CONSUMER & MARKET TRENDS – Consumer Goods & Retail Director Raluca Raschip 1

CONSUMER & MARKET TRENDS
Raluca Raschip – Consumer Goods & Retail Director
1
FMCG turnover growth across Europe
[in %]
FMCG development
Value
Price
Volume
1,9
2,5
2,9 7,8
-0,1
3,2
-3,6
3,1
1,2 1,2
-1,8
-4,9
2,5
1,3
-1,2
0,4
-0,2
-0,1
7,0
2,2
1,1
-0,4
Quelle: Europanel (GfK, KWP), MAT 6/2014
-2,4
0,8
-0,1
-1,6
-2,5
-2,5
2
What Drives FMCG evolution in Romania?
Top 4 Drivers
Food Inflation
Savings
Confidence
Employment
Source: GfK Pulse Syndicated Study
3
People-related values are very important for Romanians
1
2
3
Family
Trust
Honesty
4
Freedom
5
Sense of
duty
6
Friendship
7
Origin
8
Financial
Security
9
10
Knowledge
Preserving
the
environment
Consumer Panel Services, Romania, 2014
4
Some Values are becoming more important this year
Fun
+3 pp.
Indulgence
+5 pp.
Stimulating
Experiences
+5 pp.
Consumer Panel Services, Romania, 2014 vs. 2013
5
Growth Brands are matching consumer values to a high extent
In case of Growth Brands, the
level of matching is high:
79%
In case of Burnout Brands, the
level of matching is high:
17%
6
Food products are driving the consumption growth in 2014
Food +6%
2%
Value Change
H1 2014
Fresh Food +1%
Beverages +2%
Home Care +2%
Personal Care -2%
Consumer Panel Services, Romania, H1 2014 vs. H1 2013
7
Mainstream brands continue to shrink in 2014
18
20
Premium Brands
44
41
Mainstream Brands
Economy Brands
Private Labels
Home Made
22
22
13
4
14
H1 2013
H1 2014
Mainstream
segment
decreasing
4
Consumer Panel Services, Romania, Value Shares (%)
8
Promotions are now barely differentiating the Modern
Trade Channels
Traditional trade
2013
2014
Modern Trade vs.
Traditional Trade
1.8
1.7
Hypermarkets vs.
Supermarkets
1.5
1.2
Hypermarkets vs.
Discounters
1.4
1.1
Modern trade
Hypermarkets
Supermarkets
Discounters
Modern
Proximity Stores
Traditional Trade
26%
21%
23%
11%
14%
Consumer Panel Services, Romania, H1 2014 vs. H1 2013, Promo Value Share% for H1 2014
9
In Romania, the Potential for Innovations is very high
Better chance
for an innovation to be tried
Fewer products on the
ROMANIAN market
Avg. number of active SKUs per category
900
Better chance
to be tried
800
DE
ES
700
UK
600
BE
500
AT
400
FR
NL
300
SE
200
RO
Fewer innovations on the
ROMANIAN market
100
0
30
40
50
60
70
80
90
Avg. number of innovations per category
Cross-country analyses | © Europanel
10
Modern Trade is covering 54% of FMCG expenditures
Hypermarkets
26
28
27
Supermarkets
Supermarkets
Discounters
15
13
14
8
2
9
2
9
2
50
47
46
Cash & Carry
Modern Proximity
Stores
Traditional Trade
2012
2013
54%
Discounters
Modern Proxy
H1 2014
Consumer Panel Services based on till roll, Value Share%, Romania
11
Consumers are shopping more frequently
Value
Change %
2
FMCG
KPIs
Changes
by FMCG
Baskets
Frequency
Change %
7
1
Fresh & Dairy
8
6
Food
8
Value per Trip
Change %
-5
-7
-3
Beverages
2
3
-1
Home Care
2
3
-2
Personal Care
-2
-2
-1
Consumer Panel Services, Romania I FMCG H1’2014 vs. H1 ’2013
12
Attracting more shoppers was the winning card for Supermarkets
How many shoppers?*
76
76
94
68 72
63
64
18
Hypermarkets Supermarkets
H1'2013
94
Discounters
H1'2014
19
Modern
Proximty
For 78% of
Romanians shopping
is still a pleasure
Traditional
Trade
How often do they buy?**
53
15
16
17
20
Hypermarkets Supermarkets
10
11
Discounters
10
57
13
Modern
Proximity
Traditional
Trade
*Penetration / **Frequency
Consumer Panel Services, Romania, H1 2014 vs. H1 2013
13
Retailer and Brand Experience are the key touch-points
Previous
Experience
Retailer
Brand
Shelf info
Products samples or demos
WOM-friends and family
Consumers Opinions Sites Online shoppers reviews
Coupons
Social media
Brand Website
Manufacturer apps
TV or print advertising
Ability to pay with my mobile device
Store flyers
Geo-locater
In store displays
Retailer website
Shopping/retailer apps up
smartphone or tablet
Product packaging
Brochures/flyers
General Shopping sites
Online experts reviews
Price comparison websites
Product Online Advertising
*Source: Futurebuy, 15-45 y.o, Urban. Internet Users, 2014
14
E-Commerce in FMCG across countries
New buyers
…and their basket is 3
of online
times bigger
…but they prefer branded products,
but only where online is small
…and they buy mainly
Personal Care and Pet Food
Cross-country analyses | © Europanel
15
THANK YOU FOR YOUR ATTENTION!
Raluca Răschip, [email protected]
Consumer Goods & Retail Director, GfK Romania
16
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