The Creator of “Grandmother Agafia” decided to be in the top three networks of cosmetics

Founder of “First decision” Andrey Trubnikov

Positive test

For three years Trubnikov is going to create a retail network of 500 stores, RBC confirmed the businessman.

That the company “First solution” looking for a “Director of development and management of retail network of shops” “with experience in cosmetic retail networks (preferably Yves Rocher, L’occitane, Lush),” reads the announcement on the portal HeadHunter. Specialist at the rate of 1 million roubles in a month will also have to manage the online store and arrange for the provision of SPA services at stores. “It is planned to open up to 500 stores in Russia”, — said in the job description.

According to Trubnikov, he plans to increasingly engage in strategic issues and looking for a man who will take over operational management of the network. “We started to increase the number of stores, and eventually I foresee great difficulties, if going to do it all yourself. I think we are still kept at the same creative, but we need to build a clear system and structure of the network”, explains the businessman.

“Those who, for example, from the same Yves Rocher come to us to hire — they have a completely different opinion, they make a display accurate to the centimeter. I do not exist, I have a different psychology. I want to involve specialists, in order to streamline this process, to make a statement”, — said Trubnikov in an interview with RBC in the beginning of the year.

The first two shops he has opened in 2010 — they worked under the guise of Organic Shop, perform image functions and let you to test new business. Currently retail Trubnikova is shop 33: 14 Natura Siberica, including five abroad — in Denmark, Spain, Serbia, Japan and Hong Kong, and 19 Organic Shop. In the next three years the number of Organic Shop will increase by another 50 points.

New stores will open under the brands Agafia Shop (with makeup “Recipes grandmother Agafia”) and “the First beauty” (multibrand stores), but the focus in retail will be made at Natura Siberica, said Trubnikov.

This year it plans to open at least 60 stores Natura Siberica. Investments in network expansion in 2016, he estimates, will amount to about €6 million, he intends to Finance development by borrowing. “Now is a good time to push in the rapid development of the network. For example, we find areas for stores with very good lease terms,” explains Trubnikov.

Agafia Shop will open in about two months on Leninsky Prospekt in Moscow. At the site of 130 sq. m will be put around 500 cosmetic commodity positions and approximately 100 food. At the end of 2015 for the production of the company registered in Russian patent office several new brands: “Real Siberian dumplings Agafia”, “Real black herbal tea Agafia”, “Real Siberian pickles Agafya” and other. “The store is completely modern, but we put a Russian stove for the entourage, in one of the rooms you can drink our tea,” says Trubnikov.

“The first beauty” the businessman calls the “store of wholesale prices”: the concept assumes that there will be sold goods are not more than 500 RUB plus will operate a special discount system — the price will depend on the size of the procurement. The first stores will open in large areas — from 100 sq. m, with 2.5 thousand commodity items. If the pilot points will be successful, Trubnikov plans to open similar shops in residential areas and with small square — 60 sq. m.

The two companies

The company “First solution” Andrey Trubnikov created in 2002. According to the information base he now owns 62% of the company, 23 and 15% in family members — ex-wife Irina and son Dmitri Trubnikov.

The second company for the development of more expensive brand Natura Siberica — a businessman opened in 2007, in which he owns 60%, the remaining 40% with Irina Trubnikova. The average price of products in retail for “Recipes grandmother Agafia” is 130 RUB, at the Natura Siberica 400 RUB.

According to Euromonitor International, at the end of 2015, “First solution” was included in the twenty largest Russian producers of cosmetic products with a market share of 1.1%. In 2015, total sales revenue grew by 20%, to 9 billion rubles.

In the suburbs of the company has four plants, the largest is under Dmitrov.

More than “Rive Gauche”

Currently the share of retail in the group’s revenue is 23%, said Trubnikov, and three years later the network should bring not less than 60%. The businessman believes that retail is a “very big power”. Today in our own stores, “the First decision” sells only 10% of the total production, the remaining sales are made to wholesalers and large FMCG retailers, for example, the largest partner — the French network Auchan. The entrepreneur admits that sales in large networks, it receives only 12% mark, according to some and does 3%.

If Trubnikov will be able to open the planned 500 stores, it will enter the top 3 sectoral networks. According to the websites of companies that have the largest turnover of the player cosmetic retail today more than 900 stores, the “Rive Gauche” — more than 200, the “Ile de beauté” — 139. The three main network of the player, according to Euromonitor International, collectively comprise 72.3% of the cosmetic retail, revenue which by the end of 2015 was estimated at 548 billion.

The CEO of the company “INFOLine-Analytics” Michael Burmistrov considers that the plan of the company to aggressive growth is quite feasible, but it is better to stick to small formats. “The pace of growth should not be too fast, it is quite dangerous, because, like all retailers, some points will fail. In addition, the company is required to standardize all the processes associated with retail, from equipment to merchandising. And if you plan aggressive growth, network construction need to combine with the launch of online sales to quickly build multi-channel retailer,” explains Burmistrov.

During the economic crisis when consumers are particularly frugal, local producers get a chance to promote their products, said a member of the Board Russian perfumery-cosmetic Association Anna Dycheva-Smirnov. For example, in 1998, the brand “Kalina” “Silver dew”, “Neva cosmetics” has managed to significantly increase their share due to the fact that “not all Western brands has kept sales on the Russian market,” she adds. “Russian companies have a whole new level both in terms of recipes and content, and in terms of packaging and promotion. In addition, despite the fact that a large number of ingredients, these manufacturers to import, the structure of prices they are more adaptive than the import brands,” explains Dycheva-Smirnov.