Detsky Mir plans to enter the Belorussian market. The opening of first shops in Minsk and other major cities in Belarus is expected in H1 2019.
The Company also plans to enter a new business segment – pet products.
“First of all, it is a big market in Russia, estimated at RUR 200 bln ($3 mio). In comparison, the children’s goods market is estimated at RUR 500 bln ($7,5 mio). Secondly, there is no obvious leader in the market – the market is highly fragmented, offering great opportunities for consolidation. Thirdly, it is sustainable, just like the children’s goods market – people don’t economise when it comes to their pets,” said Chirakhov.
Test launch of pet product shops under the brand name ‘Zoozavr’ is planned for late this year. The new chain will employ the same infrastructure and IT systems and will be managed by the same team. The first ten shops will appear in Moscow and the Moscow region.
“A key goal will be to ensure fast service – most of current pet shops take 1-2 days to deliver products. Our aim is to make deliveries within 3 hours. This will be supplemented by rapid increase in online sales, existing and new infrastructure – warehouses, stores, logistics – and a strong brand name,” added Chirakhov.