What role does MegaFon's Login line play for retail, in particular, MegaFon Login+? Here a person comes to the MegaFon store, and what happens to him next, why do companies need such devices?

It's pretty simple. In the MegaFon database, about half of the subscribers do not use mobile Internet at all. Some people just don't need it. But a fairly significant part has already “ripened” to replace a push-button phone, but are not ready to pay tens of thousands of rubles for a smartphone or tablet. Gadgets under the Login brand provide an influx of new mobile Internet users. As a retailer, we do not earn on such devices in terms of commodity revenue. But the operator needs them, and we, as a division of MegaFon, are certainly 100% in the logic of the operator's behavior.

There is another important point. Own devices with an attractive price increase traffic to salons. The more visitors, the more real buyers. In terms of the number of goods and their choice, we are not inferior to multi-brand retail, but we sell communication services from one operator. Roughly speaking, no matter what the client buys, he will have a connection from MegaFon.

Does operator retail differ from conventional retail chains such as Euroset or Svyaznoy?

The differences are more in the goals, not in the organization of the business. We live by the tasks of the operator, we have the same goal-setting and guidelines, and this greatly distinguishes us from other players. We see ourselves as part of the operator's business. Ultimately, our task is simple - to increase the operator's income. Today's market is arranged in such a way that without its own retail, the operator's income cannot be good.

It turns out that you can not watch how Svyaznoy or Euroset work, how they sell goods at their outlets? After all, in this case, you can evaluate the income of the operator and play a completely different game?

That won't work. The operator's income is not divided by specific stores, they can be calculated for a specific base station, for a region, but not for a point of sale. Therefore, MegaFon Retail, like everywhere else in retail, uses clear benchmarks - we count how many SIM cards are sold, how many services are connected, how many phones, smartphones, and so on. For example, in the sale of SIM-cards, we are far ahead of not only the operator's retail. In terms of smartphones, we have greatly bypassed one of the competitors, we are catching up with the other. We adhere to industry standards and evaluate our work against them.

Going back to Login, which you sell for no profit on hardware. The Login+ phablet appeared, previously it was smartphones and tablets, all of which were sold in large volumes. How did these products compete with the B-brands on your shelves? Logic dictates that their own products were crowding them out and hurting sales.

Let's look a little wider. Throughout 2014, and even the year before last, by selling Login smartphones and tablets under this brand, we basically influenced the entire market. Not only for the products on their shelves, for the entire market without exception. As a result, the market lost the average price faster and became more affordable for our client, especially in tablets. And the availability of devices for our customers is to accelerate the growth of data transfer, and this is a strategic task for MegaFon. The tactical challenge for retailers is to sell these devices, and we're doing a great job of it.

If we talk about the phablet, our research shows that in 2015 the market for devices with large screen sizes will grow, and here is the point of growth. These are to some extent hybrid devices that combine and replace both a smartphone and a tablet. Two in one. Resmartphone, under-tablet. At the same time, we see that the budget segment is selling better than others today. Thus, two trends crossed in Login+: interest in large diagonals and interest in the budget segment. Everything together should work for good sales.

From a business standpoint, do you expect to replicate the success of previous generations of Login?

Let's take a look at who sells smartphones - Euroset, Svyaznoy, MTS and MegaFon Retail. Why do I name these four networks? Because we account for 80 percent of sales of all smartphones in Russia. So Logins brought and bring clients to our salons. Not to strangers, but to our salons. This is important, because a client, having got into a multi-brand, can connect to any of the operators. Do you want to tell me what happens after you buy a Login smartphone? In fact, on it, a client who has never used a smartphone learns to use applications, mobile Internet and gadget functionality. After some time, he changes his Login to a more productive smartphone, with a larger diagonal. But his SIM card will still be ours. This is beneficial for the operator - the higher the performance and the diagonal, the more traffic.

Another example is the tablet market. It was mainly represented by electronics, household appliances, computer stores. Cellular retail accounted for it at most twenty percent, it was a small piece of the pie. We did not play a special role in this market, nor did they have a share in the smartphone market. With the release of the Login line of tablets, we reformatted the market, took away part of their sales from such retailers, and transferred them to us. Of course, they weren't very happy about it. They often put spokes in our wheels, for example, in one of the cities in a large shopping center they tried to create conditions so that our store would not open, as the key tenant was selling computer equipment and electronics. We are eating away their market, and they know about it.

However, aside from the phablet, we still see huge potential in the regular smartphone. A few days ago, the third generation of the Login smartphone appeared on sale. It is still the most affordable smartphone on the market.

The next step is to start selling carrier laptops?

I'm not interested. The high cost of the device, so subsidies will be difficult. Another reason is that the laptop market is falling. In the past, we tried to play in this niche, released a netbook with one of the vendors and put our SIM card there. Sales were very modest.

Okay, but what about such a segment as smartwatches. I know that you have been using it for a long time and imbued with their idea.

Yes, I really like them.

Watches with the ability to install a SIM card have already appeared, is this potentially an operator product, is there a prospect that people will follow them in your retail, or is it not electronic retail, but watch salons?

Everything is very complicated with the clock. I am ready to show respect to Samsung, I use their watches, and this is not a product placement at all!

I'll still be accused of this.

They started to develop this direction earlier and went far ahead compared to those who settled on the Android version of the watch. The fact that they are on Tizen gives many opportunities - working time, menu convenience, additional options. Curved screen and other specifications. They went ahead by several years. But the volume of sales so far is completely negligible, this is the lot of a small number of geeks, such as me or you. The rest continue to dream of Swiss watches, and it is very difficult to change this trend. Therefore, while this is not our product, there are no volumes here.

Everyone around is saying that the electronics and telephone market is dying, companies are losing sales and everything is bad. Some people have an alternative point of view - everything is very bad. I have a completely different picture in my reports, sales do not fall in money, in pieces they are reduced slightly. Can we discuss what awaits us all in 2015?

It is very difficult to be a prophet. In the current situation, there are a lot of factors. With the advent of mobile devices, the world has changed, and today we are actually selling an essential product. Therefore, I do not believe that people will give up gadgets, unless we consider very extreme situations in the economy. In a situation of decreasing purchasing power, we see that this is offset by a large number of B-brands that have appeared, and we have actively played in this market. The share of manufacturers in our portfolio has changed compared to the beginning of 2014. We made good money at the end of the year.

Exactly the same thing is happening now. The then-Windows is now Android, so big manufacturers will give way to B-brands as consumers choose them. Of course, there is also iOS, which few people in Russia can afford now. Recovery of the premium segment is possible, but it takes time.

I wanted to ask a provocative question: how is your customer different from those who come, for example, to Euroset or Svyaznoy.

An interesting question. People come to us not only to replenish their account without commission or to buy some kind of device. Approximately half of the customers want to understand their tariff plans, services, and consult about how the settings work. The more reasons customers have to go to the MegaFon salon, the better. Therefore, we try to find new niches and tell what we can do. As soon as we understand that we have found something interesting, we begin to introduce it in all stores.

Do sellers have enough time? After all, there are strict industry standards for how much you can spend on each customer, so you are out of the market?

We are in the market. This question can be answered from two sides. We are an Internet company and we try to place the maximum number of information and actions on the network. This helps, and to some extent a person can sort out his issue before visiting the store. In stores for sales assistants, there are certain standards. Of course, the seller will not leave a person halfway if the case is severe, and will not move on to another. But he's trying to fit in. This is the internal motivation of the seller, in which standard actions have a certain dimension of time. We evaluate these actions, analyze and suggest ways to optimize for our retail network.

This is a large layer of work, which also involves the Internet. For example, having set up a particular service for you, the seller will say that you could do it yourself from the application or from your computer in your personal account. That is, it will potentially teach the client that you can not waste time going to the store and do everything yourself. We are ready to invest our resources in this, and the optimization of your personal account and other services comes to the fore.

Time optimization for many is that sellers send customers to pay bills in the payment terminal. We also have them, and the client can pay for everything there on his own. But our sellers do not refuse to accept money from customers. That is, the client always has a choice of how it is more convenient to pay. Are we wasting time on this? Maybe. Do we make the customer happy? For sure. Therefore, one should not think that optimization is a thoughtless and mechanistic process. With us, each client evaluates how he was served in the salon. If the rating is bad, then the sellers will not receive bonuses, their income will fall.

We also created an online system for the first time under the working title "Consultant's Workplace 2.0". No one before us in operator retail has done anything like this. This is one program in which everything is processed in one window. For example, when filling out a new contract, you do not have to run between the windows, everything is in one window. This is very expensive in terms of development, bringing it to just one window, but it gives a real gain in time. On our scale, these are man-years, which save time for both sellers and customers.

I noticed that on the signs of your network, the .ru domain was added to the name of MegaFon, why is that?

I've already said this, but I'll repeat it. We are an internet company. Globally, MegaFon sees the future in data transmission, where voice will eventually go. When I talk about data transfer, I mean something more than just a transport for traffic. These are mobile applications, a single online and offline environment, the "Internet of things" and much, much more. And the salons here are the entry point to this world.

Tet-a-tet. Mikhail Zolotovitsky, MegaFon Retail and the Operator Products Market

There are not so many old-timers on the retail market, those who came to it at the time of its formation and continue to develop it. Mikhail Zolotovitsky has been involved in retail for about 20 years, someone probably remembers his Telefon.ru project. The next stage in my career is the CEO of MegaFon's retail project, MegaFon Retail. Positions and even a brief excerpt from the track record can never fully describe a person, give an idea about him. Our acquaintance took place a long time ago, and then I made one judgment, which has not changed today. Michael is a man of fantastic capacity for work and involvement in business. In my opinion, MegaFon Retail is the champion in network deployment speed. Then it was a struggle against time: every day of delay could cost the company additional costs and missed opportunities.

There are not so many people in the retail market that have great experience, memory and influence that can reformat the market or its individual segments. Mikhail belongs to these people, so it was interesting for me to talk with him on various topics - from the crisis and the feeling in retail to the internal processes of MegaFon Retail, as well as what is happening in the company, how it sees sales of its own and other people's products. I am sure that our conversation will be of interest to many, as it gives another look at the Russian retail market.

What role does MegaFon's Login line play for retail, in particular, MegaFon Login+? Here a person comes to the MegaFon store, and what happens to him next, why do companies need such devices?

It's pretty simple. In the MegaFon database, about half of the subscribers do not use mobile Internet at all. Some people just don't need it. But a fairly significant part has already “ripened” to replace a push-button phone, but are not ready to pay tens of thousands of rubles for a smartphone or tablet. Gadgets under the Login brand provide an influx of new mobile Internet users. As a retailer, we do not earn on such devices in terms of commodity revenue. But the operator needs them, and we, as a division of MegaFon, are certainly 100% in the logic of the operator's behavior.

There is another important point. Own devices with an attractive price increase traffic to salons. The more visitors, the more real buyers. In terms of the number of goods and their choice, we are not inferior to multi-brand retail, but we sell communication services from one operator. Roughly speaking, no matter what the client buys, he will have a connection from MegaFon.

Does operator retail differ from conventional retail chains such as Euroset or Svyaznoy?

The differences are more in the goals, not in the organization of the business. We live by the tasks of the operator, we have the same goal-setting and guidelines, and this greatly distinguishes us from other players. We see ourselves as part of the operator's business. Ultimately, our task is simple - to increase the operator's income. Today's market is arranged in such a way that without its own retail, the operator's income cannot be good.

It turns out that you can not watch how Svyaznoy or Euroset work, how they sell goods at their outlets? After all, in this case, you can evaluate the income of the operator and play a completely different game?

If we talk about the phablet, our research shows that in 2015 the market for devices with large screen sizes will grow, and here is the point of growth. These are to some extent hybrid devices that combine and replace both a smartphone and a tablet. Two in one. Resmartphone, under-tablet. At the same time, we see that the budget segment is selling better than others today. Thus, two trends crossed in Login+: interest in large diagonals and interest in the budget segment. Everything together should work for good sales.

From a business standpoint, do you expect to replicate the success of previous generations of Login?

Let's take a look at who sells smartphones - Euroset, Svyaznoy, MTS and MegaFon Retail. Why do I name these four networks? Because we account for 80 percent of sales of all smartphones in Russia. So Logins brought and bring clients to our salons. Not to strangers, but to our salons. This is important, because a client, having got into a multi-brand, can connect to any of the operators. Do you want to tell me what happens after you buy a Login smartphone? In fact, on it, a client who has never used a smartphone learns to use applications, mobile Internet and gadget functionality. After some time, he changes his Login to a more productive smartphone, with a larger diagonal. But his SIM card will still be ours. This is beneficial for the operator - the higher the performance and the diagonal, the more traffic.

Another example is the tablet market. It was mainly represented by electronics, household appliances, computer stores. Cellular retail accounted for it at most twenty percent, it was a small piece of the pie. We did not play a special role in this market, nor did they have a share in the smartphone market. With the release of the Login line of tablets, we reformatted the market, took away part of their sales from such retailers, and transferred them to our own. Of course, they were not very happy about it. They often put spokes in our wheels, for example, in one of the cities in a large shopping center they tried to create conditions so that our store would not open, as the key tenant was selling computer equipment and electronics. We are eating away their market, and they know about it.

However, apart from the phablet, we still see huge potential in the regular smartphone. A few days ago, the third generation of the Login smartphone appeared on sale. It is still the most affordable smartphone on the market.

The next step is to start selling carrier laptops?

I'm not interested. The high cost of the device, so subsidies will be difficult. Another reason is that the laptop market is falling. In the past, we tried to play in this niche, released a netbook with one of the vendors and put our SIM card there. Sales were very modest.

Okay, but what about such a segment as smartwatches. I know that you have been using it for a long time and imbued with their idea.

Yes, I really like them.

Watches with the ability to install a SIM card have already appeared, is this potentially an operator product, is there a prospect that people will follow them in your retail, or is it not electronic retail, but watch salons?

Everything is very complicated with the clock. I am ready to show respect to Samsung, I use their watches, and this is not a product placement at all!

I'll still be accused of this.

They started to develop this direction earlier and went far ahead compared to those who settled on the Android version of the watch. The fact that they are on Tizen gives many opportunities - working time, menu convenience, additional options. Curved screen and other specifications. They went ahead by several years. But the volume of sales so far is completely negligible, this is the lot of a small number of geeks, such as me or you. The rest continue to dream of Swiss watches, and it is very difficult to change this trend. Therefore, while this is not our product, there are no volumes here.

Everyone around is saying that the electronics and telephone market is dying, companies are losing sales and everything is bad. Some people have an alternative point of view - everything is very bad. I have a completely different picture in my reports, sales do not fall in money, in pieces they are reduced slightly. Can we discuss what awaits us all in 2015?

It is very difficult to be a prophet. In the current situation, there are a lot of factors. With the advent of mobile devices, the world has changed, and today we are actually selling an essential product. Therefore, I do not believe that people will give up gadgets, unless we consider very extreme situations in the economy. In a situation of decreasing purchasing power, we see that this is offset by a large number of B-brands that have appeared, and we have actively played in this market. The share of manufacturers in our portfolio has changed compared to the beginning of 2014. We made good money at the end of the year.

If we talk about unit sales in 2015, I think they will not change at all. The market will remain the same. A two-fold decrease in purchasing power will lead to the fact that sales in the premium segment will fall sharply, but sales will increase in the segment up to 10 thousand rubles, where many companies are represented. Producer shares will change, and this is normal.

An analogy can be found in the PC market. In the 90s, I bought three HP computers for the company, they were very expensive, I don’t remember the exact cost, but it stuck in my memory that one keyboard cost $ 115. It was very cool at the time. These keyboards outlasted computers, the last one died in 2004, and then coffee was spilled on it. This is an illustration of the quality of the devices.

But what happened then? 2017 Toyota Land Cruiser brands are no longer in demand. There is a standard Windows, it is possible to build a PC from public components anywhere. Quality has ceased to be a determining factor for the mass market, a change in generations of devices began to occur very quickly. And large companies began to lose their shares.

Exactly the same thing is happening now. The then-Windows is now Android, so big manufacturers will give way to B-brands as consumers choose them. Of course, there is also iOS, which few people in Russia can afford now. Recovery of the premium segment is possible, but it takes time.

I wanted to ask a provocative question: how is your customer different from those who come, for example, to Euroset or Svyaznoy.

An interesting question. People come to us not only to replenish their account without commission or to buy some kind of device. Approximately half of the customers want to understand their tariff plans, services, and consult about how the settings work. The more reasons customers have to go to the MegaFon salon, the better. Therefore, we try to find new niches and tell what we can do. As soon as we understand that we have found something interesting, we begin to introduce it in all stores.

Do sellers have enough time? After all, there are strict industry standards for how much you can spend on each customer, so you are out of the market?

We are in the market. This question can be answered from two sides. We are an Internet company and we try to place the maximum number of information and actions on the network. This helps, and to some extent a person can sort out his issue before visiting the store. In stores for sales assistants, there are certain standards. Of course, the seller will not leave a person halfway if the case is severe, and will not move on to another. But he's trying to fit in. This is the internal motivation of the seller, in which standard actions have a certain dimension of time. We evaluate these actions, analyze and suggest ways to optimize for our retail network.

This is a large layer of work, which also involves the Internet. For example, having set up a particular service for you, the seller will say that you could do it yourself from the application or from your computer in your personal account. That is, it will potentially teach the client that you can not waste time going to the store and do everything yourself. We are ready to invest our resources in this, and the optimization of your personal account and other services comes to the fore.

Time optimization for many is that sellers send customers to pay bills in the payment terminal. We also have them, and the client can pay for everything there on his own. But our sellers do not refuse to accept money from customers. That is, the client always has a choice of how it is more convenient to pay. Are we wasting time on this? Maybe. Do we make the customer happy? For sure. Therefore, one should not think that optimization is a thoughtless and mechanistic process. With us, each client evaluates how he was served in the salon. If the rating is bad, then the sellers will not receive bonuses, their income will fall.

We also created an online system for the first time under the working title "Consultant Workplace 2.0". Nobody before us in operator retail did anything like this. This is one program in which everything is processed in one window. For example, when filling out a new contract, you do not have to run between the windows, everything is in one window. This is very expensive in terms of development, bringing it to just one window, but it gives a real gain in time. On our scale, these are man-years, which save time for both sellers and customers.

I noticed that on the signs of your network, the .ru domain was added to the name of MegaFon, why is that?

I have already said this, but I will repeat it. We are an internet company. Globally, MegaFon sees the future in data transmission, where voice will eventually go. When I talk about data transfer, I mean something more than just a transport for traffic. These are mobile applications, a single online and offline environment, the "Internet of things" and much, much more. And the salons here are the entry point to this world.

Tet-a-tet. Mikhail Zolotovitsky, MegaFon Retail and the Operator Products Market

There are not so many old-timers on the retail market, those who came to it at the time of its formation and continue to develop it. Mikhail Zolotovitsky has been involved in retail for about 20 years, someone probably remembers his Telefon.ru project. The next stage in my career is the CEO of MegaFon's retail project, MegaFon Retail. Positions and even a brief excerpt from the track record can never fully describe a person, give an idea about him. Our acquaintance took place a long time ago, and then I made one judgment, which has not changed today. Michael is a man of fantastic capacity for work and involvement in business. In my opinion, MegaFon Retail is the champion in network deployment speed. Then it was a struggle against time: every day of delay could cost the company additional costs and missed opportunities.

There are not so many people in the retail market that have great experience, memory and influence that can reformat the market or its individual segments. Mikhail belongs to these people, so it was interesting for me to talk with him on various topics - from the crisis and the feeling in retail to the internal processes of MegaFon Retail, as well as what is happening in the company, how it sees sales of its own and other people's products. I am sure that our conversation will be of interest to many, as it gives another look at the Russian retail market.

What role does MegaFon's Login line play for retail, in particular, MegaFon Login+? Here a person comes to the MegaFon store, and what happens to him next, why do companies need such devices?

It's pretty simple. In the MegaFon database, about half of the subscribers do not use mobile Internet at all. Some people just don't need it. But a fairly significant part has already “ripened” to replace a push-button phone, but are not ready to pay tens of thousands of rubles for a smartphone or tablet. Gadgets under the Login brand provide an influx of new mobile Internet users. As a retailer, we do not earn on such devices in terms of commodity revenue. But the operator needs them, and we, as a division of MegaFon, are certainly 100% in the logic of the operator's behavior.

There is another important point. Own devices with an attractive price increase traffic to salons. The more visitors, the more real buyers. In terms of the number of goods and their choice, we are not inferior to multi-brand retail, but we sell communication services from one operator. Roughly speaking, no matter what the client buys, he will have a connection from MegaFon.

Does operator retail differ from conventional retail chains such as Euroset or Svyaznoy?

The differences are more in the goals, not in the organization of the business. We live by the tasks of the operator, we have the same goal-setting and guidelines, and this greatly distinguishes us from other players. We see ourselves as part of the operator's business. Ultimately, our task is simple - to increase the operator's income. Today's market is arranged in such a way that without its own retail, the operator's income cannot be good.

It turns out that you can not watch how Svyaznoy or Euroset work, how they sell goods at their outlets? After all, in this case, you can evaluate the income of the operator and play a completely different game?

That won't work. The operator's income is not divided by specific stores, they can be calculated for a specific base station, for a region, but not for a point of sale. Therefore, MegaFon Retail, like everywhere else in retail, uses clear benchmarks - we count how many SIM cards are sold, how many services are connected, how many phones, smartphones, and so on. For example, in the sale of SIM-cards, we are far ahead of not only operator retail. In terms of smartphones, we have greatly bypassed one of the competitors, we are catching up with the other. We adhere to industry standards and evaluate our work against them.

From a business standpoint, do you expect to replicate the success of previous generations of Login?

Let's take a look at who sells smartphones - Euroset, Svyaznoy, MTS and MegaFon Retail. Why do I name these four networks? Because we account for 80 percent of sales of all smartphones in Russia. So Logins brought and bring clients to our salons. Not to strangers, but to our salons. This is important, because a client, having got into a multi-brand, can connect to any of the operators. Do you want to tell me what happens after you buy a Login smartphone? In fact, on it, a client who has never used a smartphone learns to use applications, mobile Internet and gadget functionality. After some time, he changes his Login to a more productive smartphone, with a larger diagonal. But his SIM card will still be ours. This is beneficial for the operator - the higher the performance and the diagonal, the more traffic.

Another example is the tablet market. It was mainly represented by electronics, household appliances, computer stores. Cellular retail accounted for it at most twenty percent, it was a small piece of the pie. We did not play a special role in this market, nor did they have a share in the smartphone market. With the release of the Login line of tablets, we reformatted the market, took away part of their sales from such retailers, and transferred them to us. Of course, they weren't very happy about it. They often put spokes in our wheels, for example, in one of the cities in a large shopping center they tried to create conditions so that our store would not open, as the key tenant was selling computer equipment and electronics. We are eating away their market, and they know about it.

I'll still be accused of this.

They started to develop this direction earlier and went far ahead compared to those who settled on the Android version of the watch. The fact that they are on Tizen gives many opportunities - working time, menu convenience, additional options. Curved screen and other specifications. They went ahead by several years. But the volume of sales so far is completely negligible, this is the lot of a small number of geeks, such as me or you. The rest continue to dream of Swiss watches, and it is very difficult to change this trend. Therefore, while this is not our product, there are no volumes here.

Everyone around is saying that the electronics and telephone market is dying, companies are losing sales and everything is bad. Some people have an alternative point of view - everything is very bad. I have a completely different picture in my reports, sales do not fall in money, in pieces they are reduced slightly. Can we discuss what awaits us all in 2015?

It is very difficult to be a prophet. In the current situation, there are a lot of factors. With the advent of mobile devices, the world has changed, and today we are actually selling an essential product. Therefore, I do not believe that people will give up gadgets, unless we consider very extreme situations in the economy. In a situation of decreasing purchasing power, we see that this is offset by a large number of B-brands that have appeared, and we have actively played in this market. The share of manufacturers in our portfolio has changed compared to the beginning of 2014. We made good money at the end of the year.

If we talk about unit sales in 2015, I think they will not change at all. The market will remain the same. A two-fold decrease in purchasing power will lead to the fact that sales in the premium segment will fall sharply, but sales will increase in the segment up to 10 thousand rubles, where many companies are represented. Producer shares will change, and this is normal.

An analogy can be found in the PC market. In the 90s, I bought three HP computers for the company, they were very expensive, I don’t remember the exact cost, but it stuck in my memory that one keyboard cost $ 115. It was very cool at the time. These keyboards outlasted computers, the last one died in 2004, and then coffee was spilled on it. This is an illustration of the quality of the devices.

But what happened then? 2017 Toyota Land Cruiser brands are no longer in demand. There is a standard Windows, it is possible to assemble a PC from public components anywhere. Quality has ceased to be a determining factor for the mass market, a change in generations of devices began to occur very quickly. And large companies began to lose their shares.

Exactly the same thing is happening now. The then-Windows is now Android, so big manufacturers will give way to B-brands as consumers choose them. Of course, there is also iOS, which few people in Russia can afford now. Recovery of the premium segment is possible, but it takes time.

I wanted to ask a provocative question: how is your customer different from those who come, for example, to Euroset or Svyaznoy.

An interesting question. People come to us not only to replenish their account without commission or to buy some kind of device. Approximately half of the customers want to understand their tariff plans, services, and consult about how the settings work. The more reasons customers have to go to the MegaFon salon, the better. Therefore, we try to find new niches and tell what we can do. As soon as we understand that we have found something interesting, we begin to introduce it in all stores.

Do sellers have enough time? After all, there are strict industry standards for how much you can spend on each customer, so you are out of the market?

We are in the market. This question can be answered from two sides. We are an Internet company and we try to place the maximum number of information and actions on the network. This helps, and to some extent a person can sort out his issue before visiting the store. In stores for sales assistants, there are certain standards. Of course, the seller will not leave a person halfway if the case is severe, and will not move on to another. But he's trying to fit in. This is the internal motivation of the seller, in which standard actions have a certain dimension of time. We evaluate these actions, analyze and suggest ways to optimize for our retail network.

This is a large layer of work, which also involves the Internet. For example, having set up a particular service for you, the seller will say that you could do it yourself from the application or from your computer in your personal account. That is, it will potentially teach the client that you can not waste time going to the store and do everything yourself. We are ready to invest our resources in this, and the optimization of your personal account and other services comes to the fore.

Time optimization for many is that sellers send customers to pay bills in the payment terminal. We also have them, and the client can pay for everything there on his own. But our sellers do not refuse to accept money from customers. That is, the client always has a choice of how it is more convenient to pay. Are we wasting time on this? Maybe. Do we make the customer happy? For sure. Therefore, one should not think that optimization is a thoughtless and mechanistic process. With us, each client evaluates how he was served in the salon. If the rating is bad, then the sellers will not receive bonuses, their income will fall.

We also created an online system for the first time under the working title "Consultant's Workplace 2.0". No one before us in operator retail has done anything like this. This is one program in which everything is processed in one window. For example, when filling out a new contract, you do not have to run between the windows, everything is in one window. This is very expensive in terms of development, bringing it to just one window, but it gives a real gain in time. On our scale, these are man-years, which save time for both sellers and customers.

I noticed that on the signs of your network, the .ru domain was added to the name of MegaFon, why is that?

I've already said this, but I'll repeat it. We are an internet company. Globally, MegaFon sees the future in data transmission, where voice will eventually go. When I talk about data transfer, I mean something more than just a transport for traffic. These are mobile applications, a single online and offline environment, the "Internet of things" and much, much more. And the salons here are the entry point to this world.

Tet-a-tet. Mikhail Zolotovitsky, MegaFon Retail and the Operator Products Market

There are not so many old-timers on the retail market, those who came to it at the time of its formation and continue to develop it. Mikhail Zolotovitsky has been involved in retail for about 20 years, someone probably remembers his Telefon.ru project. The next stage in my career is the CEO of MegaFon's retail project, MegaFon Retail. Positions and even a brief excerpt from the track record can never fully describe a person, give an idea about him. Our acquaintance took place a long time ago, and then I made one judgment, which has not changed today. Michael is a man of fantastic capacity for work and involvement in business. In my opinion, MegaFon Retail is the champion in network deployment speed. Then it was a struggle against time: every day of delay could cost the company additional costs and missed opportunities.

There are not so many people in the retail market that have great experience, memory and influence that can reformat the market or its individual segments. Mikhail belongs to these people, so it was interesting for me to talk with him on various topics - from the crisis and the feeling in retail to the internal processes of MegaFon Retail, as well as what is happening in the company, how it sees sales of its own and other people's products. I am sure that our conversation will be of interest to many, as it gives another look at the Russian retail market.

What role does MegaFon's Login line play for retail, in particular, MegaFon Login+? Here a person comes to the MegaFon store, and what happens to him next, why do companies need such devices?

It's pretty simple. In the MegaFon database, about half of the subscribers do not use mobile Internet at all. Some people just don't need it. But a fairly significant part has already “ripened” to replace a push-button phone, but are not ready to pay tens of thousands of rubles for a smartphone or tablet. Gadgets under the Login brand provide an influx of new mobile Internet users. As a retailer, we do not earn on such devices in terms of commodity revenue. But the operator needs them, and we, as a division of MegaFon, are certainly 100% in the logic of the operator's behavior.

There is another important point. Own devices with an attractive price increase traffic to salons. The more visitors, the more real buyers. In terms of the number of goods and their choice, we are not inferior to multi-brand retail, but we sell communication services from one operator. Roughly speaking, no matter what the client buys, he will have a connection from MegaFon.

Does operator retail differ from conventional retail chains such as Euroset or Svyaznoy?

The differences are more in the goals, not in the organization of the business. We live by the tasks of the operator, we have the same goal-setting and guidelines, and this greatly distinguishes us from other players. We see ourselves as part of the operator's business. Ultimately, our task is simple - to increase the operator's income. Today's market is arranged in such a way that without its own retail, the operator's income cannot be good.

It turns out that you can not watch how Svyaznoy or Euroset work, how they sell goods at their outlets? Indeed, in this case, you can evaluate the income of the operator and play a completely different game?

That won't work. The operator's income is not divided by specific stores, they can be calculated for a specific base station, for a region, but not for a point of sale. Therefore, MegaFon Retail, like everywhere else in retail, uses clear benchmarks - we count how many SIM cards are sold, how many services are connected, how many phones, smartphones, and so on. For example, in the sale of SIM-cards, we are far ahead of not only operator retail. In terms of smartphones, we have greatly bypassed one of the competitors, we are catching up with the other. We adhere to industry standards and evaluate our work against them.

Going back to Login, which you sell for no profit on hardware. The Login+ phablet appeared, previously it was smartphones and tablets, all of which were sold in large volumes. How did these products compete with the B-brands on your shelves? Logic dictates that their own products were crowding them out and worsening sales.

Let's look a little wider. Throughout 2014, and even the year before last, by selling Login smartphones and tablets under this brand, we basically influenced the entire market. Not only for the products on their shelves, for the entire market without exception. As a result, the market lost the average price faster and became more affordable for our client, especially in tablets. And the availability of devices for our customers is to accelerate the growth of data transfer, and this is a strategic task for MegaFon. The tactical challenge for retailers is to sell these devices, and we're doing a great job of it.

If we talk about the phablet, our research shows that in 2015 the market for devices with large screen sizes will grow, and here is the point of growth. These are to some extent hybrid devices that combine and replace both a smartphone and a tablet. Two in one. Resmartphone, under-tablet. At the same time, we see that the budget segment is selling better than others today. Thus, two trends crossed in Login+: interest in large diagonals and interest in the budget segment. Everything together should work for good sales.

From a business standpoint, do you expect to replicate the success of previous generations of Login?

Let's take a look at who sells smartphones - Euroset, Svyaznoy, MTS and MegaFon Retail. Why do I name these four networks? Because we account for 80 percent of sales of all smartphones in Russia. So Logins brought and bring clients to our salons. Not to strangers, but to our salons. This is important, because a client, having got into a multi-brand, can connect to any of the operators. Do you want to tell me what happens after you buy a Login smartphone? In fact, on it, a client who has never used a smartphone learns to use applications, mobile Internet and gadget functionality. After some time, he changes his Login to a more productive smartphone, with a larger diagonal. But his SIM card will still be ours. This is beneficial for the operator - the higher the performance and the diagonal, the more traffic.

Another example is the tablet market. It was mainly represented by electronics, household appliances, computer stores. Cellular retail accounted for it at most twenty percent, it was a small piece of the pie. We did not play a special role in this market, nor did they have a share in the smartphone market. With the release of the Login line of tablets, we reformatted the market, took away part of their sales from such retailers, and transferred them to us. Of course, they weren't very happy about it. They often put spokes in our wheels, for example, in one of the cities in a large shopping center they tried to create conditions so that our store would not open, as the key tenant was selling computer equipment and electronics. We are eating away their market, and they know about it.

However, aside from the phablet, we still see huge potential in the regular smartphone. A few days ago, the third generation of the Login smartphone appeared on sale. It is still the most affordable smartphone on the market.

The next step is to start selling operator laptops?

I'm not interested. The high cost of the device, so subsidies will be difficult. Another reason is that the laptop market is falling. In the past, we tried to play in this niche, released a netbook with one of the vendors and put our SIM card there. Sales were very modest.

Okay, but what about such a segment as smartwatches. I know that you have been using it for a long time and imbued with their idea.

Yes, I really like them.

Watches with the ability to install a SIM card have already appeared, is this potentially an operator product, is there a prospect that people will follow them in your retail, or is it not electronic retail, but watch salons?

Everything is very complicated with the clock. I am ready to show respect to Samsung, I use their watches, and this is not a product placement at all!

I'll be blamed anyway.

They started to develop this direction earlier and went far ahead compared to those who settled on the Android version of the watch. The fact that they are on Tizen gives many opportunities - working time, menu convenience, additional options. Curved screen and other specifications. They went ahead by several years. But the volume of sales so far is completely negligible, this is the lot of a small number of geeks, such as me or you. The rest continue to dream of Swiss watches, and it is very difficult to change this trend. Therefore, while this is not our product, there are no volumes here.

Everyone around them is saying that the market for electronics and phones is dying, companies are losing sales and everything is bad. Some people have an alternative point of view - everything is very bad. I have a completely different picture in my reports, sales do not fall in money, in pieces they are reduced slightly. Can we discuss what awaits us all in 2015?

It is very difficult to be a prophet. In the current situation, there are a lot of factors. With the advent of mobile devices, the world has changed, and today we are actually selling an essential product. Therefore, I do not believe that people will give up gadgets, unless we consider very extreme situations in the economy. In a situation of decreasing purchasing power, we see that this is offset by a large number of B-brands that have appeared, and we have actively played in this market. The share of manufacturers in our portfolio has changed compared to the beginning of 2014. We made good money at the end of the year.

If we talk about unit sales in 2015, I think they will not change at all. The market will remain the same. A two-fold decrease in purchasing power will lead to the fact that sales in the premium segment will fall sharply, but sales will increase in the segment up to 10 thousand rubles, where many companies are represented. Producer shares will change, and this is normal.

An analogy can be found in the PC market. In the 90s, I bought three HP computers for the company, they were very expensive, I don’t remember the exact cost, but it stuck in my memory that one keyboard cost $ 115. It was very cool at the time. These keyboards outlasted computers, the last one died in 2004, and then coffee was spilled on it. This is an illustration of the quality of the devices.

But what happened then? Brands have ceased to be in demand 2017 Toyota Land Cruiser. There is a standard Windows, it is possible to build a PC from public components anywhere. Quality has ceased to be a determining factor for the mass market, a change in generations of devices began to occur very quickly. And large companies began to lose their shares.

But what happened then? Brands have stopped 2017 Toyota Land Cruiser 2017 Toyota Land Cruiser be in demand. There is a standard Windows, it is possible to build a PC from public components anywhere. Quality has ceased to be a determining factor for the mass market, a change in generations of devices began to occur very quickly. And large companies began to lose their shares.

Exactly the same thing is happening now. The then-Windows is now Android, so big manufacturers will give way to B-brands as consumers choose them. Of course, there is also iOS, which few people in Russia can afford now. Recovery of the premium segment is possible, but it takes time.

I wanted to ask a provocative question: how is your customer different from those who come, for example, to Euroset or Svyaznoy.

An interesting question. People come to us not only to replenish their account without commission or to buy some kind of device. Approximately half of the customers want to understand their tariff plans, services, and consult about how the settings work. The more reasons customers have to go to the MegaFon salon, the better. Therefore, we try to find new niches and tell what we can do. As soon as we understand that we have found something interesting, we begin to introduce it in all stores.

Do sellers have enough time? After all, there are strict industry standards for how much you can spend on each customer, so you are out of the market?

We are in the market. This question can be answered from two sides. We are an Internet company and we try to place the maximum number of information and actions on the network. This helps, and to some extent a person can sort out his issue before visiting the store. In stores for sales assistants, there are certain standards. Of course, the seller will not leave a person halfway if the case is severe, and will not move on to another. But he's trying to fit in. This is the internal motivation of the seller, in which standard actions have a certain dimension of time. We evaluate these actions, analyze and suggest ways to optimize for our retail network.

This is a large layer of work, which also involves the Internet. For example, having set up a particular service for you, the seller will say that you could do it yourself from the application or from your computer in your personal account. That is, it will potentially teach the client that you can not waste time going to the store and do everything yourself. We are ready to invest our resources in this, and the optimization of your personal account and other services comes to the fore.

Time optimization for many is that sellers send customers to pay bills in the payment terminal. We also have them, and the client can pay for everything there on his own. But our sellers do not refuse to accept money from customers. That is, the client always has a choice of how it is more convenient to pay. Are we wasting time on this? Maybe. Do we make the customer happy? For sure. Therefore, one should not think that optimization is a thoughtless and mechanistic process. With us, each client evaluates how he was served in the salon. If the rating is bad, then the sellers will not receive bonuses, their income will fall.

We also created an online system for the first time under the working title "Consultant's Workplace 2.0". No one before us in operator retail has done anything like this. This is one program in which everything is processed in one window. For example, when filling out a new contract, you do not have to run between the windows, everything is in one window. This is very expensive in terms of development, bringing it to just one window, but it gives a real gain in time. On our scale, these are man-years, which save time for both sellers and customers.

I noticed that on the signs of your network, the .ru domain was added to the name of MegaFon, why is that?

I've already said this, but I'll repeat it. We are an internet company. Globally, MegaFon sees the future in data transmission, where voice will eventually go. When I talk about data transfer, I mean something more than just a transport for traffic. These are mobile applications, a single online and offline environment, the "Internet of things" and much, much more. And the salons here are the entry point to this world.