28-05-2013, 01:03 PM
The Latest on FMCG and Shopper Retailing Trends Across Emerging Markets
The Latest on FMCG.pdf (Size: 2.68 MB / Downloads: 33)
Executive Summary
Modern Store numbers on the Rise
There was significant growth in store
numbers and share for the modern store
formats across the 11 markets covered in
this study. Over 2,000 new hypermarkets,
supermarkets and discounter stores
were opened between 2002 and 2004,
taking the total to over 8,800 stores, or
approximately 4 million square meters in
additional selling area. A total of 184
new hypermarkets were opened between
2002 and 2004, taking total hypermarket
stores to 652 across the 11 markets.
Supermarket / Discounter store numbers
increased by over 1,800 stores between
2002 & 2004 taking the total to nearly
8,200. As Western European countries
continue to battle with low single digit
growth numbers, international retailers
continue to look to Emerging Markets to
vitalize their overall business growth.
Fragmented Ownership
Retail ownership is still fragmented in
Emerging Markets relative to European
levels. Excluding Slovenia, Lithuania and
Hungary, the top 5 retailers typically
account for less than 50% of sales. By
comparison, in Europe the top 3 retailers
account for well over 50% of sales in
most countries (Sweden 95%, France
64%).
Private Labels
Although modern store formats are
increasingly popular, the same is not
always the case when it comes to Private
Label brands. Whereas in most countries
the awareness of Private Label is high
(93% in Hungary and Slovakia, 96% in
Lithuania, 86% in Czech Republic, 78%
in Poland), the purchase conversion
(ratio of those who have bought Private
Label in the last 4 weeks Vs those who
are aware) is low in several countries. In
Russia for example, only 55% of those
who are aware of Private Labels have
purchased in the last 4 weeks. The corresponding
figure for Romania is 36%. It
appears that consumers have a greater
trust for, and still prefer the prestige of,
international branded products.
Conversely, they may not entirely trust
the quality of Private Label brands
which are still in their infancy and yet to
gain any real critical mass.
Store Choice
Convenience is the key differentiating
factor that determines store choice for
shoppers. This is consistent across
Western, Central and Eastern Europe,
and bodes well for the market positioning
of discount retailers, whose 'conveniently
cheap' formula is outperforming
the market in many Western European
countries. In Central Eastern Europe,
new discount retail players are entering
the market (Lidl), with additional powerhouse
players still to come (Aldi).