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The boutique business is dead, the future is for blue-collar projects

We will forget about excess profits, we will begin to learn how to optimize expenses, we will pay taxes completely, we will stop dreaming of getting rich at mining and again we will believe in the construction business. Forecast for 2018 from German Klimenko, Advisor to the President of the Russian Federation on the Internet
Have to work harder for less money

2017 was the year when Russian business lost its uncontrolled cache flows and lost the opportunity to absorb money received at low interest rates in foreign banks. The main thing on which this was reflected: dubious and small banks, as well as companies that profited from them, left the market. Their place is occupied by a business that is able to offer consumers a specific product for a reasonable price.

The symbol of the capital of past years was the offices of banks in the central streets, Moskhoztorg became the symbol of the new Moscow. In fact, Moskhoztorg is an ordinary kiosk with well-chosen goods, built inside the house, and they make sales, and banks die.

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The same goes for boutiques. The time of the boutiques is over: in their place came a more modest business, which is designed for “blue-collar workers” and average inhabitants. This is now a general trend.

The chain of grocery stores Pyaterochka, as far as I can tell, is booming. The ABC of Taste has been redesigned on the go and now insists that they are not a premium class at all, but an ordinary trading network. A few years ago it was impossible to imagine that the ABC of Taste would position itself as a regular grocery store with quality cooking. But now, this day has come.

Everyone who closely monitors the market, in front of their eyes, reduces the class of consumption. In past years, we grew at a faster pace, consumed at a faster pace, took loans at a faster pace and now everyone will have to go back a step. Not two, not three, not five, just one step.

I have many acquaintances in audit firms. They all lowered their salaries because the sweet customers who took loans from US banks left. In order to make money on Russian business, they have to work more carefully for less money. And so it is everywhere. In the salons of mobile phone operators, the luxury segment has noticeably subsided, but the demand for inexpensive, functional Chinese phones is growing.

I think the principle of “working more carefully for less” will be decisive for the entire Russian business in the near future.

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Optimization of operational costs for the future

Previously, business owners wanted to have a monopoly on each employee, now it’s enough that the work is simply carried out. Why keep an accountant in the office? It’s easier to outsource accounting and let them do business virtually. Two hours of work a week on a remote site is enough to close the operational tasks of an average company.

This change is not the merit of the crisis: the pattern of consumption and asset management has simply changed. Apartments stopped buying not only because there was less free money. Many understood: a bank account is a more reliable asset than square meters. We lived for a long time under the influence of the cult of the deficit of the times of socialism: a car is cool, our own house is cool, an apartment in the property is necessary; if you build a successful business, then maintain an office of 400 meters and drive all employees to the staff. Now the trend has changed.

I know many non-poor companies that live in coworking. They do not care about status, but about efficiency, and they win on it. For this reason, many modern businessmen focus on the decentralization of the company. This is another trend.

Previously, departments were assembled under one roof, because there was no high-quality communication, and everyone had to somehow communicate with each other. Now, as soon as the Internet appears in the office with a guaranteed speed of 100 Mbps, it turns out that you can live comfortably when accountants are in Orel, programmers in Stavropol, the head of the planning department in Kamchatka – and they all work quietly together. A new class of employees is being formed — managers and workers — who in these conditions know how to be effective.

No need to hate online checkout

Many last year were horrified by the total planting of online cash registers. I am sympathetic to this state initiative.

The main objective of the business is to earn and develop along with the rest of the market. The amount of tax burden in this case is not so important. It is much more important that everyone plays according to the same rules. There are countries in the world where the average tax burden reaches 70%, but the business feels fine, because everyone is developing and living in the same conditions.

If someone sells in the cache, it is impossible to compete with him, paying taxes, no matter how low the tax rate.

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