Laksa Trading (Sokolov)
Since 2020
Russia
Central Federal District of the Russian Federation
Moscow
129343, Serebryakov passage, 4
Content |
Laksa Trading (Sokolov) is a chain of jewelry stores.
History and Performance Indicators
2023: Annual jewelry production growth by a third to 40 tonnes
Holding Sokolov in 2023 increased the production of jewelry by a third in comparison with 2022 - up to 40 tons. 18% of this volume came from the manufacture of gold products. Such data were released by the company in mid-February 2024.
According to Interfax, citing Sokolov materials, in 2023 the group's turnover amounted to 51 billion rubles, which is 59% higher than the result of a year ago. The rise was due to the development of retail and a network of retail franchises in the wholesale sales channel, the press service of the holding explained.
23.5% of Sokolov's turnover in 2023 came from sales through a network of more than 4.5 thousand wholesale partners and franchisees. The growth of the wholesale sales channel in 2023 amounted to 50%, to 12 billion rubles. In 2023, the company opened 84 trading franchises in Russia and the CIS countries, bringing their total number to 167. Revenue from the franchise direction for the year increased 2.5 times to 5.1 billion rubles.
It also follows from the Sokolov report that in 2023 the company sold products for 18.5 billion rubles via the Internet, which is 120% more than a year earlier. Internet sales through the group's own channels soared by 88%, to 9.2 billion rubles, and through marketplaces - 3 times, to 9.3 billion rubles.
About 69% of Sokolov's revenue in 2023 came from gold jewelry - 35.4 billion rubles (an increase of 73%). Revenue from sales of silver jewelry in 2023 increased by 29% and reached 12.9 billion rubles.
By February 2024, the Sokolov group of companies unites the trading companies SV Retail LLC and Laxa Trading JSC, as well as the Kvart refinery. At the end of 2023, Kvart produced 6.5 tons (2.2 times growth) of pure gold and 11.5 tons of silver. The production capacity of the plant is currently 10 tons of pure gold and 15 tons of pure silver.[1]
2022
Revenue growth by 31% to 32 billion rubles
The revenue of the jewelry holding Sokolov in 2022 amounted to 32 billion rubles, an increase of 31% compared to 2021. Such data were released in April 2023.
The holding's net revenue (excluding VAT, customs and other mandatory deductions) under IFRS in 2022 was 26.9 billion rubles, which is 22% more than a year earlier. EBITDA grew by 93%, to 4.46 billion rubles, and the ratio of net debt to EBITDA decreased to 0.98x. This was due to both an increase in the scale of the business and a significant increase in the efficiency of operating activities, said the financial director of the holding Vladimir Dyakonov.
The key driver of Sokolov's growth was the twofold growth in retail sales, which in 2022 accounted for 75% of the brand's total revenue (24 billion rubles). A third of the retail turnover was provided by online channels, where revenue increased from 4 billion rubles to 8.4 billion rubles.
Offline retail revenue also doubled and reached 15.6 billion rubles. Over the past year, the company opened 42 new stores, in total the company's own network has 342 outlets. A quarter of the brand's revenue is provided by sales through a network of wholesale partners and franchisees. At the end of the year, 2/3 of the revenue comes from gold jewelry (an increase of 32%). Sales of silver products increased by 22%, to 10 billion rubles.
 | In 2023, we will continue to expand our own federal retail network, using investments attracted at the end of last year as part of the debut bond loan, and opening new outlets of various formats, "said Artem Sokolov, managing partner of the company. |  |
At the end of 2022, Jewelite JSC, a manufacturer of jewelry under the Sokolov brand, placed a 3-year bond issue of 3 billion rubles.[2]
Opening of stores in the Mariel complexes in Lublin and Riviera
The SOKOLOV jewelry brand opened two branded stores in Moscow in February in the Mariel shopping malls in Lyublino and Riviera near the Avtozavodskaya metro station.
According to the SOKOLOV Analytical Center, the retail jewelry market in Moscow - the largest among the Russian the regions and is growing faster than the average for. Russia So, in 2021, it reached 66.5 billion rudders, which is 31% more than a year earlier. The average check in jewelry retail increased by 6% and amounted to 9,751 at the end of 2021. rubles
The SOKOLOV store in the Mariel shopping center occupies 44.5 m2, in the Riviera shopping center - 78.9 m2. They feature several thousand models of gold and silver jewelry, including the latest collection of jewelry and watches, timed to coincide with the beginning of the spring-summer 2022 season. Customers of stores have access to the trade-in service (reception of old gold and silver jewelry against the cost of new ones) and the services of the Atelier by SOKOLOV jewelry workshop, where you can not only order jewelry according to your design, but also clean and repair jewelry.
As of February 2022, 88 SOKOLOV branded stores were opened in Moscow.
2021
Revenue growth 1.8 times to 24.4 billion rubles
The revenue of the jewelry brand Sokolov in 2021 increased 1.8 times compared to 2020 and reached 24.4 billion rubles, as representatives of Sokolov reported to TAdviser on February 15, 2022. According to the company's estimates, this was achieved thanks to the implemented strategy of transformation into a vertically integrated holding with its own omnichannel retail distribution, based on direct online communication with the client (d2c). Sokolov's growth rate is more than three times ahead of the dynamics of the development of the Russian jewelry market, which in 2021 grew by 27% in monetary terms.
Photo: cataloged.ru
Sokolov began active development of its own retail and online sales in 2020. At the end of 2021, the d2c channel provided half of the company's total revenue - 12 billion rubles, of which more than 30% are sales through the brand's mobile application and website. Thus, the company increased online sales by 2 times, while in the overall market the e-com segment in Russian jewelry retail grew by 2021 69% year.
70% of online purchases were made through the Sokolov mobile application, which has already been installed by more than 7 million users since its launch in April 2020. Its average monthly audience (MAU) reaches 1.3 million, the MAU of the company's website is about 3 million.
The growth of the e-com channel is due not only to active promotion, but also to the implementation of a number of projects to improve the quality, speed and attractiveness of the service for customers. So, to speed up delivery, Sokolov launched its own logistics, which combines a sorting terminal in Moscow, a fleet of armored cars and a courier service. This allowed the company to reduce delivery times in the largest cities to 1-2 days, and in Moscow to launch delivery on the day of order.
Also in 2021, Sokolov was the first Russian jewelry company to launch a virtual fitting of jewelry. The implemented augmented reality technology allows you to try on more than 2,000 rings presented in the Sokolov online showcase. The use of AR functionality brought the company a 20% increase in conversion from product card to purchase and an increase in the average check.
In 2021, Sokolov opened 270 new monobrand stores in more than 100 Russian cities, increasing the retail chain 4.5 times to 350 stores.
On average, in 2020-2021, the company invested about 20-25 million rubles in opening one store of its network with a planned return of investments within 2 years. In 2021, the brand increased the size of leased space to 120-150 m2 and began testing the format of a 300-400 m2 jewelry hypermarket. The first stores using this model are open in Moscow and Yekaterinburg.
To effectively manage retail and the wholesale partner network in 2021, Sokolov introduced a matrix organizational structure based on regional hubs responsible for fulfilling key indicators in the territories under their control. This allowed, in particular, to provide an average LFL in retail revenue at 53%, to deploy a network of 50 franchise stores and increase the number of wholesale partners on the ground.
50% of the Sokolov brand's revenue is provided by sales through a network of wholesale partners, which grew by 13% in 2021. The brand's products are represented in more than 11 thousand points of sale of 4 thousand distributors throughout the country. Sokolov exports jewelry to wholesale partners in 24: to countries,, Australia,, Azerbaijan,, Armenia,, Bulgaria,, Vietnam,, Germany,, Georgia,, Israel,, Kazakhstan,, Canada,,,,,,,,,,,, and Cyprus Kyrgyzstan Latvia on. Lithuania Moldova UAE Poland Belarus Romania USA Turkmenistan Uzbekistan Estonia Ukraine
In 2021, the brand opened the first franchise stores abroad - in Belarus, Kazakhstan, Kyrgyzstan, Moldova and Romania. In addition, Sokolov was the first among Russian jewelry companies to launch sales in the European and US markets through Amazon and Zalando marketplaces.
The range of Sokolov in 2021 increased to 42 thousand commodity items (SKU). During the year, 5 thousand new articles were put on sale. The development of the new assortment was due to collaborations and joint projects with bloggers, celebrities and brands. Together Disney with the brand, he presented a line of jewelry "Cold" heart based on the popular series of cartoons, and a collection dedicated to the premiere of the film "Cruella" was released in the collaboration of the youth sub-brand SKLV x Disney. Klava Coca and SKLV designers also presented a collection of jewelry developed together with the singer. And in the fall of 2021, Sokolov singled out the category of jewelry with natural diamonds in a separate direction under the Sokolov Diamonds brand, the famous actress, screenwriter and director Renata Litvinova became the face of the sub-brand.
In the revenue structure of Sokolov, two-thirds fall on gold jewelry, the revenue from sales of which doubled in 2021 and reached 15.5 billion rubles. In this commodity category, gold jewelry with diamonds is in the lead - their sales amounted to 6.8 billion rubles.
Revenue from sales of silver jewelry increased 1.6 times and reached 8.2 billion rubles. Among the best-selling jewelry are silver jewelry with fianites, the brand's clients spent 5.6 billion rubles on them over the year.
In 2021, the Sokolov brand began implementing ESG initiatives (short. from the English Environment, Social, Government - environment, social responsibility and quality of corporate governance, note TAdviser) to increase the share of recycled materials in the production of jewelry and reduce carbon emissions and its compensation through the use of synthetic inserts, reduce and reuse production waste.
In 2021, the company reduced metal losses by almost half and reduced the volume of recycled metal in production by 46%. Obtaining a license for refining precious metals and launching a trade-in program allowed the brand to bring the share of gold jewelry made of recycled metal to 51%. 80% of the jewelry was produced using synthetic inserts.
The brand follows the principle of responsible choice of diamonds. Sokolov works only with those suppliers who use diamonds mined exclusively in those deposits where production is regulated by strict social and environmental standards. Sokolov's primary diamond supplier is a De Beers site holder, as well as a certified member of the Responsible Jewelry Council, an international industry association that aims to promote ethical, social, sustainable and humane corporate policies.
Against the background of a twofold growth in production and expansion of the retail network to 350 branded stores in 100 cities of the Russian Federation, the number of employees of the company also increased. As of February 2022, Sokolov employs 6 thousand people, including employees of the head office, retail network, wholesale direction and production. Sokolov's corporate culture implies not only fair compensation for labor, but also a wide range of opportunities for the development and training of personnel, as well as training and support for young people.
In 2022, the company will continue to follow the development strategy adopted in 2019, according to which Sokolov, remaining the largest Russian jewelry manufacturer, will become the leader in the jewelry retail market in Russia with a share of at least 30% in the next 2-3 years. In addition, the company plans to become one of the world's leading players in jewelry retail and e-com.
| | "Sokolov is primarily an e-com company, the growth driver of which is synergy between sales channels, because 70% of our offline retail traffic is users of our application and site who came to the store for a specific article or for their online order," said the managing partner of the brand Artem Sokolov. | |
According to him, traditional retail plays a more supportive role for the intensely growing e-com channel, providing knowledge and trust in the brand - direct communication, a showroom for the product and service. In this regard, Sokolov will continue to expand its retail in Russia, and is also planning a large-scale international expansion, involving the active development of franchises and pilot openings of its own network projects in Europe. In addition, an essential part of Sokolov's business will be online sales in foreign markets in Europe, Central Asia and the Middle East, Artem Sokolov shared his brand plans.
| | Contrary to the projected slowdown in the growth rate of the Russian jewelry market to 10% in 2022, Sokolov will continue to grow multiple times faster than the market and expects total revenue of more than 40 billion rubles, "added the managing partner of the brand. | |
Doubling the production of precious metal products
In 2021, 20 million precious metal products were produced under the Sokolov jewelry brand, which is 1.9 times more than a year earlier. This was announced on February 1, 2022 to TAdviser by representatives of Sokolov.
Photo: elle.ru
The production of silver jewelry increased 2 times to 16.8 million pieces, and gold - 1.4 times to 3.2 million products. Including up to 2 million pieces, or three times, the production of silver jewelry with diamonds has increased, the company calculated. In addition to them, the main growth drivers were jewelry made of silver with fianites (12.7 million pieces), gold with diamonds (0.6 million pieces) and gold chains (0.2 million pieces) - in all these categories, double growth was recorded.
In weight, the release of Sokolov jewelry increased 1.4 times and reached 40.6 tons. Of these, the weight of gold jewelry amounted to 5.8 tons, silver - 34.7 tons. The largest increase was also recorded in the segment of silver jewelry with diamonds - 2.7 times (1.2 tons), the company shared.
| | "Following omnicanal the strategy, Sokolov has multiplied sales across all channels in 2021, including its own retail, partner networks and online platforms. The main driver of production growth - the retail chain, which has grown more than 4 times to 350 flagship monobrand stores, - summed up the results of the year, managing partner of Sokolov Artem Sokolov. - In 2021, the brand went beyond, Russia opening stores countries European Union EEU in and and launching sales through foreign marketplaces and its own e-com channels abroad. Sokolov confirms its goal of taking 30%. " jewelry market of Russia | |
Doubling the retail network with the participation of Sberbank
The Sokolov jewelry brand doubled its retail network with the participation of Sberbank - in early 2021, the bank opened a credit line for the company in the amount of 3 billion rubles. Sberbank's financing helped Sokolov double the retail chain in 5 months, increasing the number of flagship monobrand stores to 160. This was reported on July 28, 2021 by Sberbank.
In July, the 160th flagship store was opened in Voronezh. During this year, Sokolov increased its trading space to 12 thousand square meters. m and is now represented in 66 cities of the country.
| | The Sokolov jewelry brand is a long-time partner of Sberbank, with which we cooperate in many areas: we provide classic, bank crediting offer services, acquiring service a salary project, the company is a participant in our bonus program. SberThank you We are pleased that thanks to the financing of Sberbank, the brand managed to achieve such impressive results in expanding the chain of stores. I note that Sokolov pandemic and the restrictions suffered better than jewelry industry in general. This testifies to the effective management and competent strategy of the company - criteria that are especially important for us when working with partners, - said the Vladimir Sitnov senior vice president of Sberbank. | |
| | Following the omnichannel distribution strategy, along with partner and online channels, we are actively developing our own representation in all major Russian cities. The presence of its network of single-brand stores is critical for growing knowledge and confidence in the brand and, as a result, increasing sales and market share. Our task is to make available throughout the country not only jewelry itself, but also uniform service standards. It is important for us as a brand-manufacturer that a buyer from anywhere in the country can contact us directly not only online, but also in the real world to resolve all his purchase-related issues - Artyom Sokolov, managing partner of Sokolov. | |
Notes
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