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Day 1 - IFA International

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Trade Talk 25 Years - and Good Reason to Rejoice European retailer Euronics International arrives at IFA in celebratory mood Euronics is blowing out 25 candles this year. We asked group President Hans Carpels just how the team has been celebrating… A marketing campaign “Euronics celebrates it 25 Years Anniversary” has been rolled out in which we promote one specific product offering all over the Euronics territory over the 6 product categories, each month of the year. It’s proof to our consumers and to the industry that the power of Euronics and its overall presence is also a benefit for them. Internally we threw a party on the occasion of our Annual General Meeting, which was held in Amsterdam, on 2nd June. Industry representatives and executive managers of all Euronics national organisations were present in the renowned Koepelkerk for a very successful Strategic Meeting. But the highlight was the gala dinner held in the famous Rijksmusem. How are sales progressing? In 2014 Euronics International reported a consolidated turnover of €18.2 bn - an increase of 600 mn. vs 2013. It is important to underline that the TCG market in EMEA was stagnant in 2014. This result confirms Euronics’ position as the second largest consumer electronics retailer in Europe and third largest worldwide. How is the international expansion of Euronics evolving? We have two vectors upon which we relentlessly work. Obviously one is the international expansion. Euronics now spans from Lisbon to Vladivostok and from Shannon in Ireland to Muscat in Oman. We are present in Russia, Ukraine, Kazakhstan, Turkey, Bahrain, Oman, UAE & Qatar to highlight a few non-traditional countries. In the classical European area, we are everywhere, except for the Balkan region and Belorussia. Over time we became a retail group instead of a buying group Regional consolidation is the second vector. In quite a number of regions it makes sense for our national organisations to cooperate and why not to create a new legal entity in order to enhance synergies and efficiency. In the Nordics our Danish organisation procures all CE from our partner in Sweden. On the other hand our Norwegian partner procures its DA-products from Sweden. In Spain, we had two representatives. Now Consorcio has been integrated in Sinersis so as to create one organisation. In my country, Belgium, Krëfel teamed up with Euronics Belgium and in the Netherlands, the chain Scheer & Foppe has joined Euronics as well. And there is more to come! Why is Euronics so successful? Since the strategic board meeting in 2011 we hand our national organisations a list of clear criteria they should meet, in abiding our strategy. Where in the beginning the focus was more on product, the new strategy is more than even consumer focused. Over time we became a retail group instead of a buying group. The consequence is that if in a certain country the strategy is not implemented according to the guideline we step away from that national organisation. This was never seen or heard of. But you have to walk the talk, instead of getting great ideas and strategies out, without implementing them. Then you become an empty box without respect of the consumer, the industry or our own retailers. Euronics will of course help and partner with the industry, also in solving local problems. That’s our task and that is how we ensure Euronics’ strength. Our position is quite strong and profitable for all involved: consumers, members and suppliers alike. How do you leverage IFA as a marketing platform? For a retailer who wants to invest in the future, IFA is THE main fair. Of course, all the suppliers are present and their new innovative products are literally ‘on show’. But you have the opportunity to join some interesting keynotes by renowned business leaders. At IFA you see the trends for the coming months. Moreover you have the possibility to exchange views with your partners, both on local and international level, from retailer as from industry side. As Euronics International we have during IFA many internal meetings with our representatives in order to have an optimal preparation for the high season. The fair itself should be a highlight in each retailers agenda: several of our national organisations organize special flights to come to Berlin with their total retailer base, because what you can see and discover here is impossible anywhere else. With IFA’s transformation from a mere CE-fair biannually organized to an all division fair, integrating Domestic Appliances (MDA as well as SDA), IT, Telecom and Photo, it’s yet another reason to be here, because nowhere else are all these different divisions on show at the same event. I am proud to say that since 1977 I did not miss one single IFA: it is simply worth it! Hall 23 Stand 102 Hans Carpels President, Euronics International IFA International • Friday 4 th September 2015 25

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