Franchising models of consumer electronics retail are becoming more and more popular in Russia. Following these models a number of companies demonstrated dynamic growth in 2006. Thus, the Expert chain’s turnover has outstripped that of Mir (the former has for a long time been part of the ‘big four’). Meanwhile, by the end of 2007 Linia Toka franchising chain may undermine the leaders’ position. The company has announced intention to become one of Top-5 consumer electronics retailers.
According to the Arkonada Group, the owner of the Linia Toka federal chain, the company’s turnover would exceed $500mln by the end of 2007. ‘The current situation on the market allows us to confirm that Linia Toka is ready to enter Top-5 leading customer electronics retail market participants’, Arkonada Group Executive Director Eugene Timofeev told CNews. The companies’ annual turnover in 2006 was as follows: Mir – $550mln, Technosila – $1,012bln, M.Video – $1,383bln, Eldorado – $4,2 bln.
Linia Toka as well as a number of other franchising chains intends to expand its trading activity in many regions, except for Moscow. Today, 177 brand name stores are present in the different regions of Russia. By the end of this year the number of the stores will increase to 350. By the way, the company considers the Expert chain to be its main rival. Expert currently has 299 brand name shops. ‘The main work principles with franchisees are similar to those of Linia Toka‘, Timofeev said.
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