Brico international

International Edition - June 2013

www.bricomagazine.com

BricoMagazine The italian trade magazine for the DIY market

International Edition

DIY in Italy: the market struggles but holds up

Interview

Expo&Forum

Market data

2013 brings re-vamped assortment and new developments for Self

BricoDay, the n°1 event in Italy for the Diy market is back on september 26

GfK Retail: the growth of private labels in Italy’s Diy superstores

FITT, THE SPECIALIST IN GARDEN HOSE MANUFACTURING High quality and efficient service under the Made in Italy trademark Worldwide presence and service FITT expertise in PVC hose manufacturing is supported by an established commercial presence on every continent: thanks to a well structured network of subsidiaries in Europe (France, Spain, Poland) and to commercial agreements and technological partnerships -from North America, to Brazil, South Africa, Australia and Japan- FITT® is able to provide a targeted service to clients all over the world. Thanks to the international presence, FITT® boasts a deep knowledge of different markets that enables the Company to develop products aimed to meet specific requirements worldwide delivered through a highly efficient logistic service.

PATENT

Innovation, design, high-quality products and comprehensive service. Guided by these values, FITT® strives daily to satisfy its retail clients as well as consumers. Capitalizing on a highly flexible production organization and a wide range of technological solutions, FITT® -next to a standard range of garden hoses- offers clients the ability to fully customize its products, combining different types of textile reinforcements, materials and aesthetic finishes. This allows each client to create and market a distinctive, customized range of garden hoses.

NTS® patent, an international success The commitment to innovation, brought FITT® to develop ®

the revolutionary NTS technology, the patent recognized by the market as the new standard in garden hoses.

During use, ordinary hoses tend to form knots and twists that obstruct water flow and make the task of watering difficult and irritating. The NTS® anti-knot patent eliminates standard hose defects, preventing folds and erratic behaviour and ensuring extraordinary manageability. The exclusive helicoidal mesh

enables the hose to absorb the

torsion forces generated by water pressure and eliminate them.

Thanks to this innovative technology, the NTS® hose is handy and docile, easy to roll and unroll on the hose reel without any kink.

NO FOLD

NO TWIST

EASY

Contents

BricoMagazine International Edition - June 2013

Editorial .............................................................................. 5

Focus on News Retail trade ....................................................................... 9

PAGE

36

A negative year for the DIY retail network in Italy As 2012 came to a close, the DIY network was still suffering the effects of the economic crisis, with the number of outlets down. Conversely, increases were recorded both in total display space and in the average size of Italian DIY centres.

Current affairs ................................................................. 16 Self joins Bricoalliance and looks towards Europe .............................................................. 18 BricolaRge doubles up ............................................... 19 Buyers enjoy better organized National Hardware Show in 2013 .......................... 22 MARKETS Bricofer unveils its “Reality Shop” experience for DIY enthusiasts ................................. 24

The wood sector: the crisis and a changing approach to the market .............................. 66

by Raffaella Pozzetti

INTERVIEW 2013 brings re-vamped assortment and new developments for Self ......................................... 28

by Giulia Arrigoni

A SURVEY OF DIY CHAINS A negative year for the DIY retail network ............... 36

by Giulia Arrigoni

MISTERY CLIENT Visiting the Bricoman outlet in Carate Brianza ............................................................ 44 in collaboration with Interactive Market Research

EXPO&FORUM BricoDay 2012: brands and private labels in DIY ................................................................................... 50

by Monica Renna

MARKETS The paints and coatings sector: partnerships and training are the key ................................................. 70

by Raffaella Pozzetti

STUDIES AND RESEARCHES The growth of private labels in Italy ........................ 74

by GfK Retail and Technology Italia

MARKETS The mass merchandisers’ approach to private label DIY ......................................................... 56

by Raffaella Pozzetti

INTERVIEW Brichome, one company and a common business strategy .............................. 82

by Giulia Arrigoni

VISUAL MERCHANDISING Put out... the outdoor range ........................................ 56

by Dora Binnella

New Stores ....................................................................... 86

VISITED FOR YOU

The showcase .................................................................. 92

La Prealpina, Carmagnola ............................................. 62

by Giulia Arrigoni

Exhibitions ........................................................................ 96

BricoMagazine 1

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6TION

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Expo&Forum The n째1 event for the DIY market in Italy

Over 100 exhibitors

Come and meet the best Italian companies and retailers in a marketplace environment.

BricoDay is held in Milan at MiCo, the largest congress center in Italy (part of Fiera Milano Group). Participation is free of charge.

Special assistance for foreign visitors. Send your requests to: segreteria@bricoday.it

SPONSORED BY

ÂŽ BricoDay 2012 clip

English Brochure

Top italian and international speakers

Register for free at www.bricoday.it

Thursday, September 26, 2013 Via Gattamelata, 5 Fiera Milano City Milan - Italy

For info www.bricoday.it Find out more on the 2012 edition at page 50

™ luceQuadra w w w. c f g . i t

Editorial

BricoMagazine International Edition - June 2013

coMagazine with the aim to offer readers t is with great pleasure that we introthe widest possible picture of the Italian duce to international readers Bricomarket, with news, interviews and special Magazine, the Italian magazine dedifeatures on the current situation and the fucated to the modern DIY retail world. ture development of DIY retail stores in We took this opportunity on the basis of Italy. For example, on page ... you can read different yet equally important reasons: an interesting interview with the representathe 10-year anniversary of the magazine; tives of Self, the main Italian DIY retail the arrival, for the first time in Italy, of chain, running directly a network of totally the Global DIY Summit, organized by owned stores. And again, always in the retail the European associations EDRA/FedyGiulia Arrigoni field, the "Visited for you" series of articles ma, of which BricoMagazine is media editorial manager. devoted to new openings with detailed partner; the growing importance of inanalyses of the point of sale, as well as the ternational markets for Italian compareception and the service reserved to our mystery shopnies, not only the traditional European ones, but also the per visiting a DIY shop. Readers will also find specific emerging areas of the world. After having reported on articles devoted to visual merchandising and, of course, the evolution of the Italian DIY market for a decade – a to the world of suppliers with a detailed analysis of the sector that is currently going through its first year of accurrent situation. Finally, in order to better understand tual recession – the magazine’s publisher decided to subItaly’s DIY retail network, two interesting articles are mit an all-round view of Italian DIY retailers and supworth a special mention. The first one describes a DIY pliers to all major DIY operators in the world. As many independent (Brichome) and the second an "unusual" as 4,500 copies of BricoMagazine will be circulated, ofhardware store, which will undoubtedly offer plenty of fering the possibility to get closer to a market that has food for thought. We hope that you will like this publialways recorded good growth rates, consisting of major cation, we are at your disposal if you want to contact us suppliers as well as a highly complex and diversified refor more information. Happy reading! tail network. We publish this international issue of Bri-

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Colophon BricoMagazine is published by EpE Edizioni S.r.l - Via Spezia, 33 20142 Milan - Tel +39 02 8950 1830 - Fax +39 02 8950 1604 Email: bricomagazine@epesrl.it - Web: www.bricomagazine.com Managing director: Massimo Casolaro massimo.casolaro@epesrl.it Editorial manager: Giulia Arrigoni giulia.arrigoni@epesrl.it Editors: Claudia Perolari claudia.perolari@epesrl.it Desirée Duca desiree.duca@epesrl.it

Advertisers ALFER www.alfer.com

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ALUBOX www.alubox.it

Page 4

ARCANSAS www.arcansas.it

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ARIETE www.ariete-group.it

Pages 31-33-65

BOLIS www.bolisitalia.com

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BRICOLIFE www.bricolife.it

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C&C www.cecarredi.com

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CAM www.extremasealants.com

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CFG www.cfg.it

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COMFERUT www.comferut.it

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Contributors: Dora Binnella, Raffaella Còndina, Ferdinando Crespi, Mauro Milani, Daniela Ostidich, Raffaella Pozzetti, Andrea Prete, Monica Renna, Anna Rucci, Lena Scotti, Bob Vereen

ELEA www.eleaspa.it

Pages 20-21

FITT www.fitt.it

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GIMI www.gimi.eu

Page 26-27

Paging up: Claudia Bellelli claudia.bellelli@epesrl.it

Global DIY Summit

Page 73

KIMONO www.kimono-spa.com

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Photography: Andrea Lavaria andrea@andrealavaria.com

KRINO www.krino.it

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Printed by: Ingraph - Seregno (Mi)

MADE4DIY

Page 69

MOBIL PLASTIC www.mobilplastic.it

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POLIMARK www.polimarksrl.com

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SODIFER www.sodifer.it

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VEGA www.vega-pika.it

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Editorial assistant: Silvia Mariani silvia.mariani@epesrl.it

Advertising office: EPE Edizioni - Via Spezia, 33 - 20142 Milano Tel. +39 02 8950 1830 - Fax +39 02 8950 1604 Sales manager: Maurizio Casolaro maurizio.casolaro@epesrl.it

BricoMagazine 5

Retail trade news

Ikea Italia, purchases exceed 1 billion euros. And that’s not all!

The Ikea Italia annual press conference, held recently in Milan, presented its annual report on social, environmental and human resources. The social and economic activity of the Swedish group involves over 2,500 Italian enterprises. In the furniture industry alone purchases reached more than 1 billion euro, and involved 53 manufacturing operations for a total of 2,500 jobs.

Furthermore food purchases totalled twenty and a half million euros and 7.2 million kg of merchandise was purchased; about 200 million euros was spent on goods and services and jobs created numbered 1,110 in the transport sector and 1,600 in outsourcing. The construction and maintenance of existing Ikea stores originated a total turnover of 18 million euro for 80 Italian companies, including professionals, builders and other suppliers.

A new entry for the FDT Group The FDT consortium has added a new affiliate to its group. On 4th March this year Papeschi srl joined the consortium with two outlets – one 2500 square meter store in Lucca and another (1,200 sq.m) in Gallicano (near Lucca). The company has more than 50 years experience in the flooring and interior decoration market and has also developed DIY and outdoor furnishing departments – first at the Lucca outlet and then in its Gallicano store, which is dedicated entirely to DIY. The stores also offer a key-cutting service and, above all, a paint and colouring department that also targets professionals.

Self debuts on TV soap opera style For the first time ever Self has decided to advertise via a nation-wide campaign on TV. The commercial uses a retro 1980s setting for a “soap opera” featuring a clueless 50-something couple trying to cope with a series of unfortunate, yet commonplace hitches resulting from poor home maintenance. The TV spots were broadcast on major Italian networks RAI and Mediaset in various time slots between late March and early April. The campaign plays around with the typical soap format and dialogue, which highlights the ridiculousness of the situation and supplies tongue in cheek solutions to the problems of the two protagonists. Self resolves the various situations that occur thanks to its wide variety of DIY products. In the commercials Self contrasts comedy with drama - emphasized by the characters -, in a simple and practical way that any of us could apply for ourselves in our own homes. A solution is always at hand thanks to the wide variety of high quality products selected in the commercial to decorate for example the floor, paint the walls, renovate the interior and tend the garden.

BricoMagazine 9

Retail trade news

OBI Italy’s "Master in Retail Management" course has ended and the first young graduates have entered its sales network The Master in Retail Management course, organized by OBI in collaboration with the E-ducation.it Training School, offered a new format that aimed to increase the students’ potential and get them started on a professional career in the chain’s stores. Lasting from May to November 2012, for a total of 752 hours, the students of the three courses held in Milan, Florence and Rome, alternated between classroom lectures and two internships at OBI stores. During the lectures various subjects were covered, such as economic management of the sales outlet, marketing, purchasing and supplier relationships, managing customer service, the organization of human resources in DIY superstores, as well as leadership and management skills. During the internship, however, those participating also followed a training programme developed by the Human Resources Department, which allowed them to get an all-round overview of how the stores work, starting from the receipt of goods to the sale, the checkout area and information box, and then moving onto administration. Fifty-two people were involved in the OBI sponsored training course, 46 of whom completed the course and gained their diploma. More than 50% of the participants are currently working in OBI. At the end of the Master course the best candidate from each of the three courses was awarded a scholarship.

Bricolife becomes a member of EDRA Following Self ’s example, the Bricolife Consortium has also decided to join EDRA. This brings the total number of European members of the association to 113 - either directly or via membership of affiliated trade associations. John Herbert, General Secretary of EDRA said "We are delighted to have Bricolife as a new member of EDRA. Bricolife is happy too welcome the type of smaller, family-run enterprise that occupies such an important role in the Italian market. "

Student discounts at CFadda The students’ discount card campaign is part of a project that will, from time to time, involve different categories of customers. The discount is expected to be 8% on all items and card holders must sign up for the CFadda Advantages Card. At the time of signing you will need to hand in a copy of your identity document and proof of payment of tuition fees for the academic year 2012-13. The request to activate the 8% special discount must be submitted no later than 30 June 2013. The discount will be valid until 31 July 2013 on merchandise from all departments, excluding items already part of other promotional offers. The card-holder’s name is embossed on the card and whenever it is used, the user must show a valid identity document. The campaign will not only be announced via the usual channels, but will also be publicized both in stores and at places normally frequented by students (university canteens, sports clubs, student union, etc.).

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Fixing Design

BOLIS ITALIA srl Via F.lli Kennedy 23881 Airuno (LC) - Italy Tel: +39 0399271126 Fax: +39 0399271133 e-mail info@bolisitalia.com

www.bolisitalia.com

Retail trade news

Bricolife plays "Twice” the new make a purchase and win 2 times competition The new contest created by the Bricolife consortium, which began on 15th March and lasted until 15th May, had three main objectives: to encourage the use of the Loyalty Card, promote the activation of new cards and encourage consumer spending via customer rewards; for every 25 euro spent, customers received a scratch card (2 for 50 euros, 3 for 75 euros, etc.). Customers could find out immediately if they had won one of the shopping vouchers up for grabs (a total of 3,250 vouchers with values starting from 5 euros were available), and could also continue the game on-line. In fact, all the cards have a removable strip concealing an entry code for another competition at the Bricolife site. Once he or she entered the code and compiled an online form with their personal data the recipient were included in the final draw. Once the competition ends a company official will extract the names of the lucky winners who will take home “Superprizes” including a Fiat Panda, 5 electric bicycles and 100 Samsung tablets).

New entries in Bricolife The Bricolife Consortium has welcomed another two members. The first is Unipam srl, the company owner of the Centro Acquisti Orizzonte retail outlets (using the traditional department store model with food hall) which has decided to increase the store area dedicated to DIY. Unipam operates in Lazio where it has 11 outlets; the most recent opening was in Cisterna di Latina. The second new member is Free Time srl, with one 2,000 sq.m store in Foggia.

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Leroy Merlin returns to the Bollate correctional facility Leroy Merlin and the administration of the Bollate correctional facility are working together once again, this time the Leroy Merlin staff worked directly with Block Two inmates on a project to soundproof the institution’s multifunctional meeting room, auditorium, cinema which is used for meditation, interviews and group discussions. Gianluca and Giovanni from the Baranzate store of Leroy Merlin are experts in the construction industry and got to work with 13 inmates starting with the theory and technical characteristics of sound-proofing materials before moving on to the practical application of completing the project together. Block Two inmates have a single room, which is used as a venue for meetings with social workers as well as an auditorium. Before they were carried out the work the reinforced concrete and iron walls afforded no privacy and did nothing to decrease acoustic fall-out. For this reason a group of inmates and volunteers mobilised to resolve a situation that has been creating considerable inconvenience over the years. The working partnership between Leroy Merlin and the correctional house happened almost by accident: the store, situated nearby, was organising its usual craft and DIY courses for the public and contacted the Bollate facility asking the warden if they could hold some of these courses inside the prison so that inmates could learn helpful skills for the future. The warden considered with interest this proposal and the value of the competencies involved and immediately gave the go ahead.

alteregostudio.it

SEALANTS - ADHESIVES - SERVICE PRODUCTS - CAR CARE

is a brand by CAM International,

an extremely innovative company for every kind of market and necessity DIY AND PROFESSIONAL www.extremasealants.com via f.lli Cervi, 48 - 20023 Cantalupo di Cerro Maggiore (MI) Italy Tel. +39 0331 533538/9 Fax +39 0331 533540 info@extremasealants.com

Retail trade news

From Bricocenter to Italbrico On 6th and 7th March Pomezia hosted the ninth Bricofer Business Meeting "To Do Together" Against the backdrop of the Hotel Selene Congress Centre the ninth edition of the Bricofer Business Meeting "To Do Together" took place in Pomezia (near Rome), where suppliers met affiliates and brand representatives. The event, which takes place three times a year, offers fast track access to business contacts in order to increase efficiency. This philosophy of ‘chasing business’ identifies in the supplier a true partner that should be integrated into the network and sees the store as the first interface with customer demand. Via a system of one to one appointments, in just two days 26 partner suppliers in the group made approximately 540 orders to the tune of 980,000 euros. This was an important opportunity for suppliers to submit tenders created specifically for the event and proved fundamentally important in creating active participation between suppliers and distributors. The gala dinner at the conclusion of the first day saw affiliates, suppliers and Bricofer staff enjoy a moment of relaxation and fun. During the evening a special token of appreciation was given to German supplier Alfer Aluminium GmbH which received the Special Bricofer Partners prize for the on-going dedication and cooperation with which it is always ready to follow sales and marketing initiatives thus demonstrating its reliability and confidence in Bricofer.

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Three former Bricocenter members have switched allegiance to Italbrico. As of last January, CIB Brico Valenza S.r.l. based in Valenza (near Alessandria) with a 1000 sq.m outlet, Brico Pietrasanta Srl with a store of 900 sq.m in Pietrasanta (near Lucca) and Fastred Srl based in Nocera Inferiore (near Salerno) where it operates a 1,400 sq.m DIY store have, in fact, become part of the latter consortium.

Self HappyBox: a box full of surprises Self wants to reward the loyalty of existing customers and attract new ones with this innovative proposal: participating in the Big Self Happy Box Contest. This toolbox contains a wide range of products for the home, leisure and not to be missed offers for just € 9.90. Customers reserved their boxes from 25th March to 25th April at www.selfitalia.it and picked them up later at selected stores.

This gave them the right to participate in the Big prize draw which gave away fantastic HP notebooks and printers, Vergnano coffee makers and much, much more – in total 84 prizes were up for grabs. With a few clicks of the mouse, customers could purchase the Self Happy Box directly on-line by filling in and printing the reservation form; the boxes were available for collection from 2nd to 5th May. The competition was promoted via on-line advertising, flyers and brochures distributed at all the Group’s stores.

CFG, since 1961, distributes all over Italy chemicals for Professional and DIY maintenance Up to today, CFG range is the widest on the market and at the same time available from a single source.

In 2011, the CFG Srl has acquired the brands LuceQuadra and Emmeci specialized into electrical equipment (fan, heater, lighting, plugs, torches, etc.) thus entering into the segment of electrical equipment with more than 350 new part numbers and with two brands present in Italy since 50 years.

In 2012, the CFG Srl became the official national distribution in Italy for Duracell, Ambi Pur Car, Ambi Pur Home, Gillette, Braun for wholesalers and retailer belonging to Hardware, Electrical, Garden, Marine and Brico Groups.

From owned warehouse in Livorno, orders are given to couriers within 24 hours from order receipt and delivered by courier to retailers in the next 48 hours.

Several thousands of Retailers are supplied by CFG in Italy. Employees, area managers and a wide network of sales agents regularly visit stores offering technical support and commercial training and verifying proper product presence on the shelf.

As far as the large-scale distribution Brico (Non-Food), CFG is present in the most important Italian chains.

The new logistic center of CFG.

CFG headquarter, located in an historic villa.

CFG Srl - Via Fraschetti, 5 - 57128 Livorno Ph. +39 0586 580066 - Fax +39 0586 580731 - E-mail info@cfg.it www.cfg.it

Current affairs

C.&C.'s new online catalogue

Elettrocanali expands its headquarters and logistics centre Operating in the production and sale of electrical equipment, Elettrocanali a company situated in Scanzorosciate (near Bergamo), recently inaugurated its new logistics centre and office building. The industrial complex covers an area of about 20,000 sq.m, 13,000 sq.m of which is undercover. The make-over has transformed the premises both in terms of space and design to fit in with the needs of a company that has continued to grow for over forty years. Together with the adjoining plant in Pedrengo, the two production sites in the province of Bergamo occupy a covered area of 16,000 square meters; if we take into account the production sites in Osimo, near Ancona, and that in Avellino, the four Italian plants total over 20,000 sq.m. Outside Italian borders meanwhile Elettrocanali is present in France and Spain with two subsidiaries dedicated to sales and marketing near Lyon in France and Barcelona in Spain. This expansion has also effected logistics: the majority of exports (to over 70 countries, accounting for 50% of sales) and distribution in Northern Italy leave from the Scanzorosciate depot. Since Elettrocanali’s trading policy is committed to immediate, instock availability for all the items in its catalogue, there is a clear need for adequate space to prepare and ship orders, given the steadily increasing volume of business the company handles.

C. & C. Arredamenti Metallici srl has an eye on the future, but is not forgetting the past. Its comprehensive catalogue of equipment for all manufacturing and commercial needs has now gone online.

Indeed, the DIY world is not C. & C.’s only target market. Its aim, with this simple, illustrated catalogue, is to remind all its clients of its production flexibility, which allows it to offer a wide range of complementary products.

Its aim, in short, is to be, more and more, an all-inclusive supplier, offering turnkey solutions. The catalogue is full of articles that are clearly presented with photographs, technical descriptions and all the necessary measurements. All users have to do is visit the website www.cecarredi.com and click on SCARICA CATALOGO PRODOTTI (download catalogue). By entering a few essential details, which will remain in our archive and in the list of newsletter subscribers, users can receive the full catalogue or the section or sections of interest (Shelving – Drum storage – Workshop furnishings – Community furnishings – Office furnishings).

Bosch Power Tools reaches the 4 billion euro milestone Despite unfavourable market conditions, the Power Tools division of the Bosch Group has recorded a 6% growth in sales for the year 2012. The company hit the target of €4 billion in sales for the very first time and in doing so acknowledged the contribution made by its 19,000 employees. In 2012, the overall market growth was 4% with a turnover of 24.5 billion euro. Particularly positive results were recorded in Asia, despite the market performing below expectations. The main cause can be found in the effects of the economic slowdown in China. Good progress was achieved in North America, where growth was 6%. One of the reasons for the positive development of sales is the great market success of the measuring instruments business. Good news from Europe too; despite a stagnant market, Bosch Power Tools managed to strengthen its position with a +3%.

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Ind.i.a. are shopping in Germany Among the many sad stories about Italian companies stepping out of business, fortunately something good happens occasionally. This is the case for Ind.ia Vicenza, a company specializing in iron accessories, which has just finalised the acquisition of Triebenbacher, a German company with 9 branches and 91 employees, a reference point in Germany for iron and steel accessories. Ind.ia, led by founder Bruno Gonzato and his children, today employs more than 700 people worldwide with 120 in the company headquarters in Malo.

Idro-Bric acquires Acquasanit Idro-Bric SpA recently took over Aquasanit, the commercial arm of Inda Ltd, a company that is stepping out of the DIY market to concentrate on the professional retail market as its core business. With the acquisition of Acquasanit, Idro-Bric completes its range of products as a global supplier for plumbing installation, taps, hydrotherapy, sanitary ware, water heaters, boilers, furniture, shower cubicles, bathtubs and bathroom accessories. From the point of view of logistics the Acquasanit warehouse has been integrated into Idro-Bric’s Casirate d'Adda depot and storage operations, and the company is in the process of building a new 600 sq.m warehouse to improve distribution logistics. Inda currently supplies Idro-Bric with an assortment of shower cubicles and bathroom furniture. Revenue forecasts for 2013 predict post-takeover sales of 45 million euro.

Current affairs

by Giulia Arrigoni

Self joins Bricoalliance and looks towards Europe The Self group continues to grow and as it does it is taking inspiration from what is happening outside Italy by joining European consortiums and trade associations. ollowing its recent adhesion to Edra, Self has also decided to join Bricoalliance, a purchase centre supported by nine European chains.

We asked Enrico Gardino some questions about the reasons behind this move and what objectives Self plans to pursue.

First the obvious question: Why? First and foremost to expand outside Italy so we can improve our purchasing power and then to compare our performance with other chains’.

The first reason is, as you say, obvious; everyone knows. But this is the kind of move that breaths life into a business.

The second reason, which is just as important for us, is improving our performance and the best way to do it is to compare ourselves to other chains that work in the same sector; not our direct competition, that would be impossible, but with the reality of how things work in other countries Do you think that your experience of markets outside Italy will help power future developments for your brand?

It’s certainly becoming more and more important to look at what’s happening elsewhere and we believe that this kind of exchange of information –

F

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Yes, I’ve been to meetings with Edra and Bricoalliance. More than anything else the consortium has been working swiftly to try to assimilate common development strategies for the future. Furthermore, in a few months – the date has yet to be decided – we will be holding our first meetings with suppliers as Bricoalliance. The idea isn’t to enter into negotiations immediately, but to present the consortium, explain what it is and what it wants to do and outline our future projects. Our intention is to build a reality that will go beyond a simple exchange of orders and contracts: at least that what we hope to achieve.

You have set yourselves an Enrico ambitious task: nine brands Gardino, in nine countries...

Self’s CEO You’re right, but I believe this could be a great opportunity for us. There’s a great deal of work that still has to be done there’s no doubt about that – not only problems connected to the different languages we speak but also different mentalities, customs and market demand. We will all need to be flexible and committed to this project if we want to make the best choices that will benefit everyone. ■

perhaps with Bricoalliance – could be a stepping stone towards the future for Self. This is the same motivation that lies behind our membership of Edra and it was that decision which led to us joining Bricoalliance.

Have you been to any meetings yet? What was your impression?

BricolaRge doubles up BricolaRge has decided to invest a significant amount of money over the course of 2013, according to a plan that will revolutionise the company’s communications with its customer base and independent dealers. ith 12 outlets, a modern unmistakeable brand and, despite the current economic downturn, thriving business, BricolaRge closed 2012 in the black thanks to its policy of presenting itself to suppliers as a potential partner, but also thanks to its appeal to a customer base that leans heavily towards DIYers.

Based on its success and following the logic of its strategy, BricolaRge has drawn up an ambitious investment plan for 2013 that will revolutionise the company’s communications with its customer base and with independent dealers that want to be part of a consortium that will allow them to improve their market share and, of course, their sales and profit margins.

“When deciding how to deal with the problems in the franchising sector that emerged during BricoDay 2012” – says Carlo Basciani, head of marketing at BricolaRge – “we opted for the consortium model as a likely alternative; all our members share the decision-making and the benefits equally and the benefits can be major, above all during a recession like the present one.”

BricolaRge was developed based on the experience gained with Consorzio Punto Legno, which was one of the first of its kind in the Italian DIY sector, but which went on to have some serious issues. How much of Punto Legno is there BricolaRge?

W

“It’s certainly true that when we talk about Punto Legno we are talking about the history of DIY in Italy.

The sector has come a long way and has left industry professionals – manufacturers and distributors – with a wealth of valid experience and know-how”, continues Mr. Basciani.

Personally I feel very attached to our past, but at the same time, as someone who has yet to celebrate his 40th birthday, I think the present and the future are there for the taking and should be fully mapped out. I have been with BricolaRge since 2009 and in these last few years we have worked hard to improve our organisation and the open and honest relationship we have with our suppliers, whom we see as our partners in this venture. All of this benefits our members. There is still a great deal to do and 2013 will be an important year for our consortium.

What can we expect from BricolaRge? At present being part of the BricolaRge consortium is an opportunity and we hope it will become a source of pride with time. We are working on projects that will bring a breath of fresh air to the market and take it into the new century. Of course we can’t give too much away, but the new frontier is in communications, media and the internet - all aspects that will carry a great deal of weight.

But whatever the medium, I believe the kind of reputation your brand

Carlo Basciani.

has with suppliers and consumers is paramount and I think our reputation is solid. We have worked hard to achieve this and now we have to put it out there and you can be sure we will be doing our utmost in order to succeed.

Is there anything more you can tell DIY enthusiasts?

We aim to give the consumer the greatest possible satisfaction. Until recently that usually meant gaining the customers’ trust and encouraging their loyalty, but that is no longer the case. Marketing experts talk about “conversational marketing” and retailers that “listen” (says Philip Kotler) because today the customer really is King: the customer comments, has opinions, interacts with the retailer and with other consumers. We want to be part of that flow of information because it is of value to us and, and I cannot stress this enough, to our customers. In Italy in particular, and not just in our sector, it’s very difficult for the consumer to be heard. We’d like to see that change. We want to listen, work with the customer and, hopefully grow with them too. ■ BricoMagazine 19

Current affairs

by Bob Vereen

Buyers enjoy better organized National Hardware Show in 2013 A report from the National Hardware Show 2013, 7-9 may Las Vegas.

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ust as retailers realize they must keep improving to satisfy customer needs, this year's National Hardware Show, held in early May, offered buyers a number of major improvements designed to make it easier to shop, easier to find new items or explore other market opportunities and with the added advantage of a series of educational seminars, several of them focusing on the rapidly evolving world of social media and mobile devices and their impact on retail-

J

ing and marketing.

While there are other exhibitions for the kinds of products sold in hardware stores, home centers and specialty retailers, there is none quite like the National Hardware Show, which blends a huge exhibition with educational seminars, and that is why it attracts wholesale and retail buyers from around the world, from as far away as Australia, Europe, South America and Asia, in addition to full line and specialty wholesalers and distributors, as well as in-

dividual retailers and chain store retailers of all kinds from throughout North and Central America.

Because buyers are always looking for “something new”, this year the show featured three segments emphasizing new items in a New Products section, making it easy for buyers to concentrate on such items, another area called Innovation Section also introduced new items, and this year show management also set

Exhibitors categories In all, here are the 11 categories in which the show's 2,700 exhibitors were organized: • Building Products • Farm & Ranch • Hardware & Tools • Homewares • International Sources, which included suppliers from more than a dozen countries • Inventor's Spotlight (another place to find new products) • Lawn, Garden & Outdoor living • Paint & Accessories • Plumbing and Electrical • Storage and Organization • Outdoors, Tailgate and Recreation an outdoors display of items like barbecue grills,

aside an area for New Exhibitors, whose products, in most cases, would be new to most attendees.

A Packaging Exposition, rewarding firms with outstanding packaging, also helped buyers focus on salesmaking products and effective point-of-sale merchanding aids.

For american buyers who realize that consumer interest in American-made products is growing at a remarkable pace, special recognition was given to firms whose products are Made in America so they could concentrate their buying on those items.

But perhaps the most important change in the show this year was the improved organization of the show by merchandise category, making it much easier for buyers to concentrate their product reviews of the items of most importance to them.

And because the show consisted of more than 2,700 exhibitors, such a departmental organization was most helpful. Recognizing overall merchandising trends, two new categories were offered building products and farm & ranch.

Management said the show also allowed manufacturers to connect with inventors and find new products for their portfolio. For inventors, it was their way of getting their products into the distribution

channel. “Of the new products we showcased at the National Hardware Show this year, three of them were from products we discovered at the show last year. One of them was a winner of the Retailer’s Choice award,” said Corey Talbot, vice president of marketing and new product development at Hyde. “The National Hardware Show is the best place to find great talent—inventors that need someone to help them move their product along the distribution channel.

Those inventors typically have a new product 80% of the way developed, but need someone to take it the rest of the way.”

The Retailer's Choice mentioned above is a recognition program of Hardware Retailing magazine, in which a group of retailers prowl the show and pick items they think will be winners in their stores. The products and producers are recognized during the show's final stages and also in the magazine's July issue, reaching more than 30,000 wholesale and retail readers. The magazine has used retailers to search for products they like at this show for more than 40 years.

Next year's show will be held in Las Vegas May 6-8, 2014. www.nationalhardwareshow.com ■ BricoMagazine 23

Current affairs

by Giulia Arrigoni

Bricofer unveils its “Reali experience for DIY enthus Not so much a reality show as a reality shop, where several couples will be getting to grips with DIY projects.

A 14-stop tour covering the length and breadth of Italy.

he retail chain Bricofer has launched its “Reality Shop”, a reality show-type shopping experience for couples. The competitors will be filmed as they try their hand at DIY, having been given a specific assignment: to construct an object within a time limit of 20 minutes.

The winning couple will become the faces of a Bricofer advertising campaign and will take home two Dacia Dokker Vans. To take part, the would-be competitors were required to submit a photo showing themselves doing DIY or in

T

which they appear together with some object related to the world of DIY. The individuals in the photos deemed most appropriate, selected at the sole discretion of the judging committee, took part in a casting process which led to the final selection of the Reality Shop contestants. In particular, the committee selected, on the basis of the photos, the individuals who will be taking part and matched them in couples; the list of contestants can be consulted on the retailer’s website, www.bricofer.it.

The contestants, the stops, and the challenge The contestants will be pitted against each other on a total of 14 stages. The tour opened on May 18 at the Roma Capena store and will end with the final on July 20, again in Rome. The challenge facing these DIYers is broken down into four different stages. On arriving at the Bricofer store, each competing couple is given a sealed envelope containing a photo of the object that they are required to reproduce, together with some suggestions as to the products they might buy and the total amount they can spend; after opening the envelope, the contestants have two minutes in which to jot down a list of the things they need to buy, remaining within their budget. Then, the competing couples are given 15 minutes to race round

24

BricoMagazine BricoMagazine

lity Shop” usiasts the store, filling their trolley before going to the cash desk to check that they have not spent too much. Once the cashier has given them the go-ahead, the contestants have just 20 minutes to leave the store, load their purchases into a Dacia Dokker Van put at their disposal, and make their way to a special venue located somewhere nearby, where they will construct the specified object. Throughout the entire duration of the challenge, the competitors will be filmed by SPACE TV cameras and the resulting videos will be shown in the Reality Shop area of the Bricofer website and also on Bricofer’s various social media pages. The 10 couples receiving the highest number of votes will qualify for the final.

The final The Reality Shop final will be the focus of a major event to be held in Rome on 20 July. The final will take the form of a challenge against the clock: the couple who complete the requested object in the quickest time will be the winners and will become the faces of a Bricofer advertising campaign.

What is more, each member of the couple will go home at the wheel of a spanking Dacia Dokker Van! What is more all those who voted for the competing couples will be entered in a special draw for three great prizes: a Blue-Express flight for two people to Moscow from Blue Panorama, a weekend in Tuscany courtesy of UNA Hotels & Resorts (at their UNA Poggio dei Medici venue), and a €300 voucher to spend at Bricofer.

And for Bricofer’s customers…

“Look & Win” As well as its Reality Shop, Bricofer has also launched another initiative, this time open to all its customers: until 6 July, anyone spending more than €50 will be given a “Scopri & Vinci” (“Look & Win”) scratchcard and thus have the chance to win, immediately, one of a range of fantastic prizes (Blue-Express flights from Blue Panorama, weekends at UNA Hotels & Resorts, and much more besides*). Furthermore, if even if you don’t win, your “Scopri & Vinci” cards will be “put in hat” and one will be drawn at the Reality Shop final in Rome: the lucky winner will receive a Dacia Dokker Van. ■

Interview

by Giulia Arrigoni

2013 brings re-vamped assortment and new developments for Self elf is Italy’s biggest DIY retailer, not only in terms of its size, but above all, for the range of innovative products it offers. And now the company has started a new brand – Dottorbrico. In this interview Kristos Basimas, head of purchasing and overseas markets at Self, and the company’s communications director Riccardo Baldi tell us about the current situation on the Italian market and how the company is dealing with the current recession.

How did the Italian market perform in 2012 and how are things looking in the first few months of 2013?

In 2012 the DIY market in Italy fell for the first time ever – a drop of 2%.

Of course when we look at the figures for other markets - Spain for example fell by 9% - the reduction was minimal. However we mustn’t forget that in other areas, such as Russia, there was an increase of 12%. These are examples of the two extremes and there are other realities, France for one, where business remained stable at a level with 2011. However this is the first time we’ve seen a decrease in turnover and it’s something we need to take into account when considering new store openings.

And the situation for Self?

We are making progress in development, but in terms of breaking even

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BricoMagazine

Self is Italy’s biggest DIY retailer, not only in terms of its size, but above all, for the range of innovative products it offers. In this interview with Kristos Basimas, head of purchasing and overseas markets at Self, and the company’s communications director Riccardo Baldi, we talk about the current situation on the Italian market and what Self is doing to deal with the current recession.

we are in line with the rest of the market, which means we need to be careful. Although we have strengthened our market share, putting us ahead on performance, we must continue to invest; this remains our priority especially because we are expecting another negative year in 2013. January was not a good month, but then it never is. This time however, despite some very attractive offers, even the New Year Sales did not go well. Self has a very challenging year ahead, but we remain optimistic Kristos Basimas, head of purchasing and overseas markets.

Riccardo Baldi, communications director.

because we are determined to grow and convinced we can do so.

Making outlets more appealing to women and the professional consumer How are you going to do this?

By changing our assortment for example. It’s amazing what results we achieve every time we re-vamp our offer whether by department or sector; the positive impact is immediate.

Self customers will be seeing a lot of this in 2013. We tend to refresh all

our sectors anyway and this year, for example, we will be concentrating more on technical sectors: tools, electrical goods, plumbing supplies – all areas where we’ve seen a positive performance despite the general slump in the market.

What’s the reasoning behind this?

We make investment a priority and this means we continue to be a hub for every type of item you might expect to find in the macro sector we call DIY. However it’s true that in recent years we have been pushing products with more feminine appeal and expanding the area dedicated to decorative hobbies and crafting.

And you’ve also made professional consumers more of a priority...

We’ve worked hard to expand our professional customer base in the electrical goods and plumbing supplies departments. Plumbers and electricians may not be our primary target but the professional sector is a market like any other and we want our share of it. We have introduced some very interesting assortments for plumbing and electrical supplies and that gives us a full and comprehensive range of articles, which in turn increases our credibility with the customer. More and more tradesmen are buying from Self thanks to a special catalogue we have prepared and a targeted mailing list.

How does this work in the single outlets considering the difference in their sizes?

We use a rack system in larger stores, while the smaller stores work from behind the counter. But the extent of the range of articles is almost the same. What changes is the quantity of a given item kept in stock. Revising our assortment is so important because is keeps us out of the red even in times like these when the construction sector is losing ground.

So, is this a contradiction? Or does it >>>>

BricoMagazine 29

Interview

New items for Self in 2013 Did any segments defy the overall trend in 2012?

Yes, for the first time in our market segments like lighting and home decor fell. But here at Self our lighting sales were up, because we changed our assortment not once, but twice and thanks to a new partnership with Philips which saw us set up a dedicated area for lighting at our Moncalieri outlet, as well as a radical change in our visual marketing displays; we placed the emphasis on well-known brands the customer recognised and liked.

What do you mean by “radical change”?

When it comes to lighting we have discovered that the number of items on display is less important than the customers’ ability to “read” the assortment and understand what kind of light fitting they need. The answer is to have fewer items, but the right kind of items displayed in the right way to create a balance between the range of articles available and how they are presented. The results have 30

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been encouraging and we want to continue to explore this avenue across the board. We are not ruling out further partnerships with suppliers. This will help us optimise our use of space and reach our goals in terms of sales, profit margins and stock turnover.

You’re preparing a new store opening in Alessandria. Have you got any news for us about that?

We are presenting a new series of courses in-store that will appeal to women and kids. We hope that taking part in a course will lead to the creation of a sense of community and

“

It’s amazing what results we achieve every time we re-vamp our offer whether by department or sector; the positive impact is immediate. This is something you’ll be seeing a lot of at Self in 2013.

“

simply mean that more people are doing jobs around the home they would have hired someone else to do a few years ago? It’s the same in the bathroom sector; if we look at the figures for the professional segment they are falling, but the private market is growing.

Are we looking at the classic “do it for me” scenario?

I think we are. Once upon a time tradesmen used to buy the supplies and fittings, today the end user purchases them and then calls in a professional to do the installation. Services like the ones we and other DIY retailers have been supplying for years – installation and fitting for example – have also contributed to this change.

we might even be able to make some space available for our customers to organise perhaps, children’s birthday parties. The aim is to build a closer relationship with our customers. We see this first project as more likely to add value to our product than some other initiatives, promotions for example, that aren’t having the same effect on sales they had in the past.

And this is just one of many ideas.

What about the assortment?

Once again customers will be seeing something new: we are presenting a special sector dedicated to home decor. We probably won’t manage to implement it entirely, but we will take a good step forward. This department will be oriented towards smaller items, not actual pieces of furniture. And we will also be opening a kitchen department with all the utensils you need to prepare food. It will be a very different assortment compared to what you would normally find in a DIY outlet. In other words more performance, more solutions and less vertical variety; this is the trend for DIY stores.

Distribution: the struggle and the evolution Let’s talk about DIY chains: the number of stores in Italy is falling…

I’ve said it before and I’ll say it again, the fact that Castorama disappeared from the Italian market almost five years ago, has been disastrous. There was a kind of balance before, but today one company is very strong and the other isn’t yet. But this situation can change, above all now that a reorganisation is being attempted.

Then there’s us and a few others who are able to grab a share of the market and continue to improve it. But the smaller chains are suffering and some will disappear entirely; either because >>>>

Interview

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I prefer to call it being aware. Being aware that we are years behind other countries. I’m not Italian and I come from markets that got started at least 20 years before Italy. In those places development followed a similar path, which is why I insist so much on households as a priority target for our stores and on our ability to get customers in-store and show them DIY is not just a job to be done but an enjoyable hobby, as it is abroad.

Naturally to reach that goal customers have to be encouraged, trained if you like, and led into a new way of thinking.

“

I insist on making households a priority target for our stores and on our ability to get customers in-store and show them DIY is not just a job to be done but an enjoyable hobby.

“

they don’t have a coping strategy in place, or because management decides to close down, or simply as a result of economic woes. Today you have to be very careful about the difference between sales and profit; we all survive thanks to our profit margins and contributions.

Why do you think the franchise formula, in particular, has suffered more than other business models?

Firstly, as far as I can see, Italy has a “softer” franchise option than other countries. Having said that, if we take for granted that in today’s market anyone can find a good price if they look for it, what a workable franchise should have is an identity, image and organisation, but above all it must have a consistent strategy and that comes from having a global vision of where you want to go. Only a “full-on” franchising operation can deliver these conditions and offer associates real advantages. If the franchise is only about a common purchasing strategy obviously that isn’t going to work; there are other alternatives that are cheaper and probably more suitable for an independent operator.

So DIY is an impossible sector when it comes to franchising?

Personally I think it could succeed in Italy but only if all those involved accept the same rules. There’s a market out there for the taking. Per capita expenditure on DIY in Italy is a third of what is spent in Germany and half what the French spend. It is up to us, those who operate in the retail and manufacturing sector, to work together so the customer can see the advantages of using DIY products.

This is a market with the potential to double its sales, without even taking into account the channels’ transfer share.

An optimistic viewpoint…

New store openings for Self Special offers no longer have the effect they used to. Is this because people have less money to spend or are there other reasons?

A year ago it was different. Customers often came into a store because there was a special offer. But in the end too many special offers can produce the opposite effect. A special offer from one chain tends to resemble to another until in the end the customer feels he has everything he needs. This is why we retailers have to be creative and find new solutions and new products so we can gradually leave behind the strategy of cutting prices to the bone. After all at a time when the “hard” sell and product promotions are increasing most households really do have less money to spend.

Now let’s talk about development.

How is your second retail brand Dottorbrico doing?

Dottorbrico occupies a very different position in the market compared to Self and the results have been interesting so far, so we want to continue this type of development. It’s a local store, with a target of customers no more than five minutes from its location. It has to have a very versatile range of products but there doesn’t need to be a vast assortment. The services supplied there are also quite basic.

And what do you have planned for Self?

We have two store openings coming up. The first in Alessandria, scheduled for July and the second later on in the year together with another Dottorbrico opening. At the moment we aren’t revealing the locations but we can confirm they will be in northern Italy. ■

A survey of DIY chains in Italy

by Giulia Arrigoni

A negative year for the DIY retail network As 2012 came to a close, the DIY network was still suffering the effects of the economic crisis, with the number of outlets down. Conversely, increases were recorded both in total display space and in the average size of Italian DIY centres. he negative trend recorded by the DIY retail network continued in the second half of 2012.

This situation is, unfortunately, not surprising and one that shows no sign of an upturn. The first news of the year from the sector was that of the disappearance of Punto Brico, a “historic” consortium that was practically halved in size as result of the loss – a serious blow – of Defì Brico, with its Brico Point brand, followed by the closure of another of its members, “La Fabbrica delle Idee” in Palermo. It is

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known that some of its six remaining members (nine stores) have decided to continue as independent operators, while others are apparently forming a new group. Added to this there is the “troubled” situation of Brico Io: its most important member, which has 55 stores, has applied to go into receivership, and the coming months therefore look set to be crucial for this retailer.

However, going back to the second half of 2012 and the figures relating to the DIY network, a drop was recorded in the overall number

Diy retail chains in Italy: data as of 31 december 2012 The survey considers italian Diy chains that have at least three stores, regardless of their size or type (franchise or direct).

Dottor Brico is included, even though it initially had only one outlet, because it is part of the Self Group.

110

32

78

176.473

1.604

➜

12

12

-

11.800

983

88

53

35

147.700

1.678

➜

88

64

24

221.183

2.513

➜

58

17

41

89.750

1.547

=

12

12

-

31.500

2.625

=

63

63

-

140.116

2.224

➜

7

7

-

34.340

4.906

➜

31

2

29

36.150

1.166

=

5

5

-

11.650

2.330

=

12

12

-

42.500

3.542

26

26

74.020

2.847

➜

DOTTOR BRICO*

3

3

-

5.768

1.923

➜

ITALBRICO - CIB

22

22

-

39.500

1.795

➜

LEROY MERLIN

47

47

-

391.106

8.321

➜

6

6

-

15.250

2.542

➜

53

53

-

208.656

3.937

➜

4

4

-

8.300

2.075

=

19

19

-

49.330

2.596

=

28

28

-

90.050

3.216

➜

15

15

-

31.650

2.110

➜

709

502

207

1.856.792

2.622

BRICO IO www.bricoio.it

BRICO ITALIA www.bricoitalia.it

BRICO OK www.bricook.it

BRICOCENTER www.bricocenter.it

BRICOFER www.bricofer.it

BRICOLARGE www.bricolarge.com

BRICOLIFE www.bricolife.com

BRICOMAN www.bricoman.it

BRICOMANIA www.famigliulo.com

BRIGROS www.brigros.com

GRANBRICO www.granbrico.it

GRUPPO FDT www.fdtgroup.it

www.leroymerlin.it

MONDOBRICO www.mondobrico.com

OBI www.obi-italia.it

PRONTO HOBBY BRICO PUNTO BRICO www.puntobrico.com

SELF www.selfitalia.it

UTILITY www.utility.it

TOTAL/AVERAGE

➜

Total n° of direct stores

➜

Total Total n° of Average display franchise display area area (sq m) stores (sq m)

Total n° of stores

BricoMagazine 37

A survey of DIY chains in Italy The evolution of the italian Diy retail chain network over the years (2002-2012) Total n° of n° sem. 2006 % 1° sem. 2006Total VS 2°

Total n° of direct stores franchise stores

Total display area (sqm)

Average display area (sqm)

137

652140

2.070

256

162

820.947

1.964

477

293

184

982.398

2.060

2005

512

304

208

1.112.659

2.173

2006

576

371

205

1.288.539

2.237

2007

641

401

240

1.439.223

2.245

2008

717

459

258

1.622.714

2.263

2009

719

473

246

1.675.593

2.330

2010

742

487

255

1.864.685

2.513

2011

736

500

236

1.883.878

2.568

2012

709

502

207

1.856.792

2.622

Year

of stores

2002

315

178

2003

418

2004

Source: BricoMagazine

of stores, which fell from 717 to 709. This was due to the loss of one direct store (the number in this category thus fell from 503 to 502), but most of all to the endless trickling away of stores belonging to franchising organisations and asso-

ciations (at the end of the year these had fallen by seven against the 214 existing in the first half of 2012 and by 29 compared with the number recorded at the end of 2011). Conversely, the total display space increased by over 19 thousand square

Diy retail chain network: changes in the past year % 1° sem. 2006 VS 2° sem. 2006

Second half of 2012 vs First half of 2012

Display area

1,0%

Total number of stores

-1,1%

Total number of direct stores

-0,2%

Total number of franchise stores

-3,3%

Diy retail chain network by geographical area Area

% surface area

North

54,2

61,1

Centre

18,1

16,2

South

17,1

13,6

Sicily/Sardinia

10,7

9,1

Source: BricoMagazine

38

% stores

BricoMagazine

metres, from 1,837,549 to 1,856,878, but it is still a long way from reaching the 2011 record of 1,883,878 square metres.

The second half of the year, chain by chain Overall, the network of specialist DIY direct outlets was still holding its own at the end of the year.

However, some closures were recorded: the Granbrico store in Alseno (near Piacenza) closed and another Granbrico store was absorbed by the Grancasa store in Villorba (near Treviso). Direct outlets were also closed by Bricocenter (Gruppo Adeo), which stopped trading in Molfetta and Legnago, and Utility, which closed its Piedimulera store (near Verbania).

Brico Ok did better, closing two stores but opening four, while some chains recorded only new openings: Bricoman (1), Mondobrico (1), Obi (1) and Self (1). Leroy Merlin spent last year busily expanding its Roma

Number of stores per region and breakdown by surface area category LOMBARDY

PIEDMONT TRENTINO ALTO ADIGE

■ 19 ■ 40 ■ 23 ■ 5

■ ■ ■ ■

■ 5 ■ 7 ■ 6

22

18 AOSTA VALLEY ■ 1 ■ 1

FRIULI VENEZIA GIULIA

58

2

139

■ ■ ■ ■

VENETO

87

■ 15 ■ 24 ■ 12 ■ 7

38

8 7 4 3

EMILIA ROMAGNA MARCHE

20 22

44

LIGURIA

21 16 3 4

22 45 ■ ■ ■

7 8 2

MOLISE

7

14

25

LAZIO

3 8 1 2

■ 5 ■ 2

3

■ 22 ■ 14 ■ 3 ■ 6

SARDINIA

■ ■ ■ ■

■ 8 ■ 11 ■ 1 ■ 2

TUSCANY ■ ■ ■ ■

APULIA

ABRUZZO

UMBRIA

41 CAMPANIA

BASILICATA

■ 13 ■ 7 ■ 2 ■ 3

■ ■ ■ ■

■ 11 ■ 16 ■ 7 ■ 4

■ 8 ■ 11 ■ 3

17

■ 11 ■ 6 ■ 1 ■ 2

■ 26 ■ 11 ■ 4

35 66 10 28

up to 1.500 sq m from 1.501 to 3.000 sq m from 3.001 to 5.000 sq m more 5.000 sq m

Laurentina outlet and moving its Arzano store, while Self converted its own-brand stores in Turin and Villanova into Dottor Brico outlets, thereby increasing this chain to a total of three stores. Seemingly unstoppable, on the other hand, was the steady loss of franchise stores

■ ■

2 1 CALABRIA ■ 32 ■ 14 ■ 3 ■ 1

SICILY ■ 10 ■ 16 ■ 4 ■ 5

50

35

which, the space of a year, fell by almost 30 in number. Particularly hard hit was the Bricocenter retail chain which, in just a year, lost 11 franchise stores; other franchising companies fared a little less badly: the Bricofer chain lost four stores, dropping from 45 to 41, while

Brico Ok lost three (falling from 38 to 35).

Bricomania held onto its 29 franchise stores, while Brico Io managed to add one, increasing its total from 78 to 79 stores. There was considerable activity among the >>>>

BricoMagazine 39

A survey of DIY chains in Italy Number of stores: the leading provinces by surface area category FROM 0 TO 1.500 SQ M

FROM 1.501 TO 3.000 SQ M

FROM 3.001 TO 5.000 SQ M

Cosenza

17

Milano

16

Torino

Roma

14

Torino

11

Salerno

9

Roma

Cagliari

7

Perugia

MORE 5.000 SQ M

12

Milano

14

Bolzano

4

Roma

6

10

Brescia

3

Brescia

3

Varese

10

Cuneo

3

Napoli

3

7

Brescia

8

Milano

3

Torino

3

Torino

7

Pavia

8

Padova

3

Varese

3

Bergamo

6

Alessandria

7

Udine

3

Venezia

3

Sassari

6

Cosenza

7

Vicenza

3

Brescia

5

Perugia

7

Firenze

5

Vicenza

7

Macerata

5

Como

6

Nuoro

5

Lecce

6

Trento

5

Novara

6

Source: BricoMagazine

“

Despite a reduction in the number of stores (from 717 to 709), mainly franchise stores, the total display area increased, but it is still a long way from reaching the record result of 2011.

“

consortia, which, however, remained numerically stable on the whole: Brico Italia added two new stores, Bricolife lost three and gained three in the second half, but increased its total by a remarkable 11 stores (from 52 to 63) over the year as a whole. The FDT Group lost one outlet, recording four new openings but five closures in the second half of the year, while Italbrico was stable in the second half (3 closures and 3 new stores), but down by seven stores on the figure

recorded in December 2011; Bricolarge, too, recorded no change in the second half but closed the year two stores down compared with the end of 2011. Finally, closures have left the Brikocasa chain with just two stores and it is therefore no longer covered by the survey (we remind readers that only chains with at least three stores are included in the survey). Other chains, like Brigros, Bricomania and Pronto Hobby Brico, remained stable, >>>>

N° of stores: % values by geographical areas and surface area categories Area

up to 1.500 sq m 1.501-3.000 sq m 3.001-5.000 sq m

more 5.000 mq

Total (n°)

North

27,3%

43,5%

16,4%

12,8%

384

Centre

45,3%

38,3%

7,0%

9,4%

128

South

52,1%

35,5%

5,8%

6,6%

121

Sicily/Sardinia

47,4%

35,5%

10,5%

6,6%

76 Source: BricoMagazine

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A survey of DIY chains in Italy recording no changes either in relation to the previous year or in relation to the first half of 2012.

Number of stores per chain by surface area category 0 - 1.500 sq m: 262 stores

1.501 - 3.000 sq m: 286 stores

BRICO IO

66

BRICO IO

44

BRICO OK

42

BRICOCENTER

44

BRICOFER

38

BRICO OK

43

BRICOMANIA

24

BRICOLIFE

31

BRICOLIFE

23

GRUPPO FDT

18

BRICOCENTER

21

BRICOFER

17

ITALBRICO-CIB

12

OBI

17

BRICO ITALIA

11

SELF

15

PUNTO BRICO

7

UTILITY

11

FDT

5

ITALBRICO-CIB

8

BRICOLARGE

3

PUNTO BRICO

7

OBI

3

BRICOLARGE

6

UTILITY

3

BRICOMANIA

6

BRIGROS

1

GRANBRICO

5

GRANBRICO

1

MONDO BRICO

5

PRONTO HOBBY BRICO

1

BRIGROS

3

SELF

1

DOTTOR BRICO

3

PRONTO BRICO HOBBY

2

BRICO ITALIA

1

TOT

262

TOT

3.001 - 5.000 sq m: 87 stores

More 5.000 sq m: 74 stores

OBI

21

LEROY MERLIN

45

BRICOCENTER

20

OBI

12

SELF

10

BRICOMAN

4

BRICOLIFE

8

BRICOCENTER

3

PUNTO BRICO

4

GRANBRICO

3

BRICO OK

3

SELF

2

BRICOFER

3

GRUPPO FDT

2

BRICOLARGE

3

BRICOLIFE

1

BRICOMAN

3

BRICOMANIA

1

GRANBRICO

3

PUNTO BRICO

1

ITALBRICO-CIB

2

TOT

LEROY MERLIN

2

BRIGROS

1

GRUPPO FDT

1

MONDO BRICO

1

PRONTO BRICO HOBBY

1

UTILITY

1

TOT

42

286

BricoMagazine

87

74

Source: BricoMagazine

Increasing surface areas with the North again leading the way Although the network shrank in terms of the total number of stores, which fell from 717 to 709, the overall retail area increased, albeit without reaching the almost 1.9 million square metres recorded at the end of 2011. Nevertheless, the average surface area per store continued to increase, rising from 2,586 to the current 2,622 square metres, which is 36 square metres (14.7%) more than in 2011 and 26.6% more than in 2002, when the mean surface area of a DIY centre was little more than 2,000 square metres. Due to the crisis and network reorganisation, the North of Italy once again emerges as a leading player; one need only consider that having recorded a 51% share of the total number of sales outlets in 2011, at the end of 2012 this figure had risen to 54.2%. But at the expense of which part of Italy? Pretty much all of the rest of the country, even though Sicily and Sardinia seem to have been the hardest hit, their share dropping from 12.5% in 2011 to 10.7% a year later. A similar pattern emerges if the analysis instead considers exhibition space, with the North increasing its share from 58.1% to 61.1% at the end of 2012.

Generally speaking, the bulk of the modern DIY network (over 40% of outlets) is made up of stores with a surface area of between 1500 and 3000 square metres. These, together with the ones covering up to 1500 square metres, account for over 77% of the total. â–

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Mistery Client

in collaboration with Interactive Market Research

Visiting the Bricoman outlet in Carate Brianza A true “phenomenon� of Italy’s DIY retail sector, Bricoman is a brand of the Adeo Group comprising 7 shops. Our mystery client visited the Bricoman store in Carate Brianza.

he shop is located in via Marengo in Carate Brianza, in the province of Monza Brianza, just off state road 36 Nuova Valassina. Our mystery shopper was a young man of 24 years, with dark brown hair, a beard, a slim frame and about 170 cm tall. The visit was made on 16 January this year at 10.40 am.

T

The outlet and general atmosphere The Bricoman stores are new constructions that always have a large car park and the Carate shop is no exception in this sense. A significant positive point is that, even though it was snowing at the time of the visit, the car park was accessible and tidy. There is nothing

About Interactive Market Research Established in 1999 by a group of marketing professionals and market researchers for consumers, Interactive Market Research was the first market research company in Italy to focus its development plans online and pursue a real strategy of specialization in this field, while continuing to also conduct traditional method research. The Interactive team was formed and refined over the years to provide valid professional research and integrated consultation to client, with expertise in the context

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negative to report in regard to the presence of shopping trolleys and baskets, the floors were very clean, there was no waste or dust on the shelves. Even the bathrooms were clean although they was a slight bad odour. The bathrooms had toilet paper and soap, but the electric dryers were off or out of work.

Automatic drink and snack vending machines were available. Moving on to evaluate the sales outlet, the store is large, with many well displayed and easily identifiable products.

Our shopper did not note shortages, and he found boxes on a pallet and a pallet truck, apparently

not being used, in only two aisles.

Leaflets were available but not very visible, the shopper only saw one after he had paid. In general, the atmosphere was typical of a large DIY store. There was no music, the temperature was comfortable, there was a generally

pleasant smell. There is a large central aisle with signs clearly indicating the various departments.

All members of staff were wearing neat, clean uniforms, including safety footwear. Only till attendants however were wearing a name badge.

Service: evaluation of the sales personnel

FACT SHEET Outlet visited: Bricoman, Via Marengo, 20841 Carate Brianza (MB).

Date and time of visit: 16 January 2013 at 10.40.

After asking an employee in the central aisle, the shopper was introduced to the person responsible for the department he asked about, who was wearing a clean and tidy uniform but not a badge. The evaluation was made in the electrical department, and the shopper asked for information >>>>

Brief description of the outlet: large store, with large car park, located in a large building containing only the store.

Mystery client description: 24 year old man, dark brown hair, blue eyes, beard, 170 cm tall, slim build.

Bri-

Mistery Client

THE OUTLET AND GENERAL ATMOSPHERE

Average score 87,5

more than 80%, very positive; 70-79.9%, positive; 60-69.9% neutral; 50-59.9% negative; ≤ 50% very negative

Is the car park clean and tidy? (compatible with structural conditions)?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Were shopping trolleys available (outside near the entrance) and baskets (inside)?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Was the shop clean?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Were the bathrooms clean?

100

0 (no) - 100 (yes)

Were coffee and snack vending machines or dispensers available inside the shop?

100

0 (no) - 100 (yes)

Was the shop tidy?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Was the shop well-stocked?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Were leaflets available at the entrance?

0

0 (no) - 100 (yes)

Were the aisles free from pallets/platforms/stairs not in use and pallets/boxes not being used?

75

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

Were all employees wearing a badge and wearing a clean and tidy uniform?

75

0 (none) - 25 (fewer than half) 50 (half) 75 (most) - 100 (all)

Were you greeted politely by the employees you made eye contact with and did none of the employees intentionally avoid your eye?

100

0 (not at all polite) 25 (not very polite) - 50 (sufficiently polite) 75 (quite polite) - 100 (very polite)

When you asked for a product/department, did the staff directly accompany you to the right place or clearly indicate the direction and position?

100

0 (not at all) 25 (not very well) 50 (satisfactorily) - 75 (quite well) 100 (very well)

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

SERVICE: EVALUATION OF OUTLET STAFF THE PERSON Was the employee wearing a clean, tidy uniform and a badge?

ACTIVE APPROACH Did the staff member approach you actively or, if they were busy with another customer, at their first opportunity did they let you know they would be with you as soon as they could?

75

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

100

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

Did the employee actively listen to requests/specifications?

100

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

Was the exact request understood and the right product identified?

100

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

Did the employee greet you politely and make eye contact?

IDENTIFYING THE NEED Was an analysis done to understand the customer’s need (e.g. by asking a similar number of questions)?

TOTAL SCORE

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SERVICE: TILL EVALUATION

Average score 100

more than 80%, very positive; 70-79.9%, positive; 60-69.9% neutral; 50-59.9% negative; ≤ 50% very negative

TILL AREA Was the employee (with the exclusion of the manager) wearing a clean and tidy uniform?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Was the employee wearing a badge?

100

0 (yes) 100 (no)

Was the till area clean and easily accessible?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Was the till area tidy and free from bags, waste, bottles or food?

100

ACTIVE APPROACH

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Were there more than 3 customers (shopping) queuing at the till?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Did the employee greet you politely and make eye contact?

100

0 (not at all polite) 25 (not very polite) - 50 (sufficiently polite) 75 (quite polite) - 100 (very polite)

Are customers provided with polite answers to their questions: is the atmosphere at the till polite?

100

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

Did the till attendant say the sum due out loud and politely?

100

0 (no) 100 (yes)

Did the attendant clearly count out the change (or at least clearly state the total)?

100

0 (no) 100 (yes)

Were you given a receipt for your purchases without having to explicitly ask for one?

100

0 (no) 100 (yes)

100

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

CHECKING OUT AND PAYING

LEAVING Did the employee say goodbye and thank you politely?

Average score 89,6

more than 80%, very positive; 70-79.9%, positive; 60-69.9% neutral; 50-59.9% negative; ≤ 50% very negative

PRODUCT PRESENTATION AND SALE Was a product (or a sample) physically presented?

100

0 (no) - 50 (a single product/ sample was presented) - 100 (the entire range was presented)

Did the department attendant sufficiently specify and describe the quality of the product?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Was the conversation easy to understand and were any technical terms explained?

100

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

Did the employee attempt to conclude the sale with determination and competence?

100

0 (insufficient) - 25 (poor) 50 (sufficient) - 75 (good) 100 (excellent)

Were accessory products offered and presented?

0

0 (no) - 50 (offerti ma non presentati) - 100 (sì)

LEAVING Did the employee say goodbye politely?

100

Average score by section 92,4

0 (all aisles) - 25 (most) 50 (half) 75 (some) - 100 (none)

more than 80%, very positive; 70-79.9%, positive; 60-69.9% neutral; 50-59.9% negative; ≤ 50% very negative

BricoMagazine 47

Mistery Client on buying an electrical heater. At the initial approach, the sales employees met the customer’s eye and, because he was busy, nodded to ask the customer to wait before asking what he needed. The initial approach was kind, visual contact was made but without smiling.

The employee was attentive listening to the shopper’s needs who expressed the reason for the purchase as follows: to heat a room with an electrical heater.

Product presentation and sale The employee asked how big the room was and then recommended a model, and provided reasons for his choice. Then he showed the customer the entire shelf, recommending two models clearly and decisively, and he stayed with the customer until he thanked him saying he would think about it.

He did not suggest accessory products, then the employee said goodbye politely but again did not smile. Overall, the department attendant demonstrated himself to be competent and efficient. The only note is that his behaviour was

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slightly “unenthusiastic”. But the service provided in any event concluded with excellent results.

Service: checkout evaluation Once at the till, our mystery shopper found a checkout attendant wearing a clean, neat uniform and a badge. The register area was also clean and tidy, and it was easily accessible. There were few people at the checkout – 2 on arrival and 3 when it was time to pay. The attendant welcomed the customer politely and with a smile. The attendant clearly said the amount due and gave the shopper a receipt with his change.

When leaving, the attendant said goodbye politely. The only thing to report: when the mystery shopper got to the till, the previous customer needed an invoice that was filled out directly at the till.

This slowed the process down, despite the fact that the attendant was working quickly. If the invoice had been issued at the information desk, there probably would be better customer flow at the till. ■

Expo&Forum

by Monica Renna

BricoDay 2012: brands and private labels in DIY This was the topic of the latest BricoDay conference-exhibition organised by BricoMagazine, an event that, attracting over 1,400 operators and 100 exhibitors, recorded an unprecedented level of attendance. he fifth BricoDay conference-exhibition, staged on 27 September 2012 at the Mi.Co. Milano Congressi fairgrounds, was a success beyond all expectations. For the over 1,400 sector operators attending the event it was an opportunity to meet the numerous companies represented (over 100) and to listen to 15 speakers in the course of the day.

This year, several retail chains, consortia and franchise organisations also took part, with their own exhibition spaces. For them it was an opportunity to present

T

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their franchising solutions, and to meet numerous suppliers.

The highpoint of BricoDay 2012 was the convention, this year entitled "Brand and private label products: today’s DIY market scenario". Leading representatives of the production and distribution sectors gave the audience a comprehensive overview of the topic. Notably, they included speakers from two foreign retail chains not currently present in Italy (The Home Depot and Mr Bricolage), who spoke about their respective businesses.

USA and France at BricoDay 2012 The first of the foreign speakers, Massimiliano Zampella (European Sourcing Office Managing Director, The Home Depot) talked about the “Private Label and Interconnected Retail�. After presenting the current position and corporate policy of the multinational operator, he moved on to his chosen theme, beginning by analysing the online markets. In 2011, the European online market was worth 92 billion euros, with a projected growth of 10%, while the US one amounted to 197

billion dollars (around 150 billion euros) and showed a similar trend in terms of forecast growth, expected to oscillate between 11 and 15%. “Why do retailers develop private labels? To maximise their profits and increase their margins, but also to strengthen customer loyalty, i.e. that bond that exists between a consumer and the store where he makes a purchase.

Several American universities have estimated that, globally, private labels in retail represent a trillion dollar market, with a value amounting to 17% of total consumer spending capacity. Private label products usually retail at prices about 25% lower than those of their immediate national brand competitors”.

The other foreign retail chain present at this year’s BricoDay was Mr Bricolage, in the person of Yves Puddu (Directeur Développement International, Mr Bricolage), who outlined the group’s organisation (922 stores, including 279 franchise stores) and described its business at international level. Present mainly in Europe, South America and the Indian Ocean region, Mr Bricolage records an annual growth rate of 10 million euros, operating in a market (the French one) made up mainly (76%) of large DIY stores, followed by >>>>

BricoMagazine 51

wholesalers (17%), mass merchandisers (4%), and traditional outlets (3%).

On the subject of private labels, Puddu said: “We have developed five types of private label which are concentrated in different categories: power, home, beauty, resist. Having aimed to see private labels accounting for 13% of our sales by the end of 2012, we have now reached the 14% mark, while our target for 2014 is to increase this to 20%”.

Italy: the brand strategies of retail chains After these presentations, it was over to the retail chains present in Italy, starting with Self Italia, represented

by Kristos Basimas (Purchase & Sourcing Director, Gruppo Self ), who spoke about “Specialist Brand Distributors: the Experience of Self Italia”. A market survey of 1000 customers, men and women, was conducted at three of the chain’s stores (the Moncalieri and Settimo Torinese stores and the historic Turin 1 store) in order to analyse the issue of brands. Focusing on the paint sector, it was an all-round analysis whose aim was to take stock of end user attitudes to brands. What this research showed was that the customer only remembers the most famous brands, 52

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is not loyal to a single store, tends to buy the most affordable products, and does not regard the brand name as an important element determining his choice of a product. “I think that a brand name, providing it is linked to a manufacturer with a truly innovative outlook, is very important. It is a driving force; it draws people in and allows the store to achieve the planned average transaction value”.

Basimas then briefly analysed the situation as regards private labels in Europe. What emerged, in particular, was that in Britain, where there are far fewer discount stores, private labels are extremely common (accounting for a 40% share of the market); on the other hand, Italy, where the share is 17%, continues to lag behind, even though there is room to develop this segment. The winning formula is a mixture of different elements: ensuring value for money, offering the customer added value and a better service, and creating attractive packaging and dedicated communications channels. Finally, he looked at the reasons for stocking private labels: they make it possible to increase profit margins in order to be able to invest in development and in the opening of new stores and, not least, to negotiate more effectively

with manufacturers”.

It then fell to Mauro Carchidio (CFO, Leroy Merlin Italia) to explain the private label strategy of retail chains, which is based on the creation of middle-of-the-range products (in both quality and price terms), whose prices are around 20% lower than those of a leading brand and that therefore offer greater profit margins.

These are products that aim to foster customer loyalty through packaging and an approach that, together, allow them to “speak” to the consumer – to guide the consumer’s choice. They are "universal brands" in the sense that, overcoming the logic of specific departments, they refer to a broader “universe” of products and values. In collaboration with other business units from the Group, this strategy is developed for clusters of markets characterised by similar levels of quality and product performance (e.g.

France, Italy and Spain and the Eastern European countries). In the case of products sourced locally (for example, paints), the quality is guaranteed by specifications laid down for each product and monitored by the Adeo quality service or by the single business units. In the future, these labels, exploiting their specific strategies they use to interact with the cus-

Expo&Forum tomer, are destined to become increasingly important as a means of conveying the values espoused by the chain, most notably those related to sustainable development: saving water, energy and other resources, and comfort and safety in the home. Private labels currently account for 11% of Leroy Merlin’s assortment in Italy and this share is set to rise to 16% over the next three years (in France they already account for 22%, and in Spain 17%); gardening and bathroom supplies are expected to be the fastest-growing sectors.

Over to the manufacturers The speakers from manufacturing sector present at the event came from Philips, Materis Paints and Annovi Reverberi. All three are famous companies while Annovi is also renowned for its considerable experience as a manufacturer of private labels for retail chains. The first to speak was Lucio Trocino (Cluster Leader Italy &

Greece, Philips Consumer Lighting) who, at one point during his talk, declared: “A brand, representing a universe of all-round quality, is essential for winning and keeping the consumer’s trust”. In his presentation, entitled “Brand-name products as the driving force of growth in the DIY sector: the strategy of Philips in lighting”, Trocino talked about how the presence of brands is indicative of a correct relationship between quality and price. Brands are also synonymous with innovation, and therefore the building of the future, as well as being a driving force of economic development. The consumer, for his part, wants to have the possibility to opt for quality, innovation and choice.

In fact, a greater presence and visibility of brands in stores equates with more choice for consumers, a correct interpretation of the concept of value for money, greater attention to various aspects of category management, and greater focus on the store. The

strategy adopted by Philips Lighting stems from research conducted into the DIY channel which showed that 70% of purchasing decisions are made in store, and that 45% of potential consumers leave the store without making a purchase. Accordingly, Philips has decided to follow three main lines of action, seeking to: exploit the power of its brand name, simplify the choice for the consumer and rationalise and strengthen its portfolio”.

Marcel Masson (DIY Business Unit Manager, Materis Paints Italia) instead asked a question: “Brands: evanescent concept or fundamental question?” He opened his talk with a series of analyses, considering the question of brands from different angles: the etymological meaning of the term, the history of brands, and their role in contemporary society. “The decision to buy one brand rather than another amounts to an affirmation of one’s lifestyle. Ultimately, however, a brand is required to fulfil a series of functions: it has to be recognisable, stand out, reassure the customer, express a concept, and offer a dream.

We often talk of private labels and original brands, but private labels are brands and behave in the same way as original brands do. Having said that, they are required to convey another message and to attract the consumer in a different way. In some cases, the differences between the various operators only regard the strategies about private labels (Self, Obi, etc) and nonames (Luxens). Our strategy at Max Meyer is based on the consideration that original brands and private labels inhabit the same world: both exist and both are developing, and this is something we are careful never to forget. Therefore, prompted by the growth of the private label, we are >>>>

BricoMagazine 53

Expo&Forum looking for new ways of standing out, fresh energy and new levers on which to act, through our history, our quality and our dreams�.

Andrea Lenotti, business consultant to Annovi Reverberi and a board member of Assofermet, listed the ingredients for creating a successful assortment of brand-name products.

First, it is necessary to have an understanding of manufacturing as a highly specialised activity. Manufacturers today are calling on the retail world to do more, also together, in order to go beyond the mere logic of price and the idea of the product as an end in itself. It is necessary to reach the end user and convey the right value. Regardless of whether one is talking of a leading brand or a private label, one is nevertheless talking of a brand which needs to be supported and taken forward, and this requires enormous expertise and therefore training. Another aspect to consider is that of the positioning of industrial brands and private labels. Unlike what is seen in rest of Europe, in Italy we want the performance at the lowest price, which is not workable. Furthermore, it is not unknown for large retailers to request contributions even for their private labels, which is totally paradoxical.

Today’s market is not an easy one for manufacturers: the way forward is diversification. "We have a fantastic opportunity, both through brand names and private labels, to become to become partners of the major Italian and international chains because we are able to offer the added value that derives from our product knowledge and analytical capacity. But our country needs to take this reality on board, because unless we do we will not be able to make the leap forwards, in terms of quality, that will allow us to recover those values" Lenotti concluded.

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The afternoon session The afternoon was given over to five seminars. First up was visual merchandising consultant Dora Binnella, who, in collaboration with Brico Ok (the experiment was conducted at the Arluno store), proposed a store based on three elements, whose aim was the creation of a special desk dispensing sales advice on DIY projects. The idea is to make the customer able to make his necessary purchases independently, by providing all the information that he would usually seek from the sales assistant. In this way, the sales advice desk becomes a true self-service facility. An interesting film showed how, through easy interventions and at negligible cost, the system was set up and recorded excellent sales results. The next to speak were Franco and Giorgio Fraschetti, owners of Fraschetti Distribuzione, and Pierluigi di Turi, owner of Defi Brico Bricopoint, who announced that Fraschetti entered the board of Defi Brico with the aim of establishing interesting synergies.

The programme in the Sala Rossa room ended with a presentation by Ivano Garavaglia (Account Manager, GfK Retail and Technology Italia), who illustrated the performance of the channel in the first half of 2012, which continues to be positive, recording a result of approximately 1.6 billion euros, compared with just over 1.5 billion last year, and a trend of 2% (compared to +3.2% last year).

The trends recorded for the different

product categories remain quite stable, with some sectors (e.g. PET and the automotive sector) still recording strongly positive results and others (home accessories, furniture and home textiles) recording a decline.

What, then, is the balance of power between traditional brands and private labels? Several categories (power tools, gardening, home decoration and maintenance and lighting, summed together) were considered in order to determine the relative share of private labels compared with traditional brands. In the first half 2012, this share amounted to almost 14% (or 3.7% in value terms), which may seem negligible, but actually is not given that it represents a trend that has been constantly on the increase over the past four years. In the Sala Gialla room Massimo Seregni, a member of the sales management at Gruppo DSE, talked about the potential offered by in-store promotional communication in the form of an "Interactive Virtual Hostess", a virtual demonstrator able to interact with the customer in a number of ways.

The last to speak was Massimo Saggioro, Head of the Technical and Sales Department at Intrac, a leading company in the preparation of DIY stores, who explained how this type of retail outlet is approached by those responsible for designing and constructing display facilities. The presentations can be viewed in full and the relative slides downloaded by visiting: www.bricoday.it â–

Visual merchandising

by Dora Binnella

Put out... the outdoor range

For many retail chains, the outdoor department is one of the key DIY departments: consumers see DIY and garden centres as the places where they will find the widest range of dedicated products and, to draw them in, companies are willing to invest significant amounts in advertising products and messages.

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ach year, the fine weather, when it finally comes, brings with it the start of what is one of the most important trading periods for the DIY sector: the outdoor season.

The outdoor sector covers a great many product families, such as garden furniture, sun umbrellas and gazebos, swimming and paddling pools, and all kinds of equipment for enjoying being outdoors, barbecues, accessories and consumables, and the whole range of products related to the construction and main-

E

tenance of areas such as balconies, terraces and gardens. For many retailers, the outdoor department is one of the key DIY departments: consumers see DIY and garden centres as the places where they will find the widest range of dedicated products and, to draw them in, companies are willing to invest significant amounts in advertising products and messages. But the instore management of this season is, in some ways, complex: having got the customer through the door, the

Planning the display areas As a rule, stores that sell these products put them in seasonal item areas, in other words areas set aside for displaying products related to specific times of the year, such as Christmas, the arrival of the warmer and colder weather, and so on.

Managing these areas is a challenging task that involves careful planning. The first thing is to select an optimal assortment of goods that will meet most customer requirements; then it is necessary to identify the best way of presenting the merchandise and the equipment best suited to this purpose.

These areas usually “struggle” to cope with all the seasonal items, due to their sheer number and variety.

This makes it essential to display the merchandise as effectively as possible. The retailer must strive to: • give visibility to the entire assortment; • make the products readily accessi-

“

It is not enough to have a specific range; a specific range needs to be set off by a specific display, otherwise the sense of trust and interest that the customer has started to develop, having initially been drawn to the store by advertising, will be undermined.

“

retailer must ensure that the merchandise he is offered is displayed in an attractive, clear and accessible way, which demands a particular effort that cannot be avoided.

ble to the customer; • be welcoming and full of suggestions.

Finally, and this is actually a fundamental point, it is necessary to find a way of allowing the goods to speak for themselves, given that this is usually a self-service part of the

store where customers can move around freely.

Functionality and attractiveness Garden furniture, for example, is a category embracing numerous products of different size, shape and function, which must, for the consumer, be both clearly visible and readily accessible: it is not enough to have a specific range; a specific range needs to be set off by a specific display, otherwise the sense of trust and interest that the customer has started to develop, having initially been drawn to the store by advertising, will be undermined. The role of the visual merchandiser is therefore to exploit seasonal exhibition opportunities to set products off to their best advantage.

Here we provide a few suggestions on how best to plan a display of garden furniture and related accessories, taking into consideration the mental process leading to the customer’s purchase.

Why customers buy In order to assist the customer as >>>>

Ikea has started making more use of graphics and printed images. On the left, a replica of a city balcony. On the right, set on a podium, a life-size recreation of a typical terrace: the advantage of this setting is that it can make the customer feel as though he is in his usual environment. As a result, because he feels “at home”, he is more likely to be drawn to the range.

BricoMagazine 57

Visual merchandising much as possible (whether it is a question of helping him to locate rapidly what he is already looking for, or of making suggestions in situations in which he is not really sure what he is after), the first things to bear in mind are the factors that are likely to determine his choice: what is the first aspect he considers when faced with these products? In the case of furniture, the material used is usually one of the first determinants of the choice: this is partly because a product’s material denotes a series of intrinsic characteristics (strength, style, design) and also be-

Yes

cause it offers initial guidance to those lacking clear ideas and looking for authoritative suggestions.

The second factor driving a purchase, after the material, is the size of the product: indeed, the product is immediately seen, by the customer, in relation to its intended setting and use (small tables ideal for balconies and other restricted spaces, extendable tables for people who like big summer gatherings, round tables to resolve the problem of awkward spaces, loungers with armrests for relaxing in as well as just sitting on, large umbrellas for

areas that get a lot of sun, etc.); in short, people have a range of different needs and the items on display are considered in the light of their capacity to meet these needs. Other factors undoubtedly influencing the customer’s choice are the aesthetic details and finishes, the colours, the additional accessories, the guarantee, and all the other extras and advantages that help to define the relationship between product quality, perceived value and price.

These input keys provide the criteria to use when putting together displays. In so doing, it is also necessary to remember to: • position slave products appropriately, i.e. where they will not dominate the master products; • indicate the main characteristics of

VIRIDEA - display podium: the two splashes of colour immediately identify the different collections presented. The accessories are clean, easy to see, and presented in a way that lends visibility to everything. This is a very functional display, in which the products speak for themselves.

Yes No

VIRIDEA - display podium: visual chaos. The products are overwhelmed by decorations and slave products.

The overall effect is that of a bazaar and it does not facilitate the customer who is trying to choose.

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VIRIDEA - recreation of a window display: in accordance with the rules of window dressing, this display is based on two main colours, white and green. The composition is harmonious, clean, and not dominated by too many decorative elements. It has a clear focal point: the table and chairs. The rest provides a means of drawing attention to the core product, without masking it. Slave products are included, but in a subtle and effective way.

the goods displayed on clear and simple technical data cards; • arrange products correctly according to price range, not forgetting that the first product encountered will determine the retailer’s price image.

Look, touch, try It is essential always to arrange items in a welcoming way so as to encourage the customer to touch them and try them out: to sit in a chair to test it for comfort, to lean on a table to see how stable it is, in other words, to try out, in person, the mechanisms and functionality of each one. These products do not have low price tags and, with the exception of the lowest priced ones which are likely to be replaced each year, their purchase is regarded by the customer as an investment. It is therefore important to ensure that the customer is given plenty of opportunity to decide carefully what he wants. Having helped the customer to get a clear idea of what he wants, it is important to guide him towards the product families or single items that have the highest profit margins: effective use of the right visual merchandising tools can compensate for the salesman’s inability to personally assist each single customer.

1. The lowest-priced items and new products can be displayed en masse at different points in the sales area.

2. Attention should be drawn to new products by placing them in fo-

cal points both on the counter and in the aisles.

3. Top-selling goods and consumables, in other words products that are expected to be in the store, can be located away from the main path through the store, given that customers will seek them out anyway; but they can also be placed at the start of an aisle as a way of reassuring customers that the store is offering the usual assortment of products.

4. Displays that set products in context need to be constructed according to the rules of window dressing and not clumsily improvised, in order to avoid a series of risks. If the scene created is stuffed with too many items, masking the product of >>>>

VIRIDEA - recreation of an interior window display: the products here are inserted in a very “natural” seeming setting. Visually, the message given out by a product placed “high up” is that it is valuable, and therefore costly. Some of the items are a little too out of reach, and it is not clear whether or not the raised platform can be walked on, as the vases arranged at ground level seem to serve as a barrier. Nicely done, but difficult to decode: can I or can’t I walk on it and touch the items?

No

Yes

VIRIDEA - seasonal product shelf: a splash of blue serves to convey the idea of water. The packaging enhances this effective display of swimming pool-related products. The level of visibility is excellent, as the products arranged at floor level do not conceal the shelving. The clustering of product categories serves to underline the specialist nature of the display.

No

Yes

VIRIDEA - product podium: whereas the divan and table set creates some difficulties as the products are set too close to each other, the arrangement of the loungers is excellent: they are simply crying out to be sat on!

BricoMagazine 59

Visual merchandising interest, the customer’s attention will be drawn to the products with a low price tag, of the kind often bought on impulse, and thus away from the main product. Furthermore, a confused and unharmonious display will lower the customer’s perception of the range as a whole, and have the effect of driving him away rather than the reverse. The layout of the paths through the display area must also be carefully thought out, so that they ensure maximum visibility of the goods and keep offering the customer new

ideas and new things to look at. It is worth remembering that, as far as the customer is concerned, goods not seen are goods that don’t exist. It is therefore best, as far as possible, to avoid arranging products in piles at ground level: they can be difficult for the customer to reach, and they also look untidy; moreover, this solution conveys the idea of that these are products with a low price tag, which is not always the case. It is essential to ensure that customers can reach the products easily, especially inexpensive ones that tend to be

No

Yes

GARDEN CENTER VS IKEA – interior window podium: it is always preferable to opt for a solution along the lines of the Ikea one: a fully laid table looks lovely and is perfect for a window display, where the aim is to show customers the dream, but inside the store itself, customers have to be given the chance to assess all the products for themselves, especially the most important and most expensive ones.

No CENTRO BRICOLAGE- furnishing podium: even when space is at a premium, products should never be displayed one on top of another. This does not replicate a real situation and just creates a bazaar-like effect, which conveys the idea of low-profile goods, reduces the prestige of the products, and does not allow customers to try them out. When space is limited, it is, in any case, a good idea to create passageways and arrange everything on the floor, so that it can be touched and tried out.

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Yes

bought on impulse: people are often not prepared to make an extra effort to reach something, even if they want it. Impulse products can also be consumables, high-turnover items, and products with a price tag that is not likely to make the target customer exceed the budget he has set himself. Finally, a good display is always clear, tidy and readily accessible: the maintenance of these areas demands a special effort, but it is undoubtedly an excellent investment given the revenue that seasonal items can generate. ■

Visited for You

La Prealpina, Carmagnola

Located at the entrance to the town of Carmagnola, about thirty kilometres outside Turin, the new La Prealpina centre, a Bricolife partner, brings the number of shops in Piedmont to 12.

he shop is located in via Sommariva, at the gates of the town. It has a large car park shared with other stores in the vicinity, and the sign is clearly visible from both directions. With a retail area of approximately 2,000 sq m, the centre opens up onto a spacious promotional space set immediately beyond the tills and information desk. To the left of the promotional area is a large area dedicated to furnishing. “This is a novelty for our organisation,� Sebastiano De Masi, store manager, explains. “After a number of tests in other outlets, we have come to understand that setting up display areas in a certain way and

T

>>>

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The area beyond the front promotional area immediately visible to customers at the entrance is divided into lighting, power tools and hand tools The area beyond the front promotional area immediately visible to customers at the entrance is divided into lighting, power tools and hand tools The area beyond the front promotional area immediately visible to customers at the entrance is divided into lighting, power tools and hand tools.

1. Wood cutting Key cutting 2. Info point 3. Coffee break 4. Car accessories 5. Tools - Hardware 6. Tinting machine – Paint shop 7. Construction 8. Shelving - Fitting 9. Wood - Adaptation 10. Melamine tops - Adaptation 11. Bathroom accessories 12. Gardening - Pet care 13. Power tools 14. Lighting - Electricity 15. Furniture area 16. Promotional area 17. Decorations - Furnishing

BricoMagazine 63

Visited for You

Fact Sheet Area: approximately 2,000 sq m Employees: 9 Tills: 2 Assortment: approximately 20,000 items Services: free wood cutting, tinting machine, irrigation system design, home deliveries, furniture in kit form, fidelity cards, collection and disposal of used items, assembly and home installation, interior décor consultation, instalment payments, free quotes, key cutting.

Parking: plenty of free parking Opening Times: from Monday to Sunday continuous hours from 8.30 am to 8.00 pm.

making a more spacious ambiance delivers better results.”

The area beyond the front promotional area immediately visible to customers at the entrance is divided into lighting, power tools and hand tools.

“Each new store opening,” De Masi continues, “is an incentive to experiment with new ideas and expansion and/or rationalisation of product lines and assortments.”

Here in Carmagnola, new lines have been introduced in the power tool department, electricity, and locks, which is a novelty, as is the linoleum flooring cut to order. Also the area dedicated to

paints, with tinting machine, has been updated, a spin-off from an earlier installation in Pino Torinese, and the wood department located at the back of the shop, with an area dedicated to associated services, is comprehensive and well-stocked.

“We have made the bathroom department much bigger: more plumbing and tapware, and will plan to dedicate an even greater area to displaying shower cabins.

In addition, another novelty is in the range of reinforced doors that can be made to measure, perhaps for those higher-end models,” De Masi concluded. ■

6. L’area promozionale trova spazio anche nel corridoio centrale.

7. La luminosissima barriera casse.

8. Uno “strumento di marketing” che deriva dall’esperienza nell’alimentare: i carrelli per bambini.

9. Forte la visibilità del prodotto di marca.

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Markets

by Raffaella Pozzetti

The wood sector: the crisis and a changing approach to the market Today’s difficult economic times are altering the purchasing habits of both retailers and consumers, and also having an impact on the production choices of suppliers. ven though it is not possible to obtain specific data showing wood sector trends within the world of DIY, figures released by FederlegnoArredo on the performance of the “wood building and furniture” macro-sector leave no room for doubt: 2012 was a difficult year for the market, during which it recorded a turnover of 10,308 million euros, a total that is 1,500 million euros down on the figure for 2011.

This decline, in turn, led to a reduction in the number of companies operating in the sector (around 1,500 were lost) and in the number of its employees (the workforce shrank by over 4,000 people). The only positive result was provided by the export figures, which were up slightly. Unsurprisingly, the biggest difficulties were recorded by the sec-

E

tors most dependent on the construction and real-estate markets, such as wood decor for buildings, kitchens and offices. What is more, the outlook for 2013 does not look any rosier: according to FederlegnoArredo’s projections for 2013, the “wood building and furnishings” macro-sector should record a total turnover of around 9,545 million euros, which is 7.4% less than in 2012. This will, once again, mean a reduction in the number of companies operating in the sector (which are expected to drop to 35,220, which is 7.8% fewer than in 2012) and in the size of the workforce (which will be 5.2% smaller than in 2012). Finally, in 2013, too, only exports are expected to record a positive trend, being set to increase by over 6%. What all this seems to

show is that the real problem lies in the stagnation of the domestic market, and it is a problem exacerbated

by Italy’s currently uncertain political situation, which is holding back the recovery of the economy.

The consumer in hard economic times The sector of wood for DIY– according to the industry’s leading companies – is experiencing exactly the same problems as the macrosector. More specifically, it is seeing declines not only in value but also in volume terms. For example, the mean transaction value in DIY centres is falling: customers are buying less and making purchases only when they absolutely have to. And they are modifying their spending habits too. Householders, for example, having less money to spare, are themselves trying to do jobs that until a few years ago they would almost certainly have had done by professionals: this explains the better performance, in terms of sales, of product categories such as semi-finished products, plasterboard, doors and windows – in other words, items used in building and renovation work. The trend is less positive, on the other hand, as regards home

furnishings and decorations: consumers are tending to buy only the things that they really need in order to live comfortably in their homes, and are no longer inclined to make impulse buys or purchase items they have not budgeted for.

Rethinking the range Generally speaking, as we have said, less money is being spent in all the various wood industry segments.

Not surprisingly, therefore, many suppliers have decided to downsize their ranges, tending to keep only high-turnover products in stock. This is a change of approach compared to what was usual before the economic crisis, when they preferred to keep many materials in stock in order to be able to offer a wide range. However, despite this, there is still a tendency to invest in

innovation, even though, in view of the prolonged stagnation of consumption, some operators are struggling to conceal their lack of enthusiasm in this regard. Having said that, efforts are constantly being made to come up with new mer>>>>

What the companies are expecting in 2013 According to the results of a survey conducted in January by FederlegnoArredo (italian association of wood sector) on a sample of over 630 member companies operating in the wood-furniture industry, 60% declared that their orders were still declining, 30% that

they were stable, while only 10% reported increases.

Only four companies out of 10 (39% of the respondents) said that they expected 2013 to bring a partial recovery compared with 2012. The others (28%) expect to see a further dip or no change (33%).

WOOD BUILDING AND FURNITURE� MACROSECTOR (values in million euros at current prices)

% 1° sem. 2006 VS 2° sem.2007 2006

% var. Differences 2013* 2012* 2007 2013*

2008

2009

2010

2011

2012

2013

16.001

14.796

11.924

12.195

11.814

10.308

9.545

-7,4%

-6.455

Exports (b)

2.022

1.878

1.430

1.624

1.863

1.928

2.049

+6,3%

+27

Imports (c)**

2.433

2.101

1.608

1.949

2.003

1.751

1.628

-7%

-805

Trade balance (b - c)

- 411

-223

-178

-326

-141

177

421

+137,7%

+832

Apparent domestic consumption (a-b+c) 16.412

15.018

12.103

12.520

11.955

10.131

9.124

-9,9%

-7.287

exports/sales (% b/a)

12,6%

12,7%

12,0%

13,3%

15,8%

18,7%

21,5%

+14,8%

+9%

Employees

182.408

181.105

169.736

167.190

163.680

159.424

151.134

-5,2%

-31.274

Companies

44.045

42.723

41.557

40.407

39.765

38.209

35.220

-7,8%

-8.825

Wood-Building

Wood industry sales (a)

* Preliminary data as of November 2012 - * projections made in March 2013 - ** Excludes sales of logs and sawn timber Source: Centro studi Cosmit/Federlegno Arredo

BricoMagazine 67

Markets

Associations: a growing phenomenon

chandise that might encourage customers to buy: articles are appearing on the market that are more original than those of the past – for example we are seeing new types of flooring, like vinyl flooring. Another strategy is to focus on products that are a must in every home (as we have said, items that are not absolutely essential get left on the shelf ), easy to use, and offer a good price/quality ratio: we are thinking, for example, of items like floor lamps, shelves and various accessories for the home and bathroom.

The purchasing habits of the retailer in times of recession Obviously, the crisis has changed the purchasing habits not only of the end customer but also of the retailer. Reflecting trends seen in many other market sectors, many DIY outlets are now tending to focus much more on sales than on stock: in other words superstores, like all the distribution channels, are drastically reducing their stocks.

What is more, suppliers are being forced to wait longer and longer to be paid. This situation, certainly not 68

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an easy one, is exacerbated by other problems that specifically concern the wood sector: even though logistical costs (transport) and raw material prices have risen, manufacturers, because of the recession, are unable to recoup these extra costs from the market, and are therefore forced to accept increasingly narrow profit margins. In order to, if not resolve, at least alleviate this situation, some suppliers would like to have someone specific, within the DIY superstore organisations, with whom they might directly discuss not only problems of a financial nature (such discussions should be considered essential, especially in times that are difficult for the superstores, too), but also matters of a more commercial nature: product ranges, store renovations, initiatives to boost sales, and so on.

It seems that we have the recession to thank for another phenomenon, too: the considerable rise, among wood merchandise retailers, in membership of associations: in other words, more and more of these retailers – both small and medium-sized chains as well as mass merchandisers and DIY superstores – are forming purchasing groups or consortia in order to have greater bargaining power on the market. For some suppliers, however, this trend is not without its downside: indeed, while on the one hand it is helpful to manufacturers, who obviously acquire a number of customers at one go, on the other, it obviously impacts on the profitability of their products.

Basically, they have to bring the prices down, first because the single company, being a member of a consortium, has to be offered a preferential price, but also because the quantity purchased by the consortium is such that a lower price must be applied. Added to this, some producers complain that individual consortium members sometimes show little interest in the commercial conditions stipulated by their consortium and approach the supplier with other requests or wanting other changes, dictated purely by the needs of their own company and not their association. ■

Acknowledgements: Fratelli Oste - l’Arredo Pratico - Bruno Oste, owner Guercio - Alberto Guercio, CEO Kimono - Roberto Lepri, CEO Pircher Oberland - Günther Wisthaler, CEO Stori - Vittorio Stori, director/legal representative

MADE4DIY is the first organization representing at national and international level

ITALIAN PRODUCERS FOR DIY&GARDENING whose aim it to share and develop strategies and goals linked to

INTERNATIONAL DIY & GARDENING MARKET MADE4DIY is the privileged way to the MADE IN ITALY thanks to selected items certified quality consolidated business MADE4DIY represents the Italian producers for Diy & Gardening in FEDYMA

For Further information CONTACTS contact@made4italy.com Mrs Antonella Cardellicchio mob. +39 334 6732827 Mr Ivan Bartolucci mob. +39 340 8498167

Markets

by Raffaella Pozzetti

The paints and coatings sector: partnerships and training are the key Creating value in collaboration with retail chains, and investing in training and education - of the end user as well as the sales assistant: these are the keys that will make the difference for the brand names in the DIY sector.

oing by a preview of estimated market trends for 2012 – the figures are still to be finalised – we are here looking at a market that ended 2012 with a total turnover of 1 billion, 300 million euros, representing approximately half a billion litres of products sold (Source: Assovernici). These figures represent an 18-20% drop in value terms, and a 20-22% drop in volume terms on the data recorded in 2011. Traditional retailers are still the sector’s main distribution channel, with an 83-84% share of the market, while mass merchandisers have an 11% share, while the remaining 6% or so is absorbed by B2B (i.e. direct sales by the industry to other industrial sectors). What we are interested in here, in particular, is the situation shown by the 11% of the market covered not only by mass merchandisers, but also by DIY superstores.

First of all, however, a preliminary consideration: given the general drop in turnover and in the number of articles sold, it is clearly going to take the sector some time to get back on its feet again, and this applies to the DIY sector too. In other words, paint manufacturers are ex-

G

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pecting 2013 to be a rather flat year, also in the DIY setting, with even the most optimistic not envisaging signs of a recovery before late 2013early 2014 at the earliest. So what are the reasons for this rather negative trend? Once again, they lie essentially in the economic recession.

Without beating about the bush, consumers have less money to spend. As a result, they are tending to buy paints and coatings only when they have to, and even then are being influenced more by low price than by the quality of a product.

Collaborating with mass merchandisers Having said all this, there are some manufacturers among the sector’s leaders (which obviously aim to offer quality at a fair price) that, despite the lacklustre performance of the DIY sector, have nevertheless increased their market shares in recent years, or at least maintained them.

How have they managed to achieve this? Basically, by working on two, complementary fronts. First of all, they have worked hard to develop partnerships with mass merchandi-

sers, even though some companies complain that this can be quite difficult. Where possible, suppliers of paints and coatings find out what these clients want and together try to generate value. This may be done, for example, through in-store initiatives, different ways of boosting sales, or local trading activities which are performing well in terms of sell-out.

Instead, the range of services for the customer must include the availability of a tinting system – a solution that is becoming increasingly wellknown and popular among DIY

The paint and coatings market: some figures Overall sales 1 billion, 300 million euros Litres of products sold around half a billion Average price +2% approximately on the previous year (Source: Assovernici. Preview of estimated italian market trends for 2012 - the figures are still to be finalised)

enthusiasts, especially those needing to do retouches or wanting to obtain unusual tones. What is more, this system, as well as being appreciated by customers, is also useful for stores, because it allows them to reduce their stocks and condense their paint range in a smaller space.

Training and educating the end user The second front on which manufacturers are operating is that of onsite end user training (although this can also be done remotely, using today’s increasingly interactive websites): their aim is to teach the custo-

mer about the advantages offered by quality products and, at the same time, to justify the difference in price that inevitably separates good quality products from the more economical ones. What some suppliers in this sector are actually trying to do >>>>

PAINTS in Italian DIY superstores: sales in quantity and value terms, per type, 2010 vs 2011 UNIT UNITA’ 2010

2011

Jan 10-Dec 10 : Jan 11-Dec 11

2010

2011

5%

Jan 10-Dec 10 : Jan 11-Dec 11

7%

7%

IDROPITTURE Water-based paints

VALUE VALORE

16%

VERNICI X METALLI Paints for metals SMALTI Enamels

Paints and coatings VERNICI X LEGNO for wood 10%

4%

1%

+/- % PY

5,6

5,8

10%

4,4

7,5

Fonte: GfK Retail and Technology Italia

BricoMagazine 71

Markets is reassure the consumer over his choice of product and make him see that his decision can actually be better than that which a professional decorator might make on his behalf. And this is no mean feat: basically, it is a case of overturning the idea (quite fixed in our country) that it is up to the painter to choose the product to use (even though he may not always buy a quality product). To do this – or even, basically, to give the customer more information – a number of different techniques are being implemented, ranging from promotional material supporting the launch of new products to out-and-out product use guides (quick and easy to read), posters and signs, and product display assistance for retailers, sometimes even adapting displays to the single store. But training initiatives – this is a crucial point for suppliers in this sector – should be aimed at sales assistants, too. Partly because of the rapid staff turnover that is typical of DIY superstores, staff training should be an ongoing undertaking and it can take the form of courses at the manufacturers’ facilities or in-store sales support activities, where the staff are flanked by personnel sent by the supplier.

There is a very good reason for all of this: a sales assistant who is well informed about the characteristics of quality products is a sales assistant who will be better equipped to encourage the purchase of branded products

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(naturally less appealing in price terms) rather than inexpensive or entry level items.

The current trends Obviously, if, on the one hand, it is essential to inform the customer (and the sales assistant) about the characteristics of the products, on the other, it is just as important for companies to be receptive to the DIY store’s customers and ready to listen to their needs. In short, they have to be able to offer customers (the majority of which are private individuals) products that are best suited to their particular needs. So, what exactly does a novice DIYer want? First of all, he wants products that will give a good result, but are easy to apply: indeed, ready-to-use products continue to be one of the main trends in the DIY market.

Another trend, which has grown stronger over the past year and a half, is the quest for colour understood as a form of furnishing and as a design feature. In other words, for consumers who are feeling the pinch, painting a room is increasingly being seen as a substitute for changing its furnishings: simply changing the colour of the walls can give a room a facelift, making it look more modern, yet without having to redo everything. Moreover, paint is easy and quick to use and (every bit as important) an aspect of the home

Acknowledgements: Boero - Diego Tomasello, director, Architecture & Deco division, Gruppo Boero Materis Paints: Rosetta Orsi, DIY marketing business unit and head of communications and web marketing, Materis Paints Italia Massimiliano Bianchi, director of DIY division J Colors - Mario Licini, head of marketing Nespoli Group: Kathleen Descamps, group marketing director, commercial director Benelux

that can easily be changed. In other words, consumers might, without too much hesitation, decide to change the colour of their walls even quite frequently, as the outlay involved is relatively small. Finally, some manufacturers report a further trend which could become increasingly established over the coming years: a transition from environmental awareness to a broader awareness of comfort and wellbeing generally. In other words, the focus will no longer only be on environmentally friendly products but also, and increasingly, on products that increase one’s sense of wellbeing in the home, such as paints or other products that somehow recall elements of nature and can thus convey, within the home, a greater sense of peace and security. ■

Studies and Researches

by GfK Retail and Technology Italia

The growth of private labels in Italy The private labels in GfK surveys was the theme of a seminar held by GfK Retail and Technology Italia at BricoDay 2012.

nce again – indeed, it has been a fixture since the second time the event was held –, GfK Retail and Technology Italia took part in BricoDay 2012. Ivano Garavaglia, the company’s account manager, took an in-depth look at this year’s chosen topic, private labels, and presented a new marketing instrument, the geomarketing, which could prove very useful for large DIY retailers.

O

How is the market doing?

Let us start with the macroeconomic indicators, which, unfortunately, are negative, and analyse two of them, the ones we consider best able to shed light on the world we are looking at here. The first of these is consumer spending, which comprises all that is spent, by households and individuals, on goods for themselves and for the community. In the second quarter of 2012, Italy recorded the worst performance, -3.7%. In this regard, Germany is actually the only country still recording a trend slightly above 0%. The second indicator, related to the DIY world, is that of residential real estate sales, and an analysis of the data for the North, Centre, South and whole of Italy shows that none performed better or worse than the others; the market results, in the first quarter of 2012, recorded a delta ranging from 74

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P -19% to just over -20% between the various areas.

Looking at the channel of particular interest to us here, i.e. DIY superstores (large specialised sales areas covering over 800 square metres), the performance in the first half of 2012 was still positive: we are talking about around 1.6 billion euros in the first six months of 2012 as compared with around 1.5 billion the previous year, with a trend that, at 2%, was still positive, albeit down on the +3.2% recorded in the same period in 2011. But in the context of this particular sector, this is still quite a considerable trend and thus certainly a positive result.

Product categories: brands and private labels Looking in detail at certain product categories, it is possible to observe some quite stable trends, without significant fluctuations: the macrocategory of DIY did record some losses, however, while gardening remained stable, without any major upsets. Comparing the absolute value generated in the first six months of 2012 with the same period in 2011, some sectors showed highly positive results. These include the pet and automotive markets, while all those linked to the home recorded negative results, probably partly as an effect of the slump of the housing market. Home accessories, furnishings and home textiles all recorded negative results. In this setting, it is possible to start to see the balance of power between traditional brands and private labels.

First, however, it must be pointed out that the tables provided do not refer only to DIY superstores, but rather to the sum of DIY superstores plus what we call mass merchandisers (in the latter case, we consider, of course, only their DIY-

Spending on private consumption Percentage change (quarterly) in volumes compared to the previous year in the major European countries 4,0 3,0 2,0 0,8

1,0 0,0

-0,3

-1,0

-0,9

-2,0

-2,2

-3,0 -3,7

-4,0 -5,0 2010q2

2010q3

2010q4

2011q1

EU 15

UK

2011q2 DE

2011q3 ES

2011q4 FR

2012q1

2012q2

IT

Residential real estate sales in Italy Percentage change (quarterly) in volumes compared to the previous year

-18,9% -19,6% -20,0% -20,4%

Residenziale

Nord

Sud

Centro

The trend of the DIY Superstores channel All market sectors, Italy. Sales in value terms, expressed in thousands of euros Jan 11 - June 11

Jan 12 - June 12

DIY Superstores Italia Turnover, first half 2012:

1,6 billions euros (+2%)

1.533.388

+3,2

1.564.524

Growing trend %

DIY Superstores definition Chains or groups of self service stores, with sales area >800 mq, dealing with at least the following products: • Tools • Building materials • Timber

+2,0

>>>

BricoMagazine 75

Studies and Researches vate labels had an almost 14% share of the market in volume terms, or 3.7% in value terms. The past four years have been characterised by a constantly increasing trend, which is still observed even if we break this result down and consider the values for each quarter from 2009 through to the second quarter of 2012. Private labels are thus characterised by a steady trend; there is no single quarter (including the summer

related business). The sum of these two channels is termed the GfK panel market. We will here examine the following specific categories: power tools, gardening, home decoration and maintenance, and lighting, in order to see, in each of them, what share is held by private labels compared with traditional brands.

Private labels in DIY In the first six months of 2012, pri-

Private labels in GfK surveys Gfk panel market: DIY superstores, Italy.

Shares in value terms, expressed in euros Gennaio-Giugno 2009

Gennaio-Giugno 2010

Gennaio-Giugno 2011

Gennaio-Giugno 2012

Sectors Settori analizzati analyzed • Utensili Elettrici Giardinaggio • Power •Tools • Garden• Decorazione • Illuminazione • Lighting • Decorating

93,1

92,1

90,4

6,9

7,9

9,6

Brand

86,3

Private Label

13,7

Private labels in GfK surveys Gfk panel market: DIY superstores, Italy.

Shares in value terms, expressed in euros PowerElettrici tools Utensili GEN 2011 - GIU 2011

86,1

13,9

76

GEN 2012 - GIU 2012

83,9

16,1

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Garden Giardinaggio GEN 2011 - GIU 2011

89,3

10,7

Decorating Decorazione

GEN 2012 - GIU 2012

83,7

GEN 2011 - GIU 2011

Lighting Illuminazione

GEN 2012 - GIU 2012

GEN 2011 - GIU 2011

89,5

89,5

86,8

10,5

10,5

13,2

Brand Private Label

93,8

16,3 6,2

GEN 2012 - GIU 2012

quarter and the winter one which coincides with the Christmas season) that shows a downturn with a recovery of the traditional brands. In all the periods considered, with the exception of 2009, private labels were found to record strong growth.

Closer examination of the situation within our four categories, above all to see whether they record comparable trends, shows that, yes, the trends are similar, in the sense that there is no single segment in which private labels are dipping, or merely remaining stable. In all four sectors, they are growing and showing impressive trends, which vary according to the product category (ranging from power tools to decorating).

The scenario just described is that of Italy. However, GfK analysis can also be applied to Europe, to see whether the situation is the same in other countries. As far as power tools are concerned, we have already mentioned the strong growth recorded in Italy, where private labels accounted for about 16% of the value of the market in the first half of 2012. Looking at other countries, such as France, Germany and the UK, there emerge situations which lag behind ours in terms of market shares; in Germany, for example, traditional brands continue to be strong, holding an over 90% share of the market. France and the UK, on the other hand (especially the UK) are a little more advanced. Overall, however, all these European countries (Italy, France, Germany and the UK) are characterised by substantial stability: no significant differences emerged when comparing their respective market shares in the first half of 2012 with those recorded in the first six months of 2011.

This does not apply to all sectors, however. Analysis of other cate-

Private labels in GfK surveys: Power tools Gfk panel market: DIY superstores, Italy.

Shares in value terms, expressed in euros

“

Private labels in the lighting sector in Italy are recording strong growth (+3 % in sales).

An exemplary case is that of the UK, where private labels, which already had an over 40% share of the market, reached 55% in 2012.

Italy GEN 2011 - GIU 2011

France

GEN 2012 - GIU 2012

Brand

83,9

86,1

GEN 2012 - GIU 2012

81,3

81,2

Private Label

Great Britain

GEN 2012 - GIU 2012

GEN 2011 - GIU 2011

GEN 2012 - GIU 2012

66,3

66,1

33,7

33,9

91,5

18,8 9,2

8,5

“

Private labels in GfK surveys: Decorating Gfk panel market: DIY superstores, Italy.

Shares in value terms, expressed in euros Italy

gories (paints, varnishes, enamels and silicones, sealants, etc.) in fact reveals a slightly different picture: in this case, Germany, France and the UK are ahead in value terms (with private labels recording values a good 3-4 times greater than those recorded in Italy). Private labels are growing in France and Britain, whereas in Germany there is more of a balance between private labels and traditional brands.

Let us look at lighting, the last of the three sectors. In Italy, private labels recorded strong growth in 2012, with a 3% increase in sales compared with the previous year, but the situation differs greatly from country to country. A considerable market share is held by private labels in France and the UK, well over 40% in the case of the UK where they recorded very strong growth in the first half of 2012; Germany on the other hand lags behind more (rather as it does in the power tools sector) and, what is more, showed a reduction in the share of the market held by private labels in the first half of 2012. ■

GEN 2011 - GIU 2011

90,8

18,7

16,1

13,9

Germany

GEN 2011 - GIU 2011

GEN 2011 - GIU 2011

France

GEN 2012 - GIU 2012

Germany

GEN 2011 - GIU 2011

GEN 2012 - GIU 2012

65,5

64,6

34,5

35,4

Great Britain

GEN 2011 - GIU 2011

GEN 2012 - GIU 2012

51,9

51,9

GEN 2011 - GIU 2011

GEN 2012 - GIU 2012

63,3

62,7

36,7

37,3

Brand

93,8

89,5

Private Label

48,1

6,2

48,1

10,5

Private labels in GfK surveys: Lighting Gfk panel market: DIY superstores, Italy.

Shares in value terms, expressed in euros Italy GEN 2011 - GIU 2011

France

GEN 2012 - GIU 2012

Germany

GEN 2011 - GIU 2011

GEN 2012 - GIU 2012

59,0

59,9

GEN 2011 - GIU 2011

Great Britain

GEN 2012 - GIU 2012

GEN 2011 - GIU 2011

GEN 2012 - GIU 2012

45,0 55,7

Brand

89,5

86,8

Private Label

90,4

92,1

55,0 41,0

10,5

13,2

44,3

40,1

9,6

7,9

BricoMagazine 77

Markets

by Raffaella Pozzetti

The mass merchandisers’ approach to private label DIY Private label ranges sold by the main mass merchandisers.

Display and communication choices.

he leading mass merchandisers use different strategies to make their DIY articles stand out.

They may choose to guide the customer towards private label product ranges through layouts designed to promote them as effectively as possible (positioning them mostly at eye level or in head position, as Carrefour Italia does); or they may invest heavily in communication and educational tools designed to encourage the DIY enthusiast to purchase these products , tools ranging from organisation of the assortment using specific colour codes (as seen at “Iper, the great I”) to promoting more sustainable consumption through the sale of high-efficiency products which im-

T

Iper

pact less on the environment (which is what Coop and Auchan Italia do). These, in brief, are the main strategies, but to have a more in-depth understanding of how mass merchandisers are approaching the DIY sector and how they are presenting their own products to consumers, we analysed the composition of the assortment, the layout and the communication choices of four of leading retailers present in Italy: “Iper, the great I”, Carrefour Italia, Coop, and Auchan Italia, highlighting their peculiarities and common features.

“Iper, the great I”: greater customer freedom thanks to colour coding of products Number of stores: 26 Main product types sold: power tools and manual tools - plumbing (ranging from showers to hoses) tapes (from clear to reinforced ones) - paints, varnishes, brushes, rollers -car and car care products (sponges, oil, car floor mats, etc.).

At Iper, the store’s own DIY product lines, sold under the brand name WorkTime, are given maximum visibility and rendered immediately recognisable. This, in a nutshell, is the policy underlying the layout of this retailer’s DIY de-

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partment. Furthermore, each of the four categories into which the DIY assortment is divided (tools/hardware and electrical goods –plumbing – garden – car accessories) is assigned a specific colour, thereby making it easy to identify, quickly, the private label products on the shelves. To provide the customer with a further level of assistance in choosing the own-brand product he is looking for, the WorkTime line also uses colour coding within each product category, as a means of indicating the intended uses of the different items. If we look at WorkTime brushes, for example, we find that the red ones are meant for applying solvent-based products, while the brown ones are ideal for applying products to wood.

What this seems to show, then, is that Iper, given the variegated and rather technical nature of the DIY world, has sought to develop a policy of educating the customer so as to render him increasingly independent and better equipped both to buy what he had planned to buy and, possibly, to make unforeseen and/or extra purchases. For this to be possible, it has to be easy for the customer to interpret what he finds on the shelves, not just in terms of assortment, but also in terms of price. For this reason, within the specific product categories, products with the WorkTime label are positioned immediately below the industrial branded products, thereby allowing the customer to make a direct comparison with other brands. Moreover, WorkTime label products are positioned. within displays, at the centre of a vertical price scale, where the most expensive branded products are at the top and the least expensive ones at the bottom, again making it easier for the customer to compare prices.

Carrefour

>>>>

Carrefour Italia: private label products always to the fore Number of stores: 1306 (including Carrefour planet; Carrefour; Carrefour market; Carrefour express) Main product types sold: batteries - light bulbs - paints – brushes electrical goods - manual/power tools -smallware. Automotive products: tools and implements, chemical products, spare parts and accessories.

For the DIY world, Carrefour has implemented an effective signposting system, which guides the customer quickly to the department he is looking for. What is more, the various types of merchandise on the shelves are also conveniently indicated and therefore easily found. In particular, this famous retail group (like Iper) has developed, for the DIY sector, a layout designed to give maximum em-

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Markets

Coop

for the items most suitable for his particular type of car.

Coop: in the name of environmental sustainability Number of stores: 1474 Main product types sold: light bulbs - manual tools - batteries.

phasis to its own label: indeed, the Carrefour ranges usually have the head position and, in any case, always at eye level. To further increase the visibility of its private label assortment, the Group has also created special display stands for certain product families as well as stand-alone gondolas for seasonal promotions. Instead, as regards the concept of educating the customer, no specific solution is adopted for branded lines, while the approach 80

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adopted for counters containing Carrefour branded products is conceived and developed, separately, in collaboration with the leading suppliers in the relative categories (such as Philips for light bulbs, for example). An interesting development in this regard is the introduction, in the automotive department, of a touchscreen which allows the user to search, among several spare part categories (such as brushes, batteries, light bulbs, etc.),

Coop’s commitment, in recent years, to more environmentally sustainable consumption also extends to its sale of more environmentally friendly and high-efficiency non-food products. It is no coincidence that, in the DIY sector too, this retailer has endeavoured to draw attention to its own assortments of high-efficiency light bulbs and rechargeable batteries (which are nevertheless flanked, on the shelves, by the “traditional� kind) and portable battery chargers, which carry the Coop or ViviVerde Coop label. ViviVerde Coop is a product line that was designed in order both to contribute to safeguarding the environment and, at the same time, to raise consumer awareness of the need for environmental sustainability: the ViviVerde light bulbs, for example, use 80% less energy than the old incandescence ones, while the use of rechargeable batteries is a means of cutting waste. The packaging of the ViviVerde range of DIY products also deserves a mention, being made from cardboard or other recyclable materials with a low environmental impact. As for the display layout chosen by to Coop to draw attention to its own DIY lines, once again, we find that the lines are mainly placed at eye level.

What is more, in the case of the high-efficiency light bulbs, the private label products occupy all the

Auchan

levels of the display, a solution which gives the idea of a full and complete range. Instead, items typically purchased on impulse, like batteries, are also found at the end of the aisles closest to the tills.

“Auchan products” stand out on the shelves Number of stores: 58 Main product types sold: batteries -light bulbs - manual and power tools - plugs - hardware - electrical goods (plugs, cables, sockets and power strips) - automotive products: tools and implements, chemicals, spare parts and accessories.

The DIY section at Auchan Italia, which the customer can find by

following a useful signposting system (white writing on a red background, Auchan’s colours), aims to help the customer make his purchases both efficiently and quickly.

For this reason, it uses, in its DIY department, a special system for marking the different product families, so that they stand out and can be immediately recognised by the customer. The store is clearly intent on guiding the customer to its own-brand products, which are easy to pick out thanks to the relative displays which, in the various aisles, are clearly marked “Auchan Product”. Seasonal offers are also clearly indicated (this applies both to the private label ranges and to the industrial branded products).

With regard to the issue of cus-

tomer education, Auchan, too, has chosen to put a touchscreen in the automotive department (very similar to the one at Carrefour) to help customers find the types of spares that best suit their car. Finally, Auchan Italia – in line with the policies of environmental sustainability and energy saving implemented by the Auchan group at international level – has sought to highlight its line of green batteries and light bulbs, which have cardboard packaging, in order, obviously, to be more easily recycled. Finally, to promote greater awareness of environmental issues among its customers, it also has panels giving information about high-efficiency light bulbs and the advantages they offer. ■ BricoMagazine 81

Interview

by Giulia Arrigoni

Brichome, one company and a common business strategy An interview with Giorgio Delprino, owner of Brichome. A DIY independent looking for a group that will bring real-life advantages and, above all, a common strategy for all.

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ichome is the culmination of three generations of experience in the sector with a fourth generation entering the business a few years ago. From humble beginnings as a small hardware and household supplies shop in Nizza Monferrato, the activity expanded to occupy larger premises when, in 1985, Carlo Galligaris, the owner of a painting and decorating supplies store,

B

became a partner. The resulting outlet was a 1,200 m² pilot project; not exactly what we would call a DIY store, but with a self-service layout and a format that was the forerunner of what we would expect from one today. The next step came four years ago when the outlet moved to a different location in Nizza Monferrato -533, Strada Canelli – after Mr. Galligaris retired and Mr Delprino bought out his share of the business. Here follows our interview with Giorgio Delprino.

Bricohome became a reality four years ago. What sort have changes have been implemented?

Firstly we have bigger premises – from 1,200 to 3,500 m² of retail space and an 800 m² warehouse where we employ an 11-strong staff. We have also computerised all our procedures and extended our range of products in order to create not only a DIY outlet, but also a real home improvement store.

Was this concept inspired by any other businesses here in Italy?

In some respects Leroy Merlin, which is more oriented towards products for the home in general, although I don’t deny I miss Castorama in Italy; it had a more “technical” slant in the sectors of hardware and DIY. In a way we took inspiration from them and we pride

“

You are better off trying something new, even if sometimes you make mistakes, rather than maintaining the status quo. Of course you have to use your common sense, but trying out new ideas is fundamental.

“

ourselves on being a little more specialist than other competitors. Our aim is to do more than just sell the cheapest items; we want to deliver quality and in-depth service. In other words we want to raise the bar on the assortment of items we can supply.

Who do you regard as your main competitors?

There are two Brico Ok outlets within 20km, but generally speaking this isn’t an area that is overserved with DIY stores; however, this area wouldn’t support any more.

We are also in the middle of an agricultural area where attitudes and the overall mentality are very much set in stone. Here personal relationships with the customer base are important and there is a certain amount of suspicion. Here, a classic DIY store would find it difficult to survive. Even our new premises and our change of venue weren’t just taken at face value because we were already an established reality in the area. On the contrary, even though we were well-known and had built up a customer base, initially the new outlet was viewed with a certain caution.

How has the outlet developed in the past four years? Are there any sectors you have expanded or cut back? How is your assortment “moving”?

In the main our range of products has become more oriented towards furniture and interior accessories.

We have also started a gardening department that offers in-store garden equipment repairs.

Was this something you felt obligated to do?

In today’s market it is necessary if you want to sell: you are better off trying something new, even if sometimes you make mistakes, rather than maintaining the status quo. Of course you have to use your

common sense, but trying out new ideas is fundamental. My son – the fourth generation in our family to work for the business – is making a big contribution in this sense.

As 2012 comes to a close what can you tell us about the past year?

I can say that our customers are more cautious in their spending. It might be obvious but it’s the truth; the average transaction these days is lower than it was, although I must say that when customers make a purchase, quality is what they are looking for. There is doubt that some sectors – home decor and lighting for example – have suffered a great deal, while others such as gardening supplies – tools, machinery and outdoor furnishings – have not been affected negatively.

How will you close this year?

We think we will break even, but we have to see how sales go in November and December. If they under-perform we could be down by 2%.

What was you turnover in 2011?

4.2 – 4.3 million euros including VAT.

Professionalism – a fundamental pre-requisite for the future In this situation what are your thoughts about distribution within the sector where the market is still in the hands of hardware stores?

Today successful hardware stores and DIY centres are those that are well-organised, that specialize in certain fields and have a certain turnover. Those that don’t have these qualities are struggling; it’s a slow, but inevitable demise. Just ask the sales agents: only businesses that are working well are prospering.

What do you mean by “working well”? >>>>

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Those that offer a professional service and don’t open stores without having the necessary experience.

There have been many such cases in the DIY sector where people thought success would be guaranteed.

DIY has always been one of the non-food sectors that offered the best return on investments…

That was true up to a few years ago.

Today some are starting to feel the pinch and we will see if they can turn things around in the future.

So you’re expecting retail to become more streamlined?

I think it is inevitable. There will be no other choice. Costs are what they are and margins are falling. There are some levels you just can’t afford to go below.

How has all this effected your relationship with your suppliers?

This hasn’t changed; conditions have remained more or less stable.

The truth is although this recession has been savage it has also been slow and will probably continue in the 84

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same vein for some time yet. But a rationalisation will have to be made, there’s no doubt about that.

A lot of people are turning to internet and e-commerce websites.

What is your opinion and how do you intend to use the web?

Currently we don’t have anything on-line, because we are convinced that it would be a big commitment and one that would only pay off if it were done correctly. If we consider e-commerce it would be even more of a commitment; like having an additional store to run so you need to tread carefully. One mistake could not only compromise the on-line activity but also our existing business. Launching a new brand would probably be the best solution. We like the idea, but we need first to have a clear project and the resources and personnel to make it happen.

And what about another store?

Opening a second store is something we are considering. However once again we want to do things

properly; there is no room for error.

What I can say is we are very interested in the idea and we are evaluating our position.

DIY independents? Yes, but also no in the right circumstances Why do you operate independently? Is this a deliberate choice or is the idea of being part of a retail association something you’re not interested in?

We belong to a consortium that operates exclusively in the field of imported goods. Having said this, the decision to stay an independent operator has been dictated by the fact that the existing associations don’t fit our criteria. We didn’t choose to be alone, because we don’t think it’s the best solution; it would be better to be part of a retail group, but a group that will offer real benefits.

There has been some movement in DIY distribution for some time now: fewer franchises, changes in consortiums...

Interview

“

Be part of a retail group? Yes, as long as it brings benefits to everyone, not just a few, otherwise – especially in times like these – things get complicated and costs spiral out of control.

“

Exactly! We think retail groups should exist to bring benefits to all the participants, not just a few, otherwise – especially in times like these – things get complicated and costs spiral out of control. The changes we hear about don’t point to healthy developments and a significant number are having problems.

What makes being part of a retail group an attractive proposition?

What are you looking for?

We look at proposals and group strategies very carefully, because we believe that really being part of a group means, for example, a single IT system, buying all your products from the same suppliers, having a common advertising strategy and the same brand. The kind of association where you need to bring property and assets to the table and make profits from them. Furthermore you should have an operational shareholding in it so you can deal with the challenges of new markets for yourself depending on your own potential. I’m describing a solution that so far, does not exist.

What I do see are situations consisting of a number of outlets that in reality are still operating independently with their own brands and their own strategies. This might work for them, but it isn’t the solution we are looking for.

Yet as time goes on operations become more complicated…

Without doubt. Until quite recently there were people with little or no experience, who finding themselves with a commercial space on their hands thought they could make more money from DIY because of the interesting margins it offered.

But the time to “have a go” is over.

Today experience and knowledge are vital for anyone wanting to work

in this sector. This is a market that comprises a vast array of products – from heating to power tools – and most of these items require in-depth technical know-how.

Franchising in the DIY sector has been stuck in a rut for several years and this year in particular consortiums have felt the effects. What’s your opinion?

We think DIY franchises have not been very successful lately for a number of reasons. First and foremost a successful franchise requires commitment – all the members have to be followed carefully and continuously, without taking your eye off the ball, such as the establishment of independent stores.

When it comes to consortiums I think the situation is calmer, but it’s also true there’s some confusion lately that is causing “movement” from one consortium to another and that isn’t always an advantage.

This isn’t the right time for mergers, like Mr. Bricolage, for example?

For the time being I can’t see anything significant. We’ll see….

Are you pessimistic about this?

No, I just believe, as I have already said, that if we want to pursue a genuine aggregation of businesses we have to start with a single company in which those involved each hold a share. This is the only way you can guarantee a common strategy for all: from the brand to sourcing products. ■ BricoMagazine 85

New Stores

Brico Io Trescore Balneario (Bergamo) The new Brico Io store was inaugurated on 22nd March in Trescore Balneario, in the province of Bergamo. n 22nd March of this year, Marketing Trend inaugurated a new store in via F. Lussana in Trescore Balneario near Bergamo.

The new Brico Io has a retail area of 900 sq m, and is next door to the new Coop Lombardia supermarket. The store stocks about 20,000 DIY items, organized in 14 departments. The BricoOndemand interactive kiosk designed

by Marketing Trend is located at the entrance. Assisted by expert staff on hand, customers can use this to place an orTOOLS der for fast home delivery from any of the 1,500 items from the outTOOLS door, bathroom furnishing, home furnishing, gardenCAR CARE ing, plumbing, HARDWARE lighting, refrigeration LIGHTING AND

O

WOOD CUTTING

ING

EN

RD

GA GARDENING AND OUTDOOR

TIMBER

FURNISHING

STORAGE AND HOUSEWARES

RD HA

PROMOTIONAL

PLUMBING AND BATHROOM FURNITURE

DECOR

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PAINTS

R CO

PAINTS

COUNTERS

ENTRANCE/EXIT

DE

PROMOTIONAL

PROMOTIONAL

Fact Sheet Address: via F. Lussana Trescore Balneario (Bg) Area: approximately 900 sq m Assortment: approximately 20,000 items Number of Employees: 10 Tills: 2

RE WA

PROMOTIONAL

ELECTRICAL

and heating sectors which Brico Io has selected to integrate and expand the offer it physically stocks in the store. Brico Io in Trescore Balneario offers its customers all of the store’s traditional services.

The initiatives include a 10% discount applied to all Coop members for purchases made on Wednesday (the discount cannot be applied to sale items). In addition, Coop members get 1 point for their Soci Coop collection for every 2 euro spent at Brico Io in Trescore Balneario. ■

Services: free wood cutting, cut to measure table linens and lace, rope, netting and power cable cutting, catalogue sales, free quotes, instalment payments, home deliveries for a small fee, free paper measuring tape, free parking, handicap accessible.

Parking: in front of the store.

Hours: from 8.30 am to 8.30 pm from Monday to Saturday; from 8.30 am to 1.30 pm on Sunday.

!

New Stores

Brico Ok Imola (Bologna) After opening outlets in Parma and Melzo, Brico Ok inaugurated a new store in Imola on 2 December. t was a very busy second half year for Brico Ok inaugurating a new store in Imola on 2 December after launching other outlets in Parma and Melzo. The new store was opened directly by Ciesseci between the residential and industrial areas in this town in the Emilia Romagna region of Italy. “Our goal is to open a series of stores in Emilia Romagna and, having had the opportunity to open one in Cesena some time ago, it was natural for us to travel north to create a ‘physiological’ connection to shops in Lombardy. This one in Imola is, for us, a very interesting location, partly because there is little competition, there’s just a single Obi store,” Dave Steward, a partner in Ciesseci, explains. “The shop has a ‘classical’ Brico Ok layout, with a large promotional area at the entrance, just beyond the two tills. In an exhibition area of 1800 sq m (and a storeroom of 200 sq m), the DIY centre is staffed by 7 employees, in addition to the Director.

“Let’s say that ours is a traditional style shop, with a few extras,” Steward continues. “For example, we have worked and we are working on rotating our stock, trying to elimi-

I

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nate products that don’t sell well, favouring novelties from our suppliers.” You can see, in fact, that we have improved our lighting and bathroom departments. Advertising involving leaflets and local advertising (newspapers, radio, mobile billboard among other things) was organized for the inauguration campaign as part of a special plan that included distribution of a coupon to be used for a purchase made before the end of December. ■

Fact Sheet Address: via Fanin 17, 40026, Imola (Bo) Area: 1,800 sq m Assortment: approximately 18,000 items Employees: 8

Tills: 2

Opening Times: : from Monday to Friday 9 am – 1 pm/2pm – 7 pm; Saturday continuous hours 9 am – 7.30 pm – Sunday 9.00 – 12.30 pm Parking: ample free parking Services: free wood cutting, curtains and frames made to measure, tinting machine, irrigation system design, invoices upon request, home delivery, furniture in kit form, door and box assembly, Brico Card Club, financing.

New Stores

Leroy Merlin Afragola (Naples) Leroy Merlin inaugurated a new store in Afragola near the shopping mall Le Porte. In reality, the store transferred from Arzano to expand and improve its offer in the Naples area. eroy Merlin is strengthening its presence in the Naples area and on 13 October 2012 it inaugurated the new store in Afragola near the shopping mall Le Porte.

In actual fact, this is a transfer from the Arzano site to Le Porte.

The entire staff moved with the store which is expanding and building upon its commercial offer in

L

the Naples area. The shop has a sales area of 8,400 sq m, 1,140 of which are outdoor, with more than 40,000 products and numerous innovative services. The store has a 75 member team of staff of an average age of 32 years. The new store has been adapted for the local market, knowledge of which derives from a close, ongoing relation-

Fact Sheet Address: Via Santa Maria La nova Località La Marchesa Afragola (NA) Area: 8,040 sq m of which 1,140 sq m is outdoor display area Assortment: 40,000 items Employees: 75 Tills: 8 + 2 (8 mobile tills plus 2 fixed tills at the customer desk) Hours: from Monday to Saturday from 9.00 am to 9.00 pm; Sunday 10.00 to 9.00 pm Parking: in front of the store, free Services: installation/fitting by specialised personnel, free DIY courses, “Idea Sheet” to participate in dedicated promotions and discounts, custom products (curtains, wood and glass cutting, tinting machine) free returns, customer care, financing, home deliveries.

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EXTERNAL AREA TILES

WOOD FLOORING

TILES

BATHROOM FURNITURE

SHOWER CUBICLES

BASINS AND TOILETS

DOORS AND WINDOWS

TIMBER

OUTDOOR FURNITURE RUGS

PAINTS

BATHROOM ACCESSORIES

STORAGE

POWER TOOLS

HARDWARE

COOLING AND HEATING

CURTAINS AND CUSHIONS

FRAMES

PLUMBING

ELECTRICAL

WATERING AND IRRIGATION

SEASONAL GARDEN

PLANTS POTS SOILS AND COMPOSTS

LIGHTING DECORATIVE PLANTS AND POTS

ENTRANCE

ship with the area. A distinctive element of the store is the home improvement department, which offers a broad range of products which can meet different furnishing styles: lampshades of all shapes and models, more than 1,000 wall coverings, an assortment of paints with more than 5,000 colours available to order, and a comprehensive assortment

GARDEN POWER TOOLS AND ACCESSORIES

EXIT

of decoupage items. As Antonio Borrelli, store manager, explains, “The new shop stands out for the high value for money it offers and the vastness of its assortment, confirmation of the attention that Leroy Merlin has always paid towards the area. All departments were designed to offer products that meet a diversity of tastes, styles and needs of the DIYers in the

Naples area.”

For its clientele, Leroy Merlin Porte also delivers a series of dedicated services to facilitate and accompany purchases and DIY, providing support in the form of an installation service in collaboration with qualified local craftsmen, Leroy Merlin expert services directly at the customer’s home, and financing to facilitate purchases. ■

BricoMagazine 91

The showcase

Everything fits together!

ombitech profiles have a unique, patented alignment groove design which allows users to accurately drill and combine different items easily and effectively. Profiles fit perfectly on and inside each other to provide greater flexibility in design. An unrivalled choice of accessories including metal - sheets and connectors. When combined these can be used to construct a host of different items for indoor or outdoor use. Depending on the application you can use uncoated aluminum or white plastic profiles in any size with two lengths of 1m and 2,5m. Both materials are of course rustproof and highly weather resistant. The profiles have several features which is not present in competitors’ products. The comprehensive range of accessories with various standard parts such as nuts, washers, springs, end caps, rubber buffers and much more offers the perfect addition for every application. A professional tool range for processing the alfer profiles makes your work easy. The useful assistants in the alfer range: miter- boxes, multi-clamps, several saws, rulers and brackets. www.alfer.com

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Plastic solutions for DIY market olimark has a prominent position within the DIY sector, and it is found in the best chains of distribution and in leading, specialized points of sale. Since 2010 is a member of EPDA (European Plastics Distributors Association). Its success can be attributed to the specific industry knowledge applied over the years in a constant search for high-profile top-quality materials, and the attention paid to addressing an increasingly more demanding target group, capable of stimulating ideas with innovative materials and bringing to life a variety of solutions. The experience gained over the years has enabled Polimark to acquire the knowledge needed to produce POLIVER crystal polystyrene sheets, a winning combination of optical quality and price that remains a point of reference for all those applications requiring a transparent but economical product without compromising on the quality that the market increasingly demands and rewards. www.polimarksrl.com

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Alubox presents its last wonderful creation: Mia ia is a mailbox designed and manufactured in Italy. It’s worldwide patented, for outdoors and for magazine format. Mia has an innovative feature not present in the market. It’s composed of two parts : mailbox body and frontal plate interchangeable : this frontal plate can be painted in many different colours and especially can be made in various shapes. Fix frontal plate on the mailbox door and change it whenever You want! Release Your creative energy : buying MIA You will have a new mailbox always different, fun and Personal!

Follow us on Facebook: https://www.facebook.com/aluboxsrl/cassettepostali www.alubox.it

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Elea: how to build details he over ten year’s experience of Elea has allowed this Italian company to have a considerable growth in terms of design and production of display solutions for a modern distribution. This has resulted in the possibility of furnishing and fitting out the most different retail stores. Our company can conceive, design and carefully control all the project phases by concentrating the management of: creation and planning, technique, structural work, painting, woodwork, metal, glass and plexiglass working. Elea is in a position to quickly manage the whole planning procedure, i.e. development, installation and service, as well as ensure a constant and prompt contact with its customers. This strong point has been the springboard to Elea System 50 shelf and the relevant integrated rack, being compatible with the most widely used shelving system in Europe. A combination consisting of technology, design and experience has allowed Elea’s goals such as multifunctionality, flexibility while changing the goods to be displayed, as well as a remarkable reliability in terms of safety, to be achieved. Moreover, Elea System 50 consists of only one product which containes various solutions thanks to the possibility of mounting and adding accessories, according to the display needs of DIY shops. www.eleaspa.it

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Bolis Italia: democratization of design olis Italia, Italian leader in the production of shelving systems ( shelfbrackets, shelves, clips, hooks ) of high quality and design, launches the new modular bookcase INFINITY made in harmonic steel that allows you to create, in complete freedom, an exclusive and customized bookcase. INFINITY is sold as a set composed of 3 shelves and 4 wall supports that allows you to create the " wave " shaped bookcase in the picture example; being a modular bookcase made in a particular material that can be bent at will, with several sets, you can create different shapes bookcases that make your home cool and stylish.

This new product is part of the design shelving range ( just being launched on the DIY and traditional markets ) that has as ultimate goal to make design available and accessible to everyone, to make a democratization of design. Everyone who decides to buy Bolis Italia products is making the best choice for his own home. www.bolisitalia.it

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PIKA' Super magnetics ega has created PikĂ , a line of products designed and studied to have success on retail market. Pika' products are packed in blisters and presented on metal floor /counter display. Attractive packages beside being explicit, are able to capture the customer's attention asserting itself as a good selling proposition. Vega is 100% made in Italy, it is a reality that designs, produces and offers. The design, production and packaging are all steps performed inside the factory, assuring quality and efficiency with fast and secure delivery. The linea Biagio and Monica super magnetics, have been designed to be applied on the heating elements, on stoves, and metal surfaces. Practical, stylish and usefull, with their modern design, they are adaptable to any setting version. The hangers Biagio super magnetics are made of resin in white, chrome and colored version. The towel racks Monica Super magnetics, are made of resin and metal lenght 40 cm and 50 cm, white and chrome. www.vega-pika.it

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BricoMagazine 93

The showcase

Work gloves Goodyear, a solution for every working situation e always offer you innovative products: here are the new products of 2013. Goodyear launches on the market new latex foam gloves with 13 gauge polyester and Spandex® support: very elastic, very comfortable and very light, without reducing the safety level of DPI itself. The certified protection levels are the result of Goodyear long commitment in researching the highest safety performances; excellent grip thanks to the palm design which improves the handling on wet and oily products. Breathable, silicon free. The gloves different colours have the specific purpose to distinguish different uses inside the company and avoid in this way the handled products mixing. Washable at 40°. www.ariete-group.com

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Goodyear (and Winged Foot Design) is a trademark of The Goodyear Tire & Rubber Company used under license

by Ariete Group Spa, Italy. Copyright 2013. The Goodyear Tire & Rubber Company

Extrema Fix Tape seals and joins all kinds of materials xtrema Fix Tape is the ideal solution for the quick and easy sealing and repairing of any surface, and it gives long-lasting results. Measuring 100x200 mm, it is a self-adhesive sealing tape made from a compound of butyl rubber. It is self-protected and strengthened with reinforced aluminium foil, and it is also easy to cut to the required size.

The aluminium foil makes it exceptionally resistant to aging, oxidation and the effects of chemical and atmospheric agents. Solvent-free, it will seal, join and adhere easily and definitively to all materials, in particular to plastic, glass, metal, polycarbonate and wood, without the need to use any particular tools. It can be applied cold, and it is water-resistant and self-sealing. It shows great heat stability and excellent adhesion at low temperatures, and it is resistant to tearing, aging and UV radiation.

It is therefore the ideal solution for many applications, both in the DIY sector and for professional use (plumbers, tinsmiths, builders, fitters and aerial installers). www.extremasealants.com

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Kimono HPL laminated worktops

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ince 1955, Kimono has always been looking for customers satisfaction, trying to find new and innovative solutions without giving up functionality. That’s why Kimono is a benchmark in kitchen worktops, with a traditional line but also with a special one: Top Style, the most innovative in DIY. It was created especially for those people looking for a kitchen to be both functional, innovative but classy. That’s why this range offers a wide variety of HPL laminated worktops, in colours, textures and finishes. Anyway, Kimono is never satisfied and always aiming at the best products. So, Kimono kitchen worktops range is Made in Italy, FSC certificate, available with 15 to 59 mm thickness and matched with a lot of top quality accessories. In the end, three are the words to remember when you are talking about Kimono worktops: Quality, Functionality and Style.

What would you need more? www.kimono-spa.com

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Mp Group: thermoplastic products all over the world p Group is a leading Italian company since 1968 and our products are on all most important European , American and Australian markets. Our high-quality items are certificated according to the main European regulations. We manufacture and export all over the world thermoplastic products for different sectors such as hardware, storage, waste collection, enology, gardening, food industry, households and horeca. Please take a look at our website www.mobilplastic.it where you can also download our general and horeca catalogues as well as all certifications. In the picture: Waste segregation bins. Our waste segregation bin 120 and 240 liters, TUV and DIN EN 840 certified, it’s consider the first step to build an effective refuse collection system, by this separate collection system the waste volume could be strongly reduce and mostly of waste materials recycled. Supplied with a wheels diam 200 mm is made in high quality polyethylene (PE-HD) is chemical agent and parasite resistant, liquid proof, whashable and sterilizable , and can be equipped with a sac holder or a Kit pedal /sac holder Available in 8 colours or with dark grey body and red, blue , green and yellow lids. www.mobilplastic.it

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Twist drill: the best performances with the safest use utting tools for metal working is Krino core business. We propose an HSS fully ground twist drill which assures a safer use of the tool. Speedmaster twist drill let you drill safely in the worst condition. Its features are as follows: the micro self-centering tip, which assures an easiness of spot-drilling and start cut; the double couple of cutting edges with variable relief, which ensures a maximum cutting capacity with high resistance of the cutting edges; the double chip breaker, which avoids the creation of the builtup cutting edges; 3 anti-skid flats for the full power transmission.

Above all, the special sharpening and the wide and smooth flutes assures a high quality cut with portable and bench drilling machine into alloy steel, high alloy steel, stainless steel up to 900 N/mm2, iron, aluminium, metals. www.krino.it

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Termostiro. Your ironing board will never be the same imi presents a sturding innovation that makes your life easier by shortening your ironing time. Termostiro, the heating felt pad, transforms your ironing board in an active one whose heat increases the efficiency of your ironing, expanding the fibers of your clothes better and faster in a double shield of heat. Termostiro is a safe and certified electrical disposal, low energy consumer: once you put it on your ironing table - under a classic cotton cover - there’s no need to remove it but only to switch it on or off by its temperature controller. Termostiro is sold in two sizes: Medium Size fitting ironing boards from 120 to 124 cm long and Large Size fitting ironing boards from 124 to 128 cm long. Termostiro is internationally patented by Gimi, the italian brand leader in innovation in clothes dryers and ironing boards sectors. www.termostiro.gimi.eu

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BricoMagazine 95

Exhibitions

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Hardware+Tools

International exhibition of tools, hardware, materials and machinery Date: 11-13 june 2013 Location: Dubai (United Arab Emirates) www.hardwaretoolsme.com

Brico & Habitat

The annual retail trade, home improvement and decoration show Date: 12-13 june 2013 Location: Lille (France) www.brico-et-habitat.com

Macef

The international home show Date: 12-15 september 2013 Location: Milan Rho Fairgrounds (Italy) www.macef.it

Spoga-Gafa

The gardening and garden furniture exhibition Date: 8-10 september 2013 Location: Cologne (Germany) www.spogagafa.com

Glee

International garden and leisure show Date: 15-17 september 2013 Location: Birmingham (England) www.gleebirmingham.com

Demogarden

An event dedicated to mechanized farming and gardening demos Date: 21-23 september 2013 Location: Valeggio sul Mincio - VR (Italy) www.demogarden.it

Cersaie

International exhibition of ceramic tile and bathroom furnishings Date: 23-27 september 2013 Location: Bologna (Italy) www.cersaie.it

Bricoday

DIY superstore show and conference Date: 26 september 2013 Location: Milan (Italy) www.bricoday.it

Made Expo

International exhibition for the building industry and architecture Date: 2-5 october 2013 Location: Milan Rho Fairgrounds (Italy) www.madeexpo.it

Sun

International exhibition of outdoor products Date: 6-8 october 2013 Location: Rimini (Italy) www.sungiosun.it

BricoMagazine

Patentedinnovationsforbuilding,craftingandworking alfer holds the patents and copyrights to numerous innovations. The range of more than 6,000 products not only surpasses cheaper comparative products in terms of quality, the dimensions of the system profiles and accessories are aligned to ensure that everything fits together perfectly. Sophisticated features such as the patented drill alignment groove guarantee simple processing and set the German quality products apart. ®

Diverse product ranges The product portfolio ranges from building profiles, DIY profiles, bars and profiles for laying parquet, laminate and other floor coverings, as well as for room layout and tile coverings through semi-finished products such as metric threaded rods or sheets to classification and storage systems. The products in the alfer range are made from metal and plastic, with aluminium and steel being the most commonly used materials. ®

In-house production At alfer , production occurs using state-of-the-art, semi-automated systems. Thanks to the consistent implementation of an insource strategy over the last few years, more and more production processes are being installed and implemented at alfer . alfer now has concentrated expertise in several areas of production technology and can guarantee the highest quality through well-known techniques such as sawing, punching, cutting, remodelling or surface treatment such as coating, immersion or foiling through to the manufacturing of plastic products using injection moulding or extrusion. ®

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Logistics As a globally leading supplier for the home improvement store sector for profile systems, alfer continuously strives to improve its workflows. Permanent process controls and a consistent implementation of new technologies have enabled the company to achieve a supply rate of over 99% for many years. ®

alfer aluminium Gesellschaft mbH Horheim, Industriestraße 7 D-79793 Wutöschingen ®

Telephone: +49 7746 9201-0 Fax: +49 7746 9201-92 E-mail: info.eng@alfer.com

www.alfer.com