Roundabout “Beeline”: how the mobile operator is trying to catch up with competitors

The operator goes to the buyer

“VympelCom” has signed with “Roundabout” partnership agreement, under which the territory of the stores the retailer will open trade zone “Beeline” in different formats: stand, mobile modules (stands), mini-phone stores, said operator today. Until the end of the year, plans to open more than 500 outlets in Moscow, St. Petersburg, Moscow and Leningrad regions and approximately 500 points in 16 regions. In 2017, the total amount should exceed 1.6 million points, of which the majority more than 1.2 thousand points will stand.

Depending on the pixel format it will be presented different item. On the racks will be sold basic tariff plans of the operator, be made application for the transfer and delivery of subscriber equipment, while in the mini-salons can purchase the mobile device. In “VympelCom” hopes that the partnership will allow them to “get closer to customers and to increase its presence in sales channels”. In a “roundabout”, we hope to increase traffic and conversion rates by providing customers additional services.”

Today VimpelCom has announced changes in its strategy in respect of the franchisee. Until the end of 2018, the operator does not plan to take with partners royalties and lump-sum payment (the price for “entry” into the franchise), reported “Interfax” with reference to Director of franchising development “VympelCom” Alexander Smolin. The operator will be responsible for CAPEX for new franchised outlets (the average opening of one franchise point in “VimpelCom” was estimated at 1.1 million rubles without VAT). “VympelCom” will require partners a higher percentage of attracting customers from the General traffic of the salon. This year the target is 3-5%, and the year 8%, said Alexander Smolin. At the same time, from February 1, 2017, all associates will receive from the operator for sales of the contracts reward model revenue sharing instead of fixed amount. The revenue sharing scheme is more profitable for both parties: the operator receives a quality subscriber who will use services over a long period of time, and the retailer is the opportunity to receive income for a certain period, noted one of the participants of the market.

Finally, the operator announced the signing of an agreement for joint development of brand retail with Svyaznoy, according to which the retailer will open stores under the brand “Beeline” and manage them. Just before the end of the year, “the Messenger” to open the “VimpelCom” 20 stores in Moscow and St. Petersburg, then the network needs to expand to 200 stores.

The competition is growing

Now “VimpelCom” 1.5 thousand salons under own control, and 2 thousand in franchising. In 2018, the number of franchised stores should be increased to 3 thousand.

The major competitors single-brand retail more. MTS was 5.8 thousand salons in the second quarter. It is the largest mobile retail network in the country. The company did not disclose how many of them had their own stores, how much is a franchise, just saying that 617 salons worked under the brand “the Phone.<url>.

MegaFon has its own 2 thousand and 2 thousand franchised stores. In addition, the company cooperates with major multi-brand chains, “Euroset” (“MegaFon” owns 50% of a retailer, the rest of the “VimpelCom”) and “Connected”. “Megaphone” practically does not develop the format racks. “On the counter, in fact, you can only sell the contract, and in the salons is to provide the client with a full range of services. For example, the contrast stands the salons connected to the billing, allowing you to carry out a full consultation of the subscriber, configure it with the necessary services”, said the representative of “MegaFon” Julia Dorokhin.

“T2 RTK Holding (Tele2) more than 3.3 thousand salons and modules, and the entire retail franchise. The number of racks in the company does not disclose, but noted that the focus on the development of branded showrooms and modules, as they account for more than half of the subscriber connection. Before going on the market in the Moscow region in October 2015, “T2 RTK holding” also agreed on placing their stands in a “roundabout”. In the company of a satisfied subscriber base, attracted via this channel. “Visitors who make purchases in stores, are interested in including favorable tariffs for mobile communication services. Joint action with partner showed good results,” said the press Secretary of “T2 RTC Holding” Olga galushina.

In this case the multi-brand retail are not afraid of increasing sales of the operators. “The operator of the single-brand retail and multibrand retailer different business model and different approach to range. In the center of the model operator is selling contracts and customer service, and gadgets are often the addition to the SIM card. Hence including a high proportion of the gadgets low price segments in sales to retail operators. From multibrand selling networking devices, “primary”, said the representative of “Coherent” Sergey Tikhonov. In the “Connected” confident that the project with VimpelCom will be able to transfer their experience and expertise in the development of network operator sales model and open a new generation of stores, which in short term will allow to increase sales we and our partner, in the long run to build a fundamentally new approach to sales in monobrand salons of the operator.