Today, SELA Corporation is one of the most admitted leaders by creation of collection in casual style. But not only almost 20 years history of the Company was the reason for addressing to her “Modern Trade”. SELA was one of the first companies which began to realize its own conception of branded retail business, which was based on a clear description of all the business processes and standards. As it was told in The Corporation, SELA experience of organization of branded trade was taken by many of fashion-companies in Russia. Natalia Chinenova, general manager of SELA Corporation in Russia, tells us about SELA history in this number.

- Natalia Borisovna, in the beginning let’s take a closer look at work of SELA Corporation. Can you tell us more details? How long is it on market?
And what directions it chooses in work?

- SELA- is an international vertically- integrated corporation on production and sale of clothes in casual style in middle price brackets.
Today, the status of national brand is assured by trade offices in Russia, Ukraine, Kazakhstan, China, and Israel and retail chain, having been opened in ten countries.
The design of clothes is developed and approved by designers of The Corporation. Our head office is situated in Tel-Aviv. But quality monitoring and order placement are under control of an office in Shanghai. Offices in Russia, Ukraine, Byelorussia, and Kazakhstan serve a retail chain SELA, handing the technology of franchising over the partners.

- In other words, a trend brand SELA- is not only clothes?

- Quite so. Firstly, SELA- it’s clothes and accessories. These clothes are in a city style: practical and comfort, youth and fashion, qualitative, bright, made from environmental responsible cloths. Such groups of goods as cosmetics, bijouterie, notions and footwear fall into accessories.
Secondly, SELA- is branded retail shops, the system of unified mercantile business, developing accordingly to the system of franchising and, thirdly, SELA franchising is the opportunity to open an enterprise of branded trade, using the technology of the brand and not paying franchising taxes.
Trade mark SELA has been being on market since 1991 year. In 2011 The Corporation will celebrate its twenty-years-old jubilee.

- So, if we have begun to talk about a retail chain, tell us about it. How is it large and for what people is it organized?

- Today SELA chain numbers more than 560 branded shops, which is opened in ten countries, in 330 cities. Total floor area of business concern is about 100 000 m2. More than 280 partners work with SELA accordingly to the system of franchising. In Russia, as of March 1, 2010, 445 shops work under SELA brand.
Shops of trade mark SELA are opened for all the group of costumers: men, women, youth and children. We sell clothes which are created for those people which are young in heart and active in their living position. For those people which want every time, in frenetic pace of a new town, to look in agreement with occasion in any cases.

- How is large the turnover of the chain?

- Annual turnover of The Company is near $ 300 million.

- Franchising, in the last years, develops widely in Russia. Can you give your estimate- what are the main benefits and implications of working accordingly to this system?

- In my opinion, work with franchising has more advantages than disadvantages. For a beginning or accomplished businessman it’s much easier in structure and work of famous brand with ready and right operating instruction. If I begin to name advantages of franchising we will have to dedicate the whole article to them, that’s why I name only some of them:


1.    Economy of owned capital and labor force.

2.    Economy of administrative resources.

3.    Cut of business risks.

4.    Efficiency upgrading of business.

5.    Crash development in the part of recognizability of the enterprise and costumer’s brand loyalty.

6.    A quick signing on business.

7.    A free consultation on questions of business dealing and improvement.

8.    A large-scale advertising.

9.    Mitigation of risks.

10.    The guarantee of getting goods or service of a profitable franchise for the owner.

11.    An independent business dealing

The disadvantages, probably, are the fact that a businessman has to catch quite hard timing of work of a famous brand.


- What profit does your partner get beginning to work with SELA accordingly to the system of franchising?


SELA Corporation, under the system of franchising, undertakes following functions:

1.    Support of franchise business from the date of decision making about shop opening.

2.    Appraisal of correctness of a future shop’s locus and coordination of it’s opening.

3.    Development of a design project of remount in the shop.

4.    Development of a design project of retail equipment.

5.    Production of retail equipment.

6.    Development of a design project of lighting of the shop

7.    Production of a sign and elements of a corporate style.

8.    Supply of all the information and advertising materials, needed for a shop opening.

9.    Visit of specialists of The Corporation to the shop opening.

10.    Training on the technologies of merchandising and on SELA technologies of sale for shop staff.

11.    Consultation on order placement.

12.    Consultation on all the business processes which connecting with work of the shops.

13.    The Corporation develops and offers to its partners the common plan of publicity event and actions. The partners and The Corporation follow corporate communicative policy which is based on strategy of brand development.

- What recommendations can you give your potential franchising partners? With what should they begin their cooperation with The Corporation?

- They should go to sait TM SELA- www.sela.ru and there they should leave an application form. On sait there is the partition which is devoted to the cities of top-priority development. For example, today, The Corporation is interested in development of such cities in Stavropol Territory.

- So, the documents are signed and your new partner starts opening SELA shop in new region. What can you advice him to do or not to do on the first stage? What errors should he guard against?

- The primary error for many franchises is a complete deficiency of managing of their own business. Many franchises suppose that if they buy goods, repair a shop and hang a sign, the costumer would go to them. It doesn’t so. Business needs everyday management, only in that case it would bring joy and pleasure to its owner.

- What indexes has The Corporation for the last year? Can you say that all the aims setting in SELA in 2009 year are achieved?

-  All the plans which were set by The Corporation were completed. All the projects either neglected or developing during the crisis will be working in 2010 year. Truly, trade mark SELA- it is a real dynamic brand, that’s why new plans oriented to improvement of the brand appear every year.

- In what way The Corporation develops a retail chain?

- Trend mark SELA can be named a trailblazer of Russian fashion- retail. It has risen from small shops of assortment for all family to the nationwide brand of fashion clothes.

Since 1991 year The Corporation has worked with dealers in regions selling clothes by wholesale. The first branded shop was opened in 1997 year in St. Petersburg in Russia and lately in 1999 year the chain numbered 17 shops which was opened accordingly to the franchising system in Tomsk, Murmansk, Stalingrad, Barnaul, Yekaterinburg, St. Petersburg and Moscow.

-  It is said in the site of The Corporation that SELA was the first company which realized the conception of branded retail business. What is the conception? What is its main point?

This conception- is the system connected with each other and appearing from one of other methods of understanding and treatment, the system of achievement of an objective. TM SELA, really, was the first Russian brand created an integral conception of retail shop as a recognizable element of trade brand. The slogan of the brand, design project of the shops, a system of visual merchandising, standards of branded trade, commodity credit policy and the others guidance documents permitting to open recognizable enterprises in any cities was developed for it. Even more, under the conception of the brand, a corporate for the entire shops site was created- www.sela.ru.

The franchise system of motivation and audit was created for appraisal of recognizability in regions of Russia.

Under the corporate conception, our company gives educational seminars and trainings for the partners of the Corporation.
Developing brand and opening shops of different formats, The Corporation formalizes the procedure of opening the shops and their unique image.

Today, there are several formats of branded trade and conceptions of their promotion. They are SELA, SELA Kids and online store SELA-shops.

- SELA Kids- is a new format for your chain. Where does the idea of its creation appear? With what does the decision about its opening connect?

-  The idea of creation of separate child shop appeared long time ago. Even, a separate child shop was working in St. Petersburg in 2002-2004 years, but it wasn’t popular that time and The Corporation decided to close it. State policy oriented to strengthening of a family and to birth-rate rising in Russia has leaded to the fact that child clothes have appeared to be popular on market-it is only one of the factors which has influenced on decision making about the creation of this format. There are other facts, for example the fact that it’s easier to find a place for SELA Kid shop because it needs a smaller shopping space than a standard shop. Or such a fact as an impotent of separate child shop- we were asked by our franchise from different cities to open a separate child shop.

- How many shops of this format are there? In what way do they develop?

-  In 2008 year in Moscow, the first our own shop of SELA Kid format was opened in the shopping center “Aerobus” on Varshavskoe roadway. Before that time, for several years, in The Corporation a child shop had been successfully working in Krasnodar. Our project SELA Kids in “Aerobus” paid off for 9 months and proved its profitability and vitality. Today, we are developing this format accordingly to franchising system and 15 shops have been opened in Russia territory. In 2009 year, SELA Corporation took a professional premium Pro Fashion Awards as “the best retailer of child clothes” for developing and opening of shops of SELA Kids format.

- How does the assortment of SELA Kids shops wide? How many position are introduce in this format and what are they?

- SELA Kids shops completely suit the requirement of mothers: 400 articles of fashion, bright clothes and accessories for children from 0 till 11 years old (teenagers can choose their clothes by themselves or they choose “adult” brands) in every season collection (spring, summer, autumn, winter). Besides, there are owned line of child cosmetics and accessories. You can make your child’s outfit completely in any time. SELA child clothes are a very practical, colorful collection with comfort details and accessory for your child. You may make trousers tight-fitted at the waist just fastening belt, you may tie the string on the jacket tighter, and your child wouldn’t feel cold in a windy weather, and may shorten jeans buttoning a trouser leg by clasp.

Can SELA Kids shop be opened accordingly to the system of franchising? Are the cooperation conditions different in this case?

- The conditions of franchising are the same for all the partners of The Corporation.

- As I know, a retail shop SELA-shop was opened by you in 2008 year. Can you tell us about fruition of its work?

- The idea of creation online store as alternative or additional format of sale appeared before the crisis. On-line sale happens to be a business which is very popular in crisis. For customers- it is a perfect opportunity to examine the goods, to compare the value for money, to define the necessity of buying not going out and in any time. SELA-shop is going day and night, that’s why you may choose the goods even at night. Any payment options are possible and accessible. Delivery to any convenient for a costumer place.

Sales in online store have increased to 150-200 articles per day for 2009 year, but the turnover has increased 10-fold.

And what has been done because of the crisis? Has the assortment of corporate policy and so on been changed?

- The year of crisis became time of new opportunities for trade brand SELA. We offered market several new formats of opening shops accordingly to the system of franchising: “SELA light”, “SELA small format” (for cities with number of inhabitants less than 100 000 people_ and SELA Kids (shops of child assortment only).
As a result of incorporation between two representations ( in Moscow and St. Petersburg) a single center of office management  of the Corporation in Russia.
In spite of, The Corporation managed to save the conditions of work with franchise, value for money of goods, naturalness of cloths from which we made clothes of TM SELA.

More that 40 new shops under SELA brand were opened during the crisis in Russia. And the trade brand became a laureate of the contest between Russian enterprises and it became one of 1 000 the best enterprises in Russia.
I should say that during the crisis we have managed to save the turnover of the chain in rubles at the level of 2009 year, and it has proved the brand’s state of being important on market and costumer’s loyalty to the goods of TM SELA.


- I am sure that SELA in the part of working with costumers keeps general practice of organization of special promotion activities in the chain. Tell us about them. What are they? What aims you make before them and what is their effectiveness?


- Generally, all the actions, which are realized in shops, are designed for costumers. The aim of marketing expert is to make clothes of trade brand SELA popular the year round.

All the action in all the trade companies can be divided into several types:

- Annual seasonal and traditional for the whole trade action;

-  tactical, short-term actions;

- Actions, directed to the raising of loyalty to the brand and recognizability of trade mark. ( for more detail see table - editor's note)

Effectiveness of the action is appraised towards the aim and the main point of the action. The action can be directed at attraction costumers to the shop, in this case it’s appraised towards quantity increase of entering costumers. The action directed at stimulation of trade is appraised toward increase of sale in web and in money. Interactive actions are appraised toward quantity of comments and so on.

- In the process of work in any shop the factor of merchandising is very impotent. Can you name some special features of product representation in SELA shops?

- Yes, I can. Standards of visual merchandising are developed in The Corporation, new merchandising book are prepared by every season, methodic recommendations of design of salesrooms and shop windows with photos and lists of articles are sent to all the shops of the chain every fortnight.

May I ask you a personal question- do you wear clothes and accessories of TM SELA? Do you have many things of this mark in your outfit?

- Certainly! Not only I am wearing clothes of TM SELA but my children and grandchildren. Even my mother wears T-shirt and home clothes from SELA. There are many things with SELA label in our home. There are dresses, sweaters, jackets, T-shirts, blouses, certainly, cosmetics and underlinen, I have no need to talk about accessories. I think that my family- one of the most regular and loyal buyer in shops of TM SELA in Russia. If I happen to be in some city, I with pleasure do the shopping in our shops and this fact surprises our franchises and their salesman. They suppose that I see everything at office and that I have more opportunities to buy than usual costumers. Unfortunately, accordingly principle “the cobbler always wears the worst shoes”, I have no time to buy a thing which I like because I am really busy in office. That’s why, as a rule, I begin my seldom holiday shopping with shops of TM SELA. My favorite shopping centers are Evropeysky, Metromarket, MEGA and Metropolice. Although, visiting our chain in Moscow or St. Petersburg, I often do shopping in every our shop.

- What is regional policy of SELA? Does it change because of crisis?

- No, our plans of regional development don’t change. TM SELA, as before, develops the chain in all the regions in Russia.

- Does a middle check of your retail chain change? If it’s not a commercial confidentiality, how much it is?

- A middle check on SELA goods is defined by seasonality. Last years it fluctuates within 900-1000 rubles in warm time and 1000-1200 rubles in winter. I can say that the price of a middle check doesn’t change.

- This fact shows a stable successful development of your company. Tell us- in your opinion, to what way a trade company working on market of clothes retail should develop today? What should be done and the most important thing- what must not be done?

- Firstly, a brand should have a clear strategy and should understand for what it works on this market. Under the conditions of the crisis and entrance of the strongest players of clothes retail to the Russian market, clearness of strategy and policy- is a general rule of work and a passport to success.

It’s not so easy to say what should be done. There is no one formula of happiness in a world. But to say what trade companies shouldn’t be done, I think, it’s possible.

As I think, they shouldn’t play with price and take away pass discounting of goods. They shouldn’t indulge in stimulation of trade by means of creation of numerous clubs and loyalty programs which based on the system of discounts. They shouldn’t rush advertising if it is not supported by the corporate strategy and conception of the brand.

- Last year, one of the most impotent events of trade industry was the adoption a new trade act. The document, judging by activity of its discussing, has fids of admonition from member of Russian market trade. Does the act influence on your chain? How do you find this act?

- No, the new act doesn’t influence on the chain of TM SELA.

- What is your prognosis of development of Russian retail in the years coming?

- Hardening of competition. Entrance of new operators to Russian market of retail. Development of regions. Firstly, because of low rent and, secondly, because of increasing buying activity. Development of market of child clothes, if just for the reason that it’s not occupied today. Development of market of youth clothes. During the crisis, several foreign brands of youth clothes either withdraw from market or wind down their activity but, unfortunately, there are no strong brands in Russia.

- What are your plans on near-term outlook?

- Our corporation plans widening of SELA shops, their reconstruction, work with assortment and many, many interesting events.

- But what pieces of advice corrected to recent crisis can you give to producers and salesmen of clothes today?

- It’s difficult to give some valuable advice. Working under conditions of the crisis and overcoming the crisis- is a specific business. We should feel competitive landscape, offer only popular goods, and strategize according to movement of market and a company. We must not be satisfied with what has already been achieved. We must not frustrate our costumers’ hopes.

I can say that crisis is time of new opportunities. Don’t be afraid of daring, a victory likes people strong in spirit!

Table 1
Classification of action oriented to drawing of costumers’ attention

Today, SELA Corporation is one of the most admitted leaders by creation of collection in casual style. But not only almost 20 years history of the Company was the reason for addressing to her “Modern Trade”. SELA was one of the first companies which began to realize its own conception of branded retail business, which was based on a clear description of all the business processes and standards. As it was told in The Corporation, SELA experience of organization of branded trade was taken by many of fashion-companies in Russia. Natalia Chinenova, general manager of SELA Corporation in Russia, tells us about SELA history in this number.

- Natalia Borisovna, in the beginning let’s take a closer look at work of SELA Corporation. Can you tell us more details? How long is it on market?
And what directions it chooses in work?

- SELA- is an international vertically- integrated corporation on production and sale of clothes in casual style in middle price brackets.
Today, the status of national brand is assured by trade offices in Russia, Ukraine, Kazakhstan, China, and Israel and retail chain, having been opened in ten countries.
The design of clothes is developed and approved by designers of The Corporation. Our head office is situated in Tel-Aviv. But quality monitoring and order placement are under control of an office in Shanghai. Offices in Russia, Ukraine, Byelorussia, and Kazakhstan serve a retail chain SELA, handing the technology of franchising over the partners.

- In other words, a trend brand SELA- is not only clothes?

- Quite so. Firstly, SELA- it’s clothes and accessories. These clothes are in a city style: practical and comfort, youth and fashion, qualitative, bright, made from environmental responsible cloths. Such groups of goods as cosmetics, bijouterie, notions and footwear fall into accessories.
Secondly, SELA- is branded retail shops, the system of unified mercantile business, developing accordingly to the system of franchising and, thirdly, SELA franchising is the opportunity to open an enterprise of branded trade, using the technology of the brand and not paying franchising taxes.
Trade mark SELA has been being on market since 1991 year. In 2011 The Corporation will celebrate its twenty-years-old jubilee.

- So, if we have begun to talk about a retail chain, tell us about it. How is it large and for what people is it organized?

- Today SELA chain numbers more than 560 branded shops, which is opened in ten countries, in 330 cities. Total floor area of business concern is about 100 000 m2. More than 280 partners work with SELA accordingly to the system of franchising. In Russia, as of March 1, 2010, 445 shops work under SELA brand.
Shops of trade mark SELA are opened for all the group of costumers: men, women, youth and children. We sell clothes which are created for those people which are young in heart and active in their living position. For those people which want every time, in frenetic pace of a new town, to look in agreement with occasion in any cases.

- How is large the turnover of the chain?

- Annual turnover of The Company is near $ 300 million.

- Franchising, in the last years, develops widely in Russia. Can you give your estimate- what are the main benefits and implications of working accordingly to this system?

- In my opinion, work with franchising has more advantages than disadvantages. For a beginning or accomplished businessman it’s much easier in structure and work of famous brand with ready and right operating instruction. If I begin to name advantages of franchising we will have to dedicate the whole article to them, that’s why I name only some of them:


1.    Economy of owned capital and labor force.

2.    Economy of administrative resources.

3.    Cut of business risks.

4.    Efficiency upgrading of business.

5.    Crash development in the part of recognizability of the enterprise and costumer’s brand loyalty.

6.    A quick signing on business.

7.    A free consultation on questions of business dealing and improvement.

8.    A large-scale advertising.

9.    Mitigation of risks.

10.    The guarantee of getting goods or service of a profitable franchise for the owner.

11.    An independent business dealing

The disadvantages, probably, are the fact that a businessman has to catch quite hard timing of work of a famous brand.


- What profit does your partner get beginning to work with SELA accordingly to the system of franchising?


SELA Corporation, under the system of franchising, undertakes following functions:

1.    Support of franchise business from the date of decision making about shop opening.

2.    Appraisal of correctness of a future shop’s locus and coordination of it’s opening.

3.    Development of a design project of remount in the shop.

4.    Development of a design project of retail equipment.

5.    Production of retail equipment.

6.    Development of a design project of lighting of the shop

7.    Production of a sign and elements of a corporate style.

8.    Supply of all the information and advertising materials, needed for a shop opening.

9.    Visit of specialists of The Corporation to the shop opening.

10.    Training on the technologies of merchandising and on SELA technologies of sale for shop staff.

11.    Consultation on order placement.

12.    Consultation on all the business processes which connecting with work of the shops.

13.    The Corporation develops and offers to its partners the common plan of publicity event and actions. The partners and The Corporation follow corporate communicative policy which is based on strategy of brand development.

- What recommendations can you give your potential franchising partners? With what should they begin their cooperation with The Corporation?

- They should go to sait TM SELA- www.sela.ru and there they should leave an application form. On sait there is the partition which is devoted to the cities of top-priority development. For example, today, The Corporation is interested in development of such cities in Stavropol Territory.

- So, the documents are signed and your new partner starts opening SELA shop in new region. What can you advice him to do or not to do on the first stage? What errors should he guard against?

- The primary error for many franchises is a complete deficiency of managing of their own business. Many franchises suppose that if they buy goods, repair a shop and hang a sign, the costumer would go to them. It doesn’t so. Business needs everyday management, only in that case it would bring joy and pleasure to its owner.

- What indexes has The Corporation for the last year? Can you say that all the aims setting in SELA in 2009 year are achieved?

-  All the plans which were set by The Corporation were completed. All the projects either neglected or developing during the crisis will be working in 2010 year. Truly, trade mark SELA- it is a real dynamic brand, that’s why new plans oriented to improvement of the brand appear every year.

- In what way The Corporation develops a retail chain?

- Trend mark SELA can be named a trailblazer of Russian fashion- retail. It has risen from small shops of assortment for all family to the nationwide brand of fashion clothes.

Since 1991 year The Corporation has worked with dealers in regions selling clothes by wholesale. The first branded shop was opened in 1997 year in St. Petersburg in Russia and lately in 1999 year the chain numbered 17 shops which was opened accordingly to the franchising system in Tomsk, Murmansk, Stalingrad, Barnaul, Yekaterinburg, St. Petersburg and Moscow.

-  It is said in the site of The Corporation that SELA was the first company which realized the conception of branded retail business. What is the conception? What is its main point?

This conception- is the system connected with each other and appearing from one of other methods of understanding and treatment, the system of achievement of an objective. TM SELA, really, was the first Russian brand created an integral conception of retail shop as a recognizable element of trade brand. The slogan of the brand, design project of the shops, a system of visual merchandising, standards of branded trade, commodity credit policy and the others guidance documents permitting to open recognizable enterprises in any cities was developed for it. Even more, under the conception of the brand, a corporate for the entire shops site was created- www.sela.ru.

The franchise system of motivation and audit was created for appraisal of recognizability in regions of Russia.

Under the corporate conception, our company gives educational seminars and trainings for the partners of the Corporation.
Developing brand and opening shops of different formats, The Corporation formalizes the procedure of opening the shops and their unique image.

Today, there are several formats of branded trade and conceptions of their promotion. They are SELA, SELA Kids and online store SELA-shops.

- SELA Kids- is a new format for your chain. Where does the idea of its creation appear? With what does the decision about its opening connect?

-  The idea of creation of separate child shop appeared long time ago. Even, a separate child shop was working in St. Petersburg in 2002-2004 years, but it wasn’t popular that time and The Corporation decided to close it. State policy oriented to strengthening of a family and to birth-rate rising in Russia has leaded to the fact that child clothes have appeared to be popular on market-it is only one of the factors which has influenced on decision making about the creation of this format. There are other facts, for example the fact that it’s easier to find a place for SELA Kid shop because it needs a smaller shopping space than a standard shop. Or such a fact as an impotent of separate child shop- we were asked by our franchise from different cities to open a separate child shop.

- How many shops of this format are there? In what way do they develop?

-  In 2008 year in Moscow, the first our own shop of SELA Kid format was opened in the shopping center “Aerobus” on Varshavskoe roadway. Before that time, for several years, in The Corporation a child shop had been successfully working in Krasnodar. Our project SELA Kids in “Aerobus” paid off for 9 months and proved its profitability and vitality. Today, we are developing this format accordingly to franchising system and 15 shops have been opened in Russia territory. In 2009 year, SELA Corporation took a professional premium Pro Fashion Awards as “the best retailer of child clothes” for developing and opening of shops of SELA Kids format.

- How does the assortment of SELA Kids shops wide? How many position are introduce in this format and what are they?

- SELA Kids shops completely suit the requirement of mothers: 400 articles of fashion, bright clothes and accessories for children from 0 till 11 years old (teenagers can choose their clothes by themselves or they choose “adult” brands) in every season collection (spring, summer, autumn, winter). Besides, there are owned line of child cosmetics and accessories. You can make your child’s outfit completely in any time. SELA child clothes are a very practical, colorful collection with comfort details and accessory for your child. You may make trousers tight-fitted at the waist just fastening belt, you may tie the string on the jacket tighter, and your child wouldn’t feel cold in a windy weather, and may shorten jeans buttoning a trouser leg by clasp.

Can SELA Kids shop be opened accordingly to the system of franchising? Are the cooperation conditions different in this case?

- The conditions of franchising are the same for all the partners of The Corporation.

- As I know, a retail shop SELA-shop was opened by you in 2008 year. Can you tell us about fruition of its work?

- The idea of creation online store as alternative or additional format of sale appeared before the crisis. On-line sale happens to be a business which is very popular in crisis. For customers- it is a perfect opportunity to examine the goods, to compare the value for money, to define the necessity of buying not going out and in any time. SELA-shop is going day and night, that’s why you may choose the goods even at night. Any payment options are possible and accessible. Delivery to any convenient for a costumer place.

Sales in online store have increased to 150-200 articles per day for 2009 year, but the turnover has increased 10-fold.

And what has been done because of the crisis? Has the assortment of corporate policy and so on been changed?

- The year of crisis became time of new opportunities for trade brand SELA. We offered market several new formats of opening shops accordingly to the system of franchising: “SELA light”, “SELA small format” (for cities with number of inhabitants less than 100 000 people_ and SELA Kids (shops of child assortment only).
As a result of incorporation between two representations ( in Moscow and St. Petersburg) a single center of office management  of the Corporation in Russia.
In spite of, The Corporation managed to save the conditions of work with franchise, value for money of goods, naturalness of cloths from which we made clothes of TM SELA.

More that 40 new shops under SELA brand were opened during the crisis in Russia. And the trade brand became a laureate of the contest between Russian enterprises and it became one of 1 000 the best enterprises in Russia.
I should say that during the crisis we have managed to save the turnover of the chain in rubles at the level of 2009 year, and it has proved the brand’s state of being important on market and costumer’s loyalty to the goods of TM SELA.


- I am sure that SELA in the part of working with costumers keeps general practice of organization of special promotion activities in the chain. Tell us about them. What are they? What aims you make before them and what is their effectiveness?


- Generally, all the actions, which are realized in shops, are designed for costumers. The aim of marketing expert is to make clothes of trade brand SELA popular the year round.

All the action in all the trade companies can be divided into several types:

- Annual seasonal and traditional for the whole trade action;

-  tactical, short-term actions;

- Actions, directed to the raising of loyalty to the brand and recognizability of trade mark. ( for more detail see table - editor's note)

Effectiveness of the action is appraised towards the aim and the main point of the action. The action can be directed at attraction costumers to the shop, in this case it’s appraised towards quantity increase of entering costumers. The action directed at stimulation of trade is appraised toward increase of sale in web and in money. Interactive actions are appraised toward quantity of comments and so on.

- In the process of work in any shop the factor of merchandising is very impotent. Can you name some special features of product representation in SELA shops?

- Yes, I can. Standards of visual merchandising are developed in The Corporation, new merchandising book are prepared by every season, methodic recommendations of design of salesrooms and shop windows with photos and lists of articles are sent to all the shops of the chain every fortnight.

May I ask you a personal question- do you wear clothes and accessories of TM SELA? Do you have many things of this mark in your outfit?

- Certainly! Not only I am wearing clothes of TM SELA but my children and grandchildren. Even my mother wears T-shirt and home clothes from SELA. There are many things with SELA label in our home. There are dresses, sweaters, jackets, T-shirts, blouses, certainly, cosmetics and underlinen, I have no need to talk about accessories. I think that my family- one of the most regular and loyal buyer in shops of TM SELA in Russia. If I happen to be in some city, I with pleasure do the shopping in our shops and this fact surprises our franchises and their salesman. They suppose that I see everything at office and that I have more opportunities to buy than usual costumers. Unfortunately, accordingly principle “the cobbler always wears the worst shoes”, I have no time to buy a thing which I like because I am really busy in office. That’s why, as a rule, I begin my seldom holiday shopping with shops of TM SELA. My favorite shopping centers are Evropeysky, Metromarket, MEGA and Metropolice. Although, visiting our chain in Moscow or St. Petersburg, I often do shopping in every our shop.

- What is regional policy of SELA? Does it change because of crisis?

- No, our plans of regional development don’t change. TM SELA, as before, develops the chain in all the regions in Russia.

- Does a middle check of your retail chain change? If it’s not a commercial confidentiality, how much it is?

- A middle check on SELA goods is defined by seasonality. Last years it fluctuates within 900-1000 rubles in warm time and 1000-1200 rubles in winter. I can say that the price of a middle check doesn’t change.

- This fact shows a stable successful development of your company. Tell us- in your opinion, to what way a trade company working on market of clothes retail should develop today? What should be done and the most important thing- what must not be done?

- Firstly, a brand should have a clear strategy and should understand for what it works on this market. Under the conditions of the crisis and entrance of the strongest players of clothes retail to the Russian market, clearness of strategy and policy- is a general rule of work and a passport to success.

It’s not so easy to say what should be done. There is no one formula of happiness in a world. But to say what trade companies shouldn’t be done, I think, it’s possible.

As I think, they shouldn’t play with price and take away pass discounting of goods. They shouldn’t indulge in stimulation of trade by means of creation of numerous clubs and loyalty programs which based on the system of discounts. They shouldn’t rush advertising if it is not supported by the corporate strategy and conception of the brand.

- Last year, one of the most impotent events of trade industry was the adoption a new trade act. The document, judging by activity of its discussing, has fids of admonition from member of Russian market trade. Does the act influence on your chain? How do you find this act?

- No, the new act doesn’t influence on the chain of TM SELA.

- What is your prognosis of development of Russian retail in the years coming?

- Hardening of competition. Entrance of new operators to Russian market of retail. Development of regions. Firstly, because of low rent and, secondly, because of increasing buying activity. Development of market of child clothes, if just for the reason that it’s not occupied today. Development of market of youth clothes. During the crisis, several foreign brands of youth clothes either withdraw from market or wind down their activity but, unfortunately, there are no strong brands in Russia.

- What are your plans on near-term outlook?

- Our corporation plans widening of SELA shops, their reconstruction, work with assortment and many, many interesting events.

- But what pieces of advice corrected to recent crisis can you give to producers and salesmen of clothes today?

- It’s difficult to give some valuable advice. Working under conditions of the crisis and overcoming the crisis- is a specific business. We should feel competitive landscape, offer only popular goods, and strategize according to movement of market and a company. We must not be satisfied with what has already been achieved. We must not frustrate our costumers’ hopes.

I can say that crisis is time of new opportunities. Don’t be afraid of daring, a victory likes people strong in spirit!

Table 1
Classification of action oriented to drawing of costumers’ attention