Purchasing Centre for Retail Chains indicated the brands to be the first to enter the store shelves

Purchasing Centre for Retail Chains<sup>™</sup> indicated the brands to be the first to enter the store shelvesThe Purchasing Centre for Retail Chains meeting was held with great success at the exhibition on September, 25. More than 50 retail chains held procurement meetings with 140 manufacturers of goods for children. Buyers from such retailers as Magnit, Perekrestok, Ozon, Komus, Miratorg, Gradusi Vsego Mira, VkusVill, Familia, and many others came in search for new product range to the Purchasing Centre for Retail Chains.

The retailers from all federal districts of Russia attended the Purchasing Centre for Retail Chains and the number of their retail outlets varied from 6 to 4,000. Traditionally, a supporting programme at which representatives of various retail formats spoke preceded the negotiations on supplies to the retail chains.

Lyubov Zavoda (O'Key Federal Retail Chain) told how she found the product assortment she needed, “In the past, the retailers used to look at what products were on the shelves of their colleagues, however now the one who can offer a more interesting product range becomes the leader. We find the products at exhibitions, through social media and bloggers. We are searching for popular brands, but at the same time, we strictly monitor prices on the shelf. The products cannot be more expensive than those in other retail chains. When an offer comes from the brand that I need, but it is more expensive than other products in the market, such offers will not work.”

Olga Moskvicheva (Ozon), “The range of FMCG products at Ozon consists of 200 thousand SKUs which is 2.5 times more than in 2018. 80% of our customers buy FMCG products in their first order. Every second order contains FMCG products. The main drivers are food products including fresh (+ 164% by 2018), household chemicals (non-food + 131%), pet food (+ 131%); and the goods for newborns are the driver in the children’s products category.”

Sergey Lishchuk (Retail4you) gave some tips on how to prepare for negotiations with a retailer, “Look at what the selected retail chain is selling today: at their sales in units, the turnover, and it would be good to understand their margin. Place your product in the actual product range and make a sales forecast. Has the category performance improved? If yes, then feel free to offer this product! Well, if not, then do not torment the buyer, look for another product that will improve the performance of the entire category.”