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 2014
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
1
Same Game
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
2
Consumer Confidence Indicator remains stable, willingness to buy is
sligthly increasing
20
10
UE
Bulgary
0
-10
Czech
Republic
Hungary
-20
Poland
Romania
-30
Slovakia
-40
Germany
-50
-60
-70
jan.-14
sep.-13
mai.-13
ian.-13
sep.-12
mai-12
ian.-12
sep.-11
mai.-11
jan.-11
sep.-10
mai.-10
ian.-10
sep.-09
mai.-09
ian.-09
sep.-08
mai.-08
ian.-08
-80
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; %
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
3
Q4 2013 (+11%) was the best in the last 5 years for technical
consumer goods sales
Telecommunications +17.4%
13%
12%
7%
2%
Small Domestic Appliances +9.2%
-15%
-43%
2008
2009
2010
2011
2012
2013
TEMAX, value change %
Black Friday
GfK TEMAX Evolution | Total Market in MIL EUR, 2013
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
4
Consumers look for the best deal through downtrading
FMCG Basket Decomposition
3.0
3.4
2.4
-2.8
Value %
Inflation *
Volume %
Down Trade
-3.1%
in supermarkets
GfK Consumer Panel Services | Price Inflation Food Index – Eurostat; * 2013 vs 2012
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
5
Buying frequency is slightly decreasing mostly for branded products
Value
Change %
Selected FMCG
categories
KPIs
Changes
by FMCG
Baskets
3
Beverages
-4
3
4
5
-0.4
Home&Personal Care
Value per Trip
Change %
-1
7
Food
2013 vs. 2012
Frequency
Change %
-9
2
4
13
GfK Consumer Panel Services I Calculation based upon Selected FMCG categories | 2013 vs 2012
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
6
Less shopping around and educated promo buyers
61
I use the shopping list to avoid buying
products that I don’t neccesarly need
58
75
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
77
44
49
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
58
66
40
41
42
2013
2012
44
GfK Shopping Monitor 2014 I 5+4 marks = totally agree + agree (%)
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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The good news is ....
for
78% of Romanians
shopping is still a pleasure
GfK Shopping Monitor 2014
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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More Players
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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More shoppers from rural area are are going to modern trade formats
14
Hypermarkets
26
28
33
33
53%
Supermarkets
Discounters
15
8
9
2
Cash & Carry
10
61%
13
18
15
8
10
1
Modern Proximity
Stores
50
47
Traditional Trade
2012
2013
Total Country
39
39
2012
2013
20
Urban
10
6
40%
42
43
7
71%
2
69
18
19
5
6
60
2013
2012
Rural
2
33
29
2012
2013
Bucharest
GfK Consumer Panel Services based on Till Roll | Outlet Types Value Share Change | 2013 vs 2012
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
10
Reasons for choosing
main shopping place
Barriers for choosing
main shopping place
GfK Shopping Monitor 2014
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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Different Cards
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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Private Labels take on a new challenge – consumer loyalty
22%
20%
8%
7%
Food
Beverages
13%
12%
4%
4%
3%
Home
Care
10%
9%
Personal
Care
GfK Consumer Panel Services | Private Labels Value Share Change (%) | 2013 vs 2012
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
2007 2012 2013 13
Innovation is key for growth through attracting new buyers
GfK Consumer Panel Services | Innovation Examples in the Romanian Market | 2013
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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„Fresh Food” could be the winning card for modern formats
Value share%
Fresh Food
38% total FMCG basket
Hypermarkets
30%
Supermarkets
32%
Discounters
25%
Traditional Trade
50%
GfK Consumer Panel Services | Fresh Food Value Share Change (%) | 2013 vs 2012
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
15
E-Commerce: The challenge for food retailing
10
Romania Value Share
8
Value Share
S. Korea
0.1%
6
UK
4
Romania FMCG Online Penetration (%)
France
2
China
5.6%
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
GfK Consumer Panel Services 2014 | E-Commerce Evolution | 2013 vs 2012
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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Not only one winning strategy...
Private Labels contribute to
category growth and are more
often bought
The „battle” for new customers among
retailers is moving towards gaining
their loyalty
Slightly more positive context,
but consumers continue to trade
down
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
Rural area shoppers –
opportunity for modern trade
Stimulate ocassional
purchases – POS activies,
targeted promotions?
Innovations can boost
brand penetration
17
„Life is not a matter of holding good cards,
but sometimes, playing a poor hand well.”
(Jack London)
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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THANK YOU FOR YOUR ATTENTION!
Diana Scăunașu
Client Service Manager, Consumer Panel Services, GfK Romania
Diana Scăunașu | The Winner takes it All? Same Game, More Players, Different Cards | March 2014
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