Workshop 13 – Eastern countries

{{
Facilitator}}
{{Fabrice Schlosser}}
{Canal 32}


{{Intervenants}}
{{Jana Kurkova}}
Editor in chief
{Retail Biz (Speakers)}
{{Tomasz Leskiewicz}}
Chairman
{ Brand Sp.z o.o. (Poland)}


{{Jana KURKOVA}}
_ Retail Biz is a magazine for retailers and developers but also for people working in the franchising business and for small suppliers. The magazine is a Czech/English publication.



{{Tomasz LESKIEWICZ}}
_ We have been active in outlet shopping centres since 2004 with 6 outlet centres in Poland, which sells both Polish and foreign brands. Beton, which is our brand, is the leading and oldest in Poland.



{{Fabrice SCHLOSSER}}
_ The ten outlet centres in Eastern Europe are located in three countries, Poland, the Czech Republic and Hungary. With its 6 or 7 brand centres, Poland is the leader in this field, whereas the concept is new in the Czech Republic.



{{Jana KURKOVA}}
_ Outlet centres are a new concept in comparison to the numerous shopping centres in the Czech Republic. There are 3 outlet centres in the process of being built, one of which is run by Freeport and borders the Czech Republic and Austria. “Exit Sixty Six”, which is a new project, will take on the appearances of a village.



{{Tomasz LESKIEWICZ}}
_ Poland is a growing market, and Polish people like to shop at discount. Poland has 2 operators and 6 outlets centres. In Poland, 70 % of the shops in outlet centres host Polish brands but there are more and more foreign brands. Outlet centres in Poland are more diversified and look different than traditional shopping centres. Mavor offers a very modern and characteristic shopping centre.



{{Jana KURKOVA}}
_ In the Czech Republic, customers will find more international brands (Nike, Adidas) but there is also a national market for certain items which are produced locally (crystal, glass).



{{Tomasz LESKIEWICZ}}
_ In Poland, there is strong competition but mostly among the shops in the outlet centres. For outlet operators there is still space available. However shop owners do choose the outlet centres they want to do business with in relation to the information provided to them.



{{Fabrice SCHLOSSER}}
_ In the Eastern countries, what are the obstacles to brand centre development – a lack of major designer brands? Consumer behaviours?



{{Jana KURKOVA}}
_ It is a question of the right dynamics. International brands already have shops in the centres. It is true that a designer outlet centre may have more difficulty to attract designer brands that are not established in the Czech Republic yet. Considering the economy of the Czech Republic, they are not keen on buying Gucci or Prada. It is about maximising the right tenants in existing outlet centres.



{{Tomasz LESKIEWICZ}}
_ Polish markets are developing. I do not think that the presence or lack of international brands has an impact on outlet centres since regular shops and outlet centres have different customers and clients.



{{Fabrice SCHLOSSER}}
_ Are consumers used to frequenting brand centres in Eastern Europe? Who are they?



{{Jana KURKOVA}}
_ Where the outlet centres are located people are accustomed to going to factory outlets. Czech people are used to shopping centres and if a good marketing strategy is set up and more outlet centres built, these would attract more people. 56% of the customers are men and 44% are women.



{{Tomasz LESKIEWICZ}}
_ Polish customers like fashion and high quality clothes at low prices to which outlet centres cater.
35% of Polish shoppers go to street bazaars but these constitute a different set of clientele and do not compete with those of the outlet centres. In Poland, most clients are men.



{{Fabrice SCHLOSSER}}
_ How can women be attracted to them?



{{Tomasz LESKIEWICZ}}
_ Operators should cater more to women. For the moment, Polish women prefer new collections which can be found in the shops.



{{Jana KURKOVA}}
_ Taking from the aforementioned figures from Freeport, the numbers are almost half half and do not represent a big difference.



{{Fabrice SCHLOSSER}}
_ What is the future of designer brand centres in the eastern countries?



{{Tomasz LESKIEWICZ}}
_ The polish outlet market is growing fast and many more outlet centres will open.



{{Jana KURKOVA}}
_ In the Czech Republic more outlet centres will open (soon in Prague) but it will be also a question of those who will be successful and those not..



{{Fabrice SCHLOSSER}}
_ Is an outlet centre a tourist attraction?



{{Jana KURKOVA}}
_ Tourists are generally more interested in visiting the city and do not care to travel outside the city to get to an outlet. They do not care to spend a full day shopping.



Discussions with the floor



{{From the floor}}
_ The surface area available is very high in relation to the population; counterfeit items from China are extremely conspicuous. Apart from these particular features, is it necessary to organise transport to go to these centres? Do people travel themselves to the brand centres, or do they use public transport?



{{Jana KURKOVA}}
_ In Prague the outlet centre is accessible by public transport. Others (East Sixty Six, Airport Outlet Center) are less which can be a problem to attract the full potential of customers.



{{Tomasz LESKIEWICZ}}
_ In our outlet centres public transport is not a problem since all are close to the highway and public transportation, except for one that is badly located (Deise).



{{From the floor}}
_ Four outlet centre projects to be built in Prague are currently under study. Are there not any other interesting places in the Czech Republic? What is the problem, networks, urban infrastructure, culture?



{{Jana KURKOVA}}
_ Everyone wants to be in the capital city!



{{From the floor}}
_ Can the brand centre concept reach other East European countries?



{{Tomasz LESKIEWICZ}}
_ The next market for outlet centres will be in Romania, Belgrade, later Moscow, Ukraine, Estonia, Latvia, which are also emerging markets.



{{Jana KURKOVA}}
_ Slovakia and Hungary are also countries where outlet centres can open.



{{From the floor}}
_ What do you think of the competition with other household expenditure such as travel or telephone?



{{Tomasz LESKIEWICZ}}
_ Polish people spend a lot on communication which is expensive, but people will spend more and more on clothes.



{{Jana KURKOVA}}
_ I guess that Czech people will spend money on cinema as well. Czech people travel a lot and go to the cinema, and do not have a problem on spending a lot.