kika-Leiner - Steinhoff International

KIKA LEINER AUSTRIA
GUNNAR GEORGE, CEO
Agenda
About Austria
1 Facts & Figures
Market Overview
Market Positioning vs Peers
Market Trends
About Us
2 History
Footprint
Positioning
Brand Image kika
Brand Image Leiner
Product Range
Services
Current Activities
Our Vision
3 Strategic Focus
Strategic Vision 2018
2
About Austria
Facts & Figures
KPI*
Austria
United Kingdom
Population
8,5 m
64,9 m
Private households
3,77 m
26,4 m
GDP (2014)
€ 329.3 bn € 2 222 bn
GDP per capita (real)
€ 35.476
€ 31.413
GDP growth (% change vs PY)
0,3 %
2,8 %
Inflation rate
1,5 %
1,5 %
Unemployment rate (% of
employed)
5,4 %
5,4 %
Total retail turnover 2014
€ 53,3 bn
€ 397,2 bn
* www.sta+s+k.at * h.p://ec.europa.eu 4
Market Overview
XXXLutz
30,00%
Others
27,90 % Mömax/Möbelix
5,1%
Jysk
2,10%
IKEA
11,90%
Source: Euromonitor kika/Leiner
23,00%
Market Trends
-  Growing e-commerce & mobile business
-  Cross Boarder Shopping
-  New interior concepts
-  Changing customer behavior leads to decrease in footfall
-  Changing customer demands
-  “Fast fashion goes furniture”
-  “World class services”
-  “Multichannel shopping”
6
About Us
History
1910
Rudolf Leiner senior founded Leiner – Möbel & Einrichtungsgegenstände
1973
Dr. Herbert Koch, son in law of Rudolf Leiner, founded kika (customer
pickup)
Footprint
KPI kika Leiner 32 18 Sales Area 408.000 m2 310.000 m2 Employees 3 300 2 600 Stores Brand Image kika
Characteristics
-  Modern, fresh, trendy
-  Uncomplicated
-  Very broad product
range
Target Group
- 
- 
- 
- 
- 
- 
- 
Age 25 – 80
Middle class
Focus on family & friends
Singles
Decoration fans
Spontaneous
Enjoy indulging
themselves
Brand Image Leiner
Characteristics
- 
- 
- 
- 
- 
Good quality and service
Competence
Balanced price-value ratio
Sustainability
Customer orientation
Target Group
-  Age 35 – 80
-  middle/upper class
-  focus on (extended)
family
-  regular purchaser
-  enjoyment of living
-  good price-value ratio
Assortment
70 % furniture
30 % interior
decoration
Services Offering
Current Activities
Restaurant
concept
Complete
refurbishment
Electric
living
Multichannel
strategy
New Brand
Shops
Launch of 46 „cooking fresh daily“ restaurants.
Final roll-out end of November
4 stores in Austria
(Wien, Villach, Innsbruck and Salzburg)
Roll-out of the electric living concept to 20 stores
Kika online shop has launched in November,
Leiner will follow in January
Set up of individual shops for following brands: H&H,
Team 7, The Lodge, Joop!, Mustering,…
Restaurant Concept
Refurbishments
Electric Living
kika Online Shop
The Future
Strategic Focus
-  Brand Positioning: Strengthen the brands kika and Leiner
-  Purchasing: tightening the assortment
-  Logistics: set-up of central logistics hubs
-  Multichannel: launch of eCommerce
-  Customer Service: optimization of service levels
-  Exclusive Assortment: 60 – 70 % exclusive and own brands
-  Additional Ranges: Electric Living
-  Employees: Opimized training and development
Our Vision 2018
VISION / MISSION
KIKA / LEINER is a customer focused business comi.ed to become the best home furni+ng retailer in our markets. By seMng up clear and strong brand images, we aim to be the number one retailer by providing an outstanding customer experience throughout a great range of products, fair value and excellent service. Hungary
INGO SCHALK
22
Hungary
Market Overview - Macroeconomic Data
Development of macro-­‐economic indicators in Hungary
GDP Change Inflation unemployment 11,2 10,9 10,9
10,2
7,7
3,6
1,3
1,6
4,9
2,8
5,7
3,9
1,7
1
-­‐0,2
-­‐1,7
-­‐0,4
2010
real wages
7,1
2011
2012
2013
2014
2015 1-­‐9
electronical goods & furniture turnover Household-­‐consumption
10
6
3,1
2,3
5
5
2,6
2,5
0,4
0
-­‐0,45 -­‐0,78
-­‐0,96
-­‐3,2
-­‐8,43
-­‐2,9
-­‐1,4
-­‐0,4
23
Hungary
Market Overview - Macroeconomic Data
•  Population : 9.856.000
•  Inflation rate: 2015 estimate: 0 (2014: -0,2)
•  Per capita sales (nominal): 13,872 USD
•  Purchasing power: 38,9 (based on European average 100)
•  Market size: 410 MN €
•  Market share: estimate 18 % kika
24
Hungary
Market Overview – Market Trends
•  Increase of retail is 5,2 %
•  Exchange rate is fixed on personal loans (€, CHF)
•  Increasing of real wages (+2,6%)
•  Reduction of bank base rate (1,35 %)
25
Review
MARKET POSITION
3 2014 MARKET POSITIONING MARKET SIZE 2014: €0.4 BN kika: 17,8% IKEA: 32,0%
0% 10% 20% 30% 40% 50% Jysk: 19,9%
60% Other: 23,1%
70% 80% 90% 100% Diego: 7,2%
26
Source: Euromonitor REVIEW
Turnover growth
kika
€ Turnover change 2013/14
+ 9% 2014/15
+ 22% 27
Footprint
•  15 years in Hungary
•  8 stores in 6 cities: 78.770 sqm sales area
•  640 employees
•  3.92 million visitors per year
28
Hungary
Footprint 2015
8 stores
601 kika Lehel – Budapest 603 kika Budaörs 604 kika Győr 605 kika Pécs 606 kika Budapest /Soroksár 607 kika Debrecen 609 kika Deco – Budapest 610 Qua.ro Mobili Szeged 29
CONCEPTS AND BRANDS
30
Concept – Kika
3.900-22.000 sqm
31
Concept – Kika
3.900-22.000 sqm
32
Concept – deco
700 – 1.200 sqm
33
Concept – deco
700 – 1.200 sqm
34
Czech republic and
Slovakia
JAKUB STRESTIK
35
Agenda
KIKA CZ / SK
• 
• 
• 
• 
Market overview
Current locations
Competitors
Strategy / Growth
Market overview
KIKA CZ / SK – market position
2 2014 MARKET POSITIONING MARKET SIZE 2014: €1,5 BN IKEA: 21,0%
0%
10%
Other: 50,6%
kika: 6,6% 20%
30%
40%
50%
60%
70%
XXXLUTZ + Möbelix: 4,4%
Sconto: 5,1% Asko: 5,7%
JYSK: 6,6%
Source: Euromonitor
80%
90%
100%
Market overview
Political situation – macroeconomic data
Czech republic
• 
Population 10 mio, capital Prague
• 
Average income 900Eur / month (75% of population below income average )
• 
Average household furniture spending 590Euro / year
• 
Kika market share 7%
Inflation rate
1%
GDP
4%
Unemployment
6,5%
Retail trade
3,5% (mainly driven by car industry)
Market overview
Political situation – macroeconomic data
Slovakia
•  Population 5 mio, capital Bratislava
•  Average income 750Eur / month, big gap between Bratislava and regions
•  Average household furniture spending 450 Eur / year
•  Kika market share 8%
Inflation rate
GDP
Unemployment
Retail trade
0%
3%
13%
0,5%
Store locations
Maps & general data
CZ • 
• 
• 
• 
in CZ/SK since 2005
8 stores in CZ, 4 in SK
total sales area 97 000m2
over 6 mio visitors per year
SK Strategy / Growth
Way forward…
Goal 10% market share = by 2019
•  New locations – CZ 3x, Slovakia 2x
•  KIKA City Concept – downtown location
•  New assortment
•  Kitchens •  Upholstery •  Paper •  Pet accessory •  Electro •  Boxspring studio •  Web shop
•  New communication strategy
•  Customer loyalty program
Strategy
New locations
SK CZ Zilina Prague West Hradec Karlove Budweiss = new loca+ons Prague West
Hradec Kralove
Budweiss
Kika City Concept
Zilina
Bratislava West
Strategy
Kika City Concept
• 
• 
• 
• 
• 
Downtown location
90% home accessories (high margin)
Low cost set up
Low stock investment
Strong marketing tool
Strategy
Kika City Concept Strategy
Kika City Concept Strategy
New product range - kitchens
• 
• 
• 
• 
CEE project of new, simple and quick to deliver planed kitchens
Extension of existing product portfolio
Own brand
Good turnover growth
Strategy
New product range – built in appliances
• 
• 
• 
• 
Biggest studios of built in kitchen appliances in Czech and Slovakia
Offer of complete solution to our customers
Internet price positioning
Strong growth in appliance turnover
Strategy
New product range – box spring beds / mattress
• 
• 
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First compact studios of American style beds in CEE
Trend setting and introduction of new styles to our markets
Image excercise
Strong increase turnover
Followed by a project of new mattress studios
Strategy
New product range - other
Entry level upholstery Pet shop Paper shop Trends in living Strategy
Further strategic projects
• 
KIKA web shop
- currently in preparation period
- coordination with other CEE markets
- roll out spring 2016
• 
New KIKA CEE communication strategy
- different style of brand communication
- less aggresive but more in touch with our customers
- real life stories
- focus on „ long lasting, quality, trendy, different“ message
• 
Customer loyalty program
- to follow our newly planned communication
strategy
- personal connection between the customer and „the brand“
- expected roll out end of 2016
THANK YOU