History

M.VIDEO Launch

1993-1995

The first M.VIDEO store was opened in Moscow and the M.VIDEO trademark was registered


Development of the Business

1996-2001

During these six year period, M.VIDEO developed its promotion and customer loyalty programs and launched a professional development program for its employees. The first on-line store www.mvideo.ru was launched. Having partnered with Russian Standard Bank M.VIDEO became one of the first retailers which offers in-store consumer credit to its customers. M.VIDEO also opened its first store in region and successfully weathered the Russian financial crisis.


Restructuring and preparation for Expansion

2002-2005

M.VIDEO opened its first retail store providing an average shopping space of 2,000 square metres. A uniform format of M.VIDEO hypermarket of consumer electronics was developed together with international consultants and launched. The first around clock store was opened. The Company started to change its management incentives and launched an aspirant training program to identify and develop new store managers among existing employees. In addition, experienced foreign managers were engaged.

The restructuring of M.VIDEO Group started to increase transparency and improve the efficiency of operations. For example, it was implemented a new retail management system based on a functional management structure that allowed to move administrative functions from individual stores to regional offices thereby eliminating duplicative functions and overlapping authorities.


Growth and Expansion

2006

The Company opened a total of 28 new stores and entered 11 new cities. Specifically, it opened 3 new stores in Moscow, 4 in Saint Petersburg, 2 in each of Ryazan and Ekaterinburg, and 1 in each of Voronezh, Vladimir, Chelyabinsk, Samara, Rostov-on-Don, Nizhny Novgorod, Volgograd, Tambov, Stavropol, Tyumen, Togliatti, Magnitogorsk, Bryansk, Novosibirsk, Kazan and Naberezhnye Chelny. 16 of these new stores in 10 cities are open around the clock.

M.VIDEO continued to develop its corporate information system and transferred its finance, management and personnel systems to a SAP platform.

M.VIDEO became a winner of the "Best Retail" award for the best design of the Household Appliances & Consumer Electronics format.

In November 2006, M.VIDEO Finance - part of M.VIDEO Group issued a debut RUR 2 billion bond most of which was paid off in November 2007.

2007

The restructuring of M.VIDEO Group was completed. A new holding company was formed and the Group operations were consolidated in six subsidiaries.

The first additional service agreement complementing the manufacturer's warranty was introduced. M.VIDEO modified its store concept based on new market trends, customer preferences and the application of new visual solutions based on the theory of neuromarketing.

The Interactive Research Group (IRG) conducted a study in April - May 2007 based on service standards defined by M.VIDEO. The research revealed that 87% of customers who made a purchase at M.VIDEO were willing to become repeat customers. The same study placed M.VIDEO, with the 72% rating, first among top 5 competitive consumer electronics retail chains in Russia for customer service.

In 2007 M.VIDEO has signed direct retail contract with HP. The Company's Customer Care Centre changed over to 24x7 operation.

In November 2007 M.VIDEO, the first and the only company among domestic consumer electronics chains made an IPO on the major Russian stock exchanges RTS and MICEX, The Company offered almost 30% of its stock to a wide range of Russian and international institutional and private investors.

In 2007 M.VIDEO opened 37 new brand name stores. By the end of the year the Company operated 122 stores in 48 regions of Russian Federation; 24 of these stores operate around the clock.

2008

2008 was a successful year for M.video, anchored by sales growth in the existing store network and supported by the execution of the effective expansion strategy.

The company opened a total of 37 new stores in 2008: 6 in Moscow and its nearby suburbs, 3 in St Petersburg and 28 in the regions, including entering 16 new cities. At the end of 2008 the company ran 157 brand name stores in 64 Russian cities as well as 2 online internet stores.

In 2008 M.video’s retail sales increased by 41% (in Russian rubles terms) while the company’s like-for-like sales grew up by 11%.

The company’s revenues, gross margin, EBITDA and net profit all grew significantly from 2007. M.video was able to achieve this as a result of double-digit like-for-like sales growth and by opening new stores.

M.video clearly demonstrated that it had a powerful business model and high brand awareness and loyalty amongst customers. That allowed the company to become the fastest growing consumer electronic retail network in Russia.

In 2008 M.video was awarded with a prestigious national “Sales Business Award” in a “Consumer Electronics” category.

2009

In 2009 M.video became the only nationwide consumer electronics retailer, who achieved positive dynamics and sales growth. While the market lost more than 30% of its value as compared to the previous year, M.video sales growth was more than 3%.

The Company was strongly committed to expansion in the Russian market in 2009. While many of the consumer electronics networks closed stores and experienced financing difficulties during the year, M.video opened 22 new stores and continued to roll out its successful store format to the regions of Russia.

The breakthrough performance in 2009 allowed M.video to double its market share in both the national competition and in the specialized networks segment.

Probably the most impressive highlight of the year was that due to the effective management of the Company’s balance sheet and working capital M.video achieved a net cash position of more than 6 billion Russian Rubles at the end of 2009 as compared to the net debt position the year before.

2010

in 2010 M.video became the number one CE retailer in Russia by its business volumes and revenue. The Company demonstrated the highest top line results in the industry as compared to any of the Russian Consumer Electronics and Home Appliances federal chains. The remarkable accomplishment became a benchmark of a 100 billion Russian Rubles (with VAT) of annual sales achieved  due to the most successful opening campaign in the corporate history and launch of 44 new stores in 2010, a record for 1 year.

Those efforts in achieving superior sales results and increasing the number of M.video stores were undoubtedly awarded by the growth in the market share of the major product categories. M.video significantly outperformed the overall Consumer Electronics market in 2010: the Company's retail revenue increased by 23% for the year while the CE market grew only 13%.

 
Information is valid for 18:45 18.11.2017