There is the interview with Natalia Borisovna Chinenova, general manager of SELA Corporation in Russia.



Natalia, tell us, what feelings and expectation are popular today among Russian fashion- retailers?

It seems to me that the crisis has opened comprehensive facilities for growth and increasing of effectiveness of work of Russian trade operators on market. And it’s not only main opinion. During the crisis, such leaders of fashion retailer as H&M, GAP came to Russia. Besides, Unique is coming now. It’s high time to bring up technologies and to reconsider sales policy. Nevertheless, 2010 year is expected to be successful and perspective. Feelings and expectation are the most iridescent- farther growth of sales and numbers of shops.

What was 2009 year for SELA chain? If there was cost saving in the Company. If so- what decisions have been made for it?


2009 year was not simple for the Corporation, but it was interesting and fruitful year. For this year we have opened more than 80 new shops in Russia and abroad. Total floor space increased on 10, 3 thousands m2 only in Russia.
In 2009 year, the owners of the Company decided to change management and to combine offices in Moscow and St. Petersburg, that’s why the central office of SELA Corporation was created in the capital of Russia.
We as well as all the retail operators grappled with expenses. All vacancies were closed and planned reconstructions of our shops were stopped. We had to change some service providers. Rent rates at many objects were cut down. I should mark renter’s loyalty and extend them thanks. Practically, we have no conflict cases of closing the shops by reason of loss of investments because of steep rent rates.


Will new trade act change something in your work?


Strategically our Corporation developed according to the principle of free competition and we didn’t issue the challenge to pass into monopolist on market. We work according to the franchising system. That’s why the new trade act will not change anything in work of the Corporation.


In that way did buying activity in your shops change in January 2010 in comparison with January 2009? How did your incomes/rescue change for this period?


Usually, January is the month of active sell-out. I should say that we began sale-out little later in this year only from 11 January. Nevertheless, buying activity was the same as in analogous periods last years. We had got small increase by 2009 year, but we didn’t come up to pre-crisis level.


In what format and price segment do SELA shops work?


SELA Corporation is one of the largest companies of Russian clothes market. More than 450 shops work under SELA brand in more than 270 cities of Russian Federation. Shops of trade mark SELA orient to consumers with medium income, nevertheless customers with income above the average and lower than average like our clothes. The format of the shops is mini- department store, because we presented in most part of our shops a complete line of goods of SELA trade mark: woman, man, youth, child clothes, underlinen and accessories. I should say that in our chain, shops of the format SELA Kids appeared. These shops present only child assortment. Today, about 15 shops of only child assortment work in the chain.


What is the portrait of your customer? Who are your competitors on Russian market?


Our customers, as in all parts of the world, are women and girls. On the basis of results of investigations we may separate two nucleuses of primary audience: youth, at the age of 16 till 24 years old and women (they are mothers mainly) at the age of 25-35 years old.


First of all, foreign operators are considered to be strong players, such brands as ZARA, H&M, BENETTON, and GAP. Interesting Russia brands are INCITY, SAVAGE, and OGGI

Who is the owner of SELA Corporation?

SELA Corporation is private company.

Where are the goods selling in SELA shops produced?

Clothes and accessories are produced in South-East Asia. The Corporation has in plan to transfer some part of factories to Russia. It depends on several factors. Firstly, production in Russia will permit the Company to be more mobile on market by means of reduction of production term on small parcels and required dates to the final customer. Secondly, the prices on production of several groups of goods in Russia are much lower than on production of the same goods in other countries. It stands to mention that the policy of Russian Federation, which oriented to support and development of production in Russia, has given its first results.


How long is operating cycle in your Company, beginning with the moment of creation of the clothes model to its arrivals to the shop’s shelf? How often do the collections change in your shops?

There are four seasonal collections. Nevertheless, they include mini- collections, therefore new goods appear in the shops every two-three weeks.

Operating cycle continues from 6 till 12 months.

How is work with ending inventories organized in your shop?

Assortment policy is organized in such a way that, practically, there are no ending inventories in our shops. Current single ending inventories are sent to sale shops which are opened in Moscow and St. Petersburg. The same thing happens with ending inventories in the end of the season. I may say that maximal ending inventories in all the chain don’t pass 5% of a supply.

What is the strategy of SELA in 2010 year? What challenges does SELA issue in 2010 year?

The basic strategy is farther market development and a work with business processes. The Corporation has in plans to rise beyond 600 shops (today, there are more than 560 shops in all the countries), to develop own retail chain in Moscow and St. Petersburg, to save its own basic advantages: value for money of goods, to offer to customers modern and interesting collections of clothes.


You have an online store. With what aim was it opened?

The aim is development of all kind of sales and satisfaction of customers.

The online –shop of fashion clothes www.sela-shop.ru was opened in 2008 year for that to expand the range of SELA customers. It was done according to the principle: If the mountain will not come to Muhammad, Muhammad will come to the mountain.
Today, in 2010 year, I can say that the opening of the online-store before the crisis was a very right strategic decision of The Corporation. It’s not a secret that consumers in the period of the crisis stopped doing spontaneous shopping and this process became a planned and purposeful measurement for them. It’s the very same service as online sores provide: you may, leisurely, examine goods, make your choice and having put a thing which you like in the basket you may send your order and any convenient for you time. Besides, thanks to Internet fashion clothes SELA may be accessible for customers which have not our shop in their cities.

For reference: during the period of the crisis, sales in internet shops have increased thrice.

What is the part of the online store in the income structure of SELA Company? What are your plans for developing of this trade format for the moment?

Online- store sales on the level of one good retail shop. That’s why to speak about some notional part of turnover is before time. We think that distant sales are perspective, that’s why we want to develop this direction.


Please, complete the sentence: “Fashion retail in Russia is…”

It’s a specific world, which is unlike neither Europe nor Asia. It’s business with its own unique habits, rules and standards. It is business, basing on not so much high fashion that on Russian character and “fashion” which customers see in glossy magazines. It’s a very interesting business which begins to develop and to cultivate Russian market from Far East to Makhachkala, from Kazan and to Sochi.

SELA Corporation (www.sela.ru), which was founded in 1991 year, is the largest of fashion – operators in production and sale of goods in Russia.

The company’s shops are opened in the main streets and in the largest shopping centers in more than 300 cities. SELA orients to average consumers and positions itself in medium price segment. The conception of branded retail enterprise involves presentation of whole assortment of SELA brand. Together with clothes in casual style, which is a trademark of the Company, now in SELA there are clothes for office, festive occasions, and accessories and besides namesake branded cosmetics for women, men and children. These novelties demonstrate the idea of family store of the brand, permitting a customer to buy all kind of goods in one place. Trade chain SELA numbers more 560 namesake branded shops in the world. 443 of them are in Russia.


The company’s premiums show successful of the Company, right strategy and professionalism of collective’s work:

In the first year SELA become “The best enterprise in the sphere of distributive industries”, winning on the contest “1000 the best trade enterprises and organizations of Russia”. In 2009 year SELA got the premium Profashion Awards as “The best retailer of child clothes”. Before that the Corporation had got the premiums: Gold Russian Brand, Brand GDA, Gold mannequin, European premium for quality, Product of the Year, Gold chain.

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