IPLS 2014 Business Program Report

BUSINESS PROGRAM REPORT

Organizer: General Partner: Supported by:

Organizer: General Partner:

Tel/Fax: +7 (495) 937 6861 Email: [email protected]

www.ipls-russia.ru

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».



www.ipls-russia.ru

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.



www.ipls-russia.ru

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%



www.ipls-russia.ru

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

■ Top management

■ Middle management

Managers,

Experts

40%

Operational Scope of Forum Participating Companies

(as per questionnaire survey of Delegates)

Manufacture Distributor/wholesaler Business services Retail

Others



www.ipls-russia.ru

Partners:

General Media Partner

Supported by

General Partner Organizer

Official Media Partner Official E-mail Partner

Official Partner in Belorussia Official Industry Information Partner

Official Information Partner

General Information Partner General Industry Information Partner



www.ipls-russia.ru

Retail Chains List

of Chains’ Wholesale Centre тм

Chain name City

7 dney Voronezh

Enter Moscow

GREEN Almaty

Metro C&C Moscow

Spar Russia BV Moscow

А 5, pharmacy chain Moscow

Acquatoria, Ekonomka Kemerovo

Almi Minsk

Alpari Kazan

Bars TH Ryazan

Billa Moscow

Vivat, Delta Perm

Vyshaya Liga TH Kostroma

Globus Moscow

Monetka Moscow

New Trade Systems Novosibirsk

Ol!Gud Moscow

Petrovsky Arkhangelsk

RegionMart Kemerovo

Seventh Continent Moscow

Sem+Ya Samara

Slata Irkutsk

StockEast St. Petersburg

T3C Moscow

Raycenter Nizhny Novgorod

Holiday GC Novosibirsk

Komandor Krasnoyarsk

Dobry Den Ufa

Essen Naberezhnye Chelny

Victoria. Division Dixy Moscow

Eva Dnepropetrovsk

Essen Naberezhnye Chelny

Utkonos Moscow



www.ipls-russia.ru

Analysis of Chains Visiting the Stands at IPLS 2014 – Number of Chains

Visiting the Stands of CWC Participating Suppliers

No.

Stands

No. of stand visiting chains

№

Stands

No. of stand visiting chains

1 e10 (collective stand) 19 42 e56 8

2 c38 15 43 f10 8

3 k30 13 44 f16 8

4* c26 12 45 f20 8

5 k08 11 46 f24 8

6 a36 10 47 f46 8

7 b26 10 48 f50 8

8 c60 10 49 f54 8

9 d14 10 50 g41 8

10 d50 10 51 h10 8

11 d58 10 52 h30 8

12 e38 10 53 a40 7

13 f34 10 54 b30 7

14 g14 10 55 b38 7

15 k12 10 56 b44 7

16 b14 9 57 c24 7

17 b18 9 58 c28 7

18 b20 9 59 c34 7

19 b40 9 60 d28 7

20 b48 9 61 d30 7

21 b50 9 62 d36 7

22 b64 9 63 d54 7

23 b66 9 64 d60 7

24 c58 9 65 d66 7

25 d34 9 66 e40 7

26 d56 9 67 e48 7

27 e44 9 68 f28 7

28 e54 9 69 g16 7

29 f14 9 70 g42 7

30 f22 9 71 a42 6

31 f44 9 72 b34 6

32 k10 9 73 b36 6

33 k20 9 74 b58 6

34 c16 8 75 c40 6

35 c48 8 76 c68 6

36 c50 8 77 d20 6

37 d18 8 78 e60 6

38 d48 8 79 e66 6

39 d64 8 80 f40 6

40 e39 8 81 h12 6

41 e46 8 82 Average number of chains visiting single stand 8



www.ipls-russia.ru

Number of Stands Visited by Each Chain

(Analysis of Visit-lists and Guides’ Comments):

№ Chain name Number of stands visited

across proposed route

Number of stands visited across

additional route

Total stands visited

% of promising stands

1 StockEast 39 17 56 30,00%

2 Raycenter 17 35 52 N/a

3 Vivat, Delta 37 11 48 37,50%

4 Acquatoria, “Ekonomka” 39 7 46 25,00%

5 Seventh Continent 35 11 46 28,57%

6 Alpari 36 10 46 23,81%

7 Green 21 15 36 22,22%

8 Globus 33 2 35 25,00%

9 Almi 20 13 33 30,30%

10 Ol!Gud 20 12 32 31,25%

11 SPAR 18 12 30 N/a

12 НТС 20 7 27 18,52%

13 Petrovsky 20 6 26 N/a

14 Billa 17 7 24 20,83%

15 Victoria 19 4 23 21,74%

16 Slata 19 4 23 26,09%

17 Eva 22 N/a 22 N/a

18 Seven Days 19 2 21 N/a

19 Sem+Ya 18 3 21 N/a

20 ТЗС 20 N/a 21 54,55%

21 А5 20 N/a 21 38,10%

22 Enter 20 N/a 20 N/a

23 Bars 20 N/a 20 15,00%

24 RegionMart 18 N/a 18 27,78%

25 Monetka 17 N/a 17 N/a

26 Vyshaya Liga TH 16 N/a 16 18,75%

27 Metro 11 3 14 20,00%

28 Komandor 13 N/a 13 N/a

29 Holiday - 11 11 N/a

30 Utkonos - 5 5 N/a

31 Average number of promising negotiations for one chain

27,11%

32 Average number of negotiations held by one chain

27

32 Minimal number of negotiations held (exclusive negotiations held by one chain independently, without guide)

823



www.ipls-russia.ru

FEEDBACK OF CHAINS’

REPRESENTATIVES



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



www.ipls-russia.ru

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



www.ipls-russia.ru



www.ipls-russia.ru

Chains’ Wholesale Center ™

in Active Network Sales format

Representatives of retail chains are negotiating on the stands of exhibitors IPLS 2014



www.ipls-russia.ru






www.ipls-russia.ru




Documents

IPLS 2014 Business Program Report