MOSCOW

How Do Producers activate Sales in DIY with Consumer

Behaviour Research

Francois CORDA

26 May 2011

WHO IS THE DIY CONSUMERIN EUROPE ?

What are the Consumer Profiles?

Fediyma’s first European Consumer study was issued in 2000.

After studies in 2005 and 2007 with Q&A Research & Consulting to define the DIY consumers profiles, we have started in 2010 a cooperation with GfK, the European leading market research company to understand the consumer behaviour.

fediyma activities

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Methodology

Desk researchField research

– executed in June 2005 – Internet survey

– non DIY-ers and DIY-ers

– 10 European countries

– random sample of 7658 consumers

Five consumer segments defined in DIYWith 2 key criteria:

– Value: average amount spent in the last five years– Frequency: average number of jobs in the last five years

Segmentation: frequency /value

3500

5000

6500

8000

9500

11000

4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Lowfrequency

High frequency

Low value

Five consumer segments in DIY• We have identified five segments of DIY-ers• Based on their attitude and behaviour

Segmentation

Home improver16%

Active DIY-er21%

Discounter16%

Decorator26%

Smeaser21%

Active DIY-ers (21%)

Segmentation: frequency /value

3500

5000

6500

8000

9500

11000

4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Lowfrequency

High frequency

Low value

• Active DIY-ers (21%)• A-Brands oriented• interested in promotions and buy

more to take advantage

• attitude towards DIY– like to do it – to improve their skill level – to experience appreciation from

others

Home improvers (16%)

Segmentation: frequency /value

3500

5000

6500

8000

9500

11000

4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Lowfrequency

High frequency

Low value

• Home improvers (16%)• A-Brands oriented• search for certainty

• attitude towards DIY– don’t like DIY– but they have to do it

• more represented in older age groups

9

Decorators (26%)

Segmentation: frequency /value

3500

5000

6500

8000

9500

11000

4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Lowfrequency

High frequency

Low value

• Decorators (26%) • buy A-brands & store brands

• attitude towards DIY – to demonstrate skills – fill free time – and help others

• highly represented in younger age groups

Discounters (16%)

Segmentation: frequency /value

3500

5000

6500

8000

9500

11000

4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Lowfrequency

High frequency

Low value

• Discounters (16%)• buy unknown brands • buy lowest price products• interested in promotions but only

buy what they need

• attitude towards DIY:– reducing costs– save money

• females more represented

Smeasers (21%)

Segmentation: frequency /value

3500

5000

6500

8000

9500

11000

4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Lowfrequency

High frequency

Low value

• Smeasers (21%) • buy lowest price products• buy unknown brands

• attitude towards DIY– do it the easy way– not interested in DIY products– do DIY to save money

Not ‘one’ DIY consumer marketSegmentation: frequency/value Belgium

7000

9000

11000

13000

15000

17000

19000

21000

23000

25000

5.0 10.0 15.0 20.0 25.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Lowfrequency

High frequency

Low value

Segmentation: frequency/value France

2000

3000

4000

5000

6000

7000

8000

5.0 10.0 15.0 20.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value Germany

3500

4500

5500

6500

7500

5.0 7.0 9.0 11.0 13.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value Italy

1500

3500

5500

7500

9500

11500

13500

15500

6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value The Netherlands

8000

10000

12000

14000

16000

18000

2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value United Kingdom

2500

3500

4500

5500

6500

7500

2.0 4.0 6.0 8.0 10.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value Europe

3500

5000

6500

8000

9500

11000

4.0 6.0 8.0 10.0 12.0 14.0 16.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value Denmark

3500

5000

6500

8000

9500

11000

12500

14000

2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value Norway

6000

7000

8000

9000

10000

11000

12000

3.0 5.0 7.0 9.0 11.0 13.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value Spain

3500

4500

5500

6500

7500

8500

9500

10500

11500

3.5 5.5 7.5 9.5 11.5

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Segmentation: frequency/value Sweden

1300

2300

3300

4300

5300

6300

7300

10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0

Home Improver

Active DIY-er

Discounter

Decorator

Smeaser

High value

Low value

Lowfrequency

High frequency

Belgium Denmark France

United Kingdom Europe

Italy Norway Spain Sweden

Germany

The Netherlands

UNDERSTAND THE DIY CONSUMER BEHAVIOUR

GFK FEDIYMA STUDY 2010

Spain

Germany

UK

France

Belgium

Denmark

International fediyma DIY ConsumerStudy 2010 by GfK Living & Retailin 6 European countries

n = 500

n = 500

n = 500

n = 500

n = 500

n = 500

WHO ARE THE DIYERSIN EUROPE

IN 2010?

ARE PEOPLE MORE INTERESTED IN DIY

BY QUALITY OR PRICE ?

ARE PEOPLE INTERESTED IN DIY

BY BRANDS IN EUROPE?

WHERE DO THE DIY CONSUMERS BUY IN EUROPE?

WHAT IS THE SIZE OF THE DIY MARKET IN EUROPE

33

BHETA DIY Forum, Birmingham_Sept. 14, 2010 34

35

36

37

Western GSB DIY Chains in Russia

Western chains (2004-2014)

Castorama, 7

K-Rauta, 15

OBI, 2

OBI, 13

OBI, 50

Castorama, 40

Leroy Merlin , 2

Leroy Merlin , 12

Leroy Merlin , 30

K-Rauta, 9

Homecentre, 5

Homecentre, 20

0

10

20

30

40

50

60

2004 2008 2014

Ко

ли

че

ств

о м

ага

зин

ов

WHICH DIY PRODUCTS ARE BOUGHT IN EUROPE?

HOW TO COMMUNICATE IN DIY?

ARE GREEN PRODUCTS IMPORTANT IN DIY

IN EUROPE?

ARE INNOVATIONS IMPORTANTIN DIY?

EXAMPLESMANUFACTURERS INNOVATIONS

BOIS INTERIEURS

50 50

NEW NATURAL PAINTS BONDEX

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Merchandising

XWINTERIEURS

1er WOOD TREATMENT 100% ECOLOGICAL

INNOVATION

1ST WOOD TREATMENT « ECOLOGICAL »100% NATURAL

packaging THE RANGE

100% recyclable

In KRAFT

Ecological

Interior Wood

1L

2,5L

5L

Eco Idea : the empty can to draw from the 5L Bag in Box

THE CAN

1L 56

THE RANGE

CIP Nom PCB GENCOD UC GENCOD UA

313669 Xylophène – 100% NATUREL 1L 4 3261543136695 3261549091097

313670 Xylophène – 100% NATUREL 2.5L 2 3261543136701 3261549091103

313671 Xylophène – 100% NATUREL 5L 1 326154313671857

DESIGNATION DU SERVICE (à modifier)

LEGRAND INNOVATION

THE TRADITIONAL SWITCHES

LEGRAND CELIANE NEW SWITCH RANGE

WHAT LESSONS FOR THE MANUFACTURERS

IN RUSSIA ?

large markets request powerful players large markets request powerful players

1. How to Grow in RUSSIA!

large markets need large supplierslarge markets need large suppliers

2. BEST MANUFACTURERS OFFER FULL SERVICE

Top quality product: 100 % compliance to specsno consumer complaints

Top logistics: 97-99 % on time, complete

Source of information: consumer, market, legislation

Marketing services: training, merchandising, promotions

Low costs: Keep it simple !

High prices: Based on value

Build your brand: priority, build awareness

3. BEST MANUFACTURERS INNOVATE

Comprehensive: product,

packaging, information,

logistics, administration

Permanent & systematic:Value for money

Double focusconsumer and retailer

Important & relevant: Know the consumer

CONCLUSION IN DIY , THERE IS A HIGH POTENTIAL IN RUSSIATHE BESTMANUFACTURERS WILL GROW WITH THE RETAILERS

Understand ConsumerBehaviour

Renovators,women,DIFM

Create Value for moneywith Quality ProductsAnd not on prices only

Develop Innovation ,easy to use products green technologies and Service

Build Strong Brands with all multicanal media

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Thank you for your attention !