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Securing the loyality and support of the local community “ City and city marketing, regional reputation of attractive cities. ” Lovro Mandac, Chairman of the Board of Directors, GALERIA Kaufhof GmbH International City Marketing Congress (CMDC) 04.28/29.2010 Moscow GALERIA Kaufhof

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Securing the loyality and support of the local community

“City and city marketing, regional reputation of attractive cities.”

  • Lovro Mandac, Chairman of the Board of Directors, GALERIA Kaufhof GmbH

International City Marketing Congress (CMDC)

04.28/29.2010 Moscow


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GALERIA Kaufhof

Welcome to Moscow


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Kaufhof profile today

Kaufhof in figures

Markets: Germany, Belgium

Located in city centers / shopping malls

Locations:

126 branches* in more than80 German towns and cities15 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


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01

The situation in the city centers

City center retailing yesterday and today


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The move to the city center

CITY CENTER RETAILING YESTERDAY AND TODAY

  • 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


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CITY CENTER RETAILING YESTERDAY AND TODAY

The return to the city center

  • 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.


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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

The move to the city center


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Current city center trend

Explosive rise of the shopping mall

Today’s favored location: the town center

Total area of approx. 13.5 million m²

01.01.2010 total of 428 shopping malls

2010 at least 9 malls planned

The move to the city center

CITY CENTER RETAILING YESTERDAY AND TODAY

Source: www.rheinparkcenter-neuss.de, Rheinische Post 10/23/2010


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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: www.wertheimvillage,com, www.panoramio.com

CITY CENTER RETAILING YESTERDAY AND TODAY


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Problem areas: City center retailers come under pressure from competitors

CITY CENTER RETAILING YESTERDAY AND TODAY

Without increase in purchasing power, retail forms grow at others’ expense


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02

We need to work together

Cities and retailers – make contact and act jointly

Successful strategies and partnerships between cities and retailers


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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


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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 infive 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


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Leading by example

Organigram

“Operation Midtown”

WE NEED TO WORK TOGETHER


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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


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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 frameworkfor annual seminars and events e.g.“urbanicom vor Ort”

Source: Urbanicom, Eberhard Gebauer

WE NEED TO WORK TOGETHER


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03

Case studies and voices from the cities

Measures aimed at cementing customer loyalty in the city center

How to create and exploit synergies


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Center of attraction - the city center

CASE STUDIES AND VOICES FROM THE CITIES


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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

WE NEED TO WORK TOGETHER

Leadingbyexample


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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


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Leading by example

The “biggest fashion show in the world”: Krefeld

CASE STUDIES AND VOICES FROM THE CITIES


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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


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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


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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


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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


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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: www.bid-neuerwall.de, www.graf-adolf-strasse.de, www.ihk-hessen.de, www.hamburg.de/bid-projekte/

WE NEED TO WORK TOGETHER


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Towns and cities need visions and dreams ...

THE CHALLENGES TODAY AND TOMORROW


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… 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!


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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


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More than just the sum of its parts …

WE NEED TO WORK TOGETHER


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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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