New brand identity for Euronics planned for 2018
Hans Carpels is President of Euronics International, which in 2016 reported a consolidated turnover of €18.8bn, a small decline on 2015, primarily as a result of currency developments. We asked him about the retail group’s performance in 2016.
While the majority of our markets exhibited growth in local currency, on consolidation into Euro we can clearly see where currency translation had a dramatic impact – in the UK, Kazakhstan, and Russia. We are in fact satisfied with the results achieved in 2016, where in many markets sales have increased compared to the year before.
What product categories are you seeing as being the sweet spots?
Smartphones remain trendy and are a clear customer proposition for Euronics due to the constant innovation in this area which attracts all consumers, thus staying very effective at generating traffic in-stores.
Despite the lower-than-expected penetration of the complete smart home ecosystem, we see a very positive development in smart speakers. Further developments in this category, including voice hub integration, lead us to see this as a strong growth category for the future.
OUR NEW BRAND IDENTITY WILL HELP EURONICS TO MOVE IN THE RIGHT DIRECTION AND ACHIEVE SUCCESS IN THIS CHANGING MARKET
We have experienced a difficult TV market over the past few years and are excited to now see a positive trend developing with OLED driving growth and being increasingly supported by many brands.
What’s new at Euronics?
Our ambition to become a true EMEA retail group was realised in July with the opening of the first store in North Africa, in Egypt, by Sharaf DG. The 1,700sqm store showcases products in all categories, and further stores are planned in the territory in the months ahead.
What are your main reasons for attending IFA?
We are always very enthusiastic about IFA – it remains the most efficient platform to experience innovations and to engage with key suppliers and consumers. The fact that it takes place in Berlin simply adds to the attraction.
We continue to go the extra mile to create a consumer-friendly stand in Hall 23A – this year showcasing the best solutions for every room in the home, highlighting fully-integrated smart home solutions and key trends in in-house connectivity. It is a clear demonstration of how Euronics helps consumers find their way to more free time, knowledge, and enjoyment – by creating their own ‘best home in the world’, perfectly serviced by Euronics.
Could you please tell us more about the new brand identity which will be launched in 2018?
We are very proud to announce the beginning of a new chapter for the Euronics group – we will launch our new brand identity in 2018.
The constantly changing geo-political landscape of Euronics’ markets and the rapid evolution of other technology brands have clearly demonstrated that business as usual is not an option for us to maintain our position. We will bring a new brand identity to the market which is absolutely in sync with the digital world. With the new brand identity, we will not talk tech, we will talk human.
What are your biggest challenges?
We see a lot of pressure on brick-and-mortar retail. A great deal of investment is required in order to become a true omni-channel retailer (which we strongly believe is the right way forward) but pure players such as Amazon are winning in many markets at the expense of the top brick-and-mortar chains. This is clearly seen in the US market now and it is only a matter of time before these same trends come to bear in Europe. Our new brand identity will help Euronics to move in the right direction and achieve success in this changing market.
Photo : Hans Carpels, President, Euronics International