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Taras Panasenko, Aurora: Why Romania, who are competitors, why nofranchisees

Тарас Панасенко, Аврора: Почему Румыния, кто конкуренты, почему нет франшизы

More than years back – in early October 2023 year – the Ukrainian network of one dollar store Aurora opened the first store in Sumania, in the city of Suceava. At the state on 11 December 2024 year in this country there were already 30 stores of the network. On how Aurora works in the foreign market, who are its competitors and what plans have for the next year said

the co-founder of the network Taras Panasenko.

About the results of the network Aurora in Romania for 2024 year

For a year of operation our stores have been visited by more than 1 million visitors,<98% of them are local residents. And this is very good results, as for a new player in the market, whom no one had heard before. By the way, we are the first first in the history of independent Ukraine system retailer that has successfully scaled in the EU. Developing business abroad, we support local Romanian manufacturers and most importantly the manufacturers from Ukraine, who export products for the Aurora network to Romania.

About why Romania, not Poland, was the first country to expand into Europe

Our company has conducted a multifactorial research, which showed that the Romania market is more favorable and dynamic in development with less competition than Poland. In addition, Romania has a population of about 18 million people, which makes it a large market with high paying power. In addition, Romania is very similar in culture and buying habits to Ukraine.

One of the stores of the network in Romania (Photo – – Press Service Aurora)

About the plans to achieve profitability of the network in Romania

We are not already achieving profitability. We need to scale and more coverage of our network, but we are continually growing both quantitatively, and qualitatively. I will say, that we are very pleased with the index of client loyalty NPS (Net Promoter Score) in Romania, which is even higher, than in Ukraine. NPS level is determined with a survey, which is conducted by an independent marketing agency. Our NPS in Romania is 86. That is, we are loved there as well as in Ukraine.

About Competitors Aurora in Romania

The main competitive offer of Aurora – is a store of affordable goods for home and everyday with a wide assortment, where customers can quickly and conveniently purchase everything they need for everyday needs.

In Romania truly there are networks of stores with similar concepts to Aurora. The main competitors are TEDi, China Shop, Jumbo and DM. TEDi and China Shop offer a wide variety of home and decor goods at affordable prices. Jumbo focuses on children’s goods, toys and home goods in the large store format, while DM specializes in cosmetics and household chemicals.

Aurora is characterized by a compact format stores where shoppers can quickly and conveniently purchase the items needed. Our assortment combines household goods, cancery, cosmetics, household chemicals and chemicals.seasonal offers. We focus on accessibility, comfort and client-centeredness.

About forming the assortment of Romanian Aurora

Here we should emphasize the importance of depth research of local markets before entering them. Our company analyzes consumer preferences, cultural traditions and behavioral models to adapt assortment and marketing strategies to respond to local needs.

Aurora implements a matrix management model, providing teams autonomy in decision-making, which allows they to respond quickly to changes in the market and the needs of clients. Therefore the range of stores in Romania Romania and Ukraine slightly different. I note, that very important is reasonable combination of global objectives of company with local peculiarities of the specific market.

Romania has been more favorable country for expansion into Europe, than Poland (Photo – Press Service network)

About the consumer peculiarities of Romanians and about the ratio of Romanian and exported goods in thestores

Aurora in Romania really is not differently perceived by shoppers, than in Ukraine, – there it is perceived closer to the drogerie format.

If talking about differences in purchasing habits,A bright example is that in Ukraine lamp candles are sold predominantly to big holidays. In Romania they are steadily sold every year, which is conditioned by culture and local religious traditions.

Awareness and consideration of the cultural peculiarities of each new market is critically important for success.

The ratio of manufacturers looks as follows: Romania – 54%, China – 34%, Ukraine – 8%, other European countries – 4%. But we strive and work over that the share of Ukrainian goods increases, because it is a contribution to the development of Ukrainian industry and the economy.

In Romanian stores half of the goods are local manufacturers (Photo – the press-service network)

About finalizing collaboration with Romanian manufacturers

When we began to expand into the Romanian market, collaboration with local suppliers was one of our challenges. We needed to convince partners that Aurora is not just a new company in Romania, but a company with more potential. We told about our history in Ukraine: a network of over 1000 stores at this moment, constant growth and trust of millions of customers. A convincing step was to demonstrate confidence in our plans: we have already opened 29 stores in the Monthly Stores in the Monthly Stores .In Romania – this has become a powerful signal for the market.

What do we buy from Romanian suppliers? What is profitable to buy locally, domestic chemicals, toilet paper, wipes, groceries are in general FMCG goods.

About logistics network in Romania

In 2024 year we launched and successfully adapted to ambitious plans distribution center in Bacau (Romania), which supported our future rapid growth. Also in the last nine months the following departments have been formed: replenishment, internal transport, import operations and stock controlling.

About European marketing

The interest of Romanians, like the Ukrainians, is stimulated by large interest discounts. For this we have a regular weekly promo, where we give our shoppers the opportunity to purchase goods at the maximum beneficial offer. Now in regular promo we have about 600 SKU (every week new).

For one year the stores of the network ‘Aurora’ in Romania have been visited by almost 1 million people (Photo – the press-service of the company)

About the decision not to operate through the franchise

Obviously, that a company with its own brand can expand quickly its presence in the market and steadily increase profits by franchising. But so far the group of Aurora companies has notworks with a franchise. Unfortunately, in the case of scaling through a franchise it is difficult to

maintaintheidentityoftheDNAbrand,corporatecultureofthecompany.That’s whywearefocusedonotheralternativetoolstoscaleourbusiness.

AbouttheplansofthenetworktodevelopinUkraineandEuropein2025year

Forusweareenteringnewmarkets,intodifferentcountriesisnotonlyastrategicstep,butalsoanopportunitytodistributeUkrainianbusinesscultureandproductsoutsidethecountry,extrapolatingUkrainiantothegloballevel.

By the end of2025yearwe plantohave130operatingstores inRomania.ToSotodaywehave30stores,andin2025yearwe expecttoopenanother100.

Source:Liga.net 

 

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