On may 26-27 in Moscow completed its work X anniversary Congress of DIY, Housеhold & Furniture Retail in 2016, held in the prestigious hotel business class — Double Tree by Hilton< /strong>.
More than 600 participants — heads of relevant networks, manufacturers and distributors of products, suppliers of technology and services for retailers — is actively discussing the development strategy in the period of economic instability, partnership networks and manufacturers, shared their practical cases from your professional experience.
Official partner of the event was made by the 3M Company is an international Corporation, under the brand which produces innovative products for various fields of industry and transport, health, home and office.
The secrets of success
Traditionally, the main Russian DIY the Congress was opened by the Chairman of the Board of Directors BBCG Oleksiy Filatov, speaking as a speaker and moderator at the first plenary session, whose title coincided with the main thesis of the Congress was “CONSERVATION PLAN of the BUSINESS. POINT FOR FUTURE GROWTH”.
In the session the opening was attended by: Mikhail Kuchment, Vice President of Hoff, Eugene Movchan, CEO of STD Petrovich, Pavel Lokshin, CEO of K-Rauta, Roman Nikonorov, CEO of LAUNCH, Marina Titova, purchasing Director at Leroy Merlin Russia, Maria Yevnevich, a member of the Board of Maksidom.
The session began with a video message from Vincent Gentil, CEO of Leroy Merlin Russia.
According to Mr. jeanty, in the near future growth drivers of the DIY market in Russia will be the fashion for DIY repair.
“Now the demand for DIY supplies is reduced, as customers choose the cheaper product, so our concept of low prices is a winning situation,” said Vincent jeanty.
The discussion was continued by Evgeny Movchan, CEO of STD “Petrovich”, noting that the future of retail in the development of omnichannel, and in combination of advantages of offline and online formats.”
Anyone who wants to stay in the market need to actively develop services to enable consumers to easily switch from channel to channel. Another trend of the new era from the head of the STD “Petrovich” special attention to innovation.
Maria Yevnevich, Chairman of the Board of Directors of “Maxidom”, I’m sure of your success in a falling market — properly selected and adapted the business model. In addition, the success depends on the stability of the company, its financial position.
“Now the market leaves retailers, suppliers, a number of players have declared bankruptcy. Moreover, pressure from legislators and regulators,” said Mrs.].
Roman Nikonorov, CEO of the “Start”team agreed that the state “should reduce the pressure on business as it was in the early 2000s. He noted that the company aims at import substitution, still did not have access to financial resources.
According to Mikhail Kuchment, Vice President of Hoffin this segment of the market feel comfortable enough companies that were able to adapt the business model, depending on consumer preferences. Opportunities for the development of good, the DIY industry is rapidly konsolidiruyutsya.
The conversation about the effectiveness of business models continued Pavel Lokshin, CEO of K-Rauta. According to him, success in crisis will seek companies that analyze all of the changes occurring in the market and build a local business model in the framework of the basic strategy.
One of the new trends noted by the head of the K-Rauta is the increased attention to Big Data Analytics. Thanks to the information from the array of big data retailers will be able to understand the motives of consumer behavior on falling market.
Another trend from one of the leaders of the market — the rapidly reviving interest in goods for garden and summer theme. In the network of “K-Rauta” in 2016 the number of items presented in the “Green yards” increased by 40%.
The development and future of the Garden segment of 2016 in Russia was devoted to a performance of Ivan Fedyakov, General Director of “Infolayn”.
According to him, the leading trade networks increase the proportion of the range of seeds, seedlings and green plants, making the segment a key for further development.
Suppliers and retailers
During the discussion, speakers second plenary session “Partnership networks and manufacturers. A joint plan for sales” figured out how to establish effective communication in its market segment; what joint decisions need to be taken to drive traffic and increase average check; they are ready to offer producers; what steps do network to stimulate the development of domestic production.
According to Patrick Hiner, Director business development, Central and Eastern Europe, Division 3M Construction and Home Improvement”, a turnaround plan the retailers on business preservation and promotion of sales in a falling market is impossible without close cooperation with the manufacturers.
The accumulated complexity between suppliers and retailers, the search for a compromise and a reluctance to cede its position made the heat of the debate is particularly sharp. It is noted by all the participants of the plenary meeting.
According to Vsevoloda Kudelina, Executive Director of stroydepo, the main difference from the Russian DIY European counterparts is the absence of cooperation between retailers and suppliers. There are problems with that, and on the other side, but they can be solved. You can go to meet each other and to reconcile their positions.
Business program of the first day of the Congress continued in the framework of specialised working groups for cooperation with the networks: “Construction and repair. Sales strategy in a falling market”, “Garden and vegetable garden. Growth strategy. Betting on seasonal sales, the goods for the house. Analysis of the market. How to support the demand?” “The furniture market. The facts and figures. Prospects of development”.
He also held several important workshops: “Strategy to increase the amount of the purchase and the profit of the retailer in the seasonal sales in DIY channel”; “the Development of B2B sales. How to do business with professionals”; “the Internet breakthrough. Effective development of E-commerce in networking and direct selling manufacturers”; “focus on STM. How to expand share in the range and increase the margins?”; workshop on the organization of service in DIY, HouseHold and Furniture networks.
Award DIY&Household Retail Awards 2016!
A culmination of the evening program of the first day of the Congress was the presentation of the prestigious award DIY&HH 2016 Awards!
The ceremony was brilliantly conducted Galina Panina, head of external communications at Leroy Merlin Russia. Nominees are not bored, they took part in interesting competitions, solved a non-trivial task and, of course, received their well-deserved awards.
STM of the year — “Stroydepo”;
The victory in the nomination of the Internet’s breakthrough of the year divided STD Petrovich and Hoff;
Retail chain of the year was the “Leroy Merlin”
Retail brand of the year — network “Megastroy”;
Supplier of the year was recognized as the company TekhnoNikol;
And man of the year in the DIY market&HH in Russia was Evgeny Movchan, CEO of STD Petrovich.
The whole team BBCG congratulates the nominees and the winners and participants of the industry award!
Meeting with the legend!
One of the key events of the second day of the business programme of the X jubilee Congress of DIY, HH & Furniture Retail 2016 — the author’s focus session legends world of retail, co-founder of OBI Manfred mouse.
The moderator of the lecture was John Herbert, General Secretary European DIY Retail Association (EDRA). As another speaker spoke Anatoly Zankovskaya, Professor, head of laboratory, Institute of psychology RAS.
Mr. Herbert gave a brief background data about the development of the most influential in the European space industry Association and named some of the key global and continental trends: the development of the multi, the explosive growth of Internet sales, the global dominance of Amazon in the next 10 years.
Manfred Maus told the delegates about how to build and maintain a corporate culture based on the values of the company; how to differ from competitors in an era of change.
Mr. Maus noted the particular potential of the Russian market of products for home and shared the experience of the European networks.
Co-founder of OBI stressed that each retailer must, in the first place, to sell not a commodity, and its emotional component. Building a sales strategy should focus primarily on consumer tastes.
After his report, Manfred Maus answered numerous questions of journalists from leading publications.
Session of negotiations between suppliers and producers with the networks were held in separate halls in the format of personal meetings by appointment. And the largest network (Leroy Merlin, OBI, Petrovich, K-Rauta) has opened field offices in their procurement departments.
For the second consecutive year, the organizers have mobilized successfully tested the format — waiting queue, all registered participants received their personal access code. Sequence numbers flashed on the big screen in the main hall of the Congress. This innovation helped the participants to properly allocate time.
The constant attention of the participants used the combined exhibition of unique product offerings from manufacturers, which was presented on 24 product categories. We Express our gratitude to the company Sherland, General designer of the exhibition.
Well-known brands from 5 countries participated in the Congress, with individual booths and presented their products and solutions: MAGO, Leek, Tallas by DAB, Fimako, Royal Thermo, Orima, Storch-Ciret Group, Wimar, Sherland.
BBCG team sincerely thanks all the participants and guests of the Congress and will be glad to see you all at upcoming events!