INSIGHTS ON THE ROMANIAN FMCG MARKET · © GfK 2015 | Romanian Consumer – Market Insights | Prepared for the Austrian Embassy 6 Confidence in the future returns to value before

1 © GfK 2015 | Romanian Consumer – Market Insights | Prepared for the Austrian Embassy

Prepared for the Austrian Embassy

Flavia Florea I Key Account Executive I GfK Consumer Panel Services

May 7th 2015 | Austrian Embassy Presentation

INSIGHTS ON THE

ROMANIAN FMCG MARKET


Agenda

International scene

About the Romanian consumer

1

2


Europanel 2014 powered by GfK and Kantar Worldpanel, Global and regional totals are the barometer countries in this report: France, Germany, Italy, NL, Spain, UK, Poland, Russia, USA,

Brazil, Mexico, China, India and Japan

No more spectacular growth in the FMCG market Descending trends

2013

FMCG

Markets

are flat in

W Europe /

USA

20%

15%

10%

5%

0%

-5%

[in %]

USA W Europe Global

3,3%

2,6%

12,1%

4,4%

-0,8%

3,3%

30%

20%

10%

0%

-10%

-20%

40%

E Europe Asia Latam

2013

Consumer

spend

more on

FMCG

in Asia,

Latam,

E-Europe

11,9%

5,9%

20,9%

18,2%

2,5%

11,9%

2008 2009 2010 2011 2012 2013 2014


Europanel 2014 powered by GfK and Kantar Worldpanel, Global and regional totals are the barometer countries in this report: France, Germany, Italy, NL,

Spain, UK, Poland, Russia, USA, Brazil, Mexico, China, India and Japan

The existing growth comes only as a result of price inflation Saturated markets

15

10%

5

0%

-5

Value growth mainly driven by Inflation

USA W Europe Global

4,8% -0,6%

9,6%

5,5% 2,3%

3,5%

20%

15%

10%

5%

0% E Europe Latam Asia

8,7%

6,5%

15,1%

13,0%

8,0%

4,1%

2008 2009 2010 2011 2012 2013 2014


In Romania growth is coming from volume Market is not saturated, still room for growth

Source: GfK Consumer Panel Services, * 2014 vs 2013 FMCG all categories including Fresh & Home Made, **Price Inflation Food Index – Eurostat

+2% value growth

-1.4% Food inflation

-1.4% Down Trade

+4.5% Volume growth


Confidence in the future returns to value before the crisis Political scene plays a very important role

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20

ian.-

08

mar.

-08

mai.-0

8

iul.-0

8

sep.-

08

nov.-

08

ian.-

09

mar.

-09

mai.-0

9

iul.-0

9

sep.-

09

nov.-

09

ian.-

10

mar.

-10

mai.-1

0

iul.-1

0

sep.-

10

nov.-

10

jan.-

11

mar.

-11

mai.-1

1

iul.-1

1

sep.-

11

noi.-1

1

ian.-

12

mar.

-12

mai-12

jul.-1

2

sep.-

12

nov.-

12

ian.-

13

mar.

-13

mai.-1

3

jul.-1

3

sep.-

13

nov.-

13

jan.-

14

mar.

-14

May-1

4

Jul-14

Sep-1

4

nov. 14

Jan-1

5

Mar-

15

UE

Bulgaria

CzechRepublic

Hungary

Poland

Romania

Slovakia

Germany

Source: GfK Omnibus, Consumer Confidence Barometer. The consumer confidence indicator is calculated based on answers to the questions on the financial situation of households, the general economic situation, unemployment expectations and savings, all over the next 12 months.

Base: National 15+ (Ian 08 – Mar 14); ~1000 respondents (all) /wave; %


Romanian spend nearly half of their budget on Food&Beverages More than triple in comparison with the Austrians

* incl. alcoholic beverages and tobacco

Household-Budget Distribution


Growth is coming from the Food and Home Care segments Frequency drives growth

Source: GfK Consumer Panel Services I Calculation based upon FMCG all categories, Home Made is included


Modern Trade formats continue their growth Frequency is also the main driver

Source: GfK Consumer Panel Services I Sample 3,000 hhs nationwide representative

1,7

5,0

-1,8

FMCG Evolution In-home Consumption

[Value Change %]

JanDec-14 vs. JanDec-13

Total Country Modern Trade Traditional Trade


50 47 46

2 2 8 9 9

15 13 14

26 28 27

2012 2013 2014

Hypermarkets

Supermarkets

Discounters

Cash & Carry

Modern Proximity Stores

Traditional Trade

Modern Trade is covering up to 54% within total expenditures Smaller formats are the winners

53.6% Modern

Trade Till Roll

Value share %

Source: GfK Consumer Panel Services based on till roll

+


Money start to shift in-between modern retailers Modern Proximity and Discounters the gain most

GfK Romania I 3,000 households panel I Jan-Nov 2014 vs. Jan-Nov 2013 I Gain & Loss Analysis FMCG basket

SUPERMARKETS

DISCOUNTERS

MODERN PROXIMITY STORESHYPERMARKETS

TRADITIONAL TRADE

Traditional trade remains key source of money for Modern

Trade development. Nevertheless, contrary to previous years,

the interaction between modern trade formats becomes more

intensive with modern proximity stores key gainers from other

formats (attribute proximity). Discounters are a threat for

Supermarkets & Hypermarkets.


Private labels continue with their development, covering 14% of

the total value of the FMCG market

Total FMCG Promo

Value Share %

Total FMCG Private Labels

Value Share % 13.8%

2014 vs 12.4% 2013

20%

Food 19% PL

Personal Care 11% PL

Home Care 9% PL

Private Labels

Value Share %


What we learn about the consumer

Consumer Confidence Index return to pre-crisis values

Purchase frequency increased by 7%

Growth is sustained by volume and not price absorption

20% of total FMCG value is sold in promotion

For 80% of Romanians shopping is a pleasure


Top FMCG brands across Europe

Romania

Austria

Netherlands

Russia

France

Spain

Sweden

Germany

Hungary

United Kingdom

Source: GfK Consumer Panel Services and Europanel | Jan-Dec’12


THANK YOU FOR YOUR ATTENTION!

Flavia Florea

Key Account Executive | Consumer Panel Services

3 George Constantinescu | Upground BOC Building 6th floor| District 2

www.gfk-ro.com

T: +40 21 205 5500| M: +40 75 331 3776

Follow GfK Romania on www.facebook.com/gfkromania

http://www.gfk.com

http://www.gfk-ro.com/



http://www.facebook.com/gfkromania

http://www.gfk.com/

Documents

INSIGHTS ON THE ROMANIAN FMCG MARKET · © GfK 2015 | Romanian Consumer – Market Insights | Prepared for the Austrian Embassy 6 Confidence in the future returns to value before