The development of the company «Cycle» on providing returnable packaging on the Russian delivery market

AUTHOR: kRISTINA ROGOZHKO

Abstract

Introduction

Sustainable development is a promising direction for business development. This statement is gaining popularity among the masses. A 2015 Nielsen study found that 61% of Russians are willing to overpay for eco-friendly products. Currently, the delivery industry is developing rapidly due to the pandemic and digitalization, but unfortunately along with the turnover of the industry the amount of packaging required for the transportation of goods is also growing. In the Western countries people are concerned about this problem and have been taking measures to solve it for several years now, and in Russia the society is just beginning to think about the greening of delivery services. This business project will be the first in the path of providing reusable and returnable packaging for delivery in Russia.

Methods

The purpose of the business idea is to open the «Cycle» in Moscow; the company will be renting out reusable packaging to Russian legal entities for delivery service.

To achieve this goal, the following steps (methods) were identified:

1. To collect information about existing international companies, what use in their business models the implementation of returnable containers.

2. To choose a business model that works effectively abroad and adjust the idea to the Russian market.

3. To form an offer.

4. To form a plan of promotion of the company.

5. To describe the structure of the enterprise.

6. To conduct an analysis to determine the amount of investment that is needed for the start-up.

7. Predict possible profits and losses.

Results

By finishing the analysis and calculations, the monthly expenses are predicted to be 115 000 rubbles without taxes, which are to be 20% from the profit.

The start-up cost is 1 291 150 rubbles. It includes the advertising, the development of eco- friendly packaging, the creation of the website, and the creation of boxes that will be placed on package collection points.