Catch up and overtake

E1 does everything to reach the dominant position in the market of affordable sliding door wardrobes.

14/08/2017

In 2016, the turnover of the E1 company that specializes in the production of inexpensive sliding door wardrobes increased by 25% and exceeded 1.5 billion rubles. The director general of E1 Alexander Linevich is sure that by the end of 2017 the factory will be able to double the monthly production yield, which at the beginning of the year made up about 17 thousand finished products.

“We are growing in three directions at once,” Mr. Linevich said. “We strengthen our positions in federal networks, expand the geography of wholesale sales, actively develop our own retail. And the potential of sales channels is far from being exhausted.”

It is remarkable that the company expects to double the volume with the current product portfolio. The E1 offer includes the budget-friendly program of sliding door wardrobes and a small line of cloakrooms of the mid-price segment.

“It is believed that the market of sliding door wardrobes is overstocked with proposals of federal and regional factories, but our field researches disprove this claim,” says Alexander Linevich. “Federal companies tend to inflate the prices, while regional companies often do not provide a proper factory quality. High demand for the E1 products in the regions shows that our range is optimal in terms of price/quality ratio.”

Alexander Linevich agrees that E1 is interested in developing commercial contacts with network companies. It studies the opportunities of getting access to major regional players. The company is ready to offer such operators the options for the designing of special product lines.

Е1 is going to consolidate its own retail network. Now it has 150 trading floors and covers big Russian cities. In 2017, according to the management of the company, it makes sense to open showrooms in the cities with the population of 100 thousand people, where there is an effective demand.

“With an average purchase size of 20-25 thousand rubles and a high level of service, E1 will be able to take a decent share from local producers," Mr. Linevich believes. “Our advantage over the regional players is in low prices and short delivery period. Even individual orders can be sometimes fulfilled within three working days. I would be surprised if someone from the local manufacturers were able to guarantee the same conditions.”

As a separate promising direction, the company E1 considers the cooperation with developers of the residential real estate market – on the supply of flats and apartments under construction with sliding door wardrobes and walk-in closets. The factory's capabilities allow producing large quantities of products in a short time, and these criteria are evaluated firstly by the acquisition department of the development companies.

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