Shoes and sanctions. How does the Russian shoe market live in the current situation?

Anti-Russian sanctions have had virtually no effect on the production of shoes in Russia. And the withdrawal of many competitors from the market even played a plus for domestic manufacturers. However, there are also problems that have nothing to do with sanctions. Andrey Pavlov, the founder and president of the ZENDEN group, told the editorial board of "Made in Russia" about this.

Have the sanctions affected your business? If so, how?In general, the sanctions did not affect our business much.

We are fulfilling the planned indicators for revenue and sales in pairs. We did not notice a drop in demand, since sales of clothes and shoes first of all sink during crises. Everything was leveled due to the withdrawal of some competitors from our market. No extraordinary measures are taken by entrepreneurs. Business has been living in crisis for the third year, it has become a common condition for us. Changing logistics schemes or payment currency, the usual market competition.

Has the current situation affected the price tags? In 2022, the price tags in our stores changed in both directions.

It is enough to look at the fluctuations in the dollar exchange rate for 8 months - from 49 to 120 rubles at the peak. We produce shoes in different countries, including Russia.

Is it possible to say that your enterprises can produce products better and cheaper than the departed European competitors?If we talk about European competitors, then their production centers are also mostly located in the countries of Southeast Asia.

There is a world leader - China. We are in no way inferior to our competitors in equal price segments.

In connection with the departure of many of them from the market, are there any thoughts about expanding production?There are thoughts about expanding production.

But this requires protecting your own market. After all, our market is now flooded with contraband and counterfeit goods, tens of thousands of players work in the shadow business. So far, even labeling has not helped to restore order. For the development of shoe production in Russia, in order to reach 200-250 million pairs from 100 million a year, we need: a reduction in VAT from 20% to 12%; a reduction in social taxes - a maximum of 15% of the total salary; an increase in customs duties, because in the middle-price segment they are often only 2-5% of the invoice, there is generally less than 1% in the suite.

Which shoes are currently in the greatest demand among Russians?Nothing has changed fundamentally here.

They like comfortable and comfortable shoes, preferring various types of sneakers. Of course, the trend of today is military. The situation forces men to add various berets and similar tactical shoes to the wardrobe. By the way, our factory in Kaluga has switched to the production of shoes for the Russian army since September.

Has your holding company worked with European designers, and does this work continue? If not, who replaced them?We have 4 brands in our group: ZENDEN, Tomas Munz, Salamander and Mascotte.

Plus dozens of own and attracted brands. For example, we are the largest wholesale buyer from Rieker. With the withdrawal of Western brands from the market, we will look for the possibility of their distribution in Russia.

What is the current situation at your enterprises? Are there enough specialists?The personnel situation is one of the biggest problems.

After all, the country's population is shrinking, and the able-bodied population is shrinking even faster. The younger generation practically does not want to go to production and does not want to be tied to the place of work at all. Many people choose freelance and self-employment. The labor market is undergoing drastic changes, and something urgently needs to be done about it. In retail, for example, I propose to reduce the opening hours of stores from 84 hours a week to 70. Enter at least one output. After all, work schedules from 10.00 to 22.00 seven days a week exhaust staff, especially in small businesses where labor legislation is massively violated.

What kind of shoes do you prefer?I have a large number of different shoes, both my own brands and third-party ones.

I also prefer comfortable sneakers, classic shoes only for business events.

Which regions of the country would be considered for the opening of a new production?To do this, I would consider those regions where there are personnel and tax benefits.

Without tax benefits, especially when the dollar is low, it is very difficult to get into the economic model. So far, there are only two shoe manufacturing clusters in Russia — Dagestan and the Rostov region.

A little bit about the personal. You have a photo in social networks with a branded box in an armored vehicle. If you believe the signature, it was made in Lugansk. What does it mean?A box in an armored car in Lugansk for a reason.

We have been providing humanitarian assistance to Donbass for many years and will continue to provide it until a full-fledged peace returns to the native Russian land, which, by the will of the overwhelming majority of citizens, has recently returned to our Homeland.