M.Video opens service areas that will repair equipment
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As part of a pilot project, M.Video is opening service zones designed, among other things, for repairing equipment purchased from other retailers. The network itself explains the emergence of the format by the closure of authorized centers of foreign manufacturers. However, in reality, such organizations continue to operate, just without official status. Experts believe that service centers primarily create “image advantages” and strengthen M.Video’s position in partnerships with new suppliers, although the company’s strong position in the retail market may allow it to take a certain share in the service.
“M.Video” filed several applications for the “M.Master” trademarks in January, Kommersant discovered. The press service of the M.Video-Eldorado network reported that we are talking about rebranding its service line with the expectation of repairing equipment purchased, including from third-party sellers: “This is especially true for buyers who are faced with the closure of a number of foreign manufacturers of their own authorized service centers.”
As part of the pilot project, six M.Service zones have already been opened in stores in Moscow and St. Petersburg; by the middle of the year it is planned to launch the service in other cities, expanding the network to 30 zones: “Based on the results of the pilot, a decision will be made on scaling project.” M.Video-Eldorado also plans to increase its fleet of vehicles for on-site repairs from the current 200 vehicles to 500 by the end of 2025.
According to BusinesStat, in Russia in 2022 (more current data is not provided) 38.3 million household appliance repair services were provided. Last fall, specialized classification services recorded an increase in the number of calls for appliance repair year on year, especially large household appliances (see Kommersant, September 22, 2023).
In electronics repair, CNews reported with reference to data from the OFD Platform, the number of orders in the first nine months of 2023 increased by 37%, the average bill by 9%.
If M.Master offers services at the same level as independent networks of service centers (Pedant.ru, Serso, Network of Computer Clinics, etc.), it will be able to gain market share “due to already existing presence in retail and advertising,” believes the head of Telecom Daily Denis Kuskov. He notes that the company, like other players, is now “rebuilding its after-sales service system.”
Orientation of the service direction to work with “foreign goods” may be a way to convince new brands to give M.Video-Eldorado contractors the status of authorized service centers, Mr. Kuskov believes: “During negotiations, the retailer will be able to operate not only with data about its network, but also information about how many brand devices are sent through them for repair.”
However, Kommersant’s source in the electronics market is skeptical about the retailer’s idea: “There are already service centers, albeit without authorized status, where the same specialists with confirmed qualifications work.” The fact that the project is being launched in “pilot” status suggests that “M.Video is launching it on the principle of “it will suddenly take off”, in the hope of improving the prospects of the entire group.”
The head of Content Review, Sergei Polovnikov, calls the project more of an image project: “Device repair makes sense as a business only in case of huge volumes.” The retailer, according to him, expects to increase loyalty in the future, among those who usually do not buy equipment from them: “But only those customers who bought equipment without any after-sales service will come from outside.”
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