Operating in the market are often surprised mushroom – like so, in Kiev, the price of 13 hryvnia per kilogram of mushroom and Odessans the same time, sell their products at 20. Moreover, long-term efforts to manufacturers and wholesalers from other regions to “help” Odessa fungus – generally unsuccessful .
Not only that, Odessa producers able to sell mushrooms at a much higher price, but also seasonal fluctuations in that price significantly lower than in other regions. Mushroom consumption per capita in Odessa – the highest in Ukraine. The quality of the mushroom – the best. Packaging – better than in the rest of Ukraine, and even better than that of their European counterparts.
Yes, Odessa mushroom have certain advantages over their colleagues from other regions. For example, there are not many, and it is easier to negotiate. But in some other areas the situation is the same, but this result is not.
Odessa mushroom market has developed into a strong state, we can say brutal competition. Moreover, the competition took place in the narrow circle of large producers who can be counted on the fingers of one hand. Leaders – companies “Gelek-M” and “Grieco” were not just, to put it mildly, unhappy with each other. And the result of this competition was the need to negotiate and one of the most developed markets champignons Ukraine – Odessa region.
One of the main features of the Odessa mushroom producers – direct work with small retailers. Their customers – it’s not only the big supermarket chains, but also merchants in the retail markets, vegetable stands, restaurants and catering. Direct work with retail – it is primarily a lot of work. But on the other side of this coin – one of the better understanding of the market situation, the projected volume, high and stable prices.
Some questions about what is working directly with retailers, we asked the commercial director of “Gelek-M” Ekaterina Alexandrova.
First of all, what are the benefits for the time you have, as a major manufacturing company, to cooperate with the small retailers?
All those advantages for the moment at least four. Some I will tell now, but basically I leave for later.
First of all, cooperation with representatives of the retail trade provides us with the stability and continuity of supply, because even if the sale of a retail outlet are not as great, if we consider that those of us “a certain amount”, it is already beginning to go on tons of products every week.
Second, in contrast to the retail chains, where delaying payment of an average of 30 days on the market is equal to 1 maximum of 3 days. In the case of non-payment of the debt on time, the operator denied the next delivery. Thus, the seller is personally interested in timely vzaimorasschetah.
– speed and flexibility in decision-making. Retail network, by virtue of its speed may not be as responsive to the situation on the markets, as small retail outlets. They have the ability to adjust the volume of daily shipments and the price of the fungus, so that we win in the scope of supply and the price of each kilogram sold so products.
But, I want to see that everything is not immediately adjusted to today’s results, we were more than a year, gradually developing cooperation, increasing delivery volumes and sales geography.
What was the background of the output of your company in the direct sales through the markets? Why did you decide to use this strategy?
In fact, if everything depended on one solution – solutions director Igor Music Company. Actually this decision was subsequently determined the basic principles of our company for many years. Initially, we were able to take the path of least resistance, because the post-wholesalers, who at the time was successfully engaged in the sale of food and fungi including, approached with the offer of cooperation. Being offered one hundred percent prepayment, which would greatly simplify the process, we address the issue of sales of mushroom. But they pushed one basic condition: in the case of cooperation with them, the company has committed to deliver all its products only to them, but this is largely could constrain our development, both in production terms and in terms of participation of our company in the formation of prices on the market . In addition, if we meet the conditions most likely, the price of our products have been formed on the basis of third-party settlement of people who could “play” it for the sake of their own interests.
Given the fact that in the early 2000s griboproizvodstvo in our country, at least by today’s standards, was still in its infancy, and the demand for champignon domestic production greatly exceeds supply, Igor Music rejected the proposal wholesalers and decided to independently conduct implementation. Thus, before the company raised the question of an independent search business partners, retailers, with whom we could work directly without intermediaries. Of course, first of all we concentrated on finding the major sales channels, with which, without a doubt, the supermarkets, but you obviously do not about them now would like to hear.
The second focus of our work are people who sell goods directly to the end user, of course, leaving himself their margins. As a result, when we found them, we not only were able to with a minimum of middlemen to supply our products to the end user, but also able to control pricing in the market, which, as practice shows, a significant effect on pricing in large shops.
What is the search engine of small retailers and how to establish cooperation with them?
In fact, to talk about how we did it – does not make sense, because it comes directly through direct contact with them in person or on the phone. More interesting, I think, there will be information on what principle we chose these people. Our “know-how” was the fact that the company has focused on those vendors that have not been sold mushrooms. For them it was a new market and new opportunities. For us – the possibility of building a separate, new and promising system product sales, suppliers, which we are. Each individual trader agreed to the experiment. He had nothing to lose. I got mushrooms and had the opportunity to realize them. First, we have been supplying small batches of 5 kg per day, as a result, the volume of supply is gradually increased, and our products consumption grew.
In other words, you gradually began to conquer the market. But on it were the other players. Whether you are faced with competition for control over this segment of sales to wholesalers, who worked at the market before you? How to resolve this situation?
Competition in the growing and promising market is always there. And, as a rule, on the laws of the market survival of the fittest, or someone who knows how to compromise. At the beginning of the last decade, the market was practically not developed, and it places missed by all. However, it is recognized due to the fact that our company was, and today is one of the largest on the market, on the one hand, a special competition, we do not feel, on the other – it is just us and become a competitor, whose opinion had to considered.
What are the average sales volume in this segment? How often it is provided with a point in the market? How is the pricing policy of distribution channels? What determines these figures?
I will try to answer all these questions gradually. For a start I will say that the exact number of operators with whom we cooperate, I will not call, especially since it is, I am sure, will continue to grow. About profitability of such cooperation can be gauged from a simple example, I’ll give you. I will take as a basis the average of the seller. To date, the minimum amount of the fungus, which can implement one such operator for the day – 20 kg of product. The recently discovered points may initially sell less – about 15 kg / day. But, given the territorial and quantitative expansion of sales, overall vytorg still growing.
Come on, every seller is served daily us your order for a certain amount of mushrooms that he will be able to sell today. Thus, every day it gets to the amount of fresh mushrooms, which he can realize. A definite plus – the quality of our products always remains at a high level, because, you see, fresh mushrooms and fungi, which is a few days on sale, have a different appeal for the end user. Another positive point – the lack of corrupt and unsold products, which could become a loss for the seller.
And the main advantage of cooperation with the retail trade is that we can keep a finger on the pulse of the market. After all, when consumer demand increases – we are the first to know about it from our representatives in the markets. As a consequence, we can first respond by raising or lowering the price on the contrary, in the case of lowering the demand for mushrooms. In addition, being able to affect the price of products in the retail end, we can smooth out peak times of crisis lowering the cost of our products, adjusting the volume of its introduction on the market. Thus, we are able to keep the cost of mushroom at a relatively high level throughout the year. At the same time, of course, we have to somehow solve the problem of implementation of the remaining reserves have fungus. But that is another question.
Why you have not yet opened their own (from the manufacturer) “mushroom spots” in the markets?
You can answer this question on the basis of various points of view. Firstly, in order to enter the market with its own retail business, as it can make the representatives of other groups of food products, we are likely to have to refuse to cooperate with the already familiar sales channels, whose construction we have been for a long time, invested in it’s a lot of their own time and effort. Secondly, in our opinion, create your own points on the market is not yet profitable, because for this you need a significant investment that will go to rent retail space, equipment, staff salaries and other articles for which we are now paying only within the margins of the retail Seller. In addition to the market to do a single point, which will be sold only champignon wrong. Buyers prefer the wide range and start trading, and they (like vegetables), we go beyond the scope of our business, where we are professionals.