МТS DEVELOPS ITS MONOBRAND RETAIL NETWORK IN MOSCOW BASED ON BIG DATA

Tuesday, October 04, 2016

Moscow, Russian Federation – PJSC MTS (NYSE: MBT; MOEX: MTSS), the leading telecommunications operator in Russia, announces the launch of a pilot project to utilize an impersonal analysis of high volumes of data for the development of its monobrand retail networks.  

By the end of 2016, MTS intends to open 10 monobrand retail outlets in Moscow, and the company will determine the location and the format of these outlets using Big Data technology. The multifactorial system of data analysis that MTS employs will allow the company to identify the most advantageous location, the best format, and the most favorable product portfolio for each outlet.  

By using Big Data for retail development, MTS has an opportunity to study consumer traffic in the area of the proposed outlet and analyze it objectively on a number of indicators. These include: 

Social and demographic factors;

The types of devices and operating systems being used;

Subscribers’ financial activity in the surrounding area; 

The duration of a subscriber’s presence in the vicinity;

The number of roaming subscribers; 

Volumes of voice and mobile internet traffic;

The concentration of the digital environment and popular internet resources.

Taking all of this information into account, experts at MTS can determine the appropriate size of each outlet and the number of employees required to staff it.  They can then select the portfolio of devices and accessories, plan sales and promotion activities, and identify the outlet’s priorities from the mobile, fixed, and banking services that MTS offers.

Igor Egorov, Director for the Moscow Region said, “The preliminary results of our Big Data analysis are very encouraging, though a little surprising, because they suggest new locations for outlets that differ from those initially considered. We decided to test this method in actual conditions as we believe it will improve the quality of service we provide for our subscribers and satisfy their expectations regarding the portfolio of products and services that we offer.”

MTS Retail network in Russia

MTS’s proprietary retail network is the largest non-grocery retail chain in Russia. In H1 2016, the number of MTS outlets grew by 30% year-on-year to 5,700 stores. Since the start of 2016, MTS has long been cooperating with brands such as Beats, Celly, Meizu, BQ, Highscreen, Prestigio, while other brands, including Huawei, Samsung, Asus, HTC, Alcatel, Philips, JBL, Sennheiser, Plantronics, and Jabra, have all increased their supply volumes.

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