Wildberries is a highly successful Russian online retailer that has created a niche for itself in the country’s e-commerce industry. Founded in 2004 by Tatyana Bakalchuk, the company has grown from a small business in her Moscow apartment to a multinational corporation with a presence in 13 countries. Today, Wildberries is one of the largest online stores in Russia with a market share of over 13% as of 2021.
How It All Started
Tatyana Bakalchuk, the founder of Wildberries, Russia’s largest online retailer, had to overcome numerous challenges to develop her company. When she started Wildberries in 2004, Tatyana was a stay-at-home mom with no prior experience in business. However, she was determined to create an e-commerce platform that would offer a broad range of clothing, shoes, accessories, and other goods at affordable prices.
In the early days, Tatyana had to rely on her husband’s computer skills to build the Wildberries website. She also recruited friends and acquaintances to help with various tasks, such as delivering packages and managing customer inquiries. Tatyana’s unique management skills were instrumental in getting everyone on the same page and working efficiently toward a shared goal.
In terms of financing, Tatyana started with personal savings of around $700 and reinvested all profits back into the company. However, as Wildberries started to grow rapidly in the following years, Tatyana sought outside funding from investors. In 2019, Wildberries raised a total of $500 million in its first-ever funding round, which involved multiple investors, including Baring Vostok, Russia’s leading private equity firm.
As for the board of directors, Tatyana Bakalchuk serves as the chairman of Wildberries, while her husband Vyacheslav Bakalchuk is the CEO. Other members of the board include independent directors, such as Elena Ivashentseva, who is the managing director of the Moscow School of Management SKOLKOVO, and Yuri Fadeev, who is the founder of a consulting company.
Through her experience of managing Wildberries, Tatyana learned valuable lessons about leadership, teamwork, and perseverance. She is known for her hands-on approach, attention to detail, and customer-centric mindset, which have earned her and the company numerous accolades and awards. Today, Wildberries employs over 36,000 people, operates in 13 countries, and has a turnover exceeding $4 billion.
Mission of the Company
Wildberries started with a simple mission – to provide customers with high-quality clothing and accessories at affordable prices. Over the years, this vision has evolved, and the company’s mission today is to provide customers with a wide selection of products from various categories, including fashion, electronics, home appliances, and cosmetics, at a fair price, with convenient and reliable delivery.
Strategic Partners
Wildberries has several strategic partners that have contributed immensely to its success. One of these partners is the Russian Post, which helps the company to deliver packages to remote areas of the country. The retailer also works with several logistics companies to ensure that packages reach customers safely and on time. Additionally, Wildberries works with more than 20,000 sellers, including international brands, to ensure a diverse selection of products for customers.
IT Technologies
One of Wildberries’ most significant strengths is its robust IT infrastructure. The company has invested heavily in technology and has developed an in-house IT system, which handles everything from inventory management to logistics and payment processing. The system is designed to be user-friendly and efficient, helping the company to provide customers with a seamless shopping experience.
Wildberries operates several data centers across Russia, which provide the company with the necessary support for its IT systems. The data centers are highly secure, ensuring that customer data is protected at all times. Additionally, the company’s IT team regularly updates and maintains the data centers, ensuring that they are always up-to-date with the latest technology.
Business Model
Wildberries’ business model is simple – the company acts as an intermediary between buyers and sellers. The company does not own any inventory, but instead, it provides a platform for sellers to list and sell their products. Wildberries takes a commission from each sale, which is its primary source of revenue.
Market Share
Wildberries is the largest online store in Russia, with a market share of over 13% as of 2021. Additionally, the company has experienced rapid growth over the years, with revenue increasing from $1.25 billion in 2017 to $4.2 billion in 2020.
International Presence
Wildberries has expanded beyond Russia and now operates in 13 countries, including Belarus, Kazakhstan, Poland, Germany, and Israel. The company has continued to invest in its international expansion and plans to expand further in the future.
Weaknesses and Strengths
One of Wildberries’ most significant strengths is its robust IT infrastructure, which has contributed significantly to its growth and success. Additionally, the company has a wide selection of products and a strong reputation for affordable prices and reliable delivery. However, one of the company’s weaknesses is that it relies too heavily on the Russian market. Expanding and establishing a strong foothold in other countries has proven to be challenging for the company.
Conclusion
In conclusion, Tatyana Bakalchuk’s vision, determination, and hard work have helped Wildberries become the largest online store in Russia and a recognized global brand. By leveraging technology and forging strategic partnerships, the company has been able to provide customers with a seamless shopping experience and a diverse selection of products. Although the company faces some challenges, such as expanding beyond the Russian market, its continued growth and success are a testament to its resilience and adaptability.