2. Intro..
The UK is a diverse market
with many ethnic groups, more
than 300 languages are now
spoken in London alone.
Musims are now the largest
religious group in the UK after
Christianity.
Most second and third
generation ethnic minorities
are mobile with a high
standard of education and
disposable income.
UK celebrates and values, the
diversity brought by its many
ethnical communities such as
polish, Jewish, Arab, Pakistani,
Indian, Bangladeshi, Chinese
and Afro Caribbean.
We see that Ethnical minorities
have a equal balance spread
amongst the whole of the UK.
However the main cities of the
UK ( London, Birmingham ) still
occupy a larger ethnic
percentage.
3. Ethnic Communities
As far back as the 1950’s we
can see the arrival of
immigrants, although the
racial variety has increased
considerably over the
decades. Arrival of
Jamaicans in the 1950’s,
eastern European's in the
1990’s, Poles in 2004.
In 2001 the ethnic population
accounted for some 4.8m. (
Indian & Pakistani 1.8m, Afro
Caribbean 1m )
2m plus Muslims, ( 4%
of the total UK
population ) spending is
more then 20.5bn.
Figures show that the
potential Muslim food
market equates in
excess of 3bn plus and
rapidly on the increase.
4. Ethnic Communities
The Polish food market has been
accelerating over the number of
years in the UK. In 2007 their were
600,000 Pole’s living in the UK.
Today the number has more then
doubled. To accommodate the like’s
of Tesco’s, Morrison’s and Asda’s
have entered aggressively with
Polish style ready meals and a
mouth watering Polish food range.
Fact currently in the market there
are some 500 plus polish lines.
Polish population
LONDON - 159,400
BIRMINGHAM - 9,750 (0.9%)
MANCHESTER - 7,000 (1.4%)
EDINBURGH - 13,000 (2.7%)[8]
GLASGOW - 8,406 (1.4%)[9]
CARDIFF - 2,800 (0.8%)
BELFAST - 3,660 (1.4%)
NOTTINGHAM - 24,950 (2.4%)[5]
BRISTOL - 6,575 (1.5%)
LEEDS 7,200 (1.0%)
5. Halal / Muslim Market
Muslims are another significant force in the UK
food market’s. Non American brands such as
Mecca Cola.
We can safely say over the year’s we shall see the
emergence of more Sharia Compliant Muslim
brands.
Universities, Schools, Hospital’s and many major UK
Companies today have halal Menu’s for their Muslim
Patient's, Student’s, Pupil’s and employee’s.
In 2007 we saw the creation of Birmingham based
Pak Supermarket, whom have since opened a
number of store’s to accommodate not only the
South Asian community but also the Somalian, Afro
Caribbean and other ethnic communities.
Traditionally for year’s halal meat has always been
bought by the local smaller butcher’s. Although today
Asda and Tesco have tried to penetrate this field and
have been able to target a certain percentage of the
second and third generation of Muslim's, but
unfortunately have failed to convince the overall
We can safely say for years
to come we will still see
generation’s of Muslim
fulfilling their halal meat &
poultry needs from their local
smaller store butchers on
their doorsteps.
Increasing wealth in
combination with higher then
average birth rate make this
sector very attractive for
decade’s to come.
6. The wider Asian Group
Major UK retail chains are also
expanding into many other
ethnic minorities targeting both
the the ethnic and the white
consumer.
As this market expands,
Strategies are being formulated
on Splitting and Specializing to
factor these various consumer
sector’s.
It is becoming the norm to retail
Cantonese, Malaysian, Korean
and Thai as well as Chinese
food lines.
The Ethnic sector is so diverse, it can be
further divided into a sea full of more
segments.
Indian food can be split into Gujrati,
Bengali, Punjabi and Sindhi.
Pakistani Food can be split into
Kashmiri, Mirpuri and so forth.
FACT: Britain is the only European
country, where the ethnic food market
accounts for more then 3 % of all
packaged food.
There is no one group yet that has been
able to exploit this enormous on the rise
ethnic market to it’s full potential.
7. Wider Ethnic market
Minority ethnic population
as 11.6 million people
Or 12.9% of the total
population.
In 2013, blacks and
South Asians were close
to have outnumbered the
white population in half of
all London boroughs as
well as the cities of
Birmingham and
42.3% living in
London
12% West Midlands
9% South East
8% North West
7% Yorkshire and the
Humber
8. UK ethnic store model
Smaller store format on the doorstep,
buried in communities with diverse ranges
can become part of a bigger profitable
picture.
The Strategy has to cement some of the core
elements such as location, consumer
demographics', pricing, promotional activity,
product range, ( tailored for each individual store )
no one package fit’s all.
Saving to travel mile’s, flexible opening hours,
quality and affordable product’s, a good selection
of chilled, produce, meat, fruit & vegetables in
combination with non food line’s such as
medicine’s, pet food, house hold cutlery, toiletries,
stationary, electrical goods, ( toaster’s, kettle’s,
scale’s, mixer’s ) toy’s and so forth.
Ethnic minority demands have
been neglected by mainstream
retailers in the UK for a long
time.
A recent study found that only
religious identity was capable to
explain the use of ethnic shops
in a sense that consumers who
strongly identified with their
religious group are more likely to
use ethnic shops instead of
mainstream retailers than their
less religious counterparts.
9. Competition
Although so far no chain has
been able to fully exploit this
sector.
Like’s of Tesco’s, Asda’s and
other hypermarket’s have been
trying since 2006 onwards to
cater for the ethnic minorities.
Year on Year we are seeing their
shelves’ packed with more and
more line’s.
More recently we have seen the
halal meat & poultry packages
appearing in their chiller’s.
However a recent survey conducted by
the Muslim association a few years ago
stated that the majority of the UK
Muslim’s did not feel comfortable buying
their meat & poultry from their
supermarket rather want to see their
meat being cut infront of their eye’s from
their local door step butcher.
However there is a trend appearing from
the new generation that are slowly
growing in number that are acquiring
their needs from the supermarket’s. We
can still predict that there is along way to
go before the supermarket’s will be able
to persuade the majority Muslim
consumer.
10. Competition
Then we have the likes of
minority Asian symbol brands,
likes of Pak Foods, Sharif &
Sons, Mullaco and a few more.
Whom are small in number and
seem happy with their
geographical location’s. They
are not geared nor have the
imagination or tools ( Finance,
vision, creation ) to expand on a
grand scale through out the
towns of the UK.
Then we see the
smaller corner store’s,
likes of polish, Arab and
Asian store’s. Their
expectation is to grow
into the likes of Pak
foods, or they quickly
get snapped up by the
likes of the other symbol
groups to grow.
11. Competition
Assessing the above I
strongly feel there is room for
a new player in the market, a
model built on some of the
core fundamental elements
catering for their
communities, resulting in
concrete benchmarks to be
rolled out efficiently and
rapidly across the UK.
Creating a multi-channel strategy
may be part of the solution.
Although numerous certificates are
on the market to overcome the trust
gap. Of these certificates HMC
(Halal Monitoring Committee) is the
most trusted and especially younger
consumers look for it. Yet, almost all
consumers reported that personal
trust to the (Muslim) retailers is the
most important shop selection
criterion, for religious (halal) grocery
shopping.
12. Population / Location
Bangladeshi LONDON - 222,127 (2.7%)
MANCHESTER - 6,437
(1.3%)
BIRMINGHAM - 32,532
(3.0%)
METROPOLITAN
BOROUGH OF OLDHAM -
16,310 (7.3%)
LUTON - 13,606 (6.7%)
SANDWELL - 6,588 (2.1%)
BRADFORD - 9,863 (1.9%)
15. Population / location
Black British GREATER LONDON -
1,088,600 (13.3%)
BIRMINGHAM - 96,400
(8.9%)
MANCHESTER - 43,500
(8.6%)
NOTTINGHAM - 37,900
(7.3%)
LEICESTER - 20,600 (6.3%)
BRISTOL - 25,700 (6.0%)
SHEFFIELD - 20,100 (3.6%)
16. Population / Location
Chinese
London - 124,250 (1.5%)
Manchester - 13,500
(2.7%)
Birmingham - 12,700
(1.2%)
Liverpool - 7,978 (1.7%)
Edinburgh - 8,076
(1.7%)[8]
Cambridge - 4,450 (3.5%)
Oxford - 3,600 (2.3%)
Sheffield - 7,400 (1.3%)
Newcastle upon Tyne -
6,040 (2.2%)
Nottingham - 8,930
(2.0%) [5]
Exeter - 1,998 (1.7%)
17. Arab’s
National Association of British Arabs estimates
that there are around 566,769 first and second
generation British Arabs.
Somalia 120,484
Iraq 90,426
Egypt 48,927
Saudi Arabia 49,076
Morocco 32,019
Majority in London, many are businessmen,
recent immigrants or student’s.
There is also a good percentage of Yemini
Arabs in Cardiff and Newcastle upon tyne.
Bangladeshi
Pakistani
Indian
Polish
Chinese
Afro..
There is great potential for a
new unique model to be created
in order to be able to cater for
these communities.
18. Market
UK retail sales were
approximately £265
billion in 2007, which is
larger than the combined
economies of Denmark
and Portugal.
2011 UK retail market
was 15% ( 312bn )
Ethnic minorities have
tremendous buying
power and often have
choices about whom
they buy their
products and services
from.
19. Ethnic minority a force in the UK
23% of Britain’s doctors,
50% of pharmacists,
13% of travel
agents,13% of service
industry managers, 24%
of restaurant staff and
27% of London
Underground staff were
of ethnic minority origin.
In 2003, a report by the
Institute of Practitioners
in Advertising (IPA) on
ethnic diversity in the
UK, disclosed the
combined disposable
income of ethnic
minorities as an
estimated £32bn.
20. Ethnic minority a force in the UK
Spending power of the
UK’s ethnic minority
communities was
estimated at £300 billion
in 2010.
In 2001, Muslims in the
UK had an estimated
spending power of
£20.5 billion
Halal market at
around £1.5 bn, with
extensive market
potential.
21. Demand
From the above we see
there is huge scope and
demand in catering for
the12m (14%) ethnic
figure.
Unfortunately the
hypermarkets have failed
and the message coming
out from the ethnical
minorities is load and
clear “ mainstream retail
is unappealing.
The mainstream
supermarkets don’t
sell the fresh food
products that there
smaller counterparts
are selling. “They
stock just the popular
products.”
22. Demand
Ethnic minorities are
saying that the high
street is failing in
becoming more
diverse and in
attracting a broader
range of shopper.
Other Countries in Europe and America
have also tried to fill this gap by launching
new concepts to integrate within their
existing bigger model’s.
Fortunately for ethnic supermarkets,
conditions are only expected to get
better for the industry over the next
five years. As the Asian and Hispanic
populations continue to grow
domestically and disposable income
improves in line with the economy,
demand for cultural foods will
increase further.
23. Canada’s Sobey
Canada’s Sobeys Inc. recently launched
Chalo! (Meaning "let’s go) FreshCo, its
first South Asian-focused discount
grocery store, in Brampton, Ontario.
"Chalo! FreshCo is a significant and
unique addition to our company’s food
retailing lineup," noted Rob Adams,
general manager, discount format at
Stellarton, Nova Scotia-based Sobeys.
“This store caters to the South Asian
market while also driving our mission to
inspire Canadians to discover new
foods, products and recipes, and to help
them Eat Better, Feel Better and Do
Better."
A wholly owned subsidiary of Empire
Co. Ltd.,
Sobeys owns or franchises about
1,500 stores in all 10 Canadian
provinces under the retail banners
Sobeys, Safeway, IGA, Foodland,
FreshCo, Thrifty Foods and
Lawton’s Drug Stores, as well as
350-plus retail fuel locations.
Sobeys and its franchise affiliates
employ more than 125,000
associates.
24. The model
A Ethnic / Asian Supermarket
that will stock product’s imported
from Multiple countries from
East, South and South East
Asia. Localized for each ethnic
community, factors such as
taste, range, promotional activity
and price.
Spices and Ingredients well-
suited for ethnic and Asian
cuisines normally not found in
Western Supermarkets.
Store will range from small to
large big box and will cater
The ethnic sector, is
only expected to get
better.
As the populations
continue to grow
domestically and
disposable income
improves in line with the
economy, demand for
cultural foods will
increase further.
25. Mechanics to make us apart
In store cheese, health professionals to offer advice /
guidance on the products we carry, from food taste’s,
food ratings, classes, along with tips for cooking.
Special Events hosted for food and wellbeing events
by fresh ways supplier's to demonstrate their
product's.
In store Fresh ways kitchen to prepare food in front of
customer’s, featuring noodle dishes, stone oven
baked pizza’s, hot roast lamb ribs, steaks and freshly
made Green, Pink, Arabic and traditional tea, coffee
and smoothies. Stone oven-baked pizza, hot roast
Steak dinners.
Natural and Wellbeing departments offering than
4,000 products to support health, energy and diet
goals, including organic, sugar-free and gluten-free
options; vitamin supplements; and natural health care
products.
A larger produce department that carries ready-to-eat,
Premium meat and seafood departments
with butchers who will custom cut meat for
any occasion, and a big selection of value-
added meat and seafood preparations that
are ready to cook; Humane HMC certified
beef, chicken, and fish products.
Along with weekly and monthly specials,
Fresh ways will offer everyday low prices on
such essentials as butter, chicken, eggs,
milk and potatoes, and food choices such
as almond milk, bananas and organic eggs.
Freshways loyalty Club Points on more than
3,000 products, and to also introduce more
than 300 private label items.
26. Innovating Grocery
Russian inventor Semenov Dahir
Kurmanbievich has filed a patent application for
drive through supermarkets to make shopping
convenient and fast.
Many companies have stepped up to make
products more easily available, even at the
touch of a button.
Amazon has added food delivery service to its
Prime Now membership, and revealed plans for
a 'Dash' button.
To purchase from local vendors, customers use
the Prime Now app, available on iOS and
Android devices.
Dash will be set up using the Amazon mobile
app to assign the product you want.
Now a Russian inventor
has come up with the
solution to please
everyone, drive through
supermarkets where
everything you need is
on cascading shelves
and you never have to
get out of a car.
27. Mechanics
Culling brands that don't
sell, producing copycat
versions of high street
lines, offering expensive
fare in the form of Belgian
chocolates and cod fish
acquired from the local
market, we can reach a
wider audience.
Rather than offering a wide
range of choice to trolley-
stacking weekly shoppers,
aim at the little-but-often
Just being cheaper will not
lead to success, combination
of affordability with consistent
quality is the formula.
Equation
Quality 10% lower than the
classical brands but prices
30% lower which then means
that the customer gets more
value per pound spent.
28. Mechanics Ryanair Example
The art of Ryanair is to
take out all the things that
are not absolutely
required by the
passengers, saving costs
and passing these on in
the form of lower prices to
the customer. At the same
time because the prices
are lower they increase
capacity utilisation.
Compromise on the
luxuries, modern
lighting, state of the
art shelving, world
class fixtures, iand
pass the savings in
the form of cheaper
prices.
29. Mechanics Discounters
Butchers,
fishmongers, fruit &
veg., in store bakery (
fresh cakes, bread ,
croissants ) these are
in addition to the dry &
chilled goods which is
the norm.
Discounters is the way forward.
"Middle class people go on
holiday to Europe, they rent a
villa, buy some local groceries
and then they find a Lidl and
think, gosh this has all the
shopping I want but it's half the
price of a local convenience
store.
"They come back to the UK and
think, well I was happy enough
to buy the stuff when I was on
holiday, I'm happy enough to
30. Fact’s
85,031 grocery stores in the UK.
UK Grocery worth £177.5 billion.
Split into four sectors
Supermarket Chains.(3,000-25,000
square feet)
Convenience Stores. (less than 3,000
square feet)
Traditional Retail and Developing
Convenience Stores (less than 3,000
square feet, news stands, green-grocers,
liquor stores, gas stations)
Alternative Channels: (internet or
catalogue home shopping, farmers’
markets, and other produce markets and
vending machines.
Food and grocery
expenditures account for
51.3 pence in every £1.00
of retail spending
(excluding restaurants).
21 pence in every £1.00
spent on food and grocery
is spent in convenience
stores.
31. Income Stream Ethnic Store
Elements from where income is derived from:
Meat & Poultry 30 -32 %
Fruit & Veg.. 35 %
Dry Goods & Chilled 30 – 33 % ( Spices, Morning Goods,
Desserts, Yogurts, General Groceries )
Additional Categories can be included :
In store Bakery
Clothing
Stationary
Cuttlery
Toys
32. Overheads
1. Wages
2. Rent equipment
3. Electric
4. Rates
5. Water
6. Telephone
7. Maintenance
8. Bank Charges
Overheads need to be in parallel to
Turnover.
I.E. More Sale’s can justify more
workers and electric and so forth.
The Turnover has to be above 25K
plus to accommodate our model and
allow good returns.
33. Supplier's East End
East End Foods, supplies 80 per cent of independently
owned Indian food shops in Britain and most of the
supermarket chains.
Started in Wolverhampton 40 years ago by the Wouhra
family, originally from New Delhi.
Located in West Bromwich and a cash-and-carry
warehouse has recently been opened in the old HP Sauce
factory in Aston Cross, Birmingham.
1,500 products lines, has an annual turnover of £180
million and employs more than 300 workers.
34. East End
Company posted profits of £4.9 million.
The business is one of the few in the UK that produces and processes everything in
this country. The site in West Bromwich is about three times the size of Aston’s
120,000sq ft depot and supplies multiples, independent traders and exports to 40
35. Suppliers P. & B. (Foods) Limited
P. & B. (Foods) Limited is an active company incorporated on 27 August 1970 with the
registered office located in West Yorkshire. P. & B. (Foods) Limited has been running for 45
Years 9 Months.
P&B Foods is a leading UK and European wholesale supplier of Spices, Lentils, Flour, Rice,
Pickles plus much much more and home to the famous Heera, Balah, Parivaar and Rishta
brands. We're also agents and distributors of some of the most popular food brands in the
South Asian, Caribbean and Chinese markets.
Based in a unique 150,000sqft packing and warehouse facility located smack bang in the
middle of the UK, 120 sales and warehouse staff plus our own transport fleet ensure
customers both in the UK and across Europe are rarely more than 3 days away from delivery .
