14/01/2013 What Will It Take to Thrive in the          Global Arena? Key Learnings and Insights from Global Best Practices...
14/01/2013So You Want to be a Global Retailer?        All You Need to do…Deal With National, Regional & Local Laws & Restr...
14/01/2013Perfect Supply Chain Strategies…in Very Different Market Conditions         Understand Local Consumer Tastes & P...
14/01/2013               Select the Right Real EstateTransfer Company Culture & Expectations Across Countries…No One Said ...
14/01/2013                                           But Global Remains Where The Growth Is…                              ...
14/01/2013           So, How Do We Improve the Odds?                       Global Ebeltoft Group Study: Methodology   •   ...
14/01/2013   Most Retailers Tend to Penetrate Similar Markets First              When Expanding Internationally           ...
14/01/2013               Keys To Success (Or Avoiding the Path to Failure)  1.    Have a clear reason for being (anywhere)...
14/01/2013                           Listen (Really) to the Local Customer:                                   With Flexibl...
14/01/2013              Partner (Acquire/JV) with Local Talent & Leadership                                             Su...
14/01/2013           Execute Great Retail: Real Estate, Systems, Marketing                                          Succes...
14/01/2013         Keys To Success (Or Avoiding the Path to Failure)1.   Have a clear reason for being (anywhere)2.   List...
14/01/2013MANGO                     100% SPANISH CAPITAL                     1984 FIRST MANGO/MNG STORE                 ...
14/01/20131995MANGO.COMIS CREATED1998MANGO   POSITIONSITSELF AS   SPAIN’SSECOND LARGESTTEXTILE EXPORTER2002CONTINUEDEXPANS...
14/01/20132005MANGO TOUCH        ISDEFINED AS A NEWFASHION VENUEDEDICATEDEXCLUSIVELY TO                         Barcelona,...
14/01/20132008MNG    BY   MANGOSTARTSCOLLABORATIONFOR SHOP-IN-SHOPWITH   JC PENNEY20093RD EDITION   OFEL BOTÓNAWARD TOSUPP...
14/01/2013DIVERSIFYYOUR RISK IS NOTCONCENTRATEDONLY IN ONEMARKETHOW TO              STUDY   HOW NATIONAL                 ...
14/01/2013UNDERSTAND& ADAPTYOUR PRODUCTAND MARKETSTRATEGY TOTHE LOCALCONSUMERADJUSTPRICES, PROMOTIONS,PRODUCT, ETC. TO THE...
14/01/2013ADAPTSPECIALCOLLECTIONFOR   ARABCOUNTRIESCOLLABORATEWITH LOCALPARTNERS TOSELECT THE RIGHTLOCATION ANDEXPANSIONST...
14/01/2013CORPORATESTORES                Milano, ItalyONLINESALE                  asos.com                  moderepubliek....
14/01/2013     SHOP-IN-     SHOPS                                          Chavannes, Switzerland          TURNOVER DISTRI...
14/01/2013                    Globalization,                  success or failure?                            Denis Knoops ...
14/01/2013       Delhaize United States                                                               • Is the largest mar...
14/01/2013        Delhaize Balkans   Market of55 million     people                                                       ...
14/01/2013   Globalization                           Why do no grocery retailers                                  operate ...
14/01/2013  Globalization (1st theory)                           •     Takes time                           •     Global i...
14/01/2013‘NEVER’ globalization                   Success             Back to DelhaizeSometimes we succeed                ...
14/01/2013         Sometimes we succeed                                                                                   ...
14/01/2013Sometimes we fail                    # stores                    100   Republic Czek                     1      ...
14/01/2013     The Future Is Already Here.   It’s Just Unevenly Distributed.                          WILLIAM GIBSON  Get ...
14/01/2013       31
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Nrf13 brasil varejo vencer na arena global

  1. 1. 14/01/2013 What Will It Take to Thrive in the  Global Arena? Key Learnings and Insights from Global Best Practices What Will It Take to Thrive in the Global Arena?• Two strategies seem to dominate the global expansion race: – Expansion of mass market retailers in fast‐developing countries – Expansion of “specialized” retailers with strong brands• Innovative concepts and methods are needed to exceed customer expectations in the global arena• This session will feature results and insights from a study (conducted by Ebeltoft Group) evaluating retail internationalization trends• Mango and Delhaize will share their perspectives and lessons learned during the execution of their company’s multi‐national expansion plans 1
  2. 2. 14/01/2013So You Want to be a Global Retailer?  All You Need to do…Deal With National, Regional & Local Laws & Restrictions Account For New & Entrenched Competition 2
  3. 3. 14/01/2013Perfect Supply Chain Strategies…in Very Different Market Conditions Understand Local Consumer Tastes & Preferences Adjust Pricing, Promotions, Merchandising & Mix 3
  4. 4. 14/01/2013 Select the Right Real EstateTransfer Company Culture & Expectations Across Countries…No One Said It’s Going to Be Easy 4
  5. 5. 14/01/2013 But Global Remains Where The Growth Is… Sales growth and profitability by region/country (%)20 19 15.4 14.915 9.310 7.6 7.4 5.75.3 5.55.6 5.6 5.2 5 4.74.1 3.8 4 4.7 3.5 3.7 4.2 3.3 4.44.9 3.7 4.7 4.94.74.1 5 3 1.52.1 1.3 0 2005‐2010 Composite retail sales CAGR 2010 Composite retail sales growth 2010 Composite net profit margin Results reflect Top 250 retailers headquartered in each region/country. *Compound Annual Growth Rate. Source: Published company data and Planet Retail Retail Leaders are Driving Higher Growth Internationally… International turnover  Domestic turnover CAGR  Retailer 2010 2015 CAGR % 2010‐15 % 2010‐15 26 74 33 67 9.8% 2.7% 41 36 59 64 7.7% 3.2% 33 38 67 62 10.5% 5.9% 39 33 61 67 7.4% 1.6% Source: IGD Research and estimates. Note: Red = international turnover %,  Blue  = domestic turnover % Source: MD Despite Some Costly Mistakes Along the Way Market Entries and Exits of Top 4 Global Retailers Chile Bulgaria ENTRIES India India Egypt South Africa Iran India Kazakhstan Russia Russia Japan Morocco EXITS Germany Algeria USA? South Korea Thailand 5
  6. 6. 14/01/2013 So, How Do We Improve the Odds? Global Ebeltoft Group Study: Methodology • 18 Countries – 12 Developed Markets – 6 Emerging Markets • 8 Retail Sectors • 92 Retailers • 127,170 Stores Internationalization in Developed Retail Markets Varies Considerably Developed retail markets: average percentage of international stores 85% 85% 77% 68% 60% 55% 54% 51% 40% 39% 37% 1.37 1.74 29% 3.57 2.43 2.77 GDP $ trillion 1.49 0.84 0.64 0.24 0.33 0.24Singapore Denmark Portugal Spain Germany UK France Netherlands Australia USA Canada Switzerland 6
  7. 7. 14/01/2013 Most Retailers Tend to Penetrate Similar Markets First  When Expanding Internationally Analysis of the location of stores within the retailers’ portfolios  17% 18% 16% 9% Emerging 29% Developed 39% Domestic 74% 54% 43% All Markets Developed Markets Emerging Markets Internationalisation has Escalated in the Last 3 Years  % change in number of international and domestic stores  over 3 years International Domestic All Markets Developed  Emerging  Markets Markets Store locations 9 Competitive opportunity Local adaptation 7 5 Competitive pricing Product realizationKeys to Success 3 1 Marketing Entry mode Technology systems Local management Failure Success Suitability of concept 7
  8. 8. 14/01/2013 Keys To Success (Or Avoiding the Path to Failure) 1. Have a clear reason for being (anywhere) 2. Listen (really) to the customer and have leadership flexibility  3. Partner (Acquire/JV) with Local Leadership & Talent: respect  local culture 4. Execute on great retail: well‐defined real estate strategy,  marketing, systems and infrastructure Have a Clear Reason For Being… Success Factors Hornbach succeeded in The  Netherlands by having an all‐in‐one  offer of DIY under 1 roof. FNAC succeeded in Portugal with its  added value model. “Identify your points of difference. What does your brand do that few other companies do. This could be a product attribute, brand equity or a mark of quality.”Hollister succeeded in UK  by creating a  Austin Reed / Burberry, UK sense of belonging and exclusivity. 8
  9. 9. 14/01/2013 Listen (Really) to the Local Customer:  With Flexible Leadership Success Stories Starbucks succeeded in China by  changing its format to suit local  behavior patterns. Media Markt succeeded in Spain by allowing local management autonomy. “ Aldo’s success comes from understanding the consumer at the local level. We are looking for local differences…there is not much difference in the products and style for Italy, France and Canada, but there are big Lidl succeeded in France by offering French national brands, alongside their  differences between UAE, Asia and Canada.” private label products.   Aldo, Canada Failure Factors Dressman failed in Denmark due to heavy local competition and three changes of CEO  since entering the market. Wal‐mart failed in Germany due to  acquiring two local chains, Wertkauf and  Interspar, but dismissing almost all of the  existing staff. G’Market failed in Romania because its parent company’s attention was diverted to  other businesses. 9
  10. 10. 14/01/2013 Partner (Acquire/JV) with Local Talent & Leadership Success FactorsCrate & Barrel succeeded in Canada by  training staff to “educate” their  customers in product knowledge.   Tesco succeeded in South Korea by  partnering with Samsung and having  great local leadership “Everything is about people. You can’t have a great product without great people. We employ a truly international team of people, not just Dutch. The board consists of a variety of people with different backgrounds.” Zara succeeded in Turkey because it  offers its sales staff better benefits.   Hunkemöller, Holland Failure Factors Best Buy failed in UK because its large  store showroom format felt dated to  the consumer.  Carrefour  failed in Portugal by  building stand‐alone hypermarkets. Carrefour failed in USA because the  stores were much larger than the US  customer was used to.   10
  11. 11. 14/01/2013 Execute Great Retail: Real Estate, Systems, Marketing Success Stories Zara Succeeded in Turkey by cutting good deals with owners of the best and  most frequented shopping malls. Sephora Succeeded in USA by  partnering with JCPenney. “ In 1991 we opened our first store on Tverskaya Street (the premium Moscow shopping street) and this is still Topshop Succeeded in Australia by  our best store in terms of turnover today.” choosing adjacencies next to other  Yves Rocher, France global brands. Success Stories Lidl succeeded in France by  expanding aggressively. Kaufland succeeded in Romania  by continuing to open stores and  invest in distribution centers. “ It’s not about planting flags all over the world; it’s about making clearly defined decisions about which McDonald’s succeeded in Singapore  markets you want to dominate, and go in and dominate by expanding into less concentrated  them.” and competitive suburban areas. Hunkemöller, Holland 11
  12. 12. 14/01/2013 Keys To Success (Or Avoiding the Path to Failure)1. Have a clear reason for being (anywhere)2. Listen (really) to the customer and have leadership flexibility 3. Partner (Acquire/JV) with Local Leadership & Talent: respect  local culture4. Execute on great retail: well‐defined real estate strategy,  marketing, systems and infrastructure And We Hear From the Retailers  Themselves…Mango and Delhaize e-Q&A Text NRF2013 and your question to 22333 Tweet @poll NRF2013 and your question eGo to www.pollev.com and type NRF2013 and your question 12
  13. 13. 14/01/2013MANGO  100% SPANISH CAPITAL  1984 FIRST MANGO/MNG STORE ON BARCELONA’S PASEO DE GRACIAAT A  SECOND-LARGEST EXPORTER IN THE SPANISH TEXTILE SECTORGLANCE  MORE THAN 2.500 MANGO/MNG STORES IN 109 COUNTRIES  11.000 EMPLOYEES WORLDWIDE  OVER 2.500 STYLES EVERY SEASON  100 MILLION ARTICLES PRODUCED EVERY YEAR1984FIRST MANGOSHOP INPASSEIG DEGRÀCIA,BARCELONA Barcelona, Spain1992MANGO BEGINSGLOBALEXPANSIONWITH STORES INPORTUGAL AND Porto, PortugalFRANCE 13
  14. 14. 14/01/20131995MANGO.COMIS CREATED1998MANGO POSITIONSITSELF AS SPAIN’SSECOND LARGESTTEXTILE EXPORTER2002CONTINUEDEXPANSION INTONEW MARKETS:AUSTRALIA,BULGARIA, CHINA Rome, Italy& ITALY TUNISIA 14
  15. 15. 14/01/20132005MANGO TOUCH ISDEFINED AS A NEWFASHION VENUEDEDICATEDEXCLUSIVELY TO Barcelona, SpainACCESSORIES2006MANGO ENTERSTHE US MARKET New York, USA2008H.E. BY MANGOIS CREATED,AIMED AT THEYOUNG, FASHION-CONSCIOUS MALE 15
  16. 16. 14/01/20132008MNG BY MANGOSTARTSCOLLABORATIONFOR SHOP-IN-SHOPWITH JC PENNEY20093RD EDITION OFEL BOTÓNAWARD TOSUPPORTYOUNG TALENTIN FASHIONDESIGNREASONS  DIFFERENT TAX REGULATION AND LEGAL STRUCTURES CANTO BE AN ADVANTAGE FOR YOUR BUSINESS. DIFFERENT ECONOMIC CYCLESEXPAND  DEPENDING ON THE AREA CAN BENEFIT YOUR EXPANSION.  DOMESTIC MARKETS OFFER A STRONGER COMPETITION AND A LIMITED NUMBER OF OPPORTUNITIES. 16
  17. 17. 14/01/2013DIVERSIFYYOUR RISK IS NOTCONCENTRATEDONLY IN ONEMARKETHOW TO  STUDY HOW NATIONAL AND LOCAL LAW ANDPREPARE REGULATION CAN AFFECT YOUR BUSINESS  MARKET RESEARCH FOR EXISTING & POTENTIAL COMPETITIONADAPTYOUR SUPPLYCHAIN TO LOCALMARKETCHARACTERISTICS 17
  18. 18. 14/01/2013UNDERSTAND& ADAPTYOUR PRODUCTAND MARKETSTRATEGY TOTHE LOCALCONSUMERADJUSTPRICES, PROMOTIONS,PRODUCT, ETC. TO THENEW MARKETFOR EXAMPLE,SPECIAL COLLECTIONFOR COLD ANDTROPICAL COUNTRIESADAPTSPECIALCOLLECTIONFOR ARABCOUNTRIES 18
  19. 19. 14/01/2013ADAPTSPECIALCOLLECTIONFOR ARABCOUNTRIESCOLLABORATEWITH LOCALPARTNERS TOSELECT THE RIGHTLOCATION ANDEXPANSIONSTRATEGY Tokyo, JapanCHOOSETHE RIGHTBUSINESS MODELFOR YOUFRANCHISE STORES: CONSIGNMENT  OUT RIGHT PURCHASE  Aurillac, France 19
  20. 20. 14/01/2013CORPORATESTORES Milano, ItalyONLINESALE asos.com moderepubliek.nlTRAVELRETAIL Barcelona, Spain 20
  21. 21. 14/01/2013 SHOP-IN- SHOPS Chavannes, Switzerland TURNOVER DISTRIBUTION Middle East 10% North & South America 5% Europe 65% Africa 2% Australasia 1% Asia 17%Forecast 2012 EXPANSION 21
  22. 22. 14/01/2013 Globalization, success or failure? Denis Knoops SVP Affiliated Retail & New Markets Delhaize Group • Revenues* €22.6 billion • EBITDA €1.4 billion • Net Debt / EBITDA 1.9x • Rating • BBB- / Baa3 with stable outlook • Stores 3.388 • 75% supermarkets • 25% convenience stores • Countries 11 • Employees 158.000 • Selling m² 5.5 million All figures as of September 30, 2012 Southeastern EuropeUnited States: Belgium:- Stores: 1.550 - Stores: 834 (SEE) & Asia:- Revenues: € 14.6 bn - Revenues: € 4.9 bn - Stores: 1.004 - Revenues: € 3.2 bn 22
  23. 23. 14/01/2013 Delhaize United States • Is the largest market for Delhaize Group • Total Group Revenues: * 65% come from the 5 U.S. banners * Operating along the East coast * From Maine down to Florida * Covering 18 states All figures as of September 30, 2012 Regional Leading supermarket Low-cost Inspiring Fresh supermarket operator in rural supermarket in healthy choices supermarket in chain in the areas in Georgia for life in the FloridaDescription Southeastern and Northern Philadelphia and Pittsburgh North East U.S. FloridaNumber of Stores 1.138 73 53 181 105 Georgia, Maryland, Virginia, Southeast and Northern Northeast West coastArea Mid-Atlantic Florida, South North Carolina, Pennsylvania, New of Florida Carolina JerseySurface range 25.000 - 45.000 25.000 - 45.000 18.000 - 20.000 25.000 - 55.000 25.000 - 50.000(sq.ft.)Number of Products 15.000 - 20.000 15.000 - 20.000 6.000 - 8.000 26.000 - 46.000 28.000 - 42.000 All figures as of September 30, 2012 Delhaize Belgium • A multi-format food specialist • 834 stores, 16.500 associates • Focus on fresh food, convenience & service (1) • Leading position with market share of +/-25% • Balance of company-operated and affiliated stores All figures as of September 30, 2012 (1)  Source: AC Nielsen, Dec 2011 23
  24. 24. 14/01/2013 Delhaize Balkans Market of55 million  people  Combined equivalent to UK presence in  • Strong regional position in the Balkans 7  countries • Serbia: 360 stores Romania • Greece: 266 stores Bosnia and  Serbia Herzegovina • Romania: 153 stores Montenegro Bulgaria • Bulgaria: 42 stores 908  30.300  • Other: 87 stores stores at the end  Albania employees   of Q3  2012 Greece All figures as of September 30, 2012 except number of employees as of June 30, 2012 Delhaize Indonesia • 51% Joint Venture in Indonesia • Stores concentrated in major cities (Jakarta, Bandung) • Number of stores: * 96 stores at the end of September 2012 * 15 store openings in 2012 * Faster expansion in coming years • 5.357 associates as of June 2012 Globalization • Why does it work ? • Why does it fail ? 24
  25. 25. 14/01/2013 Globalization Why do no grocery retailers operate in all 5 of the biggest markets ? Why ?• Walmart Not or no more in continental Europe?• Tesco Not or no more in continental Europe?• Carrefour Not or no more in US ? 2 theories about globalization NOT YET >< NEVER 25
  26. 26. 14/01/2013 Globalization (1st theory) • Takes time • Global is new NOT YET • All industries move into that direction • Economy of scale‘NOT YET’ globalization Success Globalization (2nd theory) • Synergies < differentiation • Global efficiency < local effectiveness NEVER • Global suppliers no interest to help • Diseconomy of scale (local scale > global scale) • Bureaucracy 26
  27. 27. 14/01/2013‘NEVER’ globalization Success Back to DelhaizeSometimes we succeed • Number 1 in Bucarest Romania 27
  28. 28. 14/01/2013 Sometimes we succeed • Number 1 in Jakarta Indonesia Sometimes we succeed22%20%18% While operations in Greece are resilient16%14% • Our profitability is stable12% • Market share is improving10% • Proactively managing the risks Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2006 2007 2008 2009 2010 2011 2012 Market shares* Greece The source of the market share data is Nielsen Sometimes we fail # stores 35 Thailand 1 Time 1998 2003 28
  29. 29. 14/01/2013Sometimes we fail # stores 100 Republic Czek 1 Time 1991 2008 Magic Recipe ? ? Global is powerful however Local is beautiful ... 29
  30. 30. 14/01/2013 The Future Is Already Here. It’s Just Unevenly Distributed. WILLIAM GIBSON Get in touch: Ebeltoft Group Balmes,109 5º2ª 08008 Barcelona, Spain Tel.: +34.93 452 73 39 ebeltoft@ebeltoftgroup.com www.ebeltoftgroup.com e-Q&A Text NRF2013 and your question to 22333 Tweet @poll NRF2013 and your question eGo to www.pollev.com and type NRF2013 and your question 30
  31. 31. 14/01/2013 31

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