M.Video is one of the biggest Russian consumer electronics retailer chains: as of November 10, 2007, 111 M.Video stores operated in 41 Russian cities on a total floor space exceeding 295,000 square meters, as well as online stores. The first M.Video shop was opened in 1993 on Maroseika Street in Moscow. The same year M.Video opened the first Service-Center, which was a completely new concept in Moscow. Four years later, the company had already seven stores and in 2003 it joined the TOP–10 in the ranking of most active and sustainable companies (according to the ‘Economic News Agency’). Within 14 years of operation, M.Video managed to build up a leading retail chain of a nationwide scale. In 2006, the company received the ‘Best Retail Award’ for the best project in household and electronic appliances category. An independent market research held by the ‘Interactive Research Group’ (IRG) in April–May 2007 proved that M.Video service quality and practices bring 87% of customers back for unique shopping experience.
Values of the Brand
A major component of M.Video retail chain success on the Russian market is development through chain-store-format. The concept of such stores is not only an important step in the company’s activities – it is also a new approach to the retail space management for large chain stores.
The basic format principle is the emotional perception of displayed items by the customers. The sales area is designed with use of neuromarketing visual solutions. This makes M.Video stores light, bright, and filled with positive atmosphere.
The sales area of M.Video hypermarkets is designed to make the shopping process easy and unforgettable. All items are displayed in direct access so that the customer can touch and test the product. Besides that, stores provide a good perspective, as up to 80% of the retail sales area is visible from the centre of the store, while special navigation system helps customers with the search for desired items.
The base product assortment of M.Video stores comprises about 20,000 items of consumer electronics from the leading world brands: a wide choice of audio, video, household and built-in appliances, personal computers and mobile devices, as well as numerous accessories. M.Video assortment includes a range of innovative products and brands. For convenience, the sales area is divided into product zones, which guide the customers through the large assortment.
M.Video focuses on service and sells not only a ‘product’, but a ‘solution’, which means that customers are offered complete sets of products according to their demands ‘here and now’. The company offers to its customers professional advice of consultants, convenient consumer credit programs and a well established delivery and service system. Customers may use the ‘Green Corridor’, which allows them to save time on checking electronics, and the program of ‘Extended Warranty‘, which helps customers to solve problems with purchased electronics within two, three or even five years. The 24-hour callcenter provides complete information support to customers in all cities of M.Video presence. The format of M.Video hypermarkets ideally suits large shopping malls and retail areas since it attracts customers and is so an effective trafficgenerating tool. Many major players in other market segments follow M.Video model, which pioneered in retail chain business.
Innovations & Promotion
M.Video runs an active marketing policy and uses all major communication channels. This includes outdoor advertising, TV commercials on all top rated channels, and M.Video’s own leaflets with best price offers which are distributed in all cities of M.Video presence. In April 2004, M.Video Magazine was launched and since then it has been published four times each year. The magazine is focused on seasonal trends and tells about the latest innovations on M.Video shelves, their technical characteristics and advantages, as well as interesting solutions for customers. The M.Video brand is differentiated by a high level of awareness and positive perception.
Achievements & Prospects
M.Video is one of the most dynamic and rapidly growing retailers on the Russian market, and the creator of many unique ideas and innovative solutions, which have already become common standards of retail business.
In March 2007, Hewlett-Packard and M.Video signed a direct retail contract in Russia, which expanded the possibilities of the partners’ joint efforts in promoting HP electronics in M.Video hypermarkets.
In September 2007 the DELL Corporation and M.Video signed a direct retail contract in the CIS.
In April of the same year M.Video became the first retailer to offer a new product presentation format on its web site – 3D flash videos.
In October 2007 M.Video was awarded the No. 1 People’s Brand in Russia on the result of a nationwide survey ‘People’s Brand’ (‘Narodnaya Marka’).
In 2006 M.Video got the top professional award – the Best Retail Award prize for the best consumer electronics project. Same year M.Video also was the first retailer which opened ‘round-the-clock’ stores. In 2007 there are already 20 24-hour stores. According to a 2006 research of the ‘IRG Company’, M.Video hypermarkets are in the lead by service quality and are very popular among Russian consumers. In 2005 the Russian business community appraised M.Video success: the company became a laureate in the ‘Economy and Business’ nomination of the annual Ru.net–2005 award for the contribution into the Russian Internet segment development.
In 2003 the company won the Gold Prize in the ‘Shopping malls and Chains’ Nomination of the ‘Brand of the Year/ EFFIE’ contest.
In 2002 M.Video received two prestigious business awards: the jury of the annual national prize under the patronage of the ‘Russian Chamber of Industry and Commerce’ recognized M.Video as the Company of the Year in ‘Retail Trade’, and on November the 1st, M.Video was honored with a second award in the ‘Shopping malls and Chains’ nomination at the ‘Brand of the Year/ EFFIE’ gala ceremony.
Things you didn’t know about M.Video
M.Video is one of the first companies to implement innovative sales techniques on the Russian market. Thus, in the 2000 the company’s web site opened an Internet store selling all kinds of electronics. They can be also ordered by call to the unified round-the-clock information customer service at 777-777-5.
M.Video Internet project department launched two new sites in 2002 – www.ahb.ru and www.monitoraudio.ru. ‘AHB’ offers high end TV sets produced with the use of high-value wood types. ‘Monitor Audio’ offers exquisite English audio components. Both Hi-Fi brands are exclusively represented in Russia by M.Video. While designing ‘Monitor Audio’ and ‘AHB’ sites, experts worked not only to make them informative and convenient for users, but also to transmit brand philosophy and values of both brands.