What difficulties have you already encountered since the imposition of sanctions?
We have to raise prices.
What is the supply and inventory situation? Are there any backup plans to secure them?
We filled the warehouse in Russia by 140%. In mid-February, two containers arrived at once as well as several large deliveries from Russian factories, so we have everything in stock and we are ready.
Are there internal agreements with foreign partners on how to continue working in the current conditions?
According to the new currency rate, European goods are not competitive in our market, and until the exchange rate normalizes, we stop purchasing third-party brands. We are in touch with our suppliers – they understand everything perfectly.
Will you be able to maintain the pricing policy or have you already raised your prices?
Since March 3, prices have been increased by 10%, before that we did not raise them and let our customers buy the necessary goods at the old prices, so that they, in turn, could also increase prices for retail buyers in steps and maintain sales. It is important for us that our customers have stable sales.
In the future, we will also raise prices step by step. I recommend all customers to use our price offer!!! It won't last long, unfortunately.
How do consumers react to the current situation, what is happening with demand?
Demand for marketplaces has fallen.
Will a change in the refinancing rate to 20% affect your activity, and how exactly?
No, since 2020 we have prudently closed credit lines and are working on our own funds.
How much do you depend on foreign supplies: electronics, components for cosmetics, etc.?
The increase in purchase prices will affect the price of Le Frivole products, but only partially, because we are a Russian manufacturer, we produce most of the products in Russia and do not expect a proportional increase in wages at production sites. At the same time, the rise in prices for materials purchased in Turkey and China will naturally increase the cost.