The psychology of shoes and sales.
In the wake of the enthusiasm of Ukrainian manufacturers appeared many workshops, sewing shoes. Shops of Ukrainian production are opened in different cities of Ukraine. But not all of these projects are successful. What is needed for the consumer, how to set up business processes in the production, where to sell shoes - said Victor Prit, owner of the MIDA Research and Production Association from Zaporizhzhya.
Market characteristics
Since 2000, the share of Ukrainian-made footwear on the market has grown substantially, but, according to various estimates, it occupies only 30-40% of the market. After 2014, many small manufacturers of "handmade" footwear appeared on the wave of fashion in made in Ukraine, but not all of them survived: consumers are always pushed by an inflated price that is not of good quality. Overall, the big players in the market have remained unchanged. Shoe factories in Dnipro, Zaporizhzhia, Kharkiv, Lutsk, Odessa, Kiev continue to operate despite the deteriorating market conditions.
"The local manufacturer is killing imports of cheap Chinese shoes that are imported by containers, and such products often do not meet the quality certificates," - said Victor Prit, co-owner of NGO "MIDA"
He believes that it is futile to influence the consumer with the urge to buy quality shoes in these economic realities: if there is no money to buy good shoes, the average Ukrainian is forced to buy at least something. According to experts, consumers are ready to buy leather shoes worth up to 1000-1500 UAH, artificial leather - about 500-1000 UAH.
Therefore, in recent years, there has been a decline in the production of Ukrainian footwear, despite successful attempts to export it abroad. The expert notes that the level of wages in the light industry is low and profitability is minimal, inflation 2.5-3 times depreciated Ukrainian products. We have to take out loans to cover off-season expenses. Some Ukrainian manufacturers are going to make shoes for well-known foreign brands.
Changing consumers
In times of change, those businessmen who are able to track and satisfy market demands will benefit. "We started sewing men's shoes and sewing them mostly, but now we are changing tactics and developing the women's line equally," says Prit. - Our models are quite conservative and time-tested. There are products that we have been sewing for 15-20 years - and the demand for them is consistently high. There are models that appeal to professionals, but the market does not accept them.
In Ukraine, recently, people began to dress more Europeanly, play sports, began to wear sports shoes every day. That's why MIDA recently created the Mida Asset line, which sews casual sports shoes. It uses a comfortable Memoris insole with memory, a quality sole, and the price pleases the buyer: only from 800 to 1500 UAH in retail. These shoes are not given to wholesalers, so they will not be sold in the markets, but only in branded stores.
"To always be on trend, we travel the world, participate in international exhibitions, learn new models and technologies," - says Prit. Thus, new lightweight, durable artificial materials have appeared in Ukraine, natural fabrics, flax, and hemp are used more often. Use new insoles, laces.
The subtleties of sales
MIDA has been actively developing in recent years due to the fact that it has gone into retail and opened franchise stores. Before that, the factory concentrated on production for 20 years and worked only with wholesale buyers. Today more than 100 MIDA stores are opened both in Ukraine and abroad.
“Years ago, 10 years ago, we wanted to show the brand and open stores with partners without rigid requirements. Currently, the requirements for partners are being strengthened and we are establishing clear rules of work in shops both in assortment and merchandising, ”says Viktor Ivanovich.
Shops less than 100 square meters. m experienced entrepreneur advises not to open. The area requirement is 150-300 square meters. The smaller area store will not fit the full range - men's, women's and children's shoes - and will not be sufficiently profitable.
There are two types of franchises: when partners are allowed to import 50% of third-party footwear, and the second is only a branded Mida store. Those wishing to start a business to open a MIDA franchise shoe store (including 2-season rental and purchase) need $ 3 million. It is interesting that MIDA has shown by its example that even nowadays, success is possible without sales on the Internet. Only three partners sell this manufacturer's shoes online. And the first official branded online store from the factory will open only in the summer. And the prices will be the same as in retail. And attract buyers are going for a wide range.
Do you need export
With good export opportunities, MIDA does not lead a strong expansion abroad, having decided to reach Ukraine first. "Our first task is to shoes Ukrainians, the market is big here," says Prit. - We sold shoes to Russia for famous events, we sell components to Poland, Italy, Israel, Canada. In the Czech Republic, in Prague, a branded store opened. Present on Amazon. "
Patented anti-slip systems for MIDA footwear are well sold abroad, but they also diverge well across Ukraine, where there are no competitors in this niche. The businessman notes that when selling shoes abroad there is a nice added value, but there is an additional responsibility - to provide European service, warranty repair. There must be reliable local partners who will take care of this.
Shoe newcomers
“I started tailoring shoes to survive and feed my family, almost 30 years ago. Then - you just fell in love with this profession when you have a piece of leather, a sole - and in 2-3 days you make a pair of shoes in which you can walk, ”Victor Prit recalls.
“While taking the first steps in business, you need not be afraid to step into the unknown. Strive to stand firmly on your feet, find professionalism in your chosen business and, at the same time, develop human qualities, because the businessman is responsible not only for himself but also for those around him: both employees, suppliers, and customers. A businessman should be an entrepreneur for life and responsible for his affairs and actions, ”he advises. The businessman received a second education as a psychologist and thinks that it helps him.
“The secret to success is when you are happy, joyful, and loving yourselves and people. Then your shoes (or pizza or ship - what you make) will be alive. The entrepreneur should look at himself and think: why am I doing this? First to make money to eat. Then, when he has already earned, what for? ”.
At the beginning of any business, Victor Prit recommends meeting with the founders and reaching a common decision as to where they are going, to make plans for business development at least 25 years in advance.
Like many, Viktor Ivanovich is convinced that the team is the chief energy designer and the secret to the success of any business. Today, more than 2500 employees work at Midi. “The team is a lot of people, from partners to secretary and loader. When this team is coordinated and understands where the mission, purpose, vision is going, business processes are written under it. Then job descriptions, motivation systems are created, responsibility is stated. ”
Necessary "social elevators" for staff growth: when loaders become deputy marketing director, locksmiths and foundries - deputy chief of the shop, family dynasties are created and traditions are transferred.
"Our company is created to develop the best qualities of everyone: an employee comes to work to realize themselves," he says. Of course, it is constantly necessary to apply new technologies, new types of materials, professionally build business processes and relationships with partners. For example, there is such a thing as a "bottleneck": there is little shoe on the shelves in the season, then a lot of shoes before the season ... It should be borne in mind that the season the factory is preparing for six months, sewing new collections. The journey of the product to the consumer takes from 6 to 9 months. And it is necessary to build relationships with suppliers and buyers so that production will work evenly throughout the year.
Also, Viktor Ivanovich calls for learning and improving business all his life, and it is worth paying attention to other types of business. “For the third year we are exhibiting products in Milan and selling them. When I go to Italian stores, I look at the positive things, not only the colors, styles and designs, but also the way the consultants work. If a person does not squeeze out a smile and every client is important to him, it is visible. And it is possible to learn, - shares Victor Ivanovich. "It's a pleasant experience that you see in others, and a rewarding experience inspires you to change things that you don't like."
