2015PRAKTIKER ROMANIA

Praktiker RO – company history

Having German roots, Praktiker story in Romania starts in 2002, when the first store in Ilfov county was opened.

Since then, until 2011 Praktiker has had the most dynamic expansion rhythm getting to 27 stores in 23 cities.

In February 2014, Praktiker Romania was taken over by Search Chemicals, owned by the Turkish business man Omer Susli who came with a new vision, consumer centric based.

The expansion policy of Praktiker chain continued and in September 2014, the 28 th store was opened in the 24th city, Targu Jiu.

With high awareness in the DIY market (98% at national level), Praktiker brand gets in 2014 through a repositioning process, with focus on soft DIY; home, deco and garden, rather than construction materials, having in center the customer and its needs. For selling construction materials we focus on B2B segment, which became a key source of business for Praktiker starting February 2014.

 

Who we are?

Praktiker RO – company description

  Renovation and redecoration ideas at friendly pricesConsultancy and advice on DIY projectsServices that facilitate the shopping processThe best price/quality ratio 

Inspired by Romanians needs and their love for their homes, Praktiker prepared o wide range of products that make it easy to turn a house into a home, the space that represents one and where it is a pleasure to return every day. And because people are so inventive, Praktiker helps develop the DIY spirit and redecorate your house based on your own ideas! Thanks to the extended range of decoration products that we introduced in our offer, now it is easier to personalize your house into a vivid and warm space!

Special ordersPaints mixing Financial servicesProducts deliveryReturn guaranteeCutting woodSewing services 

What is Praktiker?

Why Praktiker?

Praktiker services

2014 DIY CEE market accounts for 27,9 bn. EUR and it is expected to continue in 2015 the decreasing trend started in 2012.

International chains are the main players in the CEE region: Leroy Merlin, Castorama, Obi. Anyway, local companies Epicentr (Poland) and Dedeman (Romania) ranks in top 5 companies by value at CEE level.

DIY market in CEE - 2014

DIY Market in Romania

Romanian DIY market in 2014 totalized 9,7 bn. RON and it is estimated to increase by 6,2% in 2015.

The market development is mainly driven by the stores expansion, +14 new stores it is estimated to open in 2015, according to PMR data.

Home and garden in Romania witnessed positive retail value sales growth, aided by the country’s economic recovery and the rejuvenation of the real estate market.

However, the psychological effect of the crisis remains in place and price continues to be a very important factor in the consumer purchasing decision.

Nevertheless, consumers of home and gardening are becoming more interested in product quality and are willing to spend more.

DIY consumer

DIY consumer Europeans Romanians

House changes with family needs 77% of Europeans want to adapt their homes for changing family needs

46% of Romanians want to adapt their homes for changing family needs, especially to create more

space (30%)

Homes are needed for work and playnearly half of people want or work from home

and 27% would like a play room Romanians are the 2nd nation, after Turkey most likely to adapt home for working from home

The most desired features for homeswimming pools 28%, fireplaces 26%,

conservatories 23%, hot tubs 22%garage 28%, greenhouse 23%, paved garden 22%,

vegetable garden 22%

Home improvement priorities for next 5 years

energy efficiency, more space, space for entertaining, working-from-home

energy efficiency, more space, space for entertaining, working-from-home

Home improvement as value creator68% of Europeans are making home

improvement changes to increase the value of their home. x

Top priorities in the next 12 months painting and decorating, gardening, lighting, new kitchen or renovation

replacing / renovating their kitchen (26%) or bathroom (22%)

Most fears

Main fears across of householders: 65% fear rising energy prices, 40% worry about paying bills, 36% are concerned about maintenance and upkeep and 23% are concerned about

keeping up with their mortgage.

Most worried nation about safety and security in the home (52%) and keeping the home warm, protection against fire and protection against

flooding

Praktiker RO Loyalty Program – unique in DIY market

Praktiker’s loyalty program is unique in DIY market. It is a cumulative program, based on spend more – save more money principle. Customers receive 5% and 10% discounts based on the value spent in Praktiker stores:

- at 3.000 RON acquisitions with the Blue card, customers receive 5% discount for each purchase, as a voucher

- when acquiring the value of 15.000 Ron, Blue customers become Gold and they receive 10% discount for each shopping basket

Having a Praktiker card offers more benefits: special price only for loyal customers, discounts for Praktiker services, dedicated campaign and a web page with information only for loyal customers.

Currently, Praktiker has a base of 300.000 card holders and we target 1 mil until 2016.Loyal customers represent in average 11,3% of the customers, and they generate app. 17,8% of NS and 14,6% of Profit.

Praktiker RO quality recognition

Praktiker is recognized as offering the best quality-price ratio for gardening products, according with Best Buy Awards research, run by the Swiss organization ICERTIAS in 2015.

The research analyzed the way that Romanian customers are evaluating the local retail market offer, based on their personal experience. The research results show that Praktiker is considered as the retailer offering the most advantageous products within the gardening design and care segment.

The research had a sample of 1.200 respondents, regular customers and professionals from construction field, users of internet. The web questionnaire contained opened answers questions and it was followed by Computer Assisted Web Interviewing - Deep Mind Awareness (CAWI - DEEPMA).

Praktiker RO communication efficiency recognition

Praktiker campaign ”De la casa la acasa” won the bronze trophy for retail category, within the 12 edition Romanian EFFIE Awards. It is the second EFFIE award for Praktiker within the last 2 years.

„De la casa la acasa” campaign was in line with Praktiker repositioning in the current DIY market context. The new communication platform was built on a relevant and differentiating territory within the Romanian home, deco and garden market.

EFFIE Awards is a competition that offers recognition for communication campaigns with important impact in sales increase.

Thank you!