Caspian Energy (CE): What are the main areas of activity of ANC GROUP? In which areas has the Company managed to succeed?
Jalal Balakishiyev, Managing Partner, ANC GROUP: We have been mainly engaged in retail trade presented by a Rahat supermarket chain. We laid a cornerstone of our activity in May 2009 with opening of the first supermarket at Sumgayit highway. We have been gradually extending our network. So far, we have opened 12 branches. The number of supermarkets will have exceeded 20 by the end of this year.
We intend to develop similar business in the regions of the country. Several areas have already been selected to develop retail network of Rahat Market in the regions of the country.
The major goal of the supermarkets is to provide customers with healthy and safe food as well as other consumable products.
The Company has worked out a strategic development plan. Our development is directly coupled with human resources. Our team has already gained big experience and we will keep working to enhance our service quality. Rapid development of the non-oil sector of Azerbaijan as well as the state support have certainly played a significant role in our business improvement.
As a result, in 2015 Rahat Market won an international prize “Caspian Energy Award” in the following category: “Supermarket Chain of the Year”.
CE: How do you evaluate the activity of the network in terms of the retail trade?
Jalal Balakishiyev: Just like all parties engaged in business, we also experienced failures related to strategy, location and pricing policy. But as I have mentioned, we gained experience, put a good team together, which I think set us on the right path.
We continue developing our business, training our personnel and increasing an assortment of products. We have not changed the price after the devaluation of the national currency and our plans are to maintain previous prices in our supermarkets. So, it means that we also have our pricing policy finalized.
We are actively involved in social networks where we receive lots of pleasant comments and proposals including those for opening new supermarkets in certain parts of the city where we haven’t been represented yet. People came to love Rahat Market sales network. It is not achieved by chance. We try to be sincere and honest with our consumers. As you know, news about machinations, observed in different supermarkets, hits the headlines very often. There are many complaints regarding the expiry date of products as well as the disparity in the checkout point and shelf prices. I find this to be a technical problem. For instance, we have adhered to solely right principles from the very beginning and reduced occurrence of such blunders to minimum.
I always note that we have no intentions to change our policy. We intend to improve our service as high as possible and watch over the quality of products. For instance, we used to do a checkup work on our own before, while now we have agreements with several external bodies which inspect our activity on basis of the abovementioned parameters. In certain cases a supplier raises a price. We make the price change in the data base while the process of changing price tags on the shelf lags behind. Sometimes on contrary the price falls down. We fix the change in the system while an old price tag still remains on the shelf. It is possible to lose a client in both cases because of misunderstanding. Therefore, we try to be very careful with all these aspects. These technical problems occur by accident and nobody causes them on purpose.
CE: Do you plan to offer consumers anything new?
Jalal Balakishiyev: We are now working over an online-sales project. The website will be launched soon and enable customers to save time. We are considering two types of products delivery. In the first case, a package of goods will wait for clients who can take it passing by our supermarkets. In the second case, the online purchase will be delivered to an apartment by a courier. We are also considering two options of payment – on spot payment when getting an order or online payment via payment systems.
CE: You have mentioned an important issue that is of interest to the citizens. How did you manage to maintain prices after devaluation of the national currency?
Jalal Balakishiyev: The devaluation turned out an unpleasant moment for all people. But, as President of Azerbaijan Ilham Aliyev noted, manat had equaled to dollar initially and now it just has returned to the old rates. We have forgotten about it. At that moment we clearly realized that certain groups would take advantage of the agiotage. We heard on the grapevine that some supermarkets are getting closed, some have their shelves emptied by customers and some are changing prices. We have promptly announced our strategy in the social networks in order to relieve out clients and make them sure that there will be no price increase in our stores. We continued maintaining old prices and faced the pressure of certain suppliers. The suppliers started presenting new conditions as soon as the problem arose. We took appropriate measures against such people and there were even companies that we refused to accept products from in order not to sell them under higher prices. I.e. we set the goal to maintain the price. I think that many markets followed us in this issue and changed their strategy. We were supported by the government agencies. The state entered into a dialogue with importers. A hot line was opened. We all stuck together in order to hold prices at the previous level. Governmental bodies lent us big support in this issue. Apart from this, we worked out alternative versions in order to maintain present prices regardless of the new conditions of suppliers.
CE: What is the main difference between Rahat Market and other chains?
Jalal Balakishiyev: Rahat Market does not trade with alcohol beverages and products containing pork. We think that our nation must be healthy. Our managers have a list of unhealthy additives. When accepting certain products, they undergo thorough checkup before placing them on our shelves. It refers to all new products that suppliers offer us. We demand certificates and have particular requirements to GMO.
I find it to be a very responsible sphere since we deal with food products and everyone running trade business must take full responsibility even for every last detail.
CE: How favourable are business doing conditions in retail trade?
Jalal Balakishiyev: All entities have an opportunity to develop and make investments. The head of Azerbaijan state has repeatedly emphasized in his speeches the importance of attracting both foreign investors and our compatriots who have earned their capital abroad. I think there are very favorable conditions created in Azerbaijan for running business, and I hope that the state will provide much broader support for the development of the private sector.
