November 13, 2018

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INTERVIEW: Alexey Pershin, NAVITEL

by Stuart Wilson, Thursday 10 May 2018

Alexey Pershin, Executive Director at NAVITEL
Alexey Pershin, Executive Director at NAVITEL

NAVITEL will showcase a range of navigation products at this month’s DISTREE Russia tech channel hosted buyer event, opening up new business opportunities within the vast Russian market. The event, which takes place in Moscow from May 30th to June 1st, offers exhibitors a unique opportunity to pre-schedule one-on-one meetings with senior executives from Russia’s top B2C and B2B channel partners. Alexey Pershin, Executive Director at NAVITEL, gave Channel EMEA an update on the company’s plans for this year’s event.

Channel EMEA (CE): What do you want to achieve at DISTREE Russia 2018? What are your key goals for the event?

Alexey Pershin (AP): The key objective of the event for us is to expand our pool of regional partners, which will subsequently increase our local clientele. We also believe that DISTREE Russia provides a unique opportunity to strengthen business ties with our current clients and organise personal meetings with our partners, where we can discuss our future cooperation. This year it is our plan to present our latest devices and establish face-to-face contacts in order to identify the needs of our target audience.

CE: What products and solutions will NAVITEL be showcasing at DISTREE Russia 2018? What do you want resellers and retailers to know about your portfolio?

AP: At the event we are going to introduce our clients to NAVITEL product line, which is comprised of three main categories: navigators, digital video recorders, and tablets. Apart from that, we are presenting the NAVITEL E500 Magnetic navigator and NAVITEL RE900 combo device, which is a fully-fledged video recorder with additional navigating functionality. We are also looking forward to sharing with our colleagues our company strategy and what our future market activities are going to look like.

It is particularly important to let our prospective partners explore the manufacturing process happening at our own industrial plant, that enables us to ensure quality control at every step. We know how to provide the best possible quality of product, since we carry out all the stages independently. Our expertise in product sales in European markets is supported by our number one position in Poland, and we are happy to share the knowhow.

CE: How has NAVITEL’s channel business developed in the past 12 months? What trends have you seen and what have been the highlights for your business?

AP: In the middle of 2017 we decided to enter Russian market with our hardware products. Prior to that, we have successfully launched the project in Eastern Europe, Asia and Latin America. In the course of the past year we have successfully signed contracts with the biggest retailers and resellers and occupied a substantial share of car electronics market.

One can notice two opposing trends in the global market. On the one hand, it is becoming more and more important for companies to provide high-quality user experience, which stretches from interface design to service support. On the other hand, the market is crowded with companies and start-ups aiming to sell their products at a rapid pace, which reflects negatively on their quality. It is of vital importance for us to build long-term relationship with our customers, and to do this we design high-quality devices to suit their needs, implement cutting-edge technologies, control every stage of production and provide full service. Today we are engineering our own software based on Linux, which will allow the user to navigate faster.

CE: Which customer segments and channels represent the greatest opportunity for growth for your company in Russia?

AP: NAVITEL’s key target audience is formed by motorists – our expansive maps, offline navigation and reliability of devices makes our market offer extremely appealing. We are also very involved with car travellers’ community, who prefer to take trips around Russia and abroad independently. Moreover, today more and more car owners are realising the growing necessity of having a digital camera recorder. High-quality footage taken from a dashboard camera will record extraordinary situations on the road and help its owner to defend oneself in case of a road incident. It is worth mentioning, that we offer a range of devices in various price categories, so that every driver can find a perfect budget-friendly gadget.

CE: Why should distributors, resellers and retailers stock and sell your products? What makes your channel proposition better than competitors in the market?

AP: We are one of the few market players that offers full-cycle solutions. We have our own manufacturing plant, our software, cartography department and geodetic service as well as a strong marketing team. We do not delegate any elements of the cycle to contractors, which is why the quality of our products remains excellent.

CE: Do you have a structured channel programme? Do you offer a strong margin proposition to your partners?

AP: We follow the recommended retail price (RRP) very closely and by doing so we ensure strong margin proposition to our partners. When buying our products, the distributors and resellers can rest assured that market prices will be stable, and the profit is guaranteed. Thanks to NAVITEL’s continuous warehouse cycle, our partners are welcome to place either large orders or process small and frequent procurement. This individual approach towards clients’ needs and preferences is possible as a result of our large-scale warehouse facilities in Russia and Europe.

CE: What sort of support do you offer distributors and retailers in terms of marketing, promotions and channel development activities?

AP: NAVITEL offers full-cycle marketing support to our partners. The marketing department is actively involved in drawing up and organising promotional activities, social media marketing, as well as designing unique banners, stickers and stands to suit any request of a client. It should be noted that communication with European market is also supported by our marketing team, with design standards fully matching international ones.

CE: How quickly is your business growing in Russia? What market trends have you identified that are impacting your business segment?

AP: NAVITEL is a brand familiar to Russian clientele – our navigating maps have been long known to our users. In this respect, we have managed to boost hardware sales very rapidly thanks to our sales and procurement department, along with product presence in points of sale.

CE: Is your company channel-friendly? What are your overall channel goals and aims for 2018 in Russia?

AP: It is impossible to overestimate the importance of procurement channel. We are very open in terms of client support – whenever needed, we are happy to engage our manufacturing capacities, to conduct a plethora of marketing activities and to consult merchandisers. We stay in touch with our clients daily, receive feedback from them, process requests and improve constantly.

In 2018 we are planning to expand NAVITEL’s product line. Soon, we are launching an ultra-thin smart-mirror with implemented Wi-Fi and GPS, and a budget-friendly DVR with excellent recording quality. Our strategy in regions is always shaped by market needs and client feedback.

CE: What else should retailers and resellers attending DISTREE Russia 2018 know about NAVITEL and your products?

AP: NAVITEL has been shaping the IT market for 12 years and during that time not only have we gained acknowledgement and positive reputation, but also successfully entered the European market. We have received a number of international awards and our products have won trust due to their high quality. Today NAVITEL is chosen for its developed marketing, service and technical support, and we are always open to suggestions.

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