THE WINNER TAKES IT ALL? Same Game, More Players, Different Cards

Transcription

1 THE WINNER TAKES IT ALL? Same Game, More Players, Different Cards Diana Scăunașu Client Service Manager, Consumer Panel Services, GfK Romania Progressive Magazine I Re-think Retail I 13th of March

2 Same Game 2

3 ian.-08 mai.-08 sep.-08 ian.-09 mai.-09 sep.-09 ian.-10 mai.-10 sep.-10 jan.-11 mai.-11 sep.-11 ian.-12 mai-12 sep.-12 ian.-13 mai.-13 sep.-13 jan.-14 Consumer Confidence Indicator remains stable, willingness to buy is sligthly increasing UE Bulgary Czech Republic Hungary Poland Romania Slovakia Germany Source: GfK Omnibus, Consumer Confidence Barometer. The consumer confidence indicator is calculated based on answers to the questions on the financial situation of households, the general economic situation, unemployment expectations and savings, all over the next 12 months. Base: National 15+ (Ian 08 Jan 14); ~1000 respondents (all) /wave; % 3

4 Q (+11%) was the best in the last 5 years for technical consumer goods sales Telecommunications +17.4% 12% 13% 2% 7% Small Domestic Appliances +9.2% -43% -15% TEMAX, value change % Black Friday GfK TEMAX Evolution Total Market in MIL EUR,

5 Consumers look for the best deal through downtrading FMCG Basket Decomposition Value % Inflation * Volume % Down Trade -3.1% in supermarkets GfK Consumer Panel Services Price Inflation Food Index Eurostat; * 2013 vs

6 Buying frequency is slightly decreasing mostly for branded products Value Change % Frequency Change % Value per Trip Change % Selected FMCG categories KPIs Changes by FMCG Baskets 2013 vs Food Beverages Home&Personal Care GfK Consumer Panel Services I Calculation based upon Selected FMCG categories 2013 vs

7 Less shopping around and educated promo buyers I use the shopping list to avoid buying products that I don t neccesarly need I compare prices between brands in order to choose the best value for money I go to several stores in order to look for the best price for a certain product I pay more attention to the value of a promotion (how big is the discount, value and usefulness of the gift, etc) Overall I buy the same products, but I have switched to cheaper brands I pay more attention to commercials from TV and newspapers/ magazines GfK Shopping Monitor 2014 I 5+4 marks = totally agree + agree (%) 7

8 The good news is... for 78% of Romanians shopping is still a pleasure GfK Shopping Monitor

9 More Players 9

10 More shoppers from rural area are are going to modern trade formats Hypermarkets Supermarkets Discounters Cash & Carry Modern Proximity Stores Traditional Trade % % % % Total Country Urban Rural Bucharest GfK Consumer Panel Services based on Till Roll Outlet Types Value Share Change 2013 vs

11 Reasons for choosing main shopping place Barriers for choosing main shopping place GfK Shopping Monitor

12 Different Cards 12

13 Private Labels take on a new challenge consumer loyalty 22% 20% Food 13% 12% 4% 8% 7% Beverages 4% 3% Home Care 10% 9% Personal Care GfK Consumer Panel Services Private Labels Value Share Change (%) 2013 vs

14 Innovation is key for growth through attracting new buyers GfK Consumer Panel Services Innovation Examples in the Romanian Market

15 Fresh Food could be the winning card for modern formats 38% total FMCG basket Value share% Fresh Food Hypermarkets 30% Supermarkets 32% Discounters 25% Traditional Trade 50% GfK Consumer Panel Services Fresh Food Value Share Change (%) 2013 vs

16 Value Share E-Commerce: The challenge for food retailing 10 Romania Value Share 8 6 S. Korea UK 0.1% 4 France Romania FMCG Online Penetration (%) 2 0 China % GfK Consumer Panel Services 2014 E-Commerce Evolution 2013 vs

17 Not only one winning strategy... The battle for new customers among retailers is moving towards gaining their loyalty Private Labels contribute to category growth and are more often bought Rural area shoppers opportunity for modern trade Stimulate ocassional purchases POS activies, targeted promotions? Slightly more positive context, but consumers continue to trade down Innovations can boost brand penetration 17

18 Life is not a matter of holding good cards, but sometimes, playing a poor hand well. (Jack London) 18

19 THANK YOU FOR YOUR ATTENTION! Diana Scăunașu Client Service Manager, Consumer Panel Services, GfK Romania 19