TERVOLINA is a Russian brand of footwear and accessories made from natural leather. TERVOLINA entered the Russian market in 1992. In the beginning it was a small company that sold footwear from the Czech Republic, Hungary and Italy. Six years later the company organized its own production with the prophetic name Leader in a factory in the city of Tolyatti. Today, footwear under the TERVOLINA brand is produced in well-known factories of Europe and Southeast Asia. The first TERVOLINA shoe store opened in 1997 in Moscow on Bolshaya Dmitrovka St. Another company store opened in 2000 in the GUM department store, and there were five such stores in the capital by the end of 2005. In 2003, with the opening of the footwear store in Voronezh, the company entered the regional market. In 2007, the TERVOLINA brand was represented in more than 100 of its own stores in Russia and the near abroad. TERVOLINA employs more than 1,200 people in Moscow alone and about as many in the regions.
Values of the Brand
For 15 years, TERVOLINA has done its best to fully meet consumer demand for comfortable and stylish footwear at affordable prices. An important element in the company’s mission – and at the same time its competitive advantage – is its high level of service. The company actively works to increase customer loyalty. It issues special discount cards, and the marketing department regularly conducts ‘secret customer’ research, which makes it possible to identify and remedy deficiencies in the work of the shoe stores.
All TERVOLINA stores work under a single trademark, and the internal and external design of the stores corresponds to the company’s style. The radio communications system used by store employees allows them to find out within seconds if there is footwear of the desired style, color and size in stock.
TERVOLINA footwear is made from natural materials including traditional leathers, textiles, reptile skin processed in a fundamentally new way, fashionable leathers with the look of oldness, as well as with perforations and embossing.
TERVOLINA shoetrees are made taking into consideration the peculiarities of the foot and the size and dimensional characteristics of the Russian consumer. Product quality is monitored at every stage of production.
Innovations & Promotion
The journey of creating just one pair of footwear, from the elaboration of the design to the production of the finished product, includes up to one hundred stages. So it’s easy to imagine how much effort was spent on creating ‘just’ one collection of TERVOLINA footwear, which, for example, includes more than 1,500 models. But what if there are several such collections?! Nevertheless, this task is successfully completed, first and foremost because the company employs professional footwear designers. They create not only style, but also comfort. The company’s specialists constantly incorporate promising technological developments in production.
The company spent $7 million on advertising in 2007. The main brand promotion channels are: advertising in the press, on the Internet, on the radio, in public transportation, outdoors, and at points of sale. Participation in professional exhibitions holds an important place in the marketing policy.
The largest advertising campaign was conducted in 2006 with the concept ‘TERVOLINA. New’, which was associated with the change in the philosophy of the brand. The fact of the matter is that in its early years, the company offered consumers mainly classical footwear models. But with time, not only did the shoe store chain change, but also the models represented in it. The company had to convey to its customers the idea that today’s TERVOLINA means footwear for all life situations. In particular, many people remember the poster featuring a photograph of a long line of footwear made by the company with the caption: ‘You’ll need the strength of a real man to carry all of this’. The effect from the new advertising campaign was soon apparent – sales nearly doubled.
In 2006 the company opened 28 company-owned stores. In addition, new possibilities were created along with advantageous terms for those who decide to become partners and work with the company according to a franchising system, which also led to a rapid increase in the number of TERVOLINA shoe stores. A new advertising campaign began in 2007. Underlying it is the play on words ‘footwear seeks a mate’. It’s still too early to speak of results, but, judging from feedback received from customers, the new advertising is full of life and creative – in a word, they liked it.
Economy & Finance
According to research, the Russian footwear market in 2006 was 314 million pairs (MA ‘Step by Step’), including 30% (about 94,2 million pairs) in the segment ‘mid-market’ and ‘mid-market +’. TERVOLINA’s share in this segment amounts to about 2%.
The company works in the ‘mid-market’ and in the most in-demand and rapidly growing ‘mid-market +’ footwear price segments in Russia. This ensures high profitability and stability of doing business in practically all of the country’s regions. Incidentally, the so-called ‘mid-market’ price segment for various cities of the country may be different. This, in particular, is shown by research studies that the company regularly conducts in regions where TERVOLINA stores have already been opened or where there are plans to open new stores. The results of such research also determine in the final analysis the price of the footwear for the population center, which is in fact the ‘average price level’ for it. Such an approach not only makes it possible to set the optimal prices on the footwear, but also to rapidly react to changes in the competitive environment and effectively increase sales.
Alongside retail sales, wholesale are also actively increasing, reached 455,000 pairs of footwear in 2006, which is 20% more than the previous year. In 2007, there are plans to increase this to 600,000 pairs. Franchising is also growing. During the first half of 2007 alone, the company’s partners opened 17 TERVOLINA stores, and eight stores will be greeting their first visitors by the end of the year. Sales in 2006 in franchising stores amounted to 46,000 pairs of footwear, and in 2007 the number is expected to reach 150,000 pairs. There are plans to increase the total number of TERVOLINA stores, including company owned and franchise stores, to 130 in 2007.
Achievements and Prospects
Founded 15 years ago, TERVOLINA, which began as an importer of footwear from the Czech Republic, Hungary and Italy, now sells more than 1,2 million pairs of footwear per season. The number of customers of TERVOLINA brand footwear has been increasing annually by 20–25%. In its many years of successful work on the Russian footwear market, TERVOLINA has received numerous awards and titles. In 1998 it became a member of the National Footwear Union of Russia. TERVOLINA has been a participant and nominant in footwear shows including Best in Russia, Best in Moscow and Best in Suburban Moscow, held by the Moscow Consumer Rights Protection Fund. The nationwide Promising Planning Fund has awarded the company a certificate in the category of ‘Consumers’ Trust’. In 2002 and 2005 the company received certificates from the prestigious Mosshoes exhibition. The company has also been recognized for its charitable activities. In 2005 the Uchastiye (Participation) media charitable fund awarded TERVOLINA an Honorific Certificate of Merit for its charitable assistance to the Otrada Orthodox Children’s Orphanage for Girls run by the Svyato-Nikolayevsky Chernoostrovsky Monastery in the city of Maloyarovets.
Things you didn’t know about TERVOLINA
The word TERVOLINA translated from Greek means ‘lightly moving forward’.
All the profits earned by ‘TERVOLINA’ in Sergiev Posad go to the Orthodox School named after Reverend Sergy Radonezhsky, which is located in that city. A total of 280 children study at the school.
In its 15 years of existence, TERVOLINA has never changed its company colors: blue, red and grey.
19 January 2007 a group of enthusiasts planted a flag with TERVOLINA written on it at the farthest point from the earth’s center – the Chimboraso volcano (Ecuador, South America). The peak of Chimboraso is located at a height of 6,310 meters above sea level.