Kotofey intends to develop a distribution network. Discussion of this topic was the main purpose of the meeting that took place on May 29, 2012 between the management of Egorievsk-Obuv and the distributors Mila - wholesale footwear and Vizavi. The participants emphasized the importance of the development of the distribution link as a tool to increase the production and sales of Kotofey TM children's footwear. During the discussion, the problem of work of suppliers simultaneously through two distribution channels was highlighted and the impossibility of combining direct sales with the development of a distribution network was noted.
Additionally, the issues of promoting Kotofey branded stores, a system of discounts and markups as a motivating tool to increase sales and create competition among distributors were considered.
Mila noted that promotion of branded stores through advertising campaigns is a very important moment, however, expanding support by providing additional preferences in the form of discounts when purchasing goods infringes upon the interests of other multi-brand stores, which offer Kotofey TM children's shoes. In this regard, the Ural wholesaler proposed a solution to introduce franchise payments to representatives of branded stores. At the same time, as the main priority for the development of TM "Kotofey", the meeting participants focused on the level of services of regional distributors, including the breadth and complexity of the assortment, reliability, reduced logistics costs and deadlines for completing applications, high-quality information support for wholesale buyers of children's shoes, and much other.