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International City Marketing Congress (CMDC) 04.28/29.2010 Moscow Lovro Mandac, Chairman of the Board of Directors, GALERIA Kaufhof GmbH “City and city.

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Presentation on theme: "International City Marketing Congress (CMDC) 04.28/29.2010 Moscow Lovro Mandac, Chairman of the Board of Directors, GALERIA Kaufhof GmbH “City and city."— Presentation transcript:

1 International City Marketing Congress (CMDC) 04.28/ Moscow Lovro Mandac, Chairman of the Board of Directors, GALERIA Kaufhof GmbH “City and city marketing, regional reputation of attractive cities.” Securing the loyality and support of the local community

2 GALERIA Kaufhof Welcome to Moscow

3 Kaufhof profile today Kaufhof in figures Markets: Germany, Belgium Located in city centers / shopping malls Locations: 126 branches* in more than 80 German towns and cities 15 branches in 12 Belgian towns and cities *incl. Sportarena Turnover 2009 (net sales): 3.5 billion € Sales area: 1.5 million m² Visitors / customers: approx. 2 million per day Employees: 22,200 (2009; full time equivalent) GALERIA Kaufhof GmbH

4 01 The situation in the city centers City center retailing yesterday and today

5 The move to the city center The early years: The first department stores (The start of the 20th century) Department stores used aggressive marketing tactics to attract customers from the countryside into the city center for the first time The new “cathedrals to consumption” were utterly unique CITY CENTER RETAILING YESTERDAY AND TODAY

6 From the mid 1980s: “The urban revival” Towns and cities become centers for trade and hubs for communication and innovation People move back from the suburbs to live in the city center Large retailers return and establish food outlets and shopping centers Source: Bernd Heimbüchel (2007): Erlebnis Stadt. The return to the city center

7 The move to the city center Today: The department store plays an important role in city centers The department store acts as an initiator of various activities aimed at vitalising the city center Its ability to attract shoppers into the city center is significant CITY CENTER RETAILING YESTERDAY AND TODAY

8 Current city center trend Explosive rise of the shopping mall Today’s favored location: the town center Total area of approx million m² total of 428 shopping malls 2010 at least 9 malls planned The move to the city center CITY CENTER RETAILING YESTERDAY AND TODAY Source: Rheinische Post 10/23/2010

9 Beyond the town center: Artificial shopping environments Current trend “against” the town center “Artificial shopping environments” FOCs and purpose-built “retail villages”? The concept of a simulated urban environment: Professional, targeted marketing strategy successfully promotes shopping tourism “Leisure park atmosphere” based on cleanliness and straightforward layout Well-organised services (convenient parking, childcare, ATMs, maps) Competitive advantage: Luxury brands at discount prices Source: WÜS 13 August 2008; Photos: CITY CENTER RETAILING YESTERDAY AND TODAY

10 Problem areas: City center retailers come under pressure from competitors Without increase in purchasing power, retail forms grow at others’ expense CITY CENTER RETAILING YESTERDAY AND TODAY

11 02 We need to work together Cities and retailers – make contact and act jointly Successful strategies and partnerships between cities and retailers

12 Leading by example Development of the new Cologne city center network (since 2008) Joint conception, planning and implementation of all measures aimed at strengthening the position of the city center WE NEED TO WORK TOGETHER

13 Leading by example Nationwide support program “Operation Midtown” – Largest city competition: Idea behind the action: Annual competition intended to enhance the appeal of city centers (since 1999) Public-Private-Partnership – city projects and city marketing projects Participation in 2009: Applications from 122 cities / communities in five federal states Organizing Partners 2010: Relevant federal state ministeries GALERIA Kaufhof GmbH, Multi Development Germany GmbH Other cooperation partners (example North Rhine-Westphalia): Städtetag NRW, EHV NRW, Mc Donald‘s, Handelsjournal, STRÖER Deutsche Städte Medien GmbH, Source: Imorde, Projekt- und Kulturberatung GmbH WE NEED TO WORK TOGETHER

14 Leading by example Organigram “Operation Midtown” WE NEED TO WORK TOGETHER

15 Leading by example Inspiring and exchanging ideas through nationwide and international communication and information urbanicom e.V. – Platform for city and trade urbanicom unites the strengths of everyone involved: Since 1966 international association of leading European city planners, architects, property owners and business people aimed at forward looking urban development Resolute commitment at grass roots level right down to the smallest retail unit and citizen interest group WE NEED TO WORK TOGETHER

16 Leading by example Inspiring and exchanging ideas through nationwide and international communication and information urbanicom e.V. – speaking for the city The work of urbanicom: urbanicom discusses questions that affect both the city and retailers urbanicom believes in strengthening urban centers urbanicom works to preserve multifunctionality in towns and cities – home, work, life urbanicom offers a framework for annual seminars and events e.g. “urbanicom vor Ort” Source: Urbanicom, Eberhard Gebauer WE NEED TO WORK TOGETHER

17 03 Case studies and voices from the cities Measures aimed at cementing customer loyalty in the city center How to create and exploit synergies

18 Center of attraction - the city center CASE STUDIES AND VOICES FROM THE CITIES

19 Networking to increase efficiency and effectiveness Independent network unites private commercial interests in Cologne with City-Marketing Köln City-Marketing Köln brings together previously go-it-alone die-hards in a single, effective team: Consistent management and coordination of activities by City-Marketing Köln Joint development of ideas and concepts Implementation in three operative areas: City Commerce, City Image, City Quality Development of a balanced member structure as a private commercial initiative Leading by example WE NEED TO WORK TOGETHER

20 Leading by example Enduring events that draw visitors from far beyond the local area The “biggest fashion show in the world”: Krefeld “Our fashion show perfectly showcases the diversity and effectiveness of retailers in Krefeld – our visitors have been coming for years from all over Germany.” Jörg Pastoors, Managing Director GALERIA Kaufhof Krefeld Mega-City-Event for the past 18 years with Sunday opening Draws visitors from all over Germany, 2009 approx. 500,000 visitors Huge media coverage, even in national press CASE STUDIES AND VOICES FROM THE CITIES

21 Leading by example The “biggest fashion show in the world”: Krefeld CASE STUDIES AND VOICES FROM THE CITIES

22 Leading by example Enduring events which have influenced urban development Window dressing competition on a worldwide scale “Hagen has become THE capital of window dressing. The event has brought the city and retailers even closer together.” Christina Göttert, Business Development Hagen Successful events aimed at countering the increasing homogenisation of towns and cities as well as the retail sector Exhibition stand at the world’s biggest industry trade fair Euroshop (2008) CASE STUDIES AND VOICES FROM THE CITIES

23 Leading by example Seasonal, attractive events The city is a beach – footfall throughout the day until midnight “Our visitors feel like they are on holiday, the optimal mix of consumption and relaxation.” Frank Tüting, Sales Director GALERIA Kaufhof GmbH Extraordinary use of “ordinary” buildings outside peak times or when vacant (e.g. car park floors or event venues) Top media presence over 2 months (ARD, ZDF, local media) Picture: City beach on the rooftops of Düsseldorf CASE STUDIES AND VOICES FROM THE CITIES

24 Leading by example Increasing the number of foreign visitors Expanding shopping tourism: Targeted offers and joint ventures “Creative joint ventures and innovative marketing concepts are the real secret to boosting sales.” Martina Baumgärtner, Business development association for the district of Viersen Successful and innovative events: New tourism projects such as “Cool Breaks” and “Fly and buy” are large-scale marketing events designed to attract European short-break tourists. CASE STUDIES AND VOICES FROM THE CITIES

25 04 The challenges today and tomorrow We need a clear commitment to the city center Towns and cities, government, property owners and commerce… all must play their part

26 Leading by example Investment in problem districts BIDS and ISGs – how to add value to a district Without the commitment of the private sector, the problems facing many cities cannot be solved: Joint financing through private and public investments Modernization and renovation of entire city districts Ensuring cleanliness and safety Financing for seasonal decorations, Christmas lights etc. Quelle: WE NEED TO WORK TOGETHER

27 Towns and cities need visions and dreams... THE CHALLENGES TODAY AND TOMORROW

28 … and people who will join forces to make them reality THE CHALLENGES TODAY AND TOMORROW The focus is on a common goal: Raising the appeal of the city center!

29 The path to success …... a joint future based on communication: Active mutual support Closer relationship between associations, clubs and institutions City managers act as a point of contact for all parties involved Beyond this: We need to harness the creativity and intelligence of each and every citizen! THE CHALLENGES TODAY AND TOMORROW

30 More than just the sum of its parts … WE NEED TO WORK TOGETHER

31 Pursuing a common goal together TRADE, GASTRONOMY AND CITY – CHALLENGES FOR ALL INVOLVED Our commitment to the city center It is time to act: If everyone does the best they can, then the winner will be the city center!


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