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CONSUMER & MARKET TRENDSRaluca Raschip – Consumer Goods & Retail Director

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Quelle: Europanel (GfK, KWP), MAT 6/2014

FMCG turnover growth across Europe

[in %]

Value

Price

Volume

-0,4

1,1

-1,6

0,4

-0,2

1,9 2,5

-0,1

-1,8

3,2

-4,9

1,32,5

-1,2

-2,5

0,8

-0,1

-0,1

3,1

1,2 1,2

2,9 7,8

-3,6

FMCG development

-2,5

-2,4

7,02,2

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What Drives FMCG evolution in Romania?

Source: GfK Pulse Syndicated Study

Food Inflation

Savings

Confidence

Employment

Top 4 Drivers

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People-related values are very important for Romanians

Consumer Panel Services, Romania, 2014

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34 5 6 7

89 10

Family Trust Honesty Freedom Sense ofduty

Friendship Origin FinancialSecurity

Knowledge Preservingthe

environment

5

Some Values are becoming more important this year

Indulgence

+5 pp.Fun

+3 pp.Stimulating

Experiences+5 pp.

Consumer Panel Services, Romania, 2014 vs. 2013

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In case of Burnout Brands, the

level of matching is high:

17%

In case of Growth Brands, the

level of matching is high:

79%

Growth Brands are matching consumer values to a high extent

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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

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Mainstream brands continue to shrink in 2014

4 4

13 14

22 22

44 41

18 20

H1 2013 H1 2014

Premium Brands

Mainstream Brands

Economy Brands

Private Labels

Home Made

Mainstream

segment

decreasing

Consumer Panel Services, Romania, Value Shares (%)

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Promotions are now barely differentiating the Modern Trade Channels

Modern trade

Traditional trade

Modern Trade vs.

Traditional Trade

20142013

Hypermarkets vs.

Supermarkets

1.71.8

1.21.5Hypermarkets vs.

Discounters 1.11.4

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

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In Romania, the Potential for Innovations is very high

NL

BE

ES

FRAT

SE

DE

UK

RO

0

100

200

300

400

500

600

700

800

900

30 40 50 60 70 80 90

Avg.

num

ber

of active S

KU

s p

er

cate

gory

Avg. number of innovations per category

Fewer innovations on the

ROMANIAN market

Better chance

to be tried

Fewer products on the

ROMANIAN market

Better chance

for an innovation to be tried

Cross-country analyses | © Europanel

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Modern Trade is covering 54% of FMCG expenditures

Consumer Panel Services based on till roll, Value Share%, Romania

Supermarkets

Modern Proxy

Discounters

54%

50 47 46

2 228 9 9

15 13 14

26 28 27

2012 2013 H1 2014

Hypermarkets

Supermarkets

Discounters

Cash & Carry

Modern ProximityStores

Traditional Trade

12

-2

2

2

6

1

2

Personal Care

Home Care

Beverages

Food

Fresh & Dairy

FMCG

Consumers are shopping more frequently

KPIs

Changes

by FMCG

Baskets

Value

Change %

Frequency

Change %Value per Trip

Change %

-1

-2

-1

-3

-7

-5

-2

3

3

8

8

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Consumer Panel Services, Romania I FMCG H1’2014 vs. H1 ’2013

13

15 1710 10

53

16 2011 13

57

Hypermarkets Supermarkets Discounters ModernProximity

TraditionalTrade

H1'2013 H1'2014

Attracting more shoppers was the winning card for Supermarkets

*Penetration / **Frequency

76 68 63

18

9476 72 64

19

94

Hypermarkets Supermarkets Discounters ModernProximty

TraditionalTrade

For 78% of

Romanians shopping

is still a pleasure

How many shoppers?*

How often do they buy?**

Consumer Panel Services, Romania, H1 2014 vs. H1 2013

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Retailer and Brand Experience are the key touch-points

TV or print advertising

Social media

Ability to pay with my mobile device

Manufacturer apps

Geo-locater

Shopping/retailer apps up

smartphone or tablet

Coupons

Online experts reviews Retailer website

Brand Website

Store flyers

Price comparison websites

Brochures/flyers

In store displays

Product packaging

Product Online Advertising

General Shopping sites

Shelf info

Products samples or demos

Consumers Opinions Sites Online shoppers reviews

Brand

*Source: Futurebuy, 15-45 y.o, Urban. Internet Users, 2014

Previous

Experience

Retailer

WOM-friends and family

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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

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THANK YOU FOR YOUR ATTENTION!

Consumer Goods & Retail Director, GfK Romania

Raluca Răschip, raluca.raschip@gfk.com