The Import Challenge

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The Importation Challenge: Finding the right market and channels to market for imported wines. The key to success means tracking changes in consumer spending, re-balancing your portfolio to a RRP of $20 and seeking new distribution channels that serve the economy conscious consumer.

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The Import Challenge

  1. 1. Drivers  of  change    Consumers:   1
  2. 2. The  buyer’s  journey   www.flickr.com/photos/mtsofan/3239757376  
  3. 3. 1.  Barrier  to  purchase  declines  to  $20   www.flickr.com/photos/mtsofan/3410477570  
  4. 4. Increased  bargain  buying   www.flickr.com/photos/tany-­‐kely/3121945021
  5. 5. 2.  People  eat  out  less  
  6. 6. People  eat  out  cheaper   www.flickr.com/photos/caribb/3425394982
  7. 7. Less  of  this    
  8. 8. More  of  this   www.flickr.com/photos/thepartycow/170952289  
  9. 9. …and  more  of  this   www.flickr.com/photos/pierrelaphoto/2525986695  
  10. 10. …and  more  of  this   www.flickr.com/photos/sundazed/3116850995  
  11. 11. 3.  French  wines  lose   their  preference   www.flickr.com/photos/bcie/3278155765  
  12. 12. 4.  People  want  simpler  labeling  
  13. 13. Foreign  value?  www.flickr.com/photos/kevinomara/3238487634  
  14. 14. …or  local  value?   www.flickr.com/photos/kevinomara/3375555073  
  15. 15. 5.  Expanding  choice  and  great  deals   www.flickr.com/photos/liXleredelf/3010321143  
  16. 16. Drivers  of  change  Industry:   2
  17. 17. 1.  IntroducYon  of  lower  price  labels  
  18. 18. 2.  Inventory  clearances   drive  down  margins   www.flickr.com/photos/xrrr/2610807053  
  19. 19. We  are  moving  volume   www.flickr.com/photos/sillydog/298332685  
  20. 20. Our  compeYtors  are  also  moving  volume   www.flickr.com/photos/seaXleye/3217265872  
  21. 21. 3.  Suppliers  seek  short  term   sales  by  stuffing  channels   www.flickr.com/photos/caseyako/3135825963  
  22. 22. 4.  Distributors  reduce  number   of  brands  carried   www.flickr.com/photos/chrisYne592/2866727808  
  23. 23. 5.  Channel  sYll  recovering  from   weak  sales  of  2006-­‐7  vintages   www.flickr.com/photos/zach_manchester/1331408596  
  24. 24. Conclusion?   www.flickr.com/photos/emdot/2336856724  
  25. 25. ImplicaYons  for  Wine  Importers:   3
  26. 26. 1.  Higher  level  of  domesYc   sales  over  direct  imports  
  27. 27. 2.  Lower  margins  due  to  increased  pressure  on  prices  
  28. 28.  3.  Lower  sales  at  top  end   www.flickr.com/photos/markonen/450656727
  29. 29. 4.  2007  vintage  sales  delayed   and  volume  reduced   30  
  30. 30. 5.  Distributors  are   disenfranchised   www.flickr.com/photos/morberg/3556674976  
  31. 31. DepleYons  are  down   www.flickr.com/photos/seaXleye/3024230332  
  32. 32. RecommendaYons  and  acYons:   4
  33. 33. 1.  Increase  sales  at  sub  $20:   •  Re-­‐balance  exisYng  poraolio   •  Shib  to  channels  in  Sub  $20  space   www.flickr.com/photos/xrrr/2321685873  
  34. 34. 2.  Invest  in  distribuYon  network:   •  Re-­‐energize  exisYng  wholesalers   •  Appoint  new  wholesalers   www.galwaymediaYon.ie/uploads/images/iStock_000002738475Small.jpg  
  35. 35. 3.  Leverage  promoYons,  make   deals  and  start  shipping     www.flickr.com/photos/bradleypjohnson/457370791  
  36. 36. 4.  Reduce  cost  of  operaYons   wherever  possible    
  37. 37. David  Ednie   President  &  CEO   SalesChannel  Europe   Ph:  +33  676  60  09  25  (FRA)       Ph:  +61  415  94  51  57  (AUS)  Email:  david@saleschannel-­‐europe.com  Website:  www.saleschannel-­‐europe.com  

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