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Romanian Retail 2.0

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.

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Romanian Retail 2.0

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  1. RETAIL 2.0 – A DIFFERENT PERSPECTIVE FUTURELAB

  2. FUTURELAB IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT MIX & MATCH CONSUMERS

  3. IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT MULTI-CHANNEL RETAILING FUTURELAB

  4. IF I WAS IN A TRADITIONAL RETAIL MARKET … I MIGHT EVEN TALK ABOUT POP Systems Online FUTURELAB

  5. FUTURELAB BUT NOT IN ROMANIA

  6. RETAIL IN EMERGING MARKETS DEGREE OF INNOVATION CREATE COPY MODIFY Develop new concepts, targeting specific local segments and needs Modify existing concepts to better match local needs Introduce global formats that already exist FUTURELAB

  7. DRIVING IN FROM THE AIRPORT Baneasa 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 News FUTURELAB MONEY, 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 News THE 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 Bucharest FUTURELAB

  12. DECLARED ENTRANTS 2008 DECLARED ENTRANTS 2008-2009 FUTURELAB

  13. AND THE REST WILL FOLLOW FAST 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 FUTURELAB

  14. IN WHICH OUTLET OPERATORS CAN’T BE FAR BEHIND FUTURELAB

  15. IN 5 YEARS ROMANIA WILL EXPERIENCE 20 YEARS OF RETAIL REVOLUTION 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 FUTURELAB

  16. FIRST, ACCEPT THAT RESISTANCE “IS” FUTILE

  17. FUTURELAB THEN, GO TO WORK

  18. THEN, GO TO WORK BRANDS RETAILERS/INVESTORS Be the first to become friendly with your new customers Be first to bring a (modified) format into the market Help your existing distribution to « make the jump » Come with something « unique » which internationals can’t offer Pro-actively say goodbye to those who can’t or won’t innovate. Get out of the way and sell as expensive as possible. FUTURELAB

  19. THE RETAILERS THAT WILL MAKE IT… RETAIL STRATEGIC POSITIONING FRAMEWORK Self Expression Opportunist Basis of competition • Product appeal, in-store experience, organisational agility The Shopper says: • “It’s exciting to shop here” • “Great product” • “It’s cool, it’s me” Lifestyle Basis of competition • Prestige, superior service, customer intimacy, enthusiasm The Shopper says: • “They know what I want” • “They help me to be me” Needs Alignment Mass value Basis of competition • Price, selection, convenience, scale, operating efficiency The Shopper says: • “I’m getting a good deal” • “I can get everything I need” • “It’s quick and convenient” Solver Basis of competition • Relevant solutions, partner network, reliable delivery The Shopper says: • “I trust them” • “They solve my problems” • “I can’t do it anywhere else” Basic Needs Solutions Products Selling proposition FUTURELAB Source: IBM Business Consulting Services – The Retail Divide, 2004

  20. THOSE WHO CAN’T 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. FUTURELAB DEGREE OF INNOVATION CREATE COPY MODIFY Develop new concepts, targeting specific local segments and needs Modify existing concepts to better match local needs Introduce global formats that already exist 4. INNOVATE LIKE ONLY ROMANIANS CAN

  26. SO YES, THIS PM WE WILL HAVE SOME THOUGHTS ON POP Systems Online FUTURELAB

  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 BIG Turnover of Retail Trade in Romania 2001-2007, 2010 (€ billions) DEGREE OF INNOVATION CREATE COPY MODIFY FUTURELAB

  29. THOSE WHO INNOVATE WIN FUTURELAB

  30. FUTURELAB THE CHOICE IS YOURS

  31. FUTURELAB

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