Business Lockdown: Marketer Fedoriv believes ‘entrepreneurs will save this country’

Editor’s Note: Ukraine’s businesses are struggling after the country introduced nationwide restrictions on movement and travel starting on March 12. The restrictions have been strengthened since then and are set to last until at least April 24. Most businesses are closed with employees working remotely or not working at all. The exceptions include supermarkets, pharmacies, banks, parcel delivery services. The borders are closed to most forms of traffic, except Ukrainians returning by foot or by car. Most domestic transportation is closed or heavily restricted. Estimates range on how deeply the ensuing recession will harm Ukraine. The Kyiv Post talked with entrepreneurs about their daily struggles, asking how the quarantine has affected their ventures and what they are planning to do once it’s lifted.

We want to hear your personal story of survival during this national lockdown. Please contact us at [email protected]

Andriy Fedoriv
CEO and founder of Fedoriv Marketing Agency and investment firm Fedoriv Group, both of which have offices in central Kyiv and collectively employ over 120 people. Fedoriv Marketing Agency has crafted marketing strategies for such famous Ukrainian brands as online retailer Rozetka, postal service Nova Poshta, mineral water brand Morshynska and others.

“Our losses are hard to estimate, because the situation is different in each segment of the business. Consulting, for example, is fine, because a lot of clients are preparing for the aftermath of the quarantine, so we help them on that matter. Our digital technology sector is doing great because everyone wants to develop online – and companies that chose this path are winning right now.

“It’s also interesting to see that shareholders who never had time to share their knowledge before can finally do it. I am broadcasting in-depth online courses on marketing – which used to be pricy – for free. I see appreciation, and it’s a good time for sharing. 

“(Fedoriv’s) event space and coworking are obviously in the worst situation, as the business has completely stopped there because it’s prohibited to hold any events. We hope it will end soon, but we will lose the equivalent of one (year’s) profit there. It will not be easy to cover that kind of damage, even if we open in one month, because people will need time to go back to normal life. 

Andriy Fedoriv, CEO and founder of Fedoriv Marketing Agency and Fedoriv Group. (Courtesy of Andryi Fedoriv)

“I’m lucky to say we didn’t have to make tough decisions so far. We didn’t need to cut salaries or to leave people behind – we are a strong company. We continue to pay our employees in the hub and coworking space, so they can survive. But everybody understands that the most important thing is for the business to stay open. How long it will continue, I don’t know. Maybe everything will change in two weeks, it might go down and we will have to proportionally cut salaries, but I announced to my employees that we will pay a much as we can and that we would share our success, and I hope that we will do it together.

“My workload is heavier than before the quarantine, I’m working nine to 10 hours a day, which is exhausting, but it brings good results. People see I’m motivated and when they see that we are not closing but developing, signing new contracts and even hiring. I don’t have any other choice than to be motivated. This is not about luxury. I have a family to protect and a business I love. I’ll just be happy if my family is healthy and alive, and if those working for me are smiling and motivated. This is more than enough to motivate me. I have too many bills to pay and a lot of projects. When you want to invest yourself and develop new projects, there is absolutely no doubt – only motivation. 

“Our strategy for the last years was built on loyalty. It means taking care of our existing clients and not going around the market looking for new ones. If the quarantine is extended, my strategy is simple: act as everything unfolds. This crisis proves that the only solution is diversification. Don’t keep all your eggs in one basket. Otherwise, your business is going to suffer. If I had been running only a coworking space, I would have been in a terrible situation.

Andriy Fedoriv, CEO and founder of Fedoriv Marketing Agency and Fedoriv Group – Andriy Fedoriv. (Courtesy of Andryi Fedoriv)

“My main goal is not to make extra profit. My main goal is to be healthy, and for my people to stay healthy. Businessmen sometimes forget the priorities. Now the priority is not money, now the priority is health. It means following the government instructions and understanding that the government implemented the quarantine for good reasons. I’m not sure the countries which put it in place too late are happy with the results right now, while I am happy that Ukraine started it relatively early.

“For the moment, I receive no help from the government, and I don’t have any kind of expectations from it so far. Still, it is important to remind (everyone about) the social role of certain businesses. We bought respirators for hospitals, for example. Big retailers such as Rozetka or Nova Poshta are the spinal cord of Ukraine, and I’m proud to help these companies. I want nothing, but these big businesses need to keep going, they invested millions of dollars in this country’s health care system, and they need recognition from the state. These companies built a more reliable and flexible system than any kind of state institution, and they’re helping this country to build a long-term strategy. Entrepreneurs will save this country. 

“To the business community, I would say keep calm and carry on. Business is like sailing. It’s not only about sunny days. Sometimes the sea is calm, you just relax and enjoy it, but sometimes you have to face the storm. And when you’re a sailor, you’re not supposed to be surprised by the storm. You have to be ready for turbulence. Whether you like it or not, it’s there already. This is my fifth major crisis. I’m not panicking. Everything has a beginning and an end.”