Innovation

In the interview with the CEO we found out that Lumma Store seeks to enter the international market, that is why the company tries to correlate current activities with sustainable development goals. Every year the managers were looking for the ways to reduce in order to decrease price for the end consumer. The company takes care of its personal brand and tries to establish itself as a company with the lowest prices.

All Lumma Store retail stores are built with eco-friendly materials. This is the same standard for all Lumma Stores, as the company is committed to protecting the environment. Innovative Customer Relationship Management (CRM) systems are installed inside each store. It allows the store to reduce time for servicing one customer without losing quality. The company also takes care of the infrastructure. All its stores look very modern and have additional amenities, such as coffee to go and sandwiches. Lumma Store is a dynamically growing network that takes care of its employees by offering them the best working conditions in the market. Geographical expansion in the market is one of the main long term goals. Thus, the company creates more and more new vacancies and reduces the unemployment rate in the region.

Inspiration

Initially, the crucial idea of creating the Lumma Store was the desire to make mobile devices accessible to all social classes. The founder did not want to come to terms with the oligopoly and the monopoly on the mobile device market. Most large companies selling mobile devices agree on a price in advance. Unlike them, Lumma Store sets the best prices on the market and provides their customers the ability to pay in installments. This was made possible through an innovative logistics system that allows the company to set lower prices and make mobile devices accessible for everyone.

Overall impact

The first Lumma Store electronics store opened in 2011. At this time, there were very few offers of mobile phones and accessories at affordable prices. But now there is a wide diversity of Lumma Store’s products. Lumma Store has expanded from one to seven stores in Perm. The company contributed to the Perm market because it provides an enormous choice and low prices at the same time. This is the main reason of increasing popularity. It is necessary to mention that the company cares about the society. It sells not only quality goods at the lowest prices, but also provides career opportunities for their employees.

Business benefit

Business benefits might be considered from different angles. Employees are benefited by a decent salary on time, opportunities for climbing the career ladder and safe working conditions. Moreover, the company has their own motivation system, which inspires employees to work diligently. So the company offers a job that meets all the requirements of the employees. Undoubtedly, employers are benefiting from the business too. They gain high profits and opportunities to take part in webinars and professional courses. Employers save plenty of resources due to loyalty of their workers. To be more precise, it reduces the cost of searching for and training new staff members. All in all, both employers and employees grow and develop because they feel their value in the company. Treating employees well and keeping the company's core values as the basis of their decision-making - this is one of the secrets of the company.

Social and environmental benefit

Society benefits from quality goods at the lowest prices and vacant places on the labor market. The business idea is to sell to people who care about their budget and do not want to overpay. It allows them to save their funds. That is why the company sets prices that benefit people. Furthermore, this policy reduces inequalities in society because all population might afford to buy modern mobile devices and accessories. Thanks to the franchise, the company has an opportunity to open Lumma stores in other cities.

Environmental benefits from the business are due to several factors. Firstly, as it was mentioned before, all retail stores are built with ecologically pure materials. Secondly, the company saves energy consumption by turning off all electronics when they are not in use. Thirdly, Lumma Store’s production is responsible. Managers are trying to minimize adverse impacts on human health and environment by setting the strict production frameworks.

To draw the conclusion, the innovation benefits business, society and the environment. Lumma Store puts all efforts in to achieve these three UN SD Goals: Decent Work and Economic Growth, Reduced Inequalities, and Responsible Consumption and Production.

Interview

Permyakov V.V., the head of the company