Luxury & Fashion

Dec 1, 2014

Strategy for Success

Due to its own distribution network Vitebsk-based company Belwest has become one of the footwear sales leaders on the post-Soviet era.

In his annual State of the Nation Address to the Belarusian People and the National Assembly of Belarus the President said: "Having ensured quite a high level of development of the economy, and having learnt how to produce competitive goods, we still have not mastered the art of intelligent trade".

That is why one of the main goals of the national manufacturers is to build up their own distribution networks in order to create added value, to promote brands and to establish direct contacts with consumers in Russia, Latvia, Lithuania and Ukraine. In Q1 2007 the company expanded sales by 12%. In many ways Belwest has achieved such success due to its own commodity distribution network which unites eight outlets and several wholesale representative offices in the Russian Federation and an affiliate in Riga with ten shops in the biggest Latvian cities. Belwest has also set up an extensive sales network in Belarus. According to Yuri Sumaneev, Belwest is in fact a trade and industrial holding company selling products through its distribution network Belwest General Director Yuri Sumaneev which in turn forms a stock of orders. Trading implies making profit, in other words, the offering range should quite big to meet the demands of the most discerning clients.

Every year Belwest exports up to 0.5 million pairs of shoes to Russia, Latvia, Lithuania and Ukraine. Belwest takes a cautious approach to the formation of its distribution network. First of all, the company targets a certain group of consumers, those who prefer high quality, comfortable and stylish footwear priced between $30 and $100. Belwest opens shops in the areas where its products are well-known due to dealers and wholesale customers.

Belwest commodity distribution network includes eight outlets and several wholesale representative offices in the Russian Federation and an affiliate in Riga featuring ten shops in the biggest Latvian cities.

Creation of a distribution network is a rather costly enterprise. A manufacturer's outlet store means special interior design, high quality and up-to-date trading equipment and highly skilled personnel. Being a popular trade-mark, Belwest encounters the same problems as other companies, namely the problems connected with the buying or leasing of shopping space, among others.

Nobody offers any discounts and privileges. On average, the company spends over $500 thousand to open one store. All Belwest outlets sell footwear under Belwest trademark only. And the choice should be really wide to generate profit. To completely satisfy the demand, the company's stocks 20 times more footwear than is displayed for sale in shops. This in turn requires big current assets.

Every year Belwest funnels between BYR 3 billion to BYR 5 billion into production development, with one third of the funds being utilized to extend the distribution network.

Belwest enjoys good exposure in Russia, where it works with trading companies who build up big retail networks and often use Belwest brand for advertising purposes. Such retail networks offer footwear made by Belwest and other companies.

"Building brand awareness is crucial for success in business," Yuri Sumaneyev continues. "Belwest invests big in advertising campaigns; in 2006 the expenditures amounted to Br250 million," he said. Belwest trademark emerged almost 20 years ago to grow into a specimen of quality, immaculate taste and high standards in footwear.

Belwest has been focusing on quality, putting clients first. The company invests heavily into upgrade of its production.

More Articles

FeaturedArticles

  • 1

    Culture & Art

    Oct 12, 2018

    THE MUPPETS

    No matter the age or generation, it's a fact that we all know the stuffed puppets that gained life and filled the imagination of its fans. Fun, different and even a little inconvenient, these animated puppets are one of the most recognized...

  • 16788830_1399804646759626_4686884977315414016_n

    Food & Beverage

    Jun 1, 2017

    IT'S CHEESE, BUT ALSO YOGURT

    Ok, it is cheese and it's called yogurt. As far as we're concerned, it's alright, even because it really looks like yogurt. Regularly, on the markets of food for sportsmen, arise new products and dietary supplements which promise...

  • Depositphotos_39732177_xl-2015

    Science & Nature

    Mar 1, 2017

    EASTER ISLAND - THE MISTERY REMAINS

    It is perhaps one of the best kept secrets of mankind, the Moais, also known as the Easter Island Heads, statues carved from the rocks of the Rano Raraku volcano, which can weigh 88 tons and reach 10 meters in height, have become...


  • 572e1220696469.5631227a8514a

    Mechanics & Locomotion

    Mar 1, 2017

    EXO - MORE THAN A COMMON PROSTHETIC

    The United States of America (USA), the country where the number of people who saw amputees one of their members amounted to two million, is the same country that now offers the market a pioneering prosthetic technology that will...

  • product_playfulbase_sl

    Technology

    May 1, 2017

    DO... WHATEVER!

    So, we've seen it all! We have seen all the kind of things the eyes can see and the brain can archive as knowledge... But did we, really? Is it really possible to think there is one thing in the world that can't evolve?

    ...

  • Vinhas02

    Business & Industry

    Mar 31, 2018

    "APPLE ISLAND'S" NECTARS

    The Australian state of Tasmania became known thanks to its apples, to the point of being nicknamed "apple-island" due to the predominance of its apple trees orchards


  • Water from the Desert

    Technology

    Dec 31, 2015

    Water from the Desert

    Since the 1950s, Israel has been pioneering the world of irrigations systems, from drip irrigation to natural pesticides. After all, the deserts reigns here, and these also created this need to water it. Necessity is the mother of invention,...

  • Tais_weaving_in_Lospalos,_East_Timor

    Culture & Art

    Aug 1, 2016

    A STORY WOVEN BY WOMEN

    Weaving has survived thousands of years, but the base of its making has remained the same: the warp and the weft, and the line counting to create the motifs. In East Timor, there's a variation of this tradition that is very instilled, and...

  • black-opal-Daniel-Mekis

    Business & Industry

    Jun 1, 2015

    All the colours at once

    Opals are amongst the most beautiful stones in the world, and are one of the few types of precious gemstones. While diamonds, rubies, sapphires, emeralds and pearls have their own color, nonetheless wonderful, with opals you have all...