Decrease in retail sales in September. The decline in retail trade in Russia continues

1. Stores that prioritize product quality, openness and continuous development will prosper

Today, you can easily find any information on the Internet, so it will not be difficult for the buyer to find out absolutely everything about the product of interest. Buyers prefer those stores that show the kitchen of their business, for example, they talk in detail about what makes up the price of their product: raw materials, personnel, taxes, markup. They give information about the plants and factories where these products are produced, accompanying all this with photographs and videos, showing their employees.

2. Stores that have unique product expertise will thrive.

The only thing that motivates a customer to make a purchase in a retail store and not on the Internet is knowledge about the product, which he will not get anywhere else. Most Owners retail stores they are trying to build an omnichannel shopping - they are transferring all the conveniences of online sales to retail stores.

For example, Crate and Barrel, a US appliance retail chain, recently tested a program in which shoppers browse shelves using store-provided tablets. Customers can use the tablet to scan the barcode and get more information about the products, add them to their wish lists, and get help from the seller to complete the order.

3. All retailers will accept payments from mobile devices

This is the future. In 2017, those retail store owners who are not yet using this technology will certainly do so. Stores that are not going to follow this trend will fall behind and risk losing a lot of money.

Store owners will receive payments from mobile devices, choosing the technology that suits them best: mPOS systems, various mobile applications or Apple Pay.

4. The format of a small store will be popular, a large one will not.

Consumer preferences will push large retailers to focus on smaller stores.

In 2017, the area of ​​stores will decrease. In the US, this is already evident in such giants as Target, Best Buy and IKEA. They invested in small format stores to make it more comfortable and convenient for customers to choose goods.

To understand why shoppers don't go to big stores, you need to know another big trend in retail: the importance of convenience and accessibility. When people can shop online and receive home delivery within hours, only the convenience of shopping can lure them to an offline store.

The client no longer wants to spend precious time walking through the endless areas of huge stores. He needs to buy quickly, in small stores with a good and verified assortment.

There are other advantages of small stores: lower startup and management costs, as well as the ability to integrate into the urban infrastructure of large cities due to compactness.

5. Personalization is becoming more important for consumers

According to Accenture Interactive, 56% of consumers will choose a store that knows their name.

Personalization in retail has been going on for years. Unfortunately, such a tool as referring to the client by name (for example, in e-mail), is outdated and customers will not be surprised by this. At the moment, the owners are looking for new opportunities for personalization.

For example, targeting customers through the purchase history. On the mobile phone personalized offers are sent to them when a special program determines by the geolocation of the smartphone that the client is near the store.

6. Same day delivery is getting more and more popular.

Free shipping is understandable. What else? Speed!

People may not want to go to the store, but they still need something urgently. Exit - delivery on the day of order.

A recent study by Temando found that 80% of surveyed shoppers want same-day delivery; 61% of respondents want their purchases to be delivered even faster - within 1-3 hours from the moment the order is created.

making such a delivery is not the cheapest option for retail, as there are a number of issues that will have to be resolved: ensuring the constant availability of goods, procurement and logistics.

But it is clear that the demand for fast delivery there is. And store owners will have to do something to meet expectations.

7. Store owners will continue to invest in omnichannel

Omnichannel is now the norm. Stores that choose an omnichannel strategy will be successful - it's something that won't let you down.

They sell through social networks, for example, through Instagram. Take advantage of apps such as Snapchat to give customers a behind-the-scenes look at the store's processes, thereby increasing loyalty. In the future, it is the presence of several sales channels that will distinguish a successful store from a ruined one.

8. Retailtainment - the combination of entertainment and sales - will spread in the industry

Retail, as the name suggests, is a combination of retail and entertainment - some store owners tend to sell in an original, fun, unconventional way, and this greatly increases sales.

For example, the American cinema iPic combines a classic cinema with luxurious seats, signature cocktail menus, and a gourmet gourmet restaurant. Visitors can order food and drinks directly from the cinema hall while watching a movie.

This approach encourages people to go somewhere, and not sit at home on the Internet. That is why in 2017 retail will be used more and more actively.

9. Statistics are still very important for successful trading.

More and more stores will use the accumulated data to analyze all the processes of trade: from the analysis of the supply chain of goods to the process of repeat sales.

Stores that make decisions based on data analysis will be more successful. More and more entrepreneurs are realizing that this is necessary.

Data analysis is also important for the back office of the store, especially in terms of inventory management and merchandising. Store owners rely on sales data to forecast demand and manage inventory.

10. Specialty stores will be more in demand than department stores.

Specialty stores focus on specific product categories, such as cosmetic products. In 2017, buyers are interested in the original assortment and local brands.

Specialized stores, as a rule, are very attentive to the assortment - they sell designer goods, handmade. They also look more modern than old-school department stores. The millennial generation, of course, chooses a trendy format.

Specialty stores also have good product expertise, better staff, better prices, and more personal service. This is their advantage over department stores.

By the way, department stores still do not die out. Well-known network giants have quite strongly revised their approach to doing business and strive to look no worse than specialized ones. outlets. However, the future still belongs to small shops.

11. Retail will increasingly use apps, services and third-party services

Retail apps will continue to grow and store owners will use them to stay competitive.

It's no secret that consumers today expect a lot from stores. In addition to the fact that sales must be conducted in several channels (retail, online, through social networks), people want to receive their purchases very quickly and in a way that is convenient - either self-collection or same-day delivery. This is quite difficult to organize, so the owners will use specialized solutions and applications, refer to courier services to deliver orders quickly.

12. Shops and technology will become one

In order to interest the client and be in demand, store owners will introduce even more technologies into their business.

In 2017, technology will be the way to attract customers to offline stores and create a successful multi-channel business: artificial intelligence, augmented and virtual reality, the Internet of things.

For example, with the help of augmented reality tools, buyers will be able to understand how to use a particular product. There are "smart" fitting rooms, touch screens in showcases.

Small and medium business will implement loyalty programs, use storefronts and other solutions that will bring sales to a new level.

2017 is the time for those who strive to improve every aspect of the customer experience and personalize sales.

Because online today you can find any information, buyers no longer agree to be in the dark about the products they buy.

Increasing the number of transparent, environmentally conscious companies such as Warby Parker and Everlane in last years initiated a radical change in the retail industry. We expect this trend to pick up pace.

Consumers are becoming more and more interested in where their money goes, rather than just the product they buy with that money. It is no longer enough to simply sell high-quality products without any information about their background.

On the contrary, buyers have reached out to retailers who show all the internal mechanisms of their work. Everlane, for example, discloses the cost of manufacturing its products: materials, labor, duties, and markup. They also include information about the factories where the goods are made, add photos and videos of workers and themselves. In this way, Everlane customers know exactly what was spent on the product they are about to purchase and can feel the satisfaction of the preparation and morale involved in their purchase.

Several factors are at play in this trend: the worldwide shift towards sustainability, the desire of consumers to be more ethically conscious in their purchasing decisions, and a greater interest in supporting brands with a "strong identity consciousness".

Example. Recently, a client of Vend, Bread and Butter Letter, a New Zealand-based vintage clothing and home furnishings boutique that sells exclusively New Zealand-made goods, told us: “We have noticed that our customers are increasingly asking serious questions: where do the goods come from, what are they made. We also noticed that people are more likely to refuse our paper bags and bring their own!”

Until July 27, IKEA Centers Russia is looking for innovative solutions in the field of retail. If you have the technology to make shopping in mall more comfortable!

2. Stores that provide a unique in-store experience will thrive

In 2017, retailers will rule the roost by providing unique in-store experiences. After all, the only way to convince a customer to come to your store instead of shopping online is to give them an experience they can't get anywhere else.

When we hear "in-store experience" in relation to retail, most of us think big: we remember the fact that Urban Outfitters buys Pizzeria Vetri to include in their stores, or smart fitting rooms at Rebecca Minkoff.

But this is only one aspect of the two directions of the shopping experience trend. And what is the other? Finding ways to catch up and surpass the convenience of online shopping.

Most retailers are attempting to do this by creating an omnichannel shopping experience - in other words, bringing the benefits of the online world to brick-and-mortar physical stores.

Take, for example, Crate + Barrel. A home improvement store recently tested a program called Mobile Cart. Customers viewed the racks using the tablets provided by the store, could use them to scan barcodes and receive additional information about products, adding products to your wish list, and getting help from sales assistants when choosing products.

The in-store experience is becoming increasingly important for customers and we expect more retailers to invest in such initiatives.

3. All retailers will implement mobile payments

Mobile payments are the way of the (coming) future. Until the end of 2017, retailers who have not yet implemented them will make every effort to do so.

According to forecasts by the end of 2016, the number of mobile payment users worldwide will reach 447.9 million. TechCrunch estimates that 70% of all US mobile users in 2017 will make at least one mobile payment. Mobile payments are expected to reach $60 billion overall in 2017, and Business Insider writes that mobile payments will reach $503 billion in sales by 2020.

It's clear where the retail industry is heading in terms of payments - at least for now.

Retailers that do not implement mobile payment solutions soon will be left behind. per.] and risk losing their sales volumes, and this can mean losing a lot of money.

You can bet that all retailers will jump on this train by implementing mobile payment systems that suit them best, such as mobile POS systems, customized mobile payment apps (like Kohl’s Pay) or third-party solutions (like Apple Pay).

In 2017, the development of contactless transactions - be it a contactless card or a mobile device with a digital wallet - will accelerate. We are seeing robust double-digit growth in contactless transactions in Canada. The US will also be stimulating this growth due to its transition to EMV. Businesses that conduct transactions should think ahead and find a solution that supports contactless capabilities to upgrade their EMV systems in the future.

Consumers like touch and a business must prepare to excel in this area. With the continued proliferation of Apple Pay, Android Pay and Samsung Pay North America and around the world, the importance of contactless payments will increase. Consumers will expect opportunities in whatever way they want, and businesses will need to evolve with changing customer expectations.

4. Small shops are coming; big ones go

The evolution of consumer preferences will push even more chain retailers to focus on smaller stores.

When it comes to store size, in 2017 less means more. We're already seeing changes in retail giants like Target, Best Buy, and IKEA investing in small-format stores to satisfy consumers' desire for more controlled merchandise.

To better understand why shoppers are leaving big-box stores, we need to look at another big retail trend: the importance of convenience and accessibility. When people can shop online and have their purchases delivered directly to their homes within hours, they need to be promised a quick and easy shopping experience to entice them to go to a physical store.

Shoppers no longer want to waste valuable time wandering through the endless aisles of hefty hypermarkets. On the contrary, they want simplicity and efficiency in the form of small shops with a specialty selection.

Small shops have other advantages as well. They cost less to open and maintain and take up less space in an urban environment, allowing retailers to capitalize on the potential of densely populated centers.

5. Personalization will become more important for consumers

Sure, Nike is big and financially successful, so they have the resources to push personalization to its limits, but smaller retailers can take advantage of this trend too.

Ideas? Targeting content (using means such as purchase histories) to users based on their preferences, using location technologies such as beacons to display personalized offers on customers' mobile devices. Small shops have other advantages as well. They require less cost to open and maintain, and they take up less space in an urban environment, allowing retailers to capitalize on the potential of densely populated centers.

Consumers are starting to expect more from retailer loyalty programs. They want more personalization and offers that money can't buy. According to a Virtual Incentives survey, 56% of consumers said that receiving personal bonuses would improve brand perception.

The means of gaining access to customer data that makes these personalized bonuses and offers possible are typically loyalty programs. Consumers are increasingly willing to give access to personal data for honest loyalty offers or personalized incentives. According to Accenture, 54% of consumers say they are willing to share personal information and shopping preferences with retailers in order to receive personal offers(growth from 33% in 2014).

In 2017, retailers will see the benefits of this amazing new technology, which makes it easy to collect customer information, and are aware of the need to use this data to create more personalized loyalty programs and offers instead of past generic and boring options.

6. Same day delivery will come to the fore

Free shipping to modern world It's no longer just an option, but a requirement. Name new game? Speed.

Consumers may no longer want to go to physical stores themselves, but still want the immediate enjoyment of being able to take their purchases home immediately. The best way ensure it is same day delivery.

Take iPic Theaters for example. The company's website greets visitors with the headline "Your Best Night Out" - and they really mean it. iPic combines the classic movie experience with luxurious seating, cocktails, and award-winning gourmet restaurants. Customers can even order food and drinks from their seats while watching a movie.

These innovative concepts provide enough incentives for people to take a trip to a physical location, and so we'll see even more of this next year.

9. Information is still an essential component of retail success

More retailers will use every part of the process, from the supply chain to the post-purchase stage.

Retailers who make data-driven decisions will outperform those who don't. More and more merchants are recognizing this - which is why we think companies will double down on data collection and analysis.

JustFab is one example of a company that puts their customer data to good use. To learn more about their community, a fashion retailer conducts style surveys and then makes recommendations based on individual preferences. JustFab also carefully tracks the products that each member of their program reviews, rejects and buys, and uses this data to suggest choices.

Using information to personalize the interaction with each customer is just the beginning. Data analysis also plays an important role behind the scenes, especially when it comes to inventory management and distribution. Retailers rely on data to predict demand and make critical inventory control decisions.

Overview and development prospects of the Russian retail market in 2018-2019: purchasing power is declining, foreign chains are losing the market.

The Ministry of Economic Development of the Russian Federation predicts that sales growth in the retail sector in 2018 will be 3%. Coface sees this forecast as optimistic as inflation accelerates, Russians' real income growth continues to slow, and sanctions and political risks cloud the outlook national economy getting stronger. Foreign retail chains that do not have the flexibility of local players are the first to suffer.

Sector Overview

The retail sector accounts for 16% of Russian GDP (data for 2017). Food products and non-alcoholic beverages (30% of total household expenditures), clothing and footwear (10%), alcohol and tobacco products (6%) form the basis of household consumption of Russians. Another 6% of spending is on furniture, household appliances and electronics.

Unlike food retail, which is dominated by local players, the non-food sector is represented by a wide range of large European companies, including Inditex, H&M, Benetton, LPP (clothing and footwear), Ikea (furniture), Leroy Merlin, Castorama, Obi (goods for home and renovation). At the same time, however, in the category of digital electronics and large household appliances, local chains M.Video / Eldorado (the owner of a controlling stake is Mikhail Gutseriev's Safmar) and DNS are in the lead.

Popular department stores are also owned mainly by local entrepreneurs (in the premium segment - GUM and TSUM, in the middle - the local licensed representative of Marks & Spencer, in the economy segment - local small players).

GUM ("State Department Store", until 1921 - Upper Trading Rows) - large shopping complex in the center of Moscow

As in any other emerging market, growth retail chains in Russia is hitting small businesses, especially in major cities located in the European part of Russia. Crisis with sharp drop sales volumes only accelerated the process of modernization of the industry and the displacement of small enterprises, and even despite some recovery in consumer demand in the post-crisis years, the process of concentrating market share in the hands of large corporations continues to this day.

Russian retail is highly dependent on the situation and climate in the national market. So, in 2015 and 2016, sales fell as a result of a moderate internal crisis, in 2017 they slightly increased. According to the very optimistic forecast of the Ministry of Economic Development, in 2018 retail sales may grow by 3%. Due to the relatively low price competition, the marginality of retailers remains at a comfortable level for them - at least for large players who were able to win market share through aggressive marketing promotions and attractive discounts. At the same time, foreign grocery retailers lag significantly behind local chains.

Even if the industry continues to grow in 2019, the growth rate will be significantly lower than in the pre-crisis years (for example, 6% from 2010 to 2012, 3.9% in 2013). Separately, it is worth noting the increase in the VAT rate from 18% to 20% from January 1, 2019. The introduction of a VAT refund scheme for foreign tourists from October 2018 is unlikely to help counterbalance the negative consequences of such a step for entrepreneurs and consumers.

The real disposable income of the population, which dropped to the level of 2012 in 2015-2017, began to recover, and in the new year, experts predict, it will continue to grow, which means new business opportunities. Despite the possible acceleration as a result and the potential weakening of the ruble, the growth of income from commodity exports will positively affect the wages of Russians, and the increase in tax revenues to the budget will allow the state to improve programs social support.

Nevertheless, it should be noted that a number of factors will impede the growth of sales volumes in the retail sector. The first of these is the almost universal wide gap in the incomes of Russians. For example, the size of GDP per capita in Moscow and the Moscow region is 87% higher than the national average in ruble terms.

The disappearance of obsolete retail formats from the market and the acceleration of market concentration was largely facilitated by a sharp drop in sales volumes, especially in the food and clothing categories. The departure of small players who did not have the resilience to work in difficult conditions, the overall reduction in the number of outlets and the diversification of retail formats played into the hands of market leaders, allowing them to increase their already high profitability in an environment of limited price competition.

Given the slow pace of recovery in demand and the desire Central Bank reduce the debt burden of the population, it can be expected that in the near future the trends described above are unlikely to decline. The main share of buying activity falls on Moscow and St. Petersburg. On the e-commerce, despite the rapid growth in turnover (21.5% since 2015, +33% expected in 2018), it accounts for only 4% of the retail market. The leaders in the online sector are Ulmart (electronics, home and garden goods, children's goods, auto accessories), Wildberries (cosmetics, clothes, shoes), Citilink, M.Video (electronics) and Exist.

Sector demand analysis

As in any other emerging market, sales in the Russian retail sector are highly dependent on the economic climate in the country. Yes, in 2015 and 2016 retail sales fell by 10% and 4.6% respectively. This fall was caused by a decrease in real disposable incomes of consumers as a result of cheaper oil and the weakening of the ruble, followed by a sharp increase in prices for imported products, which began in 2014.

From 2013 to 2016, real household disposable income fell by 10%. Despite the fact that household incomes also decreased in 2017 (by 1.7%), sales in the retail sector increased by 1.2%. This first positive result since 2014 was the result of solid food retail sales and relatively strong demand for non-food products such as consumer electronics and mobile phones.

Demand growth was supported by a relatively low inflation rate (2.5% after 7% and 15.5% in previous years), which was achieved due to the simultaneous action of a number of factors. These include ruble appreciation, growing demand for retail lending, active marketing campaigns by retailers and increased consumer confidence coupled with a 3% decline in savings activity. According to the Ministry of Economic Development, in 2018, sales in the retail sector could grow by almost 3%. This forecast can be considered optimistic, as consumer incomes and the pace of economic activity are not growing as fast. The real disposable income of Russians is expected to rise slightly thanks to government programs social support and write-off of tax debts of 42 million people on total amount nearly $700 million (45% of total household arrears).

However, even if retailer sales continue to grow in 2019 (for example, as a result of the entry into force of the VAT refund initiative for foreign tourists), it will not be at the pre-crisis pace. The price of imported products will remain relatively high, as the ruble is far from being in the best shape yet, and, more importantly, may fall in price even more as a result of geopolitical upheavals. At the same time, the rate of inflation may accelerate, and the reduction in interest rates on loans will stop, which will also not contribute to the growth of buying activity. In addition, real disposable incomes of Russians have not yet returned to pre-crisis levels.

At the same time, however, despite all the negative factors noted, the Russian retail market remains attractive for business due to its size (144 million people - the largest in Europe) and the high proportion of the urban population (74%), concentrated mostly in large cities with a developed and modern business infrastructure. In addition to Moscow and St. Petersburg, there are 13 other cities in Russia with a population of more than 1 million people, which offer international retailers ample opportunities to enter new regional markets.

The level of risk in the sector according to Coface: medium

Strengths

• The third largest retail market in Europe - 144 million people. The market is only expected to expand in the future, as experts predict the growth of the country's population
• The high proportion of the urban population (74%), coupled with relatively low competition in the industry, contribute to the rapid development of the retail sector

Weak sides

• Heightened sensitivity of the sector to the economic climate, such as oil prices, the exchange rate of the ruble, and “imported” inflation (caused by rising prices of imported goods)
• A high degree of dependence on the geopolitical situation - sanctions and can lead to a decrease in imports and financing in the industry
• Slow growth of enterprises in the industry. Growing mainly enterprises located in large cities

Key players (by sales volume)*

• X5 is the largest player in the market. Alfa Group (CTF Holdings) owns 47.9%. Included in the TOP 5 of the global retail market in terms of turnover
• Magnet - 2nd place. The main shareholders are VTB (17%) and Marathon Group (12%) Alexandra Vinokurov, is in the TOP60 of the global retail market in terms of turnover
• Ribbon - 3rd place. 34% of the shares belong to the Russian branch of TPG
• In some regions, leadership positions are occupied by small local chains across the country: Intertorg, Monetka, Komandor, Maria-Ra and others.
• In the online sector (4% of retail), the leaders are Ulmart (electronics, goods for home and garden, children's goods, car accessories), Wildberries (cosmetics, clothes, shoes), Citilink, M.Video (electronics) and Exist

The new version of the FZ-54 law appeared back in 2016, but the business was given a long preparatory period. The beginning of 2017 was greeted by everyone with questions: how to choose, install, maintain new technology. Since July 1, the law has become mandatory for a number of entrepreneurs, but the questions have not diminished.

Professional automation of goods accounting in retail. Tidy up your store

Take control of sales and track the performance of cashiers, outlets and organizations in real time from any convenient place with an Internet connection. Form the needs of outlets and purchase goods in 3 clicks, print labels and price tags with a barcode, making life easier for yourself and your employees. Build your customer base with finished system loyalty, use a flexible system of discounts to attract customers during off-peak hours. Operate like a big store, but without the cost of specialists and server hardware today, start earning more tomorrow.

Online cash registers were introduced to control the market by the state. For this, labeling is also introduced. The experiment with fur coats was recognized as successful, and in 2017 the so-called "Labeling Law" was adopted, according to which the government will decide how to label goods and who will do it. The law will come into force on January 1, 2019.

Key events

FMCG networks

The crisis has helped large network retailers capture a large part of the market.

In the regions, federal chains buy small grocery supermarkets and make offers to local retail chains. Someone agrees, someone continues their business under their own brand. In 2017, many openings of hypermarkets of federal chains were recorded in the eastern part of Russia.

So, in November, it became known that Lenta was acquiring 22 stores of the Siberian chain Holiday. Magnit failed to gain a foothold in Siberia - the deal to buy Krasny Yar, a local chain, fell through.

In 2017, Lenta became the leader in opening hypermarkets, and X5 Retail Group with its Pyaterochka took the first place in opening convenience stores with a low average bill.

X5 is the leader in terms of revenue, and in 2017 Magnit secured its position as a catch-up. Its owner Sergei Galitsky likes to say that the place is not the main thing. The main thing is efficient work. In the past year, Magnit focused on updating its convenience stores, as well as business outside of grocery retail. He opens pharmacies and a wholesale direction, Magnit-Opt stores.

The company "OK" this year decided to abandon the development of supermarkets. Now, in place of small O'Key stores, there will be Crossroads. And the company itself plans to continue to focus on the development of hypermarkets and product discounters "Yes!".

Comprehensive trade automation at a minimum cost

We take a regular computer, connect any fiscal registrar and install the Business Ru Kassa application. As a result, we get an economical analogue of a POS-terminal as in a large store with all its functions. We enter goods with prices in the Business.Ru cloud service and start working. For everything about everything - a maximum of 1 hour and 15-20 thousand rubles. for the fiscal registrar.

Household appliances and electronics market

Household products

Among the stores of household goods, we single out Home Market - a network opened by the Zaodno retailer. The owners expect a lot from the project, planning to remake all Zaodno stores in this format.

Also in 2017, the Modi network was opened. The range of the first two stores opened in Moscow, St. Petersburg and Samara is a mix of home and sports goods, clothing, toys, board games and other stylish items.

To your platforms - product catalogs can now be created in Vkontakte, Facebook and "Odnoklassniki". What has changed? Previously, social networks were perceived more as one of the channels for attracting customers to a website or a physical salon, but not as a platform where people come to choose a gift for the New Year or order a suitable holiday tour. In 2017, the situation may change.

"Yula" brings the seller closer

The main commercial application of the year in the Russian AppStore and GooglePlay, I would call Yulu. This is a flea market by type Avito, you can say - a replica. But if Avito searches for goods by category, then Yula adds a social parameter - the remoteness of the seller. Thanks to this, I learned that one of my neighbors for 700 rubles. is ready to part with a Tissot watch, and another is selling a new Adidas suit for 2500 rubles. Frankly, it is difficult for me to understand how to choose a car according to this principle, household appliances or a laptop, but you can’t argue against the facts - the startup entered the top 10 most downloaded applications of the year, beating the same Avito and the Chinese monster AliExpress. In the holding Mail Group they say that they plan to integrate Yula into Odnoklassniki and VK (the company manages each of these projects), and then buyers and sellers will be able to know much more about each other. For example, it will be possible to find an English teacher no older than 30 years old, a man who visits England and lives no further than 10 km from you. It is desirable that they have common friends.

Vkontakte encourages to increase social capital

I’ll be surprised if you have never seen messages in the feed, like “I’m urgently renting an apartment”, “I’m selling a car” or “I’ll do wedding photoshoot". Vkontakte singled out these publications as a separate type - goods. In the terminology of the platform, a product is no different from a service. Fill in the fields with price, photo and description, then publish offer, which your subscribers see in their feed. It also gets into the general database, where, through a search within the service, it becomes available to all network users. At the same time, if you are looking for a "washing machine", the first ad that pops up is from a person who has the largest number common friends. This is social capital. I would call this format "social classification" or "people's announcements". I am sure that this is a great opportunity to rent/find an apartment, find a specialist, find designer jewelry and everything that is commonly called "handmade". Where the identity of the seller and the buyer is important, Vkontakte has undeniable advantages over classic bulletin boards. The first version of the “goods” service appeared in 2015. According to the network, since then 1.3 million communities have added 30 million products, a monthly audience of 16 million people.

What to do?

Think again about your personal brand and online reputation. After stumbling upon a product, many users will be interested in the identity of the seller. Mutual friends will be important here, a demonstration professional achievements(if we are talking about a product), perhaps some status attributes. I would recommend making friends with customers. In life and social media.

Facebook and Instagram offer to tag not only people, but also products in photos

Facebook introduced a separate post type "products" and allowed them to be attached to regular posts. I used to insist that most posts have a link attached. The announcement and the picture should be engaging, but then the sales funnel moves to the site. By clicking on the link, the user could read about the product, call or leave a request. Now there is no strict need for this, since all information about the product (up to the promotional video) can be obtained within the network. There you can contact the seller or go to the payment page. Moreover, if you upload an image, you can mark a separate fragment in the photo where your product is located. This is especially handy when you're selling home furnishings and want to showcase what furniture and tiles the designer has used in the interior. AT Instagram this feature only works in the US, but I think it will soon be available in Russia.

What to do?

Try. So far, the most interesting is the image format with attached products and the ability to share a specific product or group of products. An interesting challenge for a content marketer is to integrate product offers into engaging content. Or, conversely, in the manner buzzfeed– make the products themselves engaging content.

Buzzfeed believes that the product itself can be engaging content

National self-identification, pride in the country's political leader and consolation in geopolitics - these are the feelings that turned out to be close to many Russians at the end of 2014. These themes dominated in social networks, so that the product loomed by itself, and its consumers can be reached using the simplest targeting.

But Buzzfeed goes even further. The publisher is convinced that the product itself can be content. Let's get back to candles. "Suntan lotion and steak" - this is how Buzzfeed journalists talk about the aroma of a candle. Take a look at the packaging and you will quickly understand what policy the product is about.

There are 18 more options for fans Apple, lovers of smelly socks, smells of fried chicken and Elton John. Interestingly, the company plans not only to sell such products, but also to engage in their production. But that's another story.

What to do?

Look at new targeting. Over the past five or six years, Internet marketers have managed to intermarry with the Wordstat service from "Yandex". If no one is looking for crimson curtains, then no one needs them. In social commerce, things are different: if a person is a member of the Club Life Lovers community, then with a high probability some funny after-party gadget will be in demand. The direction for the search for new ideas is clearly defined, we need the ideas themselves and finished products.

Practical Conclusions

• Life without a website just got easier. It’s not just about products, but also about page templates that social networks have begun to offer (I’ll talk about this another time). This does not mean the death of the web. Simply, if the site is under development, you can now sell without it.
• People will sell and buy through social networks, as this is their natural habitat. Even if you sell through an online store, it is worth making at least part of the product offerings available on social networks.
• Selling through social networks will most likely lead to the emergence of a certain type of goods for social commerce - more viral, emotional and tailored to the social environment.

Lyrical reasoning

I often hear that the state is stifling business and that now is the time when it is better to find a warm place for yourself and not stick out. In fact, no matter what they say, the conditions for entrepreneurship in the history of Russia could never be called more comfortable. You can start your own business without capital, without knowledge legal nuances, without a bank account, without technical skills, without experience in a foreign company - just a good idea. Of course, as you expand, all these things will be required, but you can start impulsively. Even if things don't go well, you can get out without a loss and try again. It seems to me that this is a wonderful gift to the younger generation and I see no reasonable reason to neglect it. In the end, the topic will grow and become of interest to the state.