In his first interview since taking over as the new investor of Detsky Mir, Alexey Zuev shared the company’s business strategy and future plans. As a major stakeholder in Detsky Mir, Zuev brings a wealth of experience and a fresh perspective to the table, aiming to build upon the success of the renowned children’s goods retailer and transform it into an even more dynamic and customer-centric brand.
Zuev’s journey with Detsky Mir began long before his recent acquisition. In the 1990s, he held a key position as the Chief Commercial Director at Detsky Mir and even became a shareholder. However, diverging visions for the business led him to pursue other opportunities. Now, with this new investment, Zuev sees it as a second chance – an opportunity to breathe new life into a brand already deeply ingrained in his professional history.
Recognizing the challenges faced by the retail market, particularly in the wake of the global pandemic, Zuev emphasizes the importance of business sustainability and social responsibility. With over a thousand retail outlets across the country, Detsky Mir is committed to retaining its employees and meeting the demands of current times. By focusing on sustainability, reducing intermediaries, expanding the private label segment, and enhancing the product mix, Zuev is optimistic about Detsky Mir’s ability to weather the storm and continue growing.
One of the key aspects that impressed Zuev about Detsky Mir is the company’s focus on environmental, social, and governance (ESG) issues. Former owner Pavel Grachev has introduced ESG principles, implementing various environmental programs that promote resource-saving, energy efficiency, and waste recycling. Zuev plans to carry on these initiatives, further encouraging customers to become responsible consumers. As an example, Detsky Mir offers a 15% discount to customers who return old shoes and clothes for recycling. This commitment to ESG aligns with the values of the younger generation, ensuring a sustainable future for the brand.
Expanding both online and offline sales is another crucial aspect of Detsky Mir’s strategy. The company aims to improve pricing and enhance the customer experience across all platforms. With the marketplace witnessing solid growth rates, Detsky Mir’s online product range has expanded to an impressive 1.5 million stock-keeping units (SKUs), accounting for 15% of total online sales. To support suppliers, Detsky Mir has launched various initiatives, such as waiving the first-month service fee for new sellers on the marketplace.
Detsky Mir has also ventured into a new segment unrelated to children’s goods. Recognizing the rising popularity of discounters, the company launched a retail pilot project, offering over a thousand items priced under $1. This move is not only a response to the current crisis but also reflects the changing attitudes towards sustainable consumption. Discounters are gaining popularity, as consumers increasingly value quality products at affordable prices.
Despite his new role as the major stakeholder, Zuev has chosen to maintain the existing management team at Detsky Mir. He has great confidence in their expertise, market knowledge, and ability to make informed decisions. Zuev himself still indulges in the timeless tradition of in-store shopping, visiting different Detsky Mir stores to experience firsthand the brand’s operations. By keeping a pulse on customer experience and staying connected to the sales and promotions through his loyalty card, Zuev remains dedicated to ensuring Detsky Mir’s success.
As Detsky Mir moves forward under the visionary leadership of Alexey Zuev, its commitment to sustainable business practices, expansion of online and offline sales, and dedication to meeting evolving customer needs reassure us of a promising future for this iconic children’s retailer.
Market Capital Research 