The FINANCIAL — GO! Electronics, launched in September 2010 and located in the Tbilisi Central Shopping Mall, has become one of the most popular electronics retail stores in Tbilisi.
The company is managed by James Salvatore, a young entrepreneur from New York, who moved to Georgia 10 years ago, as he says “without any specific plans for business”. Nowadays, Mr. Salvatore and his partners are developing their concept for GO! Electronics – getting everything 100% right. The FINANCIAL spoke with Mr. Salvatore about his company’s concept and plans.
Behind GO! Electronics
“GO! Electronics was founded by my Georgian partner and I. Personally I’m a tech enthusiast. I’ve always been interested in the latest developments in electronics, the latest gadgets and technologies, so the idea of creating a brand which is focused on this sphere was very appealing to me. That this could be a successful business is a conclusion we reached about a year ago after carefully analyzing the market. Of course, finding out about the Tbilisi Central Project was a very important factor for us.”
“The official grand opening of GO! Electronics was on September 20, 2010. Today we only have one store; we’re not rushing into expanding into a chain yet. The first thing we want is to get the concept 100% right in one store before we start thinking about opening new ones. It’s a lot of work.”
Q. What was the first investment made in your business?
A. The first and perhaps most important investment we made in this business was our time. Our aim was to create a new class of consumer electronics store in Georgia, and therefore we put a lot of thought and effort into pinpointing which aspects of the store we wanted to emphasize, which brands and products we wanted to offer. We looked at CE retail in many different countries for ideas. A lot of work went into forming the brand concept and how to differentiate GO! Electronics as a brand.
We also took a long time in recruiting and training staff as we have very specific requirements about the type of person who should work in our store. A lot of investment went into the interior design of the store, renovation of the store space, and of course into the actual inventory.
Q. What kind of challenges did you face while starting business in Georgia?
A. Specifically in regard to GO! Electronics, the greatest challenge was learning the specifics of how the retail business works. Our original company has a lot of experience with distribution, and has been supplying products to most major Georgian retailers for over 10 years. Because of this we thought we knew everything we needed to know about how retail works. Actually we found out quite early on that we still had a lot to learn.
Q. What are the advantages of GO electronics?
A. GO! Electronics combines the assortment and layout of a supermarket-style store with the individual service and consultation of a high-end brand store. We’ve put a lot of thought into making the shopping experience as enjoyable as possible for customers with different needs. For a customer who already knows what he is looking for, and wants to get in and out of the store as quickly as possible, the products have been arranged in the most convenient possible manner so he can pick up what he wants without having to ask a sales consultant. For the customer who wants to take his time and consider all his options before making a choice, not only can he receive expert consultation by our trained specialists, but he can also try out all the hardware in the store as everything is turned on and displayed openly (instead of behind glass as is the case in many stores here).
For us it was very important when choosing our staff to find people who really knew and were interested in the products they would be selling, people who are enthusiasts. This is crucial to the GO! experience. For example, we have consultants in our photo section who are themselves photographers. If you want a camera, who better to receive a consultation from, right? One of our Apple specialists is the founder of a Georgian fan community for Apple … so if you want to know something about Apple, he’s a good person to speak with.
Currently we have 19 people working with us in total, 15 of them as sales consultants working on hourly wages 40 hours a week.
Q. There are other dealers (authorized as well as non-authorized) who sell Apple products in Georgia? How do they affect your sales and do you offer competitive prices compared to them?
A. I think the question should be turned on its head: it’s not how they affect our sales, rather how do we affect their sales. GO! Electronics is a new contender on the market and I’d like to think at the very least we’ve made our competitors a little uncomfortable, especially those dealing solely in gray imports. One thing we knew from the beginning is that if we were going to sell Apple products, we wanted to do it officially. It was a long process; it took a lot of investment and negotiation, but GO! Electronics was able to obtain the status of Apple Authorized Reseller. This is something we are very proud of. There are only two companies (including us) with this status, the other being Hamaki.
Sure, anyone can put an Apple logo or iPhone on their store facade … but being able to offer the quality of service needed for authorization is quite a different matter. A customer who buys an Apple product from GO! Electronics has peace of mind and knows that he will receive the best possible support before, during and after sales; he also knows that there will be no issues with warranty. Concerning pricing, we are actually quite competitive truth be told.
Q. How would you evaluate the market of electronics in Georgia? What is the share of GO! Electronics in Tbilisi’s electronics market?
A. GO! Electronics has only been open for a few months and only has one store, therefore it really does not make sense to discuss market share. I will say however that we have unquestionably the best consumer electronics store in Georgia. In the end we are a quality orientated company, so that suits us well.
Q. What are the products which aren’t offered by other companies elsewhere in Georgia?
A. It’s hard to say. To be honest, I don’t think this is important. What is important is that no other store can match the range of products we sell. We’ve created a one-stop consumer electronics shopping experience that our competitors can’t come close to. For every hardware product we sell, we offer a comprehensive assortment of appropriate accessory products and services.
Q. Tell us about the Mac market in Georgia. Does it have good perspective?
A. I think Macs are growing in popularity in Georgia. Of course, pricing is still a restriction for many people. Macs require a relatively large investment up front. In time I think the investment pays off, in terms of functionality and longevity, but for many people it is still difficult to pay so much in advance when they can get a Windows or Linux based computer with similar specs for half the price.
Q. How does the distribution of Apple products work. For example when the latest model of Macinstosh is issued how long does it take to get to the Georgian market?
A. It really depends on the popularity of the product. New Apple products are usually in high demand when first released. There are usually stock constraints. Most stock goes to markets much larger and of greater strategic interest than Georgia. We usually have to wait a few months unfortunately.
We work with the EU HQ and warehouse for all Mac, iPod and Apple-brand peripherals. So Apple manufactures products in China then they are shipped to the EU warehouse, and from there to us in Georgia.
Q. How many iPhones and iPads do you sell monthly?
A. We actually just recently started selling iPhones and iPads; I don’t think a month has gone by yet. In any case, our first shipment of iPads, around 50 pcs, sold out almost immediately. We just received a new shipment recently so we’ll see how sales go. Obviously we need a few months before we have anything resembling a statistic.
Interestingly enough, iPhone and iPad are not really a priority for us. We stock them due to demand, to be competitive and because we can offer good pricing. Apple does not officially sell either of these products to Georgia yet, so we need to go through different channels.
Q. Do you think that customers of GO! Electronics are well aware about Mac products?
A. It varies from customer to customer. Of course there are customers who are already Mac enthusiasts and come to our store because of our pricing, the assortment of Mac products and accessories we stock, and to chat about all things Mac with our like-minded staff; other customers come to the store, having heard about Mac and wanting to learn more, in which case we are more than happy to answer their questions and demonstrate the products; and then there are customers who have no idea what a Mac is, and in some cases don’t even care to find out.
Q. You’ve already been in Georgia for 10 years? Tell us how have you integrated with Georgian society? Also please tell us about your education and work experience.
A. I didn’t have any issues integrating with Georgian society. I was lucky enough to make a lot of friends when I got here, including my future business partner. I studied Russian in NY. After I finished college, I moved to Moscow and worked there for about a year. I came to Georgia pretty much on a whim, without any specific plans (which you can do when you’re still in your early 20s). One thing led to another, and I ended up in business.
One thing about the Georgian market you need to realize, and this was especially true 10 years ago, is that there is tremendous potential to create something new. The market is still developing, not much is set in stone. It’s a good place to be an innovator. That is one of the things that really motivate me.
After my coming to Georgia I started working for a distribution company, which supplies CE accessory products to a good percentage of the Georgian retail market. I’m still involved in that company today.
Q. How would you compare the local Georgian market to that in NY? How different is the shopping behaviour of people in Tbilisi and New York?
A. I wouldn’t. The differences are just too many. The main fact to consider is that people in NY have more of a disposable income, especially young people. Most people in Georgia can’t afford to be so impulsive. That really affects the dynamics of the retail market.
Q. How many types of electronics are sold at GO! Electronics?
A. We sell mainly IT (computer), photo (compact and professional), mobile and audio/video products, both hardware and accessories.
All products have a minimum one year warranty.
Q. Tell us about your internet strategy, we saw you have a lot of fans on facebook. Do you think that the internet community is something that can make you a leader on the local market?
A. We’ve been active on facebook from the very beginning, even before the store was open. It is a great medium for interacting with your customers both before and after they enter your store. We were the first consumer electronics store in Georgia to really use this medium, though recently others have started to follow our example. We’ve got a lot of plans in 2011 concerning our presence online and with social networking. We’re starting to actively use tools like Twitter and Foursquare and have some interesting plans for our own website.
Q. Are you going to offer products for sale online?
We’re not yet planning to have an online store. I think the strength of our brand is best experienced by coming to our store, taking in the atmosphere and socializing with our consultants. You lose all that with an online store.
Q. What are the newest products at GO! Electronics? Tell us about ongoing promo campaigns, sales, etc…
A. There’s too many to list, better to check our website – www.goelectronics.ge – and click on the GO 2 GO! Promotion link. Also, if you “like” us on facebook (ID: GOelectronics) you’ll always be up-to-date on what’s new or on sale in our store.
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