Drugi jezik na kojem je dostupan ovaj članak: Bosnian
The FMCG Summit is a must-visit event for all producers, traders, distributors and retail and marketing professionals or anyone who wants to become one. The fourth FMCG Summit, to be held on April 12 at the Hotel Hills in Sarajevo, will present many interesting topics and lecturers, including Jean Jaques Vandenheede, a specialist and former Senior Consultant at Nielsen from Belgium.
Media Marketing: This won’t be your first visit to Sarajevo. You were here last year for the Nielsen Conference. Is Bosnia and Herzegovina on track with the market trends?
Jean Jaques Vandenheede: Yes, that was a nice experience since I was in Sarajevo for the first time. Certainly there are good trends and there are always companies in every market which manage to get the best out of the market. What is the biggest problem in the region (even Europe) in my opinion is the pricing, and the fact that all activities revolve around the price as the best criteria. I would call it the illness of every industrial environment because people try to look at everything from the price standpoint. Don’t get me wrong, but I want to emphasize that almost majority of markets think like that.
Media Marketing: Have you noticed certain changes in the FMCG industry in Bosnia and Herzegovina?
Jean Jaques Vandenheede: I believe that there are many activities that have been implemented, but you are still in a phase that requires a period of some 10 years in order to catch up with the trends of countries that are far ahead. Obviously, the market of Bosnia and Herzegovina is in transition, and as a result, there are numerous things happening in your market, ranging from the destroyed economy, to the takeover of companies, successful stories, acquisitions, monitoring, liquidation and many other things that happened in recent times.
Media Marketing: What are your experiences when you begin analysing some market, and have you had the chance to work in some of the countries in the region?
Jean Jaques Vandenheede: I haven’t done any research in this market, and from my experience I can say that every single market is unique and deserves individual and detailed research. You are special, just like all the other countries in the region. Every market has a unique environment, different habits and much of what impacts on its development. I can certainly tell you that you are a piece in a much bigger puzzle, and you are always looking for a place to fit in.
Media Marketing: Do you think that we lag behind the European and world trends in the FMCG industry to a larger or smaller extent?
Jean Jaques Vandenheede: I think you will need a lot of time to get to the level of applying new methodologies. You are still at a transitional stage of evolution that will last long before the conditions for further development or for the fourth industrial revolution are reached. What is done on the world market is changing the habits of entire regions, and is redirecting the industry in a different direction. The assumptions are that FMCG is at a certain stage of decline and that you are very late due to your inactivity. Therefore, you will not be able to prevent certain trends. My question is, will your children and grandchildren have the same or at least similar shopping habits? Will they buy in shopping malls, drive carts and then pay at the cash register? I suppose your answer is negative, and unfortunately, a large number of people have a similar opinion. What is imposed as a logical question is what we will do, and if we don’t see a solution, we will do very little. Unfortunately, we don’t consider this in an innovative way that would make finding answers easier.
Media Marketing: FMCG industry at the global level has examples in certain countries that are leading the way thanks to the changes they’ve introduced in this segment. What are they doing differently, and wherein lies the secret of such efficiency?
Jean Jaques Vandenheede: It is very simple, and what is most important is that they are aware that they have to keep track with the progress that imposes changes and efficiency. If we look at the markets of the US and China, only then we can see the extent to which innovations are being applied on the basis of target group research. Especially China, which did a lot in terms of young consumers and adjusted the market for future generations of consumers. In most of them, the standard retail gave way to digital retail. The US market is experiencing major difficulties due to digital retail, as more than 10,000 retail outlets were closed last year alone. This was caused by the transition process, but it is good that it is not happening in the segments of all categories. Special changes are happening in the segment of fresh food. A good example is the New York company called Fresh Direct, which finds innovative ways to deliver food to consumers. The trends are such that it will take another ten years to the technological revolution. FMCG industry had large financial investments, and many stores were opened. Changes are most needed especially in the European market that is slumbering in comparison to the US and China.
Media Marketing: What are your predictions in terms of FMCG industry, and will the global trends influence some processes?
Jean Jaques Vandenheede: Retail is the best example of illustration of how we should look at the market. The consumer is one side with its own set of needs, and on the other side is the retail business that does everything to recognize and meet the needs of those consumers. They are in a circular process to find the best solution to the mutual interest. It is only a matter of time when some processes will begin to change in line with other changes. Modern processes arise from research, needs of different generations that were participants in certain evolutions in the FMCG industry. We are witnessing that many generations of consumers have been part of the evolution 60 years ago, while some participated in a shorter period. Everyone had a different experience and was part of the global evolution of retail. All industries were represented, from fashion to car industry. When it comes to the food industry and the aforementioned globalization, I think that this segment is very important and that a lot has to be done here in the application of the process of change.
Media Marketing: What is important for Bosnia and Herzegovina, and what is it that you will point out to the participants at the Summit?
Jean Jaques Vandenheede: My presentation will begin with “Ladies and gentlemen, wake up! BE ACTIVE, INNOVATIVE, CREATIVE, or, if you wait, YOU WILL MISS the last train that you have been waiting at the station.” Find the best solutions for the supply chain, because what you’ve been planning in your strategies 20 years ago will not help you survive. The key issue is the control of processes, and how effective they are. Be innovative and creative and get out of the box, because only then you have the chance to succeed.