romanian retail 2.0

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This is an opening keynote Alain Thys gave at the Bucharest Retail Innovation Forum on May 29, 2008. It covers the future evolutions in Romanian retail development and the market opportunities that still exist for local retailers and brands.



2. FUTURELABIN A TRADITIONAL RETAIL MARKET I WOULD TALK ABOUTMIX & MATCH CONSUMERS 3. IN A TRADITIONAL RETAIL MARKET I WOULD TALK ABOUTMULTI-CHANNEL RETAILING FUTURELAB 4. IF I WAS IN A TRADITIONAL RETAIL MARKET I MIGHT EVEN TALK ABOUT POPSystemsOnlineFUTURELAB 5. FUTURELAB BUT NOT IN ROMANIA 6. RETAIL IN EMERGING MARKETS COPYMODIFYCREATEDEGREE OF INNOVATIONIntroduce global Modify existingDevelop new formats that already concepts to better concepts, targeting existmatch local needsspecific local segments and needsFUTURELAB 7. DRIVING IN FROM THE AIRPORTBaneasa Shopping City Metro Cash & Carry Selgros Cora Plus Discount Auchan Real Spar BauMax Tekzen Brithaus Hornbach Inditex (Zara, Massimo Dutti ) FUTURELAB 8. FUTURELAB BUT THIS IS JUST THE BEGINNING 9. The Good NewsFUTURELABMONEY, MONEY, MONEY Turnover of Retail Trade in Romania 2001-2007, 2010( billions) Sources: PMR Publications, Retail in Romania 2008 , 2008 Estimate Market Potential: Futurelab Extrapolation of Belgian Retail Trade Turnover on Romanian Population 10. FUTURELAB The Bad NewsTHE RETAIL MACHINES ARE COMING 11. THOSE PRESENT WILL ROLL-OUT BEYOND BUCHAREST The Bucharest Carrefour is currently the third most visited in the world 2008 - New stores in Oradea, Arad, Pitesti, Suceava, Iasi and BucharestFUTURELAB 12. DECLARED ENTRANTS 2008 DECLARED ENTRANTS 2008-2009 FUTURELAB 13. AND THE REST WILL FOLLOW FASTBy 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 inhabitantsSource: Euromonitor, March 2008 FUTURELAB 14. IN WHICH OUTLET OPERATORS CANT BE FAR BEHINDFUTURELAB 15. IN 5 YEARS ROMANIA WILL EXPERIENCE 20 YEARS OF RETAIL REVOLUTIONIn 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 lions share.In very fragmented segments, such as clothing and footwear retail or leisureand 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 FUTURELAB 16. FIRST, ACCEPT THAT RESISTANCE IS FUTILE 17. FUTURELAB THEN, GO TO WORK 18. THEN, GO TO WORKBRANDSRETAILERS/INVESTORS Be the first to become friendly with your Be first to bring a (modified) format into thenew customers marketHelp your existing distribution toCome with something unique which make the jump internationals cant offerPro-actively say goodbye to those who Get out of the way and sell as expensive ascant or wont innovate.possible.FUTURELAB 19. THE RETAILERS THAT WILL MAKE ITRETAIL STRATEGIC POSITIONING FRAMEWORKSelf ExpressionOpportunistLifestyleBasis of competition Basis of competition Product appeal, in-store Prestige, superior service,experience, organisational agility customer intimacy, enthusiasmThe Shopper says:The Shopper says: Its exciting to shop here They know what I want Needs Alignment Great product They help me to be me Its cool, its me Mass value SolverBasis of competition Basis of competition Price, selection, convenience, Relevant solutions, partnerscale, operating efficiencynetwork, reliable deliveryThe Shopper says:The Shopper says: Im getting a good deal I trust them I can get everything I need They solve my problems Its quick and convenient I cant do it anywhere else Basic NeedsProductsSelling propositionSolutionsFUTURELAB Source: IBM Business Consulting Services The Retail Divide, 2004 20. THOSE WHO CANT MAKE UP THEIR MIND WILL DIE FUTURELAB 21. FUTURELAB YOUR 4 STEP ACTION PLAN 22. 1. GET ON A PLANE TO LEARN AND NETWORK FUTURELAB 23. 2. IMPORT SKILLS, IDEAS, FORMATS FUTURELAB 24. 3. SECURE AND TRAIN THE BEST PEOPLE 25. FUTURELABCOPYMODIFYCREATEDEGREE OFINNOVATION Introduce global Modify existingDevelop newformats that already concepts to better concepts, targetingexistmatch local needsspecific localsegments and needs 4. INNOVATE LIKE ONLY ROMANIANS CAN 26. SO YES, THIS PM WE WILL HAVE SOME THOUGHTS ONPOPSystems OnlineFUTURELAB 27. BUT WE WILL START WITH INNOVATION FROM A STRATEGIC PERSPECTIVE And to be more precise: customer centric retail innovation Source: IBM Business Consulting Services The Retail Divide, 2004 FUTURELAB 28. ROMANIA IS ON THE VERGE OF SOMETHING BIGTurnover of Retail Trade in Romania 2001-2007, 2010 ( billions)COPYMODIFY CREATE DEGREE OFINNOVATIONFUTURELAB 29. THOSE WHO INNOVATE WINFUTURELAB 30. FUTURELAB THE CHOICE IS YOURS 31. FUTURELAB