German lessons

In 2017, when Irina Solovyova took office as executive director of the Vipservice holding, the shareholders asked her what areas of development she sees for the future. "I dream of Vipservice becoming a global company", she answered.

The dream is beginning to come true. In january 2019, the holding set up an office in berlin and is preparing to launch active sales of transportation and related services through Portbilet in germany. From this location, Vipservice will spread its influence on the markets of Western and Eastern Europe.

From consolidation to expansion
The planet is becoming "smaller":  technology is making it easy to communicate, the barriers between people, businesses and countries are disappearing. There is a great opportunity to develop and enter new markets. That is what inspires the team of Vipservice today.

Over the past five years, we have followed a consolidation strategy which has made us stronger, smarter and more resourceful. The desire to expand beyond the domestic market grew as the number of customers from other countries grew. In other words, our consolidation gradually transitioned into a strategy for entering new markets. This is typically called expansion.

Honestly though, I don't like that word – it has unnecessary connotations of aggression. I prefer the wonderful word "journey". Of course, all the great travelers undertook these journeys in the pursuit of gold and spices, but the memory that remains of them is one of discovering new lands. As for the Vipservice Holding, we go for new clients and money as well, but this is not the only reason why we are going to this big and difficult journey.

Luggage for the world tour
No travel is possible without preparation, especially if we are eyeing a tour of the world; there are things and supplies and to be packed. In our case this means the knowledge and experience gained as a result of working with clients in the markets where we want to develop further. Over the past two years we have packed a lot of "bags"!

Of course, this is an allegory, but at the end of 2018 we realised that we are doing business with representatives from more than 10 countries: Azerbaijan, Armenia, Belarus, Germany, Georgia, Iran, Kazakhstan, Kyrgyzstan, China, Uzbekistan and Japan

We don't have any representative offices in these markets. All the customers are serviced by Moscow team; however, our "Portbilet" system has already been operating in different languages, such as Russian and English, and now it will also be in German. When entering new markets, we have identified two important points. First: start with the study of the new business environment. Second: respect this environment, talk to the local client "in his language".

That is why every time when targeting a particular market, we first research it thoroughly: we assess the potential volume, key players and suppliers, the share of global and local distribution systems, the presence and volume of Russian ethnic traffic. Usually, such study takes several months, and as a result, a business plan is drawn up and the team meets with key market players, trying to make sure that the unique offer we have formed would truly be relevant for them.

Hello Germany
When you serve clients in another country remotely, even if you understand the local specifics and adapt the technologies and commercial policy, you are still not a resident. You are present in the market, but you do not make full use of the existing opportunities and you do not face all the related risks.

Now, we have made a very responsible step: we set up our first foreign office in Berlin. We consider Germany to be a market from which we can develop further in Western and Eastern Europe. And this is the first stage of our great journey. When you have already packed your bags and left the house, you feel the fresh wind, which can be cold and sting, but there is no way back.
Digression Why is travel not only interesting, but also useful? Because it makes people more tolerant. Some day or other they realise that all people, despite all their external differences, are very similar deep down: they pray to different gods, but ask for the same things – for daily bread, for the well-being of their children and for no war.

We see how the journey has already enriched us: we begin developing the habit that is inherent to any international company – thinking in different countries, taking into account and respecting the local specifics of each market. To work effectively with the local personnel, HR pored over the labour legislation of Germany and compared it with the Russian one. They figured out the local public holidays calendar, which does not coincide with the Russian calender. Taking this calendar into account makes it possible to plan more effectively the tasks for the Russian-German working groups. Comparing Russian and German features not only makes it possible to gain new knowledge, but to be better fitting partners for the Germans. "Comfortable" means respecting the difference in mentalities and anticipating the problems that could emerge from this difference.

Of course, the German office is not very big yet, but it is very important for the group. Today, we are developing habits that will be extremely useful tomorrow. We are creating an effective strategy for entering the new market as a resident, and we are striving to be a respected member of this business community which is new for us. Vipservice is a large company in Russia with many obligations to customers, so we must also bear this responsibility in the new markets.

I hope that in three or five years there will be more "hearts" of Vipservice on the globe. But so far the first journey has been a source of great inspiration for the entire team!