CONSUMER & MARKET TRENDS Raluca Raschip Consumer Goods & Retail Director 1
FMCG turnover growth across Europe [in %] FMCG development Value Price Volume 1,9 2,5-0,1-1,8 3,2-4,9 3,1 1,2 1,2 2,9 7,8-3,6 1,3 2,5 0,4-0,2-0,1-1,2 2,2 7,0-0,4 1,1-1,6 0,8-0,1-2,5-2,4 Quelle: Europanel (GfK, KWP), MAT 6/2014-2,5 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 4 5 6 7 8 9 10 Family Trust Honesty Freedom Sense of duty Friendship Origin Financial Security 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 2% Value Change H1 2014 Food Fresh Food Beverages Home Care Personal Care +6% +1% +2% +2% -2% Consumer Panel Services, Romania, H1 2014 vs. H1 2013 7
Mainstream brands continue to shrink in 2014 18 20 44 41 22 22 Premium Brands Mainstream Brands Economy Brands Private Labels Home Made Mainstream segment decreasing 13 14 4 4 H1 2013 H1 2014 Consumer Panel Services, Romania, Value Shares (%) 8
Promotions are now barely differentiating the Modern Trade Channels Hypermarkets Supermarkets Discounters Modern Proximity Stores Traditional Trade 26% 21% 23% 11% 14% Modern trade Traditional trade Modern Trade vs. Traditional Trade Hypermarkets vs. Supermarkets 2013 1.8 1.5 2014 1.7 1.2 Hypermarkets vs. Discounters 1.4 1.1 Consumer Panel Services, Romania, H1 2014 vs. H1 2013, Promo Value Share% for H1 2014 9
Avg. number of active SKUs per category In Romania, the Potential for Innovations is very high 900 Better chance for an innovation to be tried 800 700 600 ES DE UK Better chance to be tried 500 400 BE AT FR NL Fewer products on the ROMANIAN market 300 SE 200 RO 100 0 30 40 50 60 70 80 90 Avg. number of innovations per category Fewer innovations on the ROMANIAN market Cross-country analyses Europanel 10
Modern Trade is covering 54% of FMCG expenditures Hypermarkets 26 28 27 Supermarkets 15 13 14 54% Supermarkets Discounters Cash & Carry 8 9 9 2 2 2 Discounters Modern Proximity Stores Traditional Trade 50 47 46 Modern Proxy 2012 2013 H1 2014 Consumer Panel Services based on till roll, Value Share%, Romania 11
Consumers are shopping more frequently Value Change % Frequency Change % Value per Trip Change % KPIs Changes by FMCG Baskets FMCG Fresh & Dairy Food Beverages 2 1 2 6 3 7 8 8-5 -7-3 -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 72 64 68 63 Hypermarkets Supermarkets Discounters Modern H1'2013 H1'2014 Proximty How often do they buy?** 18 19 94 53 94 Traditional Trade 57 For 78% of Romanians shopping is still a pleasure 16 20 15 17 11 13 10 10 Hypermarkets Supermarkets Discounters 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 TV or print advertising Coupons Social media Brand Website Manufacturer apps Ability to pay with my mobile device Previous Experience Retailer Shelf info Products samples or demos WOM-friends and family Consumers Opinions Sites Online shoppers reviews Store flyers Geo-locater In store displays Brand 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 of online and their basket is 3 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, raluca.raschip@gfk.com Consumer Goods & Retail Director, GfK Romania 16