RETAIL 2.0 – A DIFFERENT PERSPECTIVE
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IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT
MIX & MATCH CONSUMERS

IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT
MULTI-CHANNEL RETAILING
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IF I WAS IN A TRADITIONAL RETAIL MARKET …
I MIGHT EVEN TALK ABOUT
POP Systems Online
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BUT NOT IN ROMANIA

RETAIL IN EMERGING MARKETS
COPY MODIFY CREATE DEGREE OF
INNOVATION
Introduce global Modify existing Develop new
formats that already concepts to better concepts, targeting
exist match local needs specific local
segments and needs
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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 )
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BUT THIS IS JUST THE BEGINNING

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

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The Bad News
THE RETAIL MACHINES ARE COMING

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
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DECLARED ENTRANTS 2008
DECLARED ENTRANTS 2008-2009
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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
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IN WHICH OUTLET OPERATORS CAN’T BE FAR BEHIND
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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
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FIRST, ACCEPT THAT RESISTANCE “IS” FUTILE

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THEN, GO TO WORK

THEN, GO TO WORK
BRANDS RETAILERS/INVESTORS
Be the first to become friendly with your Be first to bring a (modified) format into the
new customers market
Help your existing distribution to Come with something « unique » which
« make the jump » internationals can’t offer
Pro-actively say goodbye to those who Get out of the way and sell as expensive as
can’t or won’t innovate. possible.
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THE RETAILERS THAT WILL MAKE IT…
RETAIL STRATEGIC POSITIONING FRAMEWORK
Self Expression Opportunist Lifestyle
Basis of competition Basis of competition
• Product appeal, in-store • Prestige, superior service,
experience, organisational agility customer intimacy, enthusiasm
The Shopper says: The Shopper says:
• “It’s exciting to shop here” • “They know what I want”
Needs Alignment
• “Great product” • “They help me to be me”
• “It’s cool, it’s me”
Mass value Solver
Basis of competition Basis of competition
• Price, selection, convenience, • Relevant solutions, partner
scale, operating efficiency network, reliable delivery
The Shopper says: The Shopper says:
• “I’m getting a good deal” • “I trust them”
• “I can get everything I need” • “They solve my problems”
• “It’s quick and convenient” • “I can’t do it anywhere else”
Basic Needs
Products Selling proposition Solutions
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Source: IBM Business Consulting Services – The Retail Divide, 2004

THOSE WHO CAN’T MAKE UP
THEIR MIND “WILL DIE”
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YOUR 4 STEP ACTION PLAN

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

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COPY MODIFY CREATE DEGREE OF
INNOVATION
Introduce global Modify existing Develop new
formats that already concepts to better concepts, targeting
exist match local needs specific local
segments and needs
4. INNOVATE LIKE ONLY ROMANIANS CAN

SO YES, THIS PM WE WILL HAVE SOME THOUGHTS ON
POP Systems Online
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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
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ROMANIA IS ON THE VERGE OF SOMETHING BIG
Turnover of Retail Trade in Romania 2001-2007, 2010
(€ billions)
COPY MODIFY CREATE DEGREE OF
INNOVATION
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THOSE WHO INNOVATE WIN
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THE CHOICE IS YOURS

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