Struggling Russian Mothers in Hungary: Unreal Expectations and Instructions from Management
After announcing plans to open the first Russian Mere shop in Budapest in H2 2024, it seems that the chain is struggling to make it happen. The Russian and Belarusian management of the company have set unreal expectations and are unwilling to invest much into kicking off the chain in Hungary. Despite success in other countries, such as Lithuania and Romania, Hungarians may have to wait a bit longer to shop at a Mere store.
Russian Mere already has four companies registered in Hungary, with the basic concept of offering roughly 20% cheaper prices in exchange for a more store-like shopping experience. However, they are facing challenges in the Hungarian market. The company operates on a franchise model, with separate teams managing stores under the same name. However, communication and cooperation between these teams are limited.
One of the main issues hindering the opening of Mere stores in Hungary is the difference in business practices between Russia and Hungary. In Russia, shops have a grace period to prove profitability, allowing them to terminate rental contracts if needed. This model does not align with the requirements in Hungary, where deposits and long-term contracts are the norm.
Furthermore, suppliers in Hungary are not accustomed to the payment model proposed by Russian Mere, which involves only paying for sold goods and having suppliers transport products to stores. This discrepancy in business practices has led to difficulties in finding suitable suppliers.
Despite warnings and suggestions to adapt the business model to the Hungarian market, Mere management seems determined to proceed as planned. This has resulted in tensions within the company, leading to employee turnover and dismissals. The company is currently working on acquiring permits to start operations in Hungary, but the road to opening their first store in the country is proving to be a challenging one.
