Obuv Rossii Group is a federal retail shoe chain ranked among top two Russian footwear retailers (according to Discovery Research Group) . The Group is the leader of the mid-price segment of the shoe market.
In October 2017, Obuv Rossii raised 5.9 billion rubles in an IPO on the Moscow Exchange (ticker: OBUV), the issuer being OR PJSC, and became the first publicly listed company on the Russian fashion and footwear market.
Obuv Rossii was established in 2003 with head office in Novosibirsk.
Key business areas of the Group include:
- Retail sale of footwear and related products.
- Financial Services.
- Production of footwear.
The company incorporates five shoe retail chains, casual footwear brands All.go and S-TEP as well as outdoor retail brand Snow Guard. In September 2014, Rossita and Lisette brands became part of the Obuv Rossii Group . Thus, one of the leaders of the footwear market in the Urals and Siberia regions — Rossita company —joined Obuv Rossii.
Westfalika is the main retail chain operated by Obuv Rossii Group and one of the most famous brands on the Russian shoe market. As of 31.12.2017, the Westfalika chain consisted of 306 stores (including franchising ones) located in 98 Russian cities.
Peshekhod is a multi-brand shoe supermarket chain offering a wide range of shoe types for various customer needs. As of 31.12.2017, the Peshekhod network comprises 51 stores located across a number of large cities in Siberia and the Urals.
Emilia Estra is a footwear retailer operating in the mid-priced segment of the market. A combination of brightness, elegance and originality makes Emilia Estra footwear perfect for 25-30 year-old women.
Founded in 1992, Rossita has become one of the most recognizable retail chains in the regions of Ural and Siberia. Rossita store offer a wide range of European design footwear for the whole family.
On the shoe market since 2002, Lisette has grown to be a widely-recognized brand in many Russian regions. As of 31.12.2017 the Lisette retail chain consisted of 105 stores (including franchising ones). These are small nice shoe saloons designed in common style.
S-TEP is a Russian brand of female and male comfortable footwear. Since its establishment in 2000, S-TEP has used advanced German molding technology enabling the production of sturdy, light and comfortable shoes ideal both for everyday wear and outdoor activities.
All.go is a casual brand introduced to the market in spring-summer season of 2014. The brand’s collections include summer, beach and garden-style shoes made of EVA materials as well as sneakers, spring-autumn and winter boots.
Snow Guard — outerwear for active people who want to look stylish in every kind of weather. The Snow Guard range includes winter and seasonal jackets as well as windcheaters and raincoats.
To promote its brands, Obuv Rossii regularly launches large-scale advertising campaigns, some of which feature celebrities. Famous Russian singer Valeriya has been the face of Westfalika since December 2010. She participates not only in advertising campaigns, but also in the development of new collections. With Valeriya’s special input, the new line of shoes "Valeriya by Westfalika" was launched in spring 2013.
Obuv Rossii is constantly working to improve its range of products. Since November 2011, Thomas Frank, a German designer, has been a chief designer for Westfalika, overseeing all new collections and developing the brand further.
Since 2010, Obuv Rossii has been actively developing a range of non-footwear goods including shoe care products, leather goods, gel products, tights, and a range of foot care creams. In 2014, the Company launched its own outdoor clothing brand named Snow Guard. In 2017 the sales of related products (including clothes) in Obuv Rossii stores grew by 7%, the share in the sales revenue amounted to 31%.
In 2014-2017, Obuv Rossii opened five online stores: westfalika.ru, emilia-estra.ru, westfalika-home.ru,lisette.me and rossita.com. The Company sees a lot of potential in distance selling, as it makes it possible to utilize the infrastructure of an already operating retail chain (where shops can be used as pick-up points), to expand its sales geography and attract new customers. In 2017 e-commerce sales of the Company increased by 56%; their share in the retail revenue grew up from 6.7% in 2016 to 10% in 2017.
Obuv Rossii develops its own manufacture of footwear and components. In November 2015, the Group acquired S-TEP — a large factory located in the town of Berdsk in the Novosibirsk Region.
S-TEP is one of the most technologically-advanced enterprises in the country. The transaction made it possible for the Company to enter into new sales markets: casual, semi-sport footwear, walking and trekking shoes as well as special purpose footwear.
Currently, the Company’s production facilities are located across two manufacturing sites in the Novosibirsk Region. Obuv Rossii manufactures shoes utilizing all main types of sole construction techniques including adhesive, direct and combined construction methods. All stages of production are fully automated, using high-quality equipment by some of the leading international manufacturers such as Desma, Newlast, Orisol etc.
To ensure sustainable business development, Obuv Rossii uses various financial instruments including bank loans, and a bond financing programme. The Company has three bond issues circulating on the Moscow Exchange with a total volume of 3,5 bln rubles. In December 2017, RAEX (Expert РА) upgraded the creditworthiness rating of Obuv Rossii Group to ruBBB+ level, a "stable" forecast.