Today we are going to interview Sergei, the founder of the factory Kazhan
Hello, Sergei
Hello
Sergei, first things first, would you mind if we published this video online later?
Not at all
Sergei, tell us about your factory. How long ago was it founded?
Where are your franchisees from and how successful is the business?
The company was founded in 2007, so we've been working for almost 10 years
We have branches in Russia, Belarus, Ukraine, and Kazakhstan
We also work with wholesale customers from Poland and Latvia
So you've already launched the business in Europe and have dealers there?
No, not dealers, but customers and retailers
We also often attend fairs in Poland and Frankfurt where we offer our goods
So the business is in demand in Europe then?
Is this why you've decided to expand there?
Exactly
Our products are popular among European consumers,
because 80-90% of the merchandise is handmade
Our customers appreciate the quality of our goods
We can produce small batches of goods
So our products aren't mass-produced like the goods made in China or Bangladesh,
It is our competitive advantage
We also don't take long to deliver goods
And what kind of products you offer?
We mostly produce leather goods for the European market:
various wallets, purses, bags and so on
We have over 1000 items for sale
So we offer a wide range of products
Right now we also sell a new type of merchandise - technologically enhanced leather goods
Could you tell us more about that?
I've heard that some of your leather goods are connected to a mobile app
Yes, they are. We've created a line of so-called Smart Leather Goods
These are wallets and keychains connected to a mobile app
Such products are equipped with a bluetooth-tracker
Here, take a look at this wallet
It has a small pocket here
The battery in the tracker lasts 100 days
A person can store their ID, driver's license, money and credit cards in such wallets
If a wallet is lost or left somewhere, their phone app will make an alarming noise...
...warning them that they're more than 50 metres away from the wallet.
And the wallet will make an alarming signal...
...if the owner's phone is left somewhere as well
Let me also tell you about our keychain functions
Let's say you dropped your keys somewhere in a field and can't find them
A map in the app will show you where the keys are and how far you are from them
If you still can't find the keys, you can send a command to the keychain using the app
The keychain will start ringing, which will allow you to find your keys
Also, if you can't find your phone and there's no one who could call you to help you find it,..
...you can press a button on the keychain and the phone will begin ringing
We have an English version of the app for the convenience of our foreign consumers
You can also sign up your friends and relatives to your app,..
...in order to always see where they are
Great! Sergei, I know that your products can be customized
Could you elaborate on that?
All of our outlets are equipped with leather embossing machines as well as a set of fonts
When purchasing a wallet a customer can have it embossed with a customized inscription -
for example, their full name
We will teach our franchisees how to do it
Their employees will be able to apply any font onto a product in 3-5 minutes
It doesn't have to be a customer's name though, does it?
No, it could be any inscription about 20 characters long
I see. Sergei, and what will your dealers receive?
Whoever signs the agreement with us will get thorough technical descriptions of the equipment
These are layouts and blueprints that they'll be able to use...
...to have all the furniture and equipment made in their city by a local company
Our dealers will get a package of goods with $8000 worth of merchandise
The equipment and furniture will take up the space of about 2.5-3 square meters at every branch
The furniture will be made according to our guidelines,..
...with a glass showcase and lifting roller blinds
Apart from the goods, we'll also provide each dealer with a leather embossing machine,..
...a set of fonts and a special frame for font adjustment
The merchandise will include our products equipped with bluetooth-trackers
Our dealers will also get wooden racks for the merchandise
We'll teach franchisees how best to display the goods in the showcase
We'll also translate our sales textbook for shop assistants
You also have a website on the .com domain
You can publish the information about your new dealers there, right?
Yes. We are planning to translate the website into English soon
We'll publish the information about our new partners there
I'd also like to discuss taxes with you
Your partners won't have to pay any for the merchandise, right?
Indeed
First we'll transport the merchandise with the help of our partner from Poland
We'll get customs clearance in Poland
And our partners will receive goods ready for sale
So there'll be no problems with customs
Once we have enough partners we are planning to open a branch in Poland
English-, Polish- and, perhaps, German-speaking managers will work there
They'll be able to assist other dealers
We might also set up a small warehouse...
...where our future customers will be able to order merchandise from using the website
Great! Sergei, isn't it right that dealer training will be provided in English?
And the following dealer support as well?
Yes. We have already arranged that
One of our managers will take care of everything
We're waiting for the sales to start
And then our English-speaking manager will start working with our European dealers
Perect. Sergei, and how fast can your goods be delivered to your dealers?
It will take the very first orders 45 days to be delivered
The process starts with agreement conclusion...
...and involves delivery of our merchandise,..
...including goods equipped with bluetooth-trackers,..
...as well as delivery of leather embossing machines and font sets
We don't produce all of it
We have to order embossing machines elsewhere, so the delivery takes time
And customs clearance is time-consuming as well, isn't it?
Yes, that's why the first delivery takes up to 45 days
Subsequent orders, however, will be done via our website
The invoice will be provided automatically
We'll be able to ship the order out the next day, or even on the day of the order
One more thing, is your brand name Kazhan registered in Europe?
Yes, our copyright works in European countries as well as a few others
We registered the brand 2 years ago
Wonderful. Sergei, thank you very much
It was very interesting to learn about your company
Good luck with your business expansion!
Thank you, goodbye!
Goodbye!
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