RETAIL 2.0 – A DIFFERENT PERSPECTIVE FUTURE LAB

IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT FUTURE LAB MIX & MATCH CONSUMERS

IN A TRADITIONAL RETAIL MARKET … I WOULD TALK ABOUT FUTURE LAB MULTI-CHANNEL RETAILING

POP Systems Online I MIGHT EVEN TALK ABOUT FUTURE LAB IF I WAS IN A TRADITIONAL RETAIL MARKET …

BUT NOT IN ROMANIA FUTURE LAB

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 FUTURE LAB

DRIVING IN FROM THE AIRPORT FUTURE LAB 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 FUTURE LAB

MONEY, MONEY, MONEY Turnover of Retail Trade in Romania 2001-2007, 2010 (€ billions) FUTURE LAB Sources: PMR Publications, « Retail in Romania 2008 », 2008 Estimate Market Potential: Futurelab Extrapolation of Belgian Retail Trade Turnover on Romanian Population The Good News

Sources:

PMR Publications, « Retail in Romania 2008 », 2008

Estimate Market Potential: Futurelab Extrapolation of Belgian Retail Trade Turnover on Romanian Population

THE RETAIL MACHINES ARE COMING FUTURE LAB The Bad News

THOSE PRESENT WILL ROLL-OUT BEYOND BUCHAREST FUTURE LAB The Bucharest Carrefour is currently the third most visited in the world 2008 - New stores in Oradea, Arad, Pitesti, Suceava, Iasi and Bucharest

DECLARED ENTRANTS 2008-2009 DECLARED ENTRANTS 2008 FUTURE LAB

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 FUTURE LAB

IN WHICH OUTLET OPERATORS CAN’T BE FAR BEHIND FUTURE LAB

FUTURE LAB 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 FUTURE LAB

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. FUTURE LAB THEN, GO TO WORK

FUTURE LAB RETAIL STRATEGIC POSITIONING FRAMEWORK Source: IBM Business Consulting Services – The Retail Divide, 2004 Products Solutions Basic Needs Self Expression Needs Alignment THE RETAILERS THAT WILL MAKE IT… Selling proposition 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” 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”

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”

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”

THOSE WHO CAN’T MAKE UP THEIR MIND “WILL DIE” FUTURE LAB

YOUR 4 STEP ACTION PLAN FUTURE LAB

1. GET ON A PLANE TO LEARN AND NETWORK FUTURE LAB

2. IMPORT – SKILLS, IDEAS, FORMATS FUTURE LAB

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 FUTURE LAB

POP Systems Online SO YES, THIS PM WE WILL HAVE SOME THOUGHTS ON FUTURE LAB

FUTURE LAB 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 »

FUTURE LAB COPY MODIFY CREATE DEGREE OF INNOVATION Turnover of Retail Trade in Romania 2001-2007, 2010 (€ billions) ROMANIA IS ON THE VERGE OF SOMETHING BIG

FUTURE LAB THOSE WHO INNOVATE WIN

FUTURE LAB THE CHOICE IS YOURS

FUTURE LAB