Detsky Mir: An Example of Corporate Social Responsibility in RU/CIS retail

Detsky Mir Group is a multi-format digital retailer and the leader in the children’s goods sector in Russia and Kazakhstan, as well as a significant player in Belarus – with approx. 2 bn USD year revenue. Throughout 70 years of company’s history, the principles of sustainability (ESG) were a part of their DNA. Since several years ago however, the company’s approach to doing business responsibly has become more systematic and structured.

ESG, being one of the key areas of focus in Detsky Mir, was pioneered by Mikhail Stiskin and Pavel Grachev. The new concept coined by Mikhail Stiskin and Pavel Grachev*, former members of the Board of Directors, draws on the key framework of sustainable development. Back then, the Detsky Mir executives managed to accurately predict the trend towards responsible business conduct that has recently gained momentum within the business community.

Why was this done? Simply put, the company has grown wiser.

A tell-tale sign of maturity is commitment to corporate social responsibility. Once a company has grown beyond its coming-of-age period, it starts to think about its global mission. At Detsky Mir, this idea is viewed in the grand scheme of things. One of the key priorities of their mission is environmental responsibility.

Recently, the company has launched several environmental initiatives: from large-scale and short-term to those designed to last. An example of the latter is the containers for used batteries installed across all Detsky Mir stores. Once these chargers end up in a landfill, they cause irreparable harm to nature. Detsky Mir collects old batteries and sends them for recycling.

Having committed to the new idea, Detsky Mir decided to start the changes with itself. The entire company transitioned from paper to electronic records. This allowed us to substantially reduce the amount of used paper. The processed documents were collected and sent for recycling.

Part of our environmental initiatives was aimed at the customers.

In 2019, a campaign was arranged to replace plastic bags with paper ones. Although the event lasted one day, it was held in more than 300 stores of the chain. In one day of work, volunteers distributed almost 66,000 paper bags to the visitors. This means that exactly so many plastic bags did not end up in a landfill. Inspired by this example, Detsky Mir was one of the first children’s retailers to jump on the idea of using eco-friendly and reusable bags. Their number keeps growing: by the end of 2021 around 840,000 pieces were sold.

Another initiative of Detsky Mir was designed to foster the recycling of unwanted clothes and shoes. Every parent knows that children grow up very quickly. Clothes and shoes have to be replaced quite frequently. But what should they do with the things that have become too small? Detsky Mir put forward an idea to bring them to the stores. In exchange, the customers were to receive certificates for a 15 percent discount that could be used to purchase new clothes and shoes in any store of the chain. The collected recyclables were sent to the city of Dmitrov, where one of the Russia’s largest recycling plants is located.

For those parents whose children outgrew not only clothes but books, Detsky Mir launched another environmental initiative in the Krasnodar Territory: any book read to ribbons could be given away in the Detsky Mir stores. In return, the customers received a discount on the new titles. Many parents have thus been able to significantly update their children’s libraries and acquire books that better suit their age.

*Pavel Grachev and Mikhail Stiskin have extensive experience in developing corporate growth strategies. Previously, they both held senior positions in Polyus, the Russian gold mining giant. Pavel Grachev headed the company as a CEO, and Mikhail Stiskin was responsible for strategy and finance as a Senior Vice President.