TRADE AND INNOVATION: NEW CHALLENGES IN THE CITY 'OF TOMORROW
Intervention Mauro Loy to the second edition of Big & Small 5/11/2009
This year the second edition of Big & Small entitled "Trade and Innovation: new challenges for the city of tomorrow" wants to be an annual event to share new ideas and strategies needed to assert even more strongly, the role of Rome as the great European capital, including trade.
hope that this meeting will strengthen the commitment of all of us to join forces and not to disrupt, with the aim of developing new solutions, practical and sustainable for Rome.
Let me start by recalling some of the data already presented last year that outlined major scenarios:
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The hypermarkets and shopping malls, addition to being burdened with costs very high, showing more and more their inadequacy to changes in consumer behavior. The decline in consumption, in fact, has invested in particular the large commercial facilities that offer rigid, with a strong component of non-food sector that registered the strongest decline in sales. Today, the format of the planned shopping center in opposed to the natural, the eyes of the customer is monotonous and repetitive. We will then talk again now in key marketing urban centers and their revaluation. Formulas such as Outlet instead intercepted changes in consumer behavior that does not compromise on quality with a competitive price. This is a formula that will in future decline for all sectors and not just for clothing as is currently the case in almost all cases. -
A second element that we discussed last year is return to a new form of proximity, due not only the effects of the crisis and a real decline in purchasing power, but above all a change of attitude by the consumer. The proximity makes it possible to better control the budget and save time by avoiding lengthy and costly travel, discriminating more carefully evaluated these by the end customer that is oriented in a decisive manner the rate of spending and saving. -
structures close to also have the ability to fulfill a social function aggregation as is clear from the argument of Big & Small, 2008, where he was already focused attention on this phenomenon in opposition to the gigantism of hypermarkets and shopping malls. It 'clear that the proximity be reinterpreted, all enterprises, or nearly so, in fact, are riding this trend looking for new models . -
Finally, in general, we found a strong acceleration of changes in the behavior of consumer spending. The customer is constantly looking for new formulas that meet their needs. To be successful, you must anticipate the times.
Returning to the present, even if the crisis continues in the second quarter of 2009 recorded the first signs of economic recovery and confidence, but that does not have an impact on employment in the coming months and begin to affect the consumption and recovery in the spring of 2010. In August 2009, according to a survey conducted by ASTRA, including food, 77% of Italian consumers due to the crisis of states have reduced their consumption, but in this context is a total negative, the trend in consumption food showed a greater estate, recording a dynamic much better than that of overall spending. 86% of Italians said it had remained stable food quality. The most interesting result is the rejection a deterioration in quality of goods and services by the consumer in exchange for lower prices.
is clear, therefore, clear that the vast majority of the Italian population has aimed to reduce their standard of living as far as possible without sacrificing quality.
You must be consolidated into a 'lower cost economy' and it is a cyclical condition, imposed by the lower disposable household income, but a structural trend that is changing the consumption pattern. This confirms a clear polarization of the market-oriented or low segment or segment of luxury, which, although it decreased by sales, increases in value.
This trend is reflected in some specific kinds of behavior:
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the boom brand products distributor who shares subtracted to branded products; -
a growth in both format supermarkets, which the Superstore format, but the channel that registered the largest increases over the past two years is the discount; -
a decline in sales of Hypermarkets affected mainly the fall in purchases of non-food sector (-9/10% over the previous year); -
positive developments of the house Specialists (even considering their limited percentage of total market), but it certainly represents a format designed to capture a growing space;
In this situation increases the overall difficulty competition between the brands, which invest heavily in promotional activities, and continuing growth of retail at the expense of traditional shops.
This complaint a deep systemic crisis that requires decisive action to be implemented in a timely manner.
be identified for this new strategic solutions that enable the transformation of the opportunities arising from the change, because all companies seek new ways of selling.
In this complex situation arises the First Report and general marketing analysis of the market day in Rome.
The study focused on local markets within fixed taking into account their socio-economic function in relation to territory membership.
were then visited all, including the closed sites or uncertain, in order to explore the individual characteristics.
In analyzing the markets have been regarded as an independent distribution network and grouped into micro-business through a unique methodology based on local marketing.
items valued refer in particular to these features:
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Road -
urban structure -
consumer behavior and target -
number of residents and income indicators -
estimated sales of individual banks -
consumption of the product index for the basin -
Commerce and service in the area - estimated turnover
The analysis then took into account the vertical competition that is been fully cataloged, combining direct knowledge of the outlets, statistics and detailed information on the market.
Markets are present in all areas of the city, many of which are beautifully and profitable location.
It 'clear that although very different in size and facilities are more concentrated in areas of the old town which leads to greater market penetration, often only due to the amount of redundant supply to the market consumption.
If we compare this with the cost of purchasing a modern look as some product categories homology between them and are much in abundance in relation to demand, such as fruit and vegetables.
shares are highly volatile from district to district due to quality and quantity of data to a general average of 18% - 20% of the total market. Compared to other sales channels as the average penetration is still interesting.
The previous data also shows that there is a unique position, which results in a lack of recognition in the eyes of consumers is that instead of its other distribution channels.
Analysis denotes that the residue markets are interesting, most of them in fact, mostly covered and stallage course, have plenty of room for recovery in sales quotas.
The mass distribution has an average profitability per square meter, especially when compared to the areas covered or uncovered market denotes a productivity per square meter. 30% higher than the same square footage involved in the markets.
Another fact we want to stress is represented by the opening hours.
The lack of uniformity in interpreting the service and the closing time at 14 for 87% of the market, clearly show that we are in the presence of a sales system not performing as it does not intercept the entirety of the audience of consumers.
In the new scenario, characterized by the evolution of demand for goods and services, local markets have to adapt to the changing needs of consumers in order to remedy to some extent in the commercial, service and organization which are at present.
E 'therefore necessary to find a new model that redefines clearly and equity placement scenario distribution.
The local market should be seen today in the broader context of sales and customer service, just so, defining its role in accordance with a specific function you use, you have equal competitive with other channels sales.
The renewal of the market, however, can only be driven by a logic of restructuring in key urban-localized (real estate), but development must be balanced and go mainly through the adaptation and completion of 'supply, services and communication of identity and renewed close to the needs consumers.
It 's always more important than the local market venues, through a modern marketing approach, the fundamental function of propose an alternative, not only in price, the offer of modern distribution. It has the potential.
destinations of existing markets should keep their vocation mainly food, complemented by a range of services, or be modified, according to the vocation of the neighborhood where the property is located.
All indicators help us to delineate the format on which to build future market I would like to illustrate points:
In Layout
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Environment square: an open space, characterized not from kiosks, but that gives the consumer an immediate idea of \u200b\u200bthe vastness of the supply and revive the pleasure of choice, integrated with the neighborhood, in a place that favors, with service and food, the permanence of the customer. -
Enlightenment and routes to new markets they have to hold, in fact, enhance plus the winners that are still present in the evocation of the consumer. -
are now out of the size of the bench type, which often is approved to offer the bench beside him. -
long time, up to 12 hours a day and beyond, to adapt to changing needs and to live the market during the entire day, especially in some central tourist locations and / or Commercial gravitating motion. -
Some markets today in improper or review of site conditions that have good placement, supply and market, should be adjusted and moveable columns disappearing; this to promote the station, the urban decor and the cold chain.
In product categories
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The excellence of food products and local products in general should find their place in the market stalls with large endorsements niche and this should be done, as mentioned above, through a system where the operators can plan and manage product flows along the supply chain with specific agreements. -
The restaurant business is very much in line with the evolution of the consumer today has increased the frequency of eating out. -
should be fostered specialization in relation to the urban context, some examples are the Testaccio market for the shoes, the Esquilino''for the''ethnic. -
Associate operators, at least for merchandise departments, reducing internal competition and increases the program / organization for retailers.
In Services
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Parking -
Baby parking, asylum -
Leisure and personal care
In Logistics
Another fundamental aspect is where the logistics supply chain must support common agreements can achieve economies of scale that allow for the reduction of costs incurred in the construction of the price.
In addition we also need planning and common services.
All stakeholders must play an active role and shared in the definition of these projects.
Traders must be not only the dealers but entrepreneurs with a common denominator, the development of its sales activities.
To actually make the trade the first promoters of change is important in the process of renewal that come right from the start of the project, including equity investments.
Participation and operators' attention to the topics covered today the witness that there is a way forward, with the development and practical answers to business issues especially when operating in a mature market like this analysis.
last three are the themes that I consider to complete the picture of the new development scenarios, namely:
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The centrality -
Areas urban redevelopment -
poles of attraction
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About the new central take for example a project such as the centrality of the retort that the settlement should have a capacity of 150,000 square meters of ON and is proposed as a promoter of regeneration of the area to support mobility and environment and settlement systems . Inside it is desirable to the implementation of a business park with neighborhood characteristics and sustainability, then a park attraction that will not only generate but to serve the district by increasing the livability and reducing travel for residents. The new commercial structures to be included should be well calibrated, by type and size, residential specification of the new district in which they arise. -
areas of urban regeneration: in Rome are many locales that currently pay into a state of decay and neglect, and / or still need to be reworked from their original destination, and "stitched up " with the urban fabric. These 'non-places' to return 'places', they must rediscover their role for the community. They are a great opportunity to revitalize a neighborhood, with a view to acceptance and livability for the citizens and pleasant stay for the traveler. The restoration work of these places must be designed so the construction of structures to improve, supplement and enhance the features of sites such as the baths of Rome or the Palace of antiques. -
Poles of attraction rather should not, of course, play a local service, but consumers need to attract flows beyond the boundaries of belonging. The poles of attraction, however, should not be construed as a commercial center that, as we said before, showing more and more their inadequacy in the changed scenario, but rather an evolution of their generation. They must be large centers of aggregation 'theme' designed in order to offer the customer, for completeness supply and service, everything about a range of needs, from leisure time at home, from body care to collectibles and antiques, without fear of contradiction, where competitors will compete in the same niche and in general, price and in quality, in ideas and in the assortment, offering consumers the widest range of solutions and services expected or encouraged. With so much attention to the location, the viability of the whole, the aggregate trade of the site. In addition to the specific need, pleasure, sociability, shared interests, passions and emotions are now essential elements to be pursued. For these reasons, the Polo will be the Theme major new players of our time, a place in which to combine social and living conditions declined in the different specializations of the field and in accordance with the needs of individuals.
At the conclusion of my speech that the system could become a Roman market place to forge a new format that combines professionalism, sustainability and added value to the area.
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