Business program report by reedexpo russia

BUSINESS PROGRAM REPORT

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Executive Summary Outcomes of the Business Program at «International Private Label Show – 2014» March 26, 2014, «Crocus Expo», Moscow On March 26, 2014, suppliers and representatives of retail chains met in the framework of the «International Private Label Show – 2014» to develop the «Agenda» for Private Label (PL) market, obtain strategic information and negotiate Private label manufacturing. Chains’ Wholesale Centre ™ (CWC) operating under “Imperia” technology has become an important component of the Business Program. 72 representatives of retail chains have visited the exhibitors’ stands and held over 1000 negotiation sessions. The exhibitors arranged presentations and taste tests of their products for retailers to find out specific requirements to the assortment in their category and negotiate prospective contracts. Chains’ Wholesale Centre hosted the representatives of a variety of chains including Metro Cash&Carry, X5 Retail Group (chains “Pyatorochka”, “Carusel” and “Perekrestok”), А5 (pharmacy chain), Billa, “Monetka”, «The Seventh Continent” and many others. According to Svetlana Danilkina from SPAR Russia B.V., today, Russians tend to treat private labels in a different way: while some time ago we faced suspicion, currently, shoppers are adhered to their own chain trade marks. PL is becoming a loyalty tool and a kind of protection from competitors.

However, PL is hampered by an acute shortage of manufacturers.

Comments

Anastasia Zmievskaya, Metro Cash&Carry: “Russia has just a handful of manufacturers capable to satisfy the quality standards. The country is huge and it would be feasible to decentralize production so as not to carry water through the whole country, for example. Everything will depend, whether the manufactures are available in a particular region”. Anastasia Zakharova, BILLA, REWE GROUP Russia, adds that in many cases, Russian companies are afraid of PL production as they don’t see evident benefits in it, for instance, bonus-free contracts, availability on the shelves of all chain stores, etc. «We are looking for manufacturers of glazed curd cakes, but cannot find them, - says Alexei Boitsov from System Region Mart. –Please contact me, if you have any pro». On her part, Elena Martynova form “Sem+Ya”, complained: «Sometimes big manufacturers - even those feeding federal chains - fail to sustain the quality standards, so we have to look for manufacturers abroad».

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In the framework of Special Case Study, Pyotr Ofitserov, Director General of Real Work Management spoke on correct production targeting for PL. Marco Repezza, from Trade Marketing Studio (Italy) devoted his bright speech to successful PL-projects in Western Europe. In the final Forum session brilliantly moderated by Maksimilan Musselius, Executive Director of ECR-Russia, some Russian manufactures shared their private label expertise, including Natalia Zaitseva (Hygiene Technologies), Fedor Yanyshev (“Yanyshev”), Marina Petrova (“PiR” Product) and Zbigniew Rogalski (“TsentrUpakovki”). The delegates highlighted the high value of information obtained first hand and efficiency of the Event format.

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EVENT REPORT Date: March 26, 2014 Duration – 1 day Timing: 13:00 – 19:00 Venue: “Crocus Expo”, International Exhibition Centre, Moscow Chains’ Wholesale Centre ™ – 33 retail chains Number of buyers – 72 persons Total number of negotiation sessions – over 1000 Overall number of events participants – over 200 persons Media representatives – 8 persons Exhibitors’ geography pattern: 26 cities of Russia and worldwide Profile of Participants:  Top management – 32%  Middle management – 40%  Managers & experts – 25%  Other – 3%

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Profile of Forum Delegates’ Officials (as per questionnaire survey)

■ Top management

■ Middle management Managers, Experts

Others

40%

Operational Scope of Forum Participating Companies (as per questionnaire survey of Delegates)

Manufacture

Distributor/wholesaler

Business services

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Retail

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Retail Chains List of Chains’ Wholesale Centre тм Chain name

City

7 dney

Voronezh Moscow Almaty Moscow Moscow Moscow Kemerovo Minsk Kazan Ryazan Moscow Perm Kostroma Moscow Moscow Novosibirsk Moscow Arkhangelsk Kemerovo Moscow Samara Irkutsk St. Petersburg Moscow Nizhny Novgorod Novosibirsk Krasnoyarsk Ufa Naberezhnye Chelny Moscow Dnepropetrovsk Naberezhnye Chelny Moscow

Enter GREEN Metro C&C Spar Russia BV А 5, pharmacy chain

Acquatoria, Ekonomka Almi Alpari

Bars TH Billa Vivat, Delta

Vyshaya Liga TH Globus Monetka New Trade Systems Ol!Gud Petrovsky RegionMart Seventh Continent Sem+Ya Slata StockEast T3C Raycenter Holiday GC Komandor Dobry Den Essen Victoria. Division Dixy Eva Essen Utkonos

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Analysis of Chains Visiting the Stands at IPLS 2014 â&#x20AC;&#x201C; Number of Chains Visiting the Stands of CWC Participating Suppliers No.

Stands

No. of stand visiting chains

â&#x201E;&#x2013;

Stands

No. of stand visiting chains

e10 (collective stand)

e56

c38

f10

k30

f16

c26

f20

k08

f24

a36

f46

b26

f50

c60

f54

d14

g41

d50

h10

d58

h30

e38

a40

f34

b30

g14

b38

k12

b44

b14

c24

b18

c28

b20

c34

b40

d28

b48

d30

b50

d36

b64

d54

b66

d60

c58

d66

d34

e40

d56

e48

e44

f28

e54

g16

f14

g42

f22

a42

f44

b34

k10

b36

k20

b58

c16

c40

c48

c68

c50

d20

d18

e60

d48

e66

d64

f40

e39

e46

h12 Average number of chains visiting single stand

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Number of Stands Visited by Each Chain (Analysis of Visit-lists and Guides’ Comments): №

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Chain name

StockEast Raycenter Vivat, Delta Acquatoria, “Ekonomka” Seventh Continent Alpari Green Globus Almi Ol!Gud SPAR НТС Petrovsky Billa Victoria Slata Eva Seven Days Sem+Ya ТЗС А5 Enter Bars RegionMart Monetka Vyshaya Liga TH Metro Komandor Holiday Utkonos Average number of promising negotiations for one chain Average number of negotiations held by one chain Minimal number of negotiations held (exclusive negotiations held by one chain independently, without guide)

Number of stands visited across proposed route 39 17 37 39 35 36 21 33 20 20 18 20 20 17 19 19 22 19 18 20 20 20 20 18 17 16 11 13 -

Number of stands visited across additional route

17 35 11 7 11 10 15 2 13 12 12 7 6 7 4 4 N/a 2 3 N/a N/a N/a N/a N/a N/a N/a 3 N/a 11 5

Total stands visited

56 52 48 46 46 46 36 35 33 32 30 27 26 24 23 23 22 21 21 21 21 20 20 18 17 16 14 13 11 5

% of promising stands

30,00% N/a 37,50% 25,00% 28,57% 23,81% 22,22% 25,00% 30,30% 31,25% N/a 18,52% N/a 20,83% 21,74% 26,09% N/a N/a N/a 54,55% 38,10% N/a 15,00% 27,78% N/a 18,75% 20,00% N/a N/a N/a

27,11% 27 823

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FEEDBACK OF CHAINSâ&#x20AC;&#x2122; REPRESENTATIVES

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General Partner: Tel/Fax: +7 (495) 937 6861 Email: roza.deberdeeva@reedexpo.ru www.ipls-russia.ru

Thank you so much for the Business Program and assistance during Show visiting. Everything was arranged on a top level. “Crocus Expo” is an exiting exhibition platform with convenient parking, state-of-the-art pavilions and easy navigation inside. Guided trips across the Show are very useful, but it is rather difficult to drop on every exhibitor. Therefore, at first it would be useful to visit the Chains’ Wholesale Centre in traditional format, browse some stands to hold clarifying discussions and get an insight of samples of interest. I wish more participating suppliers to 2015 Show Organizers. Probably, if someone is not able to participate with the stand it will be possible to take part only in Chains’ Wholesale Centre. Besides, everybody with a stand is welcome to participate in Chains’ Wholesale Centre. Foreign speakers presenting surveys of European best practices would be worthy as well. Ekaterina Marten Director of PL Department Division Victoria (Dixy GC)

Many thanks for the opportunity to hold up to 20 high quality and successful negotiations within such short period (of which 5 would result in a contract). Everything was arranged very well, as always. Personal guides were very impressive! This service is very handy.

Alexei Boitsov Moscow Official Representative LLC “System RegionMart”

Thank you for efficient arrangement of the exhibition. We wish success to the Show. Your events are always perfectly arranged! Natalia Dyatlova Deputy Director for Retail Acquatoria, “Ekonomka”

It would be nice to see all categories in Chains’ Wholesale Centre: beverages, fresh food, household goods and textile. Unfortunately, we have not seen groceries or canned fish practically. Next year I would like to see a wider pool of manufacturers in various product categories, and producers should prepare for such exhibition with a greater degree of commitment. This event is specialized, so the participating manufacturers must be interested in PL production. Perhaps, they Organizer:

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should prepare brief presentations on the terms of cooperation, including the minimum volume of package (label), minimum line load, logistic parameters, TOP-ratings, certificates, etc. This year, some manufacturers – even those recommended as a “must” for a visit – have shown little interest. As for "Retail Chains Day", as usual, IMPERIA CEC has organized everything on a top level, for which we express our special thanks! You are the best, thank you very much! Irina Azizova Marketing & Advertising Director GREEN Trade Chain

Thank you for the opportunity to attend the Business Program. Frankly speaking, the number of visitors has amazed me. Elena Milova Head of «Related Products» Department Utkonos Internet Hypermarket

We are happy with this specialized Show. In contrast with other exhibitions the manufacturers of IPLS are ready to offer the PL products. I think, it is essential to push up the participant’s number; we have seen just few producers of «fresh», beverages, juices, confectionary and vegetable oils. Nadezhda Protasovskaya Head of PL Department of New Trade Systems

The exhibition was really great! I visited many stands to find a lot of interesting products. We held around 40 negotiations, many with our existing suppliers; as a result, we will have 4-5 new contacts probably. The Retailer’s lounge with food and drinks was nice as well as the awards ceremony where I found out who represented this or that chain and had the opportunity for negotiations. Anastasia Shaporina Brand Manager Ol!Gud

Organizer:

General Partner: Tel/Fax: +7 (495) 937 6861 Email: roza.deberdeeva@reedexpo.ru www.ipls-russia.ru

Organizer:

General Partner: Tel/Fax: +7 (495) 937 6861 Email: roza.deberdeeva@reedexpo.ru www.ipls-russia.ru

Chainsâ&#x20AC;&#x2122; Wholesale Center â&#x201E;˘ in Active Network Sales format Representatives of retail chains are negotiating on the stands of exhibitors IPLS 2014

Organizer:

General Partner: Tel/Fax: +7 (495) 937 6861 Email: roza.deberdeeva@reedexpo.ru www.ipls-russia.ru

Chainsâ&#x20AC;&#x2122; Wholesale Center â&#x201E;˘ in Active Network Sales format Representatives of retail chains are negotiating on the stands of exhibitors IPLS 2014

Organizer:

General Partner: Tel/Fax: +7 (495) 937 6861 Email: roza.deberdeeva@reedexpo.ru www.ipls-russia.ru

Chainsâ&#x20AC;&#x2122; Wholesale Center â&#x201E;˘ in Active Network Sales format Representatives of retail chains are negotiating on the stands of exhibitors IPLS 2014

Organizer:

General Partner: Tel/Fax: +7 (495) 937 6861 Email: roza.deberdeeva@reedexpo.ru www.ipls-russia.ru