tv [untitled] August 23, 2012 1:30am-2:00am EDT
and again this is the headline. european unity is put to the test as caution child greensburg's for breathing space needing e.u. leaders deeply split on whether to show mercy. civil breaks across borders a syria's neighbors feel the hate lebanon as among the worst affected with over a dozen killed in former clashes. and how the deadly trend of i'm good forces turning their weapons against nato troops helping to train them is i didn't get in the challengers to the country's dreams of the. spotlight with no just a with this. hello
again oh welcome to the spotlight. on our team. today my guest is. costs american papers recently. opened a store in moscow but the news was not about moscow russia but about another city. in the u.s. . what is true is that wal-mart really spent two years trying to enter the russian market before its managers finally gave up wal-mart's first attempt to conquer russia failed they decided to leave but they took with them left the former head of
russia's largest retailer and it's for the first time that it. has been hard to run a multi national cup so why did wal-mart choose a. we're asking the new wal-mart senior vice president and chief leverage. live crosses is one of the most successful and best known managers in russia has worked in the retail business for about twenty years and used to hand russia's largest retailer before leaving for america when wal-mart trying to enter the russian market kompany was among its most possible targets the attempt was unsuccessful but shortly after closing its moscow office wal-mart left a top manager position in its international. operations division and offer classes just couldn't.
holistic as it's welcome to the show thank you and very much i welcome to moscow by the way you're not a frequent guest though in this city yeah. what the motives while we talk about the intrigue later but well i just said that you got that proposal you admitted it and went to the states what was the motive for you to see yes to bomb right now it's an amazing experience because what i want is not just the largest company in the world it's from my point of view the company who serves for great purpose it's the largest company in the world i mean among all companies existing in the world you're exactly right. it's interesting that in case wal-mart is not the company but the country it will be a nineteenth largest economy in the world so those bigger than what i went coca-cola. according to their revenue much bigger than anybody else
and for profit for example people. easier to understand the scale of the company their budget of the company for this year is about ten or fifteen percent larger than the budget of russian federation because that is a motive to go to for a fight and sheer amount imperato work for the radio but i'm going to main idea was true. during the company who serve for great purpose because saving people money so they can live better it's really. the topic which motivate a lot of manager so for me to work with listen and your position you're the senior vice president just so so you so you're among among five among ten among fifteen top managers i'm reporting on who is the c.e.o. or president of the moment international. reporting tool might do coups this.
so so so so you're the third in the chain of command and you're among like i'll turn over among fifty top managers of you say. it's very hard to criticize a. company risk you're going to finish two point two million associates around the world so largest private employer in the world. six months ago when you were still working in russia did you see this job was there any intrigue behind this nomination or you just came out of the blue just a crisis coworkers you know i was invited by my group who is this your four months and he asked me left what if we invite you to join us and why not. it's more friends at work. business partners of business partners or friends or you knew each other with media we. had. opportunity to meet each other
about five years ago so all we know each other and. he knows me so he just thought that you're right for the job yeah listen what's your top priority and warmer as as one of the top measures does the company need change is this why they invited you or they want to preserve it. the company is changing quickly because the world is changing quickly and my top priority this year is to develop our business in countries like brazil china to develop our relationship with global suppliers it's also my responsibility and we have always about ninety thousand suppliers and with one hundred of them we have about fifty percent of our business and i guess our partnership with such company can be much better than it is today. you never spent. lots time abroad i mean me
you you mostly lived in your own country now five months in bentonville arkansas is like different there from life in moscow completely different especially if. it's much different because here in moscow usually i spent about five to six hours a day in traffic jams. in bentonville five minutes from home i can use a bicycle. it's a completely different environment and it's a very good place to work and then very busy saw. it's convenient place we've got a low cost of life we practically every think you need for your life. you're listening to people like you. cure about the cost of life. i mean. you know company like wal-mart is successful because thinking about cost very much core save in korea because trying to save people money so they can live better
their main. tool for this to control our costs and that it should be on the d.n.a. it's should be part of your junaid should be something like you thinking about it on the work well you shouldn't have this in your d.n.a. because because the russian russians are different in this lesson by the way russians are very in the style gee christian people they they get homesick very soon when they go abroad but it is a fact with me most of my friends but but you know different for sure have missed my friends i have but you need to talk with him by skype by forn but for sure i have missed a lot of them. now i am for a couple of days in moscow or soy had a great opportunity to. so very much excited to see him again you are rich i mean you are rich to an extent when you can change your environment and
make it well comfortable for yourself wherever you are you can have a bicycle i mean let's say these whatever where whatever you like but. is it is there still a big difference. for a businessman of your scale living here or living in arkansas. ok you mentioned i can buy measures. ok i bought national archives i can tell you that same car in moscow two times more expensive i don't know what is the reason for this but it's a reality check and probably the tax tax on i think also their strategy of big brands to sell products in russia most bands of them and some are in marcus saw. structural fewer expenses completely different in arkansas then in moscow for sure . the way a supermarket functions in moscow and in the united states in russia
in the states is a completely different or is it more or less the same i mean if it is your business for merely all you have to learn then. new things the business itself is the same where selling. merchandise where selling food and the way how are doing because for sure different and the warm winter is very famous for their everyday low cost and everyday low price strategy and as far as a non non off russian retailer she was destructive is it really is a true you know level of sales and discounts and warm we have some time to load the night lights are so low that you know it's not a legend to that we have something but it's not a short sale actions like stores of our competitors just a couple of weeks of one day were just normal to have something very with that a lot prize but that's only for a couple of hours. in medium. long for rollbacks problems
ninety days and it's completely different still more cost approach and provide sole customers great experience to buy much in days with extremely low prices your ex five retail group it posted its first drop in sales since its creation in two thousand and six this year are you connecting it with your departure from from the company. i think a lot of different factors and. probably. not just my departure a lot of the managers of the company now working in other companies but same time i think it's five. build for ever was built for and i guess within the next few quarters company will deliver but you're better off but you do no secret i mean if you yourself admit that your departure from the company really cost did it didn't you know since the moment they joined wal-mart the stock performance jumped to
twenty percent or is a problem just bring to the company somewhat so you should know a secret. you should know so you're going to get its own study done and secret. the secret is very simple you should think for the benefit of customers not for the benefit of your business and then your customer skep your business will be very successful. well is it true or do you really believe that absolutely because they're only the reason we're in business is our customers and their plane cost celery their brain because once was not the owners but this is not the way business is done in russia in europe in russia they first of all think about about making money and then maybe making somebody happy maybe not i'm much better about russian business than you. so any change i suppose is changing and the progress we hear from russian business is premature and for the last few
years russian little companies have been basing their way which western companies spend ages says left cassie senior vice president at wal-mart spotlight will be back shortly after the break so stay where you are. wealthy british stock. markets. find out what's really happening to the global economy. there are no holds. headlines kaiser report.
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and i do and this is only natural you see russian business is changing and really becoming more like what you can witness elsewhere in the world is that true is does that mean that that russia is catching up very quickly because it's only been twenty years of experience for guys like you and you already catching up first of all even less than twenty years of the progress again it's amazing to hear a lot of public companies in the retail industry in russia. credit in the london stock exchange or on russian stock exchanges and that the company is. learning how to make business where way with transparency of accounting with more focus on the interest of customers and again it's a huge gap of russian retail and what you can find in very well developed countries but this distances. decreasing where europe. well
we have already mentioned that retail in russia is living through hard times in europe too. what about america you said your. your benefits are rising i mean walmart but. the overall situation with retail what is it in the states. is it problematic or first of all we can see probably in the future some. technical changes with development of e-commerce and i suppose starting in. a few years ago or just fear of now we can see in a couple years or probably in ten years completely different environment completely different landscape of retail based on commerce technologists and wal-mart is. getting things through the net but people are going to do that. first of all you don't need to have many case physical stores because you have access to millions of
a scale on the waltons from your smart phone and the question who is better service provider for you giving you better. quality of products but if you actually start doing the transportation will you have to build so you will not be building a retail instead you will be building and time new system of transportation in the city and logistic of you know just excited i mean a little bigger because you can have millions of small small little cars were rushing all around the town i mean this will be a nightmare absolutely and. same time the excess of customer information the transparency of pricing it's changing very quickly and now customers are not exactly any customer knows exactly what is the price for this product in different stores and can choose the store with the best price for the same product when we started this interview you started by saying wal-mart is the largest company in the
world but i i doubt that that more than ten percent of russian russians would even know this name in the world well they know millions of brands they would know the not this one this is because wal-mart has never really been in russia they could only see it in american movies you try to be not you but before you were. tried to enter the russian market but it was a flop why why didn't it happen i think it wasn't right it was the wrong time it was like through three five years ago yeah but it's interesting that in a museum or for some author mental you can find a memoir signed by sam walton there international priorities and number one priority as he mentioned was russia and the engine china was laure one day i am absolutely sure what should be in russia but i don't think it will be in. short term perspective like one or two years. delayed for a or even south. left
a member never never trying to get that or don't do that again. was this memo about their priorities where a company should be broadly russia is not just what just in europe council market but also potentially important place to source product so i suppose we should be able rate and units of to source products from russia non-food and food which you can sell it on the world in our stores well let's take a look at what exactly makes russia's retail industry so special in reported by spotlights even those in the. capital came to russia bringing two shelves hyperinflation wage delays and of the gun the standing o. what to do about the us open borders and in one thousand nine hundred ninety two presidential decree on freedom of trade suggested one of possible solutions to
survive teachers and doctors plumbers and miners people of all walks of life turn to commerce they themselves had to discover the basics of market economy they had never been taught then came the privatization state and of prizes including shops were mostly bought out by their own management. and things were easier for those who at the time got a piece of the natural resources pie but to wash up hohner success wasn't granted competition was high and one had to think of but only just sticks and sound strategy is to gain profit and just when the russian fledgling retail industry began showing steady growth the country's default of nine hundred ninety eight game is a blow one positive thing about it was it just won't be coming up big international players to the russian market and give time for the country's own retailers to grow stronger the basically had to bridge a huge gap in the u.s.
the old wal-mart started in the ninety's sixty's well in russia similar hypermarkets started nearly half a century later in two thousand and six russia's retail industry witnessed a merger of two jaimee chains to form the biggest player on the market up until now the x. five retailer who by two thousand and eight russia's retail industry got strong enough to withstand the global economic downturn and although some big foreign players like on natural have been steadily expanding in russia the country's all we'd a less account for ally just segment of the market and that's set to hold ground. here so that you try turned me a. wall or try to turn to russian market it was the wrong time but all shot they were just been i care pretty pretty successful there actually they were it i mean
and whole russian life not only on the market why why what the more successful but was the difference first of all a shock and i keer interest to the market about ten twelve years ago i was a early having year in market was completely straight and listen you twitted recently that practically all you. colleagues would like to work in rush is that true is that what they tell you absolutely why do they explain that. because they like it because they like caviar and i mean because it means that market. prices the retail prices in this market huge. wal-mart can dramatically improve the level of quality of life of russian people that that same products same mission cheaper and to serve our show so so he was so so your american colleagues want to come here with more is part of the wal-mart
absolutely not by their own i see it is that they want to produce us out there that they're dreaming to be one day here with the whole war much opportunities to make business as a matter of fact you mentioned that you live in arkansas. that is after this arkansas in many most of the companies around there are facilities dealing with international sales but in europe i mean america but most of what why don't you have a huge office in your b. you know you could i mean live and work there it will be easier first of all we're trying to be very efficient and we don't like huge officer toll here for office responsible for canada europe and africa. based in london and its people. counts only five percent. only five persons responsible for running the business in all the surgery just because any
staff any bureaucrats cost money our customers should pay for this and would not like it especially bureaucrats like you make us a lot of money last question i have roads in the news that the russian companies are a good trade and national is planning to open a chain of supermarkets in the united states when you think about it i think it's very. challenge they're trying to show you the madness over it but. i don't think it's yours same time if it's serious. it would be hard for them to have a really great success but same time nor in their specific person who is behind all this they potentially can be successful you think potentially the potential of there is a chance to be successful in this project well and i know i know what this shows is to try to get you to work for them in the states thank you thank you that was that was left prasad senior vice president at walmart and that's it for now from all of
us here if you want to add your sam's club might have someone to mind if you think i should me next time you drop me a line of calgary not adam harvey t.v. dot i really am let's keep the show interactive we will be back with more until then stay on our team and take. thank you. would be so much brighter if you mean a newly balanced song from the finest impression of these. movies for a start on t.v. dot com.
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