More Efficient Promotions: Hot Topic of Czech Retail Market

Czech households in the time of crisis don´t often seek for “the cheapest” but they systematically look for the highest value for the lowest price available. Currently there is the explosion of FMCG shopping for discount prices in the market, resulting in a dramatic decrease of profitability of all the players involved. Correct analysis, strategies and tactics leading to more efficient promotions and sales will be subject of expert conference Retail in Detail/Efficient Promotions which will be held on 31st March 2010 in Congress Centre U Hájků.

Promotions have always played a key role in the retail market, but in the time of economic crisis this topic is strongly connected with the survival of retailers and their suppliers. Market researches don’t confirm the highly promoted opinion that in the recession consumers buy only the cheapest goods and tend to do massive shopping of private labels. Long-term monitoring of Czech consumers purchasing habits within the household panel of GfK Czech shows another and more complex trend.

Sure Czech households are more economizing in the recession but they are not much willing to draw in – at least in relation to FMCG shopping. Conclusively they don’t seek “the cheapest” but they systematically look for the highest value for the lowest price available. Retailers and suppliers satisfy them, often carelessly and without proper analysis… Explosion of shopping for discount prices is the greatest development noticed currently on the Czech market. It is very striking especially in the case of branded FMCG  – in 2009 compared to the previous year the shopping of branded FMCG increased by more than a half and compared to the situation two years ago the increase is almost doubled. On the other hand according to the GfK household panel private labels shopping grows just little in average. What rises is their share in promotions, as retail labels are becoming the subject of promotions more and more.

The mentioned trend has many serious consequences for production and retail. It allows to balance the drop in sales but at the same time it ruins profitability of all the players involved. Impact on the long-term decrease of loyalty of customers to labels and retail chains is even worse. Many mistakes in promotions can be avoided, correct analyses, strategies and tactics can help more efficient promotions.

Blue Events company therefore decided to come back with this topic after four years and to repeat the very successful specialized conference Retail in Detail/Efficient Promotions. Analysis and successful ideas leading to more efficient promotions will be presented and discussed at this conference, which will take place on 31st March 2010 in the new Prague Congress Center U Hájků. And, of course, there is a promotional offer prepared, too - those who register by 26th February 2010 will receive 2000 CZK “promotion discount”.

For more information please contact: Antonín Parma (antonin.parma@blueevents.eu)