Above all, Modern Expo means store equipment supplied to shops in several dozen countries. Besides, you focus on generating value for customers of a completely different nature. Please tell us about your offer.
Thank you very much for starting our conversation from this very question. Indeed, we have been consistently building our position as a leading shopfitter for many years. Beginning from shelf systems, in which we have reached the level of perfection, through cooling solutions, to cash register counters, our offer is dedicated to all key segments of the market. However, we are a company that listens closely to its customers on the one hand, but not afraid to experiment and enter completely new areas of operation on the other hand. An excellent example of such a quick process was our introduction of parcel lockers. But the key, as you have said, is the issue of value generation. Value comes into life in very diverse dimensions. Over the last decade, we have created a group including, among other entities, companies involved in software and smart solutions for trade chains or retail space design, and we achieve excellent results. Lately, we have been increasingly developing our service potential. We have obviously noticed that the current situation in the retail sector is forcing chains to compete vigorously and to vie for the consumers’ loyalty and shopping basket. This makes them focus less on the operating part of the business. Therefore, we have proposed an offer we call “Peace of Mind”, a set of services relieving our customers from such activities as everyday quality maintenance of retail space, renovation of store equipment, or technical support. Thus, we are slowly closing the circle of value for trade chains.
To shed some light on the scope of your operations, please tell us which of your latest projects, both on the domestic market and abroad, have been the most interesting?
That is a big question. The period of the last few years has brought us many projects of unique nature. In their original version, the parcel lockers I have already mentioned were a product created for Allegro; an enormous project encompassing not only supply of several thousand devices but their installation and software. The process was so complex that we created a separate organizational unit for the purpose of managing it. Besides, the success in this area has given us clear evidence that we have much to offer in the field of services. As of today, we have already produced approx. 15,000 machines for the Ukrainian Nova Post company. We are active on the Balkan market where we are a supplier for eMAG (an online store) operating in Bulgaria, Romania and Hungary. For the Castorama chain, we have created the first DIY-oriented machine of such a type. Within a short time, we have become a European leader in this segment.
For several years, we have been actively participating in the dynamic development of the Żabka chain, serving as a supplier of key items of equipment to new stores. This project strongly impacts the development of Modern Expo as well. Today, I can boldly say that the Convenience format is no secret to us. On the other hand, we very recently remodelled the Auchan hypermarket in Piaseczno, creating an excellent and eye-pleasing harmony of shelves, decorations and visual communication. Unique examples are legion. I think the most important fact is that our experiences and credentials are so diverse, and they always have a positive impact on the development of Modern Expo as an organization.
Many countries are currently facing growing costs, and savings are becoming crucial. In what areas can one generate savings at a trade outlet?
Let’s start from revitalization. The pressure of inflation and energy source costs are a great burden to the operation of stores. Chains have to look for optimization on the side of expenses. Today, we are able to remove old equipment from a store, refurbish it fully and deliver it back. Thus, you can realistically lower the investment costs by 30-40%. An obvious aspect is the broadly understood servicing of devices. This is a natural direction of development of services, ensuring certain savings. Another one is recycling of equipment that has ceased to fulfil its essential functions. We can also see fantastic potential in maintenance of the appropriate functioning of entire sales outlets, including monitoring of key performance indicators, as well as outsourcing of merchandising and coordination of promotional processes – an immensely interesting subject. And this is just a fraction of the services we can provide to our customers. We are open to the development of this business. We have performed market analyses in search for new business models and initiated this idea several years ago. We were inspired by similar companies from the US market where optimizing processes are immensely developed.
What are the global trends on the market of refrigerating appliances? How do Modern Expo devices fit in with those trends?
Before I move on to the trends, I would like to perform a brief positioning of our refrigerating assortment. From the viewpoint of store equipment, we started out with shelves. It was much later that refrigerating solutions appeared in our offer. Therefore, we are not among the pioneers of these products. Many of our competitors have been present on the market for as long as several decades. They have a well-established position and take advantage of the experience curve. What strategy have we taken to get a share of that pie? An excellent illustration of our approach is the global rivalry on the car rental market between Hertz and Avis. The former had always been a definite leader. In the 1960s, however, Avis made up for almost 20% of shares in relation to its rival over a relatively short time. All due to a famous campaign utilizing the slogan “When you’re only number 2, you try harder”. This is the best illustration of our idea. Entering the category with a product on a level similar to those offered by old players would be pointless. This is why we have focused outright on high-quality workmanship, use of state-of-the-art technologies and full compliance with trends. We try harder than others. This is true for energy efficiency, adaptation to shrinking retail spaces, ecology, or the option of smart control.
What energy consumption savings may exactly be achieved when implementing solutions from the Modern Expo offer?
If you need examples, here you are – Cooles SlimDeck PRO operates in the A class of energy efficiency, consuming 65% less energy than a classic refrigerated cabinet and as much as 85% less than an open one. Moreover, it uses propane (R290) as a refrigerant, which is not only efficient but friendly to the planet. Another example is the Quadros line of refrigerated counters. In this case, high energy efficiency is also combined with an ecologic refrigerant.
Energy saving – is there still any room for development? Can you, as Modern Expo, see more future opportunities for savings? Or maybe you have already been working on new solutions?
This is a complex issue, but I will try to shed some light. Innovation and quick improvements in technology are largely connected today with liquid compression systems and ammonia absorption systems. Manufacturers focus on R&D activities in order to improve the design and control the temperature of their products to gain competitive advantage. The growing need of control and monitoring of the environment is expected to provide the participants of the industry with broad possibilities for development in the foreseeable future. On the other hand, climate concerns related to high-GWP refrigerants, such as global warming and ozone depletion, encourage the invention of alternatives. The growing demand for technologies to handle the emissions of hazardous gases is prompting fitting products with advanced magnetic refrigeration systems. Such systems also improve the energy efficiency of refrigerating devices, thus minimizing the operating expenses. The systems are highly energy-efficient and may help save energy by as much as 30%. We, Modern Expo, keep our finger on the pulse. At our labs, works are going on in a direction perfectly in line with the worldwide trends.
On what markets does Modern Expo operate? Do you intend to expand to new areas?
So far, we have been present in 65 countries. On our home markets of Poland and Ukraine, we have a dominating position. On many others, just like the Balkan region, our role is very significant. Soon we will surely want to strengthen in Western Europe. We have been present there for several years and we have spectacular implementations behind us in Germany, France, or the UK, but appetite grows with eating. Besides, we try to develop in a sustainable way, so this is definitely a natural direction. Nevertheless, I will reveal some of my personal dreams revolving around the US market. It is not just about the size of that market but, above all, about the challenges it poses. Yes, being the main supplier and partner for Walmart is a grand goal.
What strategy of development does Modern Expo follow? Will you focus even more on services, or rather on new devices? What is Modern Expo’s key to success?
We wish to be a company that impacts retail on the market, or maybe shape it to an extent. We surely want to use it to help those who cooperate with us, to take advantage of opportunities presenting themselves. Our transformation for over 15 years has been enormous. We started out as a small trade company, then the production phase came and we learned it from scratch. Subsequent years brought us a complete store equipment offer, and ultimately, time came for parcel lockers. Today, we are developing our services very strongly, each of those steps came naturally and smoothly, in response to market expectations. In general, we are open, we test a lot, i.e. we invest a lot of resources into being ready for another opportunity to appear. We are waiting for the market to say this is the moment when it is ready to invest in artificial intelligence. We are capable of relatively quick diagnosis of trends and changes incoming on the market. The most important of all is our ability of quick transition into the implementation phase. Internally, we devote much time simultaneously to develop the competences of our teams. We implement new tools to support our everyday operating activities. The strength of Modern Expo is people and this gives me comfort when looking into the future. To sum up, and to refer once again to your first question, we base our strategy on maximizing the value for the customer.
Thank you
Monika Górka
