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The executive management team of Tele2, one of Russia's largest telecom operators based in Moscow, appointed CampbellRigg to help plan a brand strategy for their retail formats.
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Tele2 brand strategy
The competition has arrived. Over-the-top (OTT) players, offering apps and streaming content directly to consumers over the internet, have gained substantial dominance, even in core communication services like messaging and voice. Platforms like WhatsApp, Viber, and Apple’s iMessage now account for more than 80% of all messaging traffic, while Skype alone handles over a third of international voice traffic minutes. As a result, many telecom carriers are experiencing steep declines in revenue from basic communication services, with SMS messaging revenue down by as much as 30%, international voice by 20%, and roaming by 15%. Coupled with fierce competition and slow industry consolidation, these trends have resulted in shrinking average revenue per user (ARPU), sluggish revenue growth at best, and increasingly narrow profit margins.
In response to these challenges, Tele2—one of Russia's largest telecom operators, headquartered in Moscow—turned to Campbell Rigg for help in crafting a brand strategy for their retail formats.
Telecom retail design, often defined by small box environments, demands a brand consultant who is an expert in creating compelling brand assets and designing profitable retail formats. For Tele2, we identified three key formats for future development: flagship stores (200-150sqm), standard stores (50-70sqm), and kiosks in shopping malls.
The in-store experience is a critical touchpoint in the telecom operator-to-consumer relationship. Our work with Tele2 focuses on building brand loyalty, not just during the initial customer acquisition phase but throughout the lifecycle of ever-evolving technology, supported by accessory sales and customer service. As store branding and physical location remain important for acquiring new customers, the in-store experience has evolved to be more integral to the entire customer journey—from initial setup and support to ongoing service and maintenance.
Many telecom operators face a dilemma when structuring their retail strategy. The optimal approach depends on market conditions and the operator’s position within the market. In this evolving landscape, Tele2's executive management tasked us with optimising their retail footprint, introducing product categories that contribute to margin growth, and improving point-of-sale efficiency.
The images accompanying this article illustrate one of the retail concepts we developed for Tele2’s executive team.
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