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

ds

Ali

gn

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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

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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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