Business Ideas in Romania

Retail design services for Romania

• Posted by John on August 15th, 2007 filed in Retail

Opportunity: Providing specialized design services to the Romanian market

One of the fastest growing markets in Romania, now and forecasted for the next 5-10 years to come, is the retail market. This suggests that design services for retail stores will be in demand for the immediate future, and for some time to come. Modern retail is still somewhat new in Romania. Only now, in Bucharest, modern retail “big-box” mega-centers are arriving in the Baneasa area. Shopping malls are still relatively new. Throughout eastern and western Romania, various forms and sizes of retail….indoor centers, outdoor centers, big-box stores, national chains, international chains, small retail…..are coming to town after town.

In addition, consumer shopping patterns in Romania are changing as a result of the new retail possibilities. More “faith” is being given to the new stores, and shoppers are making more frequent trips, and buying more. As more store variety arrives, consumer preferences are becoming more sophisticated and less accepting of poor customer service or “what you see is what we have, take it or leave it” attitudes.

What this suggests is that as consumer demands grow with the retail market, then issues such as design for product or customer branding and creative retail design will become more and more in demand, as is the case already for many western countries where the design of the store is THE interface with the customer or the public, and design can make the difference between an engaged customer or an exiting customer…and to the public’s perception of the brand…..translating to market share.

In addition, stores in Romania face a challenge of a quick product (read: store design) lifecycle, with customers losing interest in stores quickly, or not sharing the same loyalty to particular stores, as may be the case in other countries. Consumers here may however show loyalty to specific product brands, whereas retail market research shows the fastest growth in the market toward large retailers, with a decline in boutique stores. This dichotomy of patterns, emerging perhaps as a result of significant growth and change in the market, is something that retail designers must take into account in order to “reach” the market.

The fast pace of change in Romania presents opportunities not only for significant market growth, but also for significant repeat business, at a faster “change” pace than in other markets. Not only are there a multitude of new retailers opening new stores or chains, but there are retailers upgrading or redoing stores more often.

Beyond the initial market growth aspects, the potential for the lifecycle of the firm is good because of the possibilities for “fun” projects to make the work interesting because of the opportunities with new trends and technologies: new materials, green design, and all of the fun things happening in retail and hospitality design. Customers are no longer just customers; they’re “guests,” as at a hotel or casino or spa! No wonder so many stores are going for innovative hospitality-oriented “customer experience” design solutions….. customer “help desks”, retail banking “pods”, water features, art-lighting, cafes, etc.

These articles on Retail Design and Design Trends have good discussions of some interesting trends. My favorite is the discussion of the Vans skatepark/store.

However, retail is not just about the emotional (or technical) side of customer experience, it’s also about technology and store logistics. RFID, automated re-stocking, inventory, and back-of-house. For designers who can take on the challenges of understanding various systems and processes, and understanding the processes unique to each retailer, this can provide a good barrier to entry to other firms who do not understand these issues.

What this all says is that now appears to be an excellent time for a design firm (or entrepreneur) to capitalize on the retail opportunities and develop a niche, to develop a reputation for having a good understanding of retail issues and processes, and with market growth for some time to come. An entrepreneur who may understand retail business processes as well as design might just have an opportunity for a profitable niche in a fast growing market. (and we haven’t even mentioned the related need for design and business-process services for supply and distribution centers).

What do you think? What shopping experience do you think is in most need of these services?