The history of creation of the trading giant: the talk with Ukrainian MP, Honorary President of the AVEC Concern and Co. PJSC, Oleksandr Feldman.
This year, Barabashovo, the largest trading centre in Eastern Europe celebrates its 20th anniversary. Barabashovo is a hallmark of Kharkiv during a long period. The majority of the city’s visitors always include it into their agenda. It is difficult to refrain from buying something here. And this statement will be confirmed by everyone who visited Barabashovo at least once. The purchases are made every 17 seconds at Barabashovo. I don’t know who counted this and how, whether this index is real or mythical, but the fact that Barabashovo means a huge choice and very flexible prices is true. It reminds a year-round sale. Do you remember what the sale is? It is when the goods you don’t need have such a low price that you cannot help buying them.
The history of creation of Barabashovo is covered with myths and legends. What is true and what is lie? – This is our first question to Ukrainian MP Oleksandr Feldman, whose name is connected with establishment of the trading giant.
— I don’t know what myths and legends you are talking about.
— In particular, it is the information that it was your joint business with the late governor of Kharkiv oblast, Yevhen Hushnarev, who lobbied for the transfer of entrepreneurs from the Kharkiv markets to Barabashovo?
— That’s not a myth and not a legend. It is an undisguised lie. First, Yevhen Hushnarev, may his memory live forever, was a mayor in 1996, not a governor. Second, we have never had joint business with him. In the middle of 1990s, Barabashovo became a ‘lifeline’ for those who lost their jobs due to mass closure of plants and factories in the industrial city of Kharkiv. People spent months without salaries. There was a huge dump on the place of Barabashovo for a long time. For you to feel the scales of that dump, I should say that during the territory clearing before the construction, we made 150,000 KamAZ truck’s trips to remove the garbage. It is difficult to believe in this now. There is a residential district, Saltovka, nearby, with the population of, just imagine, 600,000 persons, more than in many cities in Ukraine. When we addressed with the proposal to the city to construct a market on that site, this ides was really supported, because it was in the interests of the city. However, not many people believed in its realization. Moreover, a lot of people made fun of it openly. There was no lobbying for the mass transfer of people to Barabashovo. Our trading centre became a workplace for the entrepreneurs from the Blahovishchenskyi market, which was and is mainly intended for food trade. Moreover, at that time, Blahovishchenskyi market was literally bursting at the seams, because the rows of goods traders just spread over the neighbouring streets causing certain problems for the city. It was necessary to do something with that. The city-wide programme of people’s transfer from illegal trading sites was developed. This concerned not only Blahovishchenskyi market. The new big trading site became a certain way out. Be the way, people objected to the transfer first, however, already in a month there was a queue of those who wished to get a trading site at Barabashovo. By force of circumstances, the whole army of people was forced to live on their own resources trying their hands in small business. Many of them, by the way, became successful entrepreneurs. Barabashovo became a ‘locomotive’ for the development of own business for them. Barabashovo solved an important social problem as well: the provision of workplaces to a great number of people. The representatives of local authorities understood this. You may call it lobbyism if you want. It is a normal and accepted European practice. However, it was definitely not a protection. These notions are often identified.
— However, huge funds are needed to start this large-scale project. It is known that in pre-Barabashovo period you worked in auto service. Was it enough to save money to launch the construction of such a big object? In other words, where have you got the first million?
— I understand the underlying meaning of your question, and I should say that the words “I can report on each million except the first one” are not about me. I can. In the “pre-Barabashovo period,” as you named it, and I should indicate it as “pre-AVEC” period, it is easier to indicate the areas, in which we were not working. Together with my father, we tried various areas of business: production, agriculture, service (including the assembly and repair of vehicles). By the way, I have an interesting fact. In May 1987, the Gorbachev’s decree “On the development of cooperative movement in the USSR” was issued. It actually was a ‘green light’ for entrepreneurship. And in June, we registered our cooperative “Montazhnik” in Kominternivskyi district of the city of Kharkiv. It was the first cooperative in Kharkiv oblast, and even regional mass media wrote about it. There were four of us: my father, who invited his former colleague to our team, my school friend and me. We rushed about the whole city fixing balcony roofs and ledges. This was a prosaic and ordinary start for everything. We have no stories about the appearance of money, mysterious partners, etc. We did not participate in any privatization process. We took nothing from the state illegally, no ‘komsomol’ or party money passed through us. You know, to my opinion, one of American companies has a wonderful slogan: “We make money the old-fashioned way. We earn it.” And this is the part of our family philosophy. My father taught me this way. And I try to pass this idea to my sons. From the very childhood, I wanted to earn my own money. When I was a schoolchild, I worked at the post office. After finishing school, I decided to work, not listening to my parents who insistently recommended me to enter the institute. Then, I was enlisted in the army. Later, it was a young family and twenty-four-hour work as a taxi driver. I don’t conceal and I’m not ashamed of any period of my life. Of course, we were not completely ready financially to the construction of Barabashovo then, in the middle of 1990s. First, we took out a loan in the UkrSotsBank, but there was still not enough money for the construction. We risked and took out a huge, at the time, municipal loan – 50 million karbovanets – the sum that was returned to the city in time with all percents, tax payments and so on. In addition to not losing anything, the city also benefited from this loan. Moreover, at that time, nobody used such notions as development project, project manager, etc. This came later. But in the beginning, there was a wish, an intuition, a work during 20 hours per day, and a confidence in success.
— Is this not enough today?
— This is not enough today. The world changes at a furious speed. And in order to remain competitive, it is necessary to advance constantly, to develop and to involve the best specialists to the projects’ management. Especially, when the matter is in such unique projects as the Trading Centre Barabashovo. Today, it is a first-rate trading centre in Eastern Europe with the considerable 14th place in the world according to the commodity turnover. However, the maintenance of these positions, taking into account the difficult socio-economic situation, requires not only high professionalism from the management, but also the search of unconventional and sometimes even hard decisions.
— Many people note rather big “employee turnover” in Barabashovo’s top management. What is your explanation? It is clear that formally, as a member of parliament, you are not in business, in particular, of Barabashovo. However, did you reserve the right to influence on HR questions in AVEC Concern and TC Barabashovo? Where do people, who work for you, go?
— First of all, my principled approach is in the idea that people work not for me, but with me. Second, it is not a Soviet time now, when people became heads and never left that position. Today, the owners of companies consider that the management system is not a marathon of one person, it is a relay race. It would be slyness to tell that I do not know what happens in the AVEC Concern and in TC Barabashovo, including the changes in top management. However, as a rule, it is a collective decision of the team. And I got used to trust them. Although, I admit that, perhaps, I am too trustful. All top managers who once worked in our team established themselves both professionally and financially. I think that work in our team was a good springboard for them. Unfortunately, not everyone stood the temptation of power and money. Not everyone was fair. But, it is life, and disappointments in people are inevitable. Some people became a part of our family, and they continue to work in the Concern and TC Barabashovo. Some part of people works on independent projects. And I sincerely with them success.
— Experience has proven that, from time to time, almost all large trading centres of Ukraine encounter the problem of dissatisfaction of entrepreneurs working for them. Their demands are sometimes tough and cause rather serious conflicts. It is not a secret that there is a range of political groups, which are always ready to lead these protests. Is it possible to ‘fix’ this situation, or is it some kind of ‘onerous conflict?’
— In order not to ‘fix’ this situation, it is necessary to discuss it honestly with entrepreneurs. This dialogue does not require any mediators, especially among those who are always “ready to help in struggle.” Today, the danger of appearance of these ‘fans’ of warming up the dissatisfaction is especially high. Yes, it is really difficult for everyone. Business, regardless of its scales, suffers difficult times. However, tell me please, when it was easy for people to develop their own business? Every hryvnia was earned by work. I have always told and continue to tell: it is necessary to have an individual approach to each entrepreneur and each business history. Especially, when we are talking about such giant as Barabashovo, where it is possible to meet both the representatives of very small business, and those who are able to outdo many large companies. Only dialogue and search of compromise in any unpopular solution may be effective.
— Do you go shopping to Barabashovo?
— I do not go shopping anywhere, when I am in Kharkiv. But I am always ready to accompany my friends, who arrive to Kharkiv and who want to visit Barabashovo. And I should tell that none of them, regardless of their status and financial state, left the trading centre without purchases. I think that Barabashovo managed to maintain the unique family atmosphere in trade. Workers talk with buyers here, they make it possible to agree on prices, they joke. And, of course, this wins everyone. Near 80% of entrepreneurs at Barabashovo are the representatives of family business. This index is commensurable with the index in Germany, where near 85% of all enterprises are family companies. So, Barabashovo may be definitely named the capital of family business in Ukraine. The next generation of family business successors grew up here during twenty years. Those who started when they were 30-35, work with their adult children today.
— What is your vision of Barabashovo in another 20 years? Will this project be interesting for your children?
— The market of commercial property is very dynamic and requires constant development. That is why, I think Barabashovo will change in twenty years. However, it will maintain its uniqueness and scale. Will this project be interesting to my children? In 20 years, my elder son, Oleksandr, will be 50. He is currently working in the company founded by his grandfather and father. And it is interesting for him; he has rather ambitious ideas and plans. I believe that he will be able to implement them. The younger son Borys is only 3 years old. He resembles his grandfather Borys Feldman Senior very much. He is also independent and persistent. I always tell my children and grandchildren the words, which my father told me: tomorrow, you will have the result of what you did today. That is why, the main lesson is to work. And, of course, not to be afraid of dreaming. Not without reason is it said that it is necessary to have big targets, it is difficult to miss them.
Source: Capital newspaper
