2. ESTABLISHING A RETAIL
BRAND IN EMERGING MARKETS
BoConcept Holding A/S
BeyondBRIC
Wednesday, December 8th 2010
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3. BoConcept anno 2010 – a global brand & business
International retail-oriented concept
holder within furniture and lifestyle
products for private homes
Affordable luxury products primarily
sold via 240 franchise-based
BoConcept Brand Stores in approx.
50 countries
Strong brand and highly coordinated
and commercial collection with
attractive market positioning
Turnover of DKK 1bn (retail
turnover DKK 2.5bn)
530 employees (2,500 incl. retail
staff)
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4. Our history – from furniture producer to retail
concept owner
Phase 1 (1952-1992) - From cabinet maker to furniture production
Produce and sell furniture products to product customers
Phase 2 (1993-2003) - Furniture producer with franchise-based retail chain
One Company – One brand strategy deployed in 1999
- Close down furniture production and cooporation with product customers
Phase 3 (2004-) - International retail-oriented conceptholder
Focus on brand development and brand store expansion
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6. Collections positioned to reduce exposure to
price competition
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11. Business model based on refined core skills and
award winning franchisee model
Customers
Sales, delivery and
after-sales services
Franchisees
General
support
Franchise masters
Brand, concept
and products
BoConcept A/S
IT,
Sourcing Design
Supply Marketing training Business
and and
chain and and dev. and
own- product
mgt. comm. specialist admin.
prod. dev.
support
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12. The world is our marketplace
Americas ASIA
17% of revenue 18% of revenue
42 brand stores 46 brand stores
EMEA
65% of revenue
152 brand stores
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13. Development of a global brand store chain Finland
Mexico
India
Qatar
Saudi Ar.
Italy
Switzerland
Dom. Rep. Vietnam
Bulgaria Malaysia
Czech Rep. Singapore
Iceland Egypt 246
Luxemburg Lebanon 240
Romania 224
Canada Belgium
Guatemala
Venezuela
Russia 193
Malta Columbia
Panama Croatia UAE
Slovakia 163
Hungary New
Ireland Zealand
Costa Rica 139 141
Germany
Kuwait
Portugal
Sweden Poland Denmark
119
USA Holland 107
UK
Japan
Philippines 84 86
Cypprus
Greece
Ecuador 56
France China Spain
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1 1 3 10 20
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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14. Actually, it went from emerging markets
to developed markets...
BoConcept’s current business model
was first developed to B&C-markets
(= emerging markets)
- Same concept
- Same collection of products (no critical
mass on special products)
- Same distribution channels (and same
tools to optimise)
- Online marketing
18% of turnovers are today
generated in emerging markets
Pipeline of new openings contains
42% projects in emerging markets
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15. Emerging markets are very attractive
for BoConcepts
Growing middle classes with increasing
purchase power
European products, concepts and business
styles are in huge demand in Asia, but
position may vary
- Affordable luxury in Europe is High end in
emerging markets
Very large interest from potential
franchisees in emerging markets to become
part of a concept
- Entrepreneurial by nature
- Accustomed to brand import and marketing
- Lower start-up costs than developed markets
- Limited competition at this stage
Short time-to-market and target groups
easy to communicate to
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16. ...but certain requirements are needed to succeed
People with local knowledge are
crucial in process
- Approvals
- Toll and regulations
- Financials
Master organisation in place to
handle special challenges and
development needs
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17. Strategy focused on utilising strong business model
and market uptake to increase growth
STRATEGY FOR PROFITABLE GROWTH
TRACK l TRACK ll TRACK lll
Growth though Cost reduction
Growth though more
increased through increased
brand stores
same-store-sales •A-markets and new productivity
markets •Attractive sourcing
•Collection updates
•New store concept agreements
•Multi Channel Retail
•Stimulation package to •Optimise supply chain
•E-learning and training
accelerate pipeline build-up •Asset light model with low
overheads
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18. Continuously growing business in emerging markets
important part of overall strategy
Further penetration of emerging
markets are key element in
BoConcept’ growth plan for
2014/15 (10-15% growth in
revenues p.a.)
Strong focus on increasing
same-store-sales
Grow number of stores from
240 (54 in emerging markets)
to 350-400 (app. 100 in
emerging markets)
Penetration of new markets
supported by global distribution
centers – special focus on Asia and
Latin America
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19. Thank you for your attention
For further information, please visit our website
www.boconcept.com
Hans Barslund, EVP & CFO
E-mail: hb@boconcept.com
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