The project is a franchise project, and it immediately stands out for its scale. The area of the store exceeds 700 square meters. The investment is over 1 million euros, not including the merchandise filling. This is a high entry threshold for Moldovan retail. It shows the level of the brand’s requirements and the seriousness of the investor’s intentions.
According to Iurie Caluja, the director of VFUA Trading, the company that obtained the franchise rights, the key difference is the format itself. Factory Outlet has nothing in common with a classic outlet in the local sense. It is not a warehouse of leftovers and not a sale of the latest sizes. These are separate collections that are initially created for this sales channel.
“The basis of the assortment is made up of basic products, so-called “carry-over” models. Such goods practically do not change for years: classic T-shirts, recognizable sneakers, proven silhouettes. It is due to the absence of costs for redesigning collections and marketing that a lower price level is maintained. So the economics are simple: fewer changes, lower production costs, more affordable price. At the same time, the brand does not lose its recognizability. For the consumer, this means a clear offer – original Adidas at a price lower than classic retail”.
Adidas controls everything
Another difference of the project is in the model of cooperation with the brand itself. In Moldova, there are traditional partner stores, where the local operator receives only the right to use the brand, subject to certain standards. In this case we are talking about a deeper integration. According to Iurie Caluja, the store was designed directly by the Adidas team: architecture, design, equipment – all this is controlled and implemented with the participation of brand specialists. They are also involved in the management of the store.
The assortment is also formed centrally. The structure of collections, price and even the display of goods are determined by the global team. The Moldovan operator performs only an operational function, ensuring the realization of the strategy on the local market, but it does not form it itself. This approach is typical for the largest international chains and has not been practiced in Moldova before. Here, most franchises are realized in a more simplified format.
The reason for the expansion in Chisinau is the global changes within Adidas. The company went through a stage of transformation, including a change of management and a revision of regional priorities. Geopolitical events had a great impact, in particular the withdrawal from the Russian market, which played a significant role in the sales structure. This led to the redistribution of management centers and entry into other regions, including Eastern Europe.
As a result, Adidas began to look more actively for new growth points and formats of presence. Moldova, despite its small market, became one of such sites. The brand representatives analyzed the trade infrastructure and consumption potential, after which they decided to launch a chain of stores.
“Port Mall will be the first point of entry, but the strategy implies further expansion,” said Iurie Caluja. – In the long term, the possibility of launching several stores in Chisinau is being considered, including specialized formats such as children’s stores or the Originals concept focused on the lifestyle segment”.
Entering the corporate segment
There are also plans to develop B2B or corporate sales. The contract provides an opportunity to work with sports organizations in the country. In particular, negotiations are underway with the Olympic Committee on cooperation in supplying outfits for the national team. This format implies standardized solutions, where basic models are unified and differences between countries are limited only to color solutions and national symbols.
The market of sports clubs is also considered. In Moldova it is still poorly structured and is represented mainly by budget brands. The entry of Adidas into this niche may change the structure of demand and increase quality requirements.
The bet is also made on participation in local sports events. VFUA Trading has been a partner of marathons and other events for a long time, which allows to strengthen communication with the active audience and promote products more effectively.
“We focus on the widest possible coverage,” emphasized Iurie Caluja. – Adidas is traditionally positioned as a mass brand with high recognizability, and in Moldova this strategy is maintained. We are sure that our project will also influence the fight against counterfeiting. Today counterfeits are sold at a price comparable to the original, and the new magizin will change this ratio. Original products are becoming more affordable, and this may pull part of the demand to the legal segment”.
Retail by European standards
Thus, the launch of Adidas Factory Outlet in Chisinau is not just another stage in the history of the brand, it is an indicator of changes in the market. Moldova is gradually pulling up to European standards of retail: new formats are appearing, investments and quality requirements are growing, competition is intensifying. The market is becoming more structured and the country is making another step towards Europe. Not declaratively, but at the level of concrete consumer experience: stores look the same as in European outlet stores, the assortment is formed according to the same principles, management is carried out according to the same standards.
For the consumer this means choice, for business – new rules, and for the market – the next stage of development.
