Romanian Retail 2.0
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Transcript of Romanian Retail 2.0
RETAIL 2.0 – A DIFFERENT PERSPECTIVE
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IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT
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MIX & MATCH CONSUMERS
IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT
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MULTI-CHANNEL RETAILING
POP Systems Online
I MIGHT EVEN TALK ABOUT
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IF I WAS IN A TRADITIONAL RETAIL MARKET …
BUT NOT IN ROMANIA
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RETAIL IN EMERGING MARKETS
COPY MODIFY CREATE
Introduce global formats that already exist
Modify existing concepts to better match local needs
Develop new concepts, targeting specific local segments and needs
DEGREE OF INNOVATION
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DRIVING IN FROM THE AIRPORT
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Baneasa Shopping City
Metro Cash & Carry – Selgros – Cora – Plus Discount – Auchan – Real – Spar – BauMax Tekzen – Brithaus – Hornbach – Inditex (Zara, Massimo Dutti )
BUT THIS IS JUST THE BEGINNING
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MONEY, MONEY, MONEY
Turnover of Retail Trade in Romania 2001-2007, 2010(€ billions)
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Sources: •PMR Publications, « Retail in Romania 2008 », 2008•Estimate Market Potential: Futurelab Extrapolation of Belgian Retail Trade Turnover on Romanian Population
The Good News
THE RETAIL MACHINES ARE COMING
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The Bad News
THOSE PRESENT WILL ROLL-OUT BEYOND BUCHAREST
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The Bucharest Carrefour is currently the third most visited in the world2008 - New stores in Oradea, Arad, Pitesti, Suceava, Iasi and Bucharest
DECLARED ENTRANTS 2008-2009
DECLARED ENTRANTS 2008
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By 2010 it is expected that there will be an additional ten commercial centres (malls) built in Bucharest alone, but also throughout Romania in cities >
100,000 inhabitants
Source: Euromonitor, March 2008
AND THE REST WILL FOLLOW FAST
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IN WHICH OUTLET OPERATORS CAN’T BE FAR BEHIND
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In some retail sectors, mostly grocery, such as hypermarkets, supermarkets and discounters, leaders are multinational players.
In durable goods, pharmacies and furniture retail local players currently hold the lion’s share.
In very fragmented segments, such as clothing and footwear retail or leisure and personal goods, there is no clear cut leader.
However, this situation is likely to change in the future, as a large amount of foreign investment is expected to come.
Source: Euromonitor, Retailing in Romania, 2008
IN 5 YEARS ROMANIA WILL EXPERIENCE 20 YEARS OF RETAIL REVOLUTION
FIRST, ACCEPT THAT RESISTANCE “IS” FUTILE
THEN, GO TO WORK
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BRANDS
Be the first to become friendly with your new customers
Help your existing distribution to « make the jump »
Pro-actively say goodbye to those who can’t or won’t innovate.
RETAILERS/INVESTORS
Be first to bring a (modified) format into the market
Come with something « unique » which internationals can’t offer
Get out of the way and sell as expensive as possible.
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THEN, GO TO WORK
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RETAIL STRATEGIC POSITIONING FRAMEWORK
Source: IBM Business Consulting Services – The Retail Divide, 2004
Products Solutions
Basic Needs
Self Expression OpportunistBasis of competition•Product appeal, in-store experience, organisational agilityThe Shopper says:•“It’s exciting to shop here”•“Great product”•“It’s cool, it’s me”
LifestyleBasis of competition•Prestige, superior service, customer intimacy, enthusiasmThe Shopper says:•“They know what I want”•“They help me to be me”
Mass valueBasis of competition•Price, selection, convenience, scale, operating efficiencyThe Shopper says:•“I’m getting a good deal”•“I can get everything I need”•“It’s quick and convenient”
SolverBasis of competition•Relevant solutions, partner network, reliable deliveryThe Shopper says:•“I trust them”•“They solve my problems”•“I can’t do it anywhere else”
Nee
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Ali
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THE RETAILERS THAT WILL MAKE IT…
Selling proposition
THOSE WHO CAN’T MAKE UP THEIR MIND “WILL DIE”
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YOUR 4 STEP ACTION PLAN
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1. GET ON A PLANE TO LEARN AND NETWORK
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2. IMPORT – SKILLS, IDEAS, FORMATS
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3. SECURE AND TRAIN THE BEST PEOPLE
4. INNOVATE LIKE ONLY ROMANIANS CAN
COPY MODIFY CREATE
Introduce global formats that already exist
Modify existing concepts to better match local needs
Develop new concepts, targeting specific local segments and needs
DEGREE OF INNOVATION
FUTURELAB
POP Systems Online
SO YES, THIS PM WE WILL HAVE SOME THOUGHTS ON
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Source: IBM Business Consulting Services – The Retail Divide, 2004
BUT WE WILL START WITH INNOVATION FROM A STRATEGIC PERSPECTIVE
And to be more precise:
« customer centric retail innovation »
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COPY MODIFY CREATE DEGREE OF INNOVATION
Turnover of Retail Trade in Romania 2001-2007, 2010(€ billions)
ROMANIA IS ON THE VERGE OF SOMETHING BIG
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THOSE WHO INNOVATE WIN
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THE CHOICE IS YOURS
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