M.video–Eldorado is constantly striving to bolster its market positions in Russia. In 2020, amid an increase in the share of online shopping accelerated by the pandemic, we successfully completed the transformation of the Group into an online business with a strong logistics infrastructure based at stores, increasing our share in the online segment of the market from 20.3% to 33.0%. For many years, we have been an innovative leader and a pioneer in the Russian consumer electronics retail market, shaping key trends and industry standards.
At a time when household consumption and preferences for remote lifestyles are increasing, home appliances and electronics are now increasingly seen as essential items. At the end of 2020, the Russian consumer electronics retail market had an estimated value of RUB 2,025 billion2, according to GfK, ranking it among the 10 largest markets in the world. It continues to have significant growth potential due to the low penetration of certain categories and the increasing demand for traditional and innovative equipment and their related services.
We are developing on the basis of a successful business model that involves the full integration of online sales channels and brick-and-mortar stores. Since its inception, the Group has invested heavily in the development of IT infrastructure and the expansion of its retail and logistics network, having created strong competitive advantages over purely online retailers and traditional offline retailers. The hybrid model, powered by the OneRetail platform, enables the Group to successfully adapt to market changes and grow its business profitably both online and offline
Thanks to strong relationships with partners and merchants, we are able to offer customers an assortment of 75 thousand SKUs featuring a high share of exclusive items, as well as offer customers the best prices, while still maintaining solid margins.
The Group’s main strategic goal is to double its business and achieve a GMV of RUB 1 trillion through 2025, while maintaining a high level of operating profitability and comfortable leverage. In order to implement this strategy, we plan to increase the share of total online sales from 60% to more than 85% and greatly increase the number of identified customers and OneRetail customers, while also achieving a number of other indicators (see “Hacking Retail growth strategy”). At the same time, according to the new dividend policy, the Group intends to distribute at least 100% of its IAS 17–based net profit as dividends.
As part of the strategy, the Group intends to move toward implementing three key overarching objectives, ensuring the best customer experience at each stage of selection and purchase:
The Group’s top management team consists of leading professionals in the Russian market with an average of over 20 years of relevant business experience. The Group’s largest shareholders are the leading Russian financial and industrial holding Safmar Group and one of the largest consumer electronics retailers in Europe, Ceconomy AG.