No risk of making bad decisions as a way to evolve – interview with Russian franchisor modi

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Modi, an emotional goods brand, emerged in 2017 and has since managed to fall in love with many people. For further development, from 2022, third-party traders have the option to connect on mutually beneficial terms to the successful modi trading program.

Today, about 100 retail stores operate in almost four dozen Russian cities Modi, and the brand aims to increase these numbers by attracting competent partners through the franchise system. Under the motto “Together – for high results!” the company offers merchants to franchise emotional goods.

The advantages of such cooperation:

A chance to build a successful business in the lifestyle goods segment not from scratch but by joining the modi network. Get manuals with proven business technologies to increase business profitability. Increase the competitiveness of the store thanks to the support of a main partner at all stages of opening and operating a point.

The “sponsorship” of brand representatives on a new item begins from the moment the contract is concluded. Partners receive full support every step of the way, from choosing the location of the store to the opening ceremony. In the future, the curation continues, because the brand is interested in the success of each point of sale!

For more details about the philosophy of the brand, the success of the franchise in the Russian market, the adaptability and attractiveness of emotional goods during turbulent events, the editors of INC-News.ru spoke with Oleg Pokrovsky, director of the Modi Franchising department .

1. Why do you think the franchise caused a stir in the Russian market and continues to grow? Our entrepreneurs don’t like to take risks?

Today, with most companies reporting losses and negative business momentum, few are willing to take risks. I want to be sure of a successful investment. A franchise is an opportunity to run a business clearly and without unnecessary stress. But here it is important to find a reliable partner.

Most European brands, considered the benchmark for entrepreneurship in the Russian Federation, have put their Russian owners and franchisees in a difficult situation by deciding to close the doors of stores to Russian buyers.

We saw it as an opportunity for growth and scaling. The franchise project that we launched in 2022 took its place in the ranking of the best franchises in Russia. For what?

First, we have a high percentage of customer retention. Everyone who makes a modi purchase for the first time comes back to us and brings friends and relatives. This guarantees the franchisee a permanent base of buyers.

Secondly, the key to successful business with modi is confidence in the financial success of the business, through risk calculations and accurate forecasting of the outcome, achieved through experience. The modi network already has almost 100 stores in 38 cities of Russia and knows exactly all of its indicators and business processes.

2. What risks can be avoided when starting franchises with modi? What are the benefits of starting your franchise journey with your brand?

By copying modi business processes, the partner does not have the risk of making the wrong decision. Our partners specifically note the support we provide during the store launch, as well as corporate support. For this reason, there is no sense of uncertainty in the actions of staff to make certain decisions, and partners are encouraged to open one or more stores with us.

3. Who is the franchise for? What is your target partner profile?

Business today is unthinkable without digital processes, sophisticated marketing, and a constant search for profitable opportunities. But not all entrepreneurs understand how to grow, what SEO is, how to effectively hire staff, etc. Therefore, franchising is mainly suitable for those who want to work for themselves, but do not know all the processes thoroughly or want to trust a professional and have the successful experience of others.

In this we are ready to help you. However, we do not work with everyone. And this is further confirmation of the quality of our network. It is important for us that a partner has entrepreneurial experience, proven financial solvency and an impeccable business reputation.

4. Have any of your franchisees opened 2 or more branches?

Yes of course. By opening his first store, the associate finds that the business model works, that the management of the store and sales does not take much time, because it is mainly based on the work of the store manager with a modi mentor. To date, we already have several examples where a partner opens a second store, and someone even a third.

5. Does the state of economic turbulence affect the development of this direction?

There is influence, but the team and I try to benefit the company and its partners, current and future. For example, many promising locations for opening a modi store started to appear, in those malls where they couldn’t go before due to a lack of places of interest for us to open a store. And the shopping centers themselves are increasingly meeting us halfway on rates and rental conditions. It should also be noted that more qualified personnel have appeared on the labor market, and closing vacancies in stores has become somewhat easier than before.

6. Have traffic, audience, customer demands changed?

We felt a slight drop in traffic in September-October last year. But, despite this, we still note an increase in the average check and an increase in the number of items in the check. Overall, 2022 showed a positive comparable store sales trend to 2021. This year, we are supporting this trend.

Now it is important for people to receive positive emotions, including shopping, our stores just meet this need, because we always have a pleasant atmosphere, you can always buy something pleasant for yourself and your loved ones. We can meet the needs of any client with any income. Some product categories are successfully replacing products of brands that have left the Russian market.

7. Does this affect the modi’s average ROI?

Today, all of our stores are ahead of expectations in terms of return on investment, allowing us and our partners to look to the future with optimism.

8. How do you see the prospects for the development and opening of modi franchise stores for the coming year or the next five years?

In the near future, we plan to open stores in different cities of Russia and even CIS countries. At the same time, we do not pursue quantity, but only open high-quality projects. We only consider locations that, both for us and for the franchisee, will not cause the slightest doubt as to the desirability of a successful launch.

9. Your advice to future franchisees

With our specialists, examine the proposals that are on the market from a critical angle. Always make a pessimistic forecast of the company’s profitability. Avoid compromising solutions. Try to make decisions not on emotions, but on numbers and facts. From our side, we will help you make the right choice and don’t regret it!

And for those who are not yet ready to buy a franchise, we advise you to consider range mode.

Go to the office department. Here you will find organizers for papers, folders for documents and practical magnetic plans so that all the most important things are always at hand.

Hard cover notebook on elastic A5, 80 sheets, lined, planed

photo source: modi news service

Those for whom business has long been part of everyday life should take a closer look at the unusual decor. Original vases, mood boards, laconic glasses and carafes, aroma diffusers with invigorating notes: all this will help you refresh your workspace.

“Hello, I’m not” insulated mug 350ml; Sandalwood fragrance diffuser 100ml

photo source: modi news service

Business is always about teamwork. Original games can be part of effective team building. Here are some ideas. For team cohesion, the Jenga balance game is suitable. For a thematic game – a predictive ball. And for a bright corporate party – a pantomime game.

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Ball – predictor, 10 cm and board game “Pantomime”

photo source: modi news service

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