Distribuzione globale e globalit della distribuzione I fattori critici strategici che possono influi

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Distribuzione globale e globalità della
distribuzione I fattori critici strategici che
possono influire sul cambiamento della
distribuzione moderna europea

• Christophe Lafougere
• Direttore GIRA

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Menu

• The sources of our science
• The most significant forces driving change in
  food retailing presented here are
• Change Is Now a Permanent Feature of the European
  Food Drink Supply Chain
• The changing consumer/shopper in Europe
• Industrial concentration in retail and supply
• Filling the proximity gap
• B2C or e-tailing - is this a consumer revolution?
• B2B - what markets will it take?
• Key issues for retailers
• A survival guide

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BUT FIRST5 minutes of publicity
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The Face ofFood-based Multiple Retailingin the
Major EU Markets2005 - 2010 The Retailer - a
User ManualA Unique Strategic Analysis of the
Future of European Multiple RetailingSuppliers
Who You'll Be Selling to - and HowRetailers
Concentration, Competition Consumerism
A GIRA multiclient study now open for subscription
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A unique and comprehensive strategic assessment
of the future of Modern Retailing in Europe


supers,
Germany, France, UK, Italy, Spain, Belgium, the
As we are talking about BB and e-tailing, Have a
look at our site www.girafood.com
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Change Is Now a Permanent Feature of the European
Food Drink Supply Chain
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Change and its impact on retailing

• Change is now a permanent feature of European
  food distribution
• the consumer is changing need to adapt outlets,
  product offer, and in-store marketing methods
• the supply chain is changing new techniques of
  buying and selling are needed
• information flows are changing leading to
  improved accessibility and targeting potential
• technology is changing - but still often
  resulting in a "solution in search of a problem"

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The changing consumer/shopper in Europe
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Passato, presente, futuro il prodotto e la sua
distribuzione
Teoriadominante
Giudicarela Qualità
Periodo
Rivoluzione
Asse
Distribuzione
Ecologia creazionedellagrobusiness
Prima1970
Produrrela qualità
ENGINEERING
A posteriori
Prossimità
Self service creazionedelle GUV (grandi unità
di vendità)
Logica di filiera
Imitazione sociale
70-2000
MARKETING
GUV
Adeguamento (alla situaz./funz.di consumo)
Interattivo utilizzo della multimedialità
Logica consuma-tore
Home delivery, secondario, specializzato
2000
USING
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Passato, presente, futuro il prodotto e la sua
distribuzione
Teoriadominante
Periodo
Fruizione
Vendere
La Marca
Comunicare
Prima1970
Il prodotto(materiale)
Generica/il codice
Passaparola/la radio
ENGINEERING
Sperata
Il segnodistintivo/il logo
Segni(sociali)
Pubblicità/TV
70-2000
MARKETING
Istantanea
Valoridi utilizzo(relativi)
Il sensodi utilizzo/linterattivo
PLV ela confezionee Internet
2000
USING
Diversificata
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The changing consumer - historical context

• The past has been marked by 2 key phases
• technology in the 50s and 60sthe era of big food
  plants and standardised products in a national
  context
• marketing from the 70s until the mid 90smarked
  by hyper/supermarkets, brands, yuppies, TV
  advertising - all in a social group context.
• The next ten years will be marked by
  ever-increasing consumer individualism
• individual product choice determined by the
  consumption situation and function
• the USP is the key selling argument better than
  the competition
• retail becomes more specialised.

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The changing consumer - what this means

• Social valorisation no longer works for FMCG it
  is adaptation to meal needs that counts
• Neutrality is the key to 70 or more of food
  needs
• Time is the luxury
• The perceived quality" of the product in the
  store is a function of all the elements of the
  marketing mix. And it must tell a convincing
  story
• The store itself is now a key element of the
  marketing mix the product is not the same if
  sold in Aldi or MS, but both can be acceptable
• Shoppers will use more retail formats, each best
  adapted to the situation of consumption envisaged
  at the time of purchase.

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The situation/function universes of foods

• Already a reality for consumers. They will force
  us
• to drop the old ideas about product family and
  category management marketing
• to focus on the moment of consumption and not
  just the moment of purchase
• to integrate the fact of substitutability of very
  different foods.
• As a result
• retailers will be slow to introduce this notion
  so as to avoid perturbing customers existing
  habits
• they will be the key merchandising challenge over
  the next 10 years.

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Retailer attitudes to suppliers increasingly
depend on the nature of the product
Products adapted to Neutral consumption
Situations
Products Valorisedon consumption
KEY Price profit NOW
KEY Image profit tomorrow
Markets
Mass
"Niche"
Products
Mature - devalorised - practical
Innovative - differentiated - something extra
Producers
Scale economies - reassuring - industrial
Flexible - dynamic - involved
Promotion
POP supported by a search brand
An "excitement" brandsupported by POP
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Industrial concentration in retail and supply
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Concentration in the grocery trade market
shares of the top 5 retailers in Europe









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Structural Change is Happening all the Time

• Since
• Auchan opened Pandora' box in 1996 with its
  purchase of Docks de France
• Aldi Lidl showed that HD wasn't just Germanic
• Carrefour and Promodès showed us definitively
  that big is beautiful
• Wal-Mart took on the German retail supply scene
  and is attacking the UK market (via Asda)
• European minnows Ahold and Delhaize le L. have
  become retail whales in the US
• There can be no looking back.

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Development of Modern Retailing in Europe

1980 - 1990 - 2000 - 2010
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Concentration industry versus retail

• Retail concentration was mainly national, but
  with increasing international expansion
  (colonisation is mainly finished so there will
  be more and more merger acquisition)
• Most are still focusing on the super/hyper
  formats, leaving convenience gaps in the market
• Supply concentration is sectoral
• Selling is focussed on product families sold
  internationally
• Hence the main competitor in mass market segment
  are Retailer Brands
• Leading to focus and reinforcement brands
  (multinationals tend not to do RB)

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And it is Not Just Change of Ownership

• Retailer buying groups - are now potentially
  worldwide, with internet B2B
• ECR is no longer just a consultant's dream
• Category management now takes on buyer-brutality
  by no means just a "mirage"
• Retailer brands on a European scale the
  Carrefour group's RBs make it a major food
  "producer in its own right
• With the "right" producers beginning to follow
  their retail clients throughout Europe the world

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Key Elements in Supplier Relations

• Poor supermarket financial performance has led to
  concentration with the aim of greater buying
  power
• Ahold's buying centre group-buys worldwide,
  including for its US supers, foodservice, petrol,
  kiosks and e-tail activities
• Wal-Mart is an important model for the future in
  several areas, but not least for its (ECR)
  on-line Retail Link
• the supplier runs the supply chain / partnership
• economies for both supplier retailer

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Supplier relationships in Europe

• The future of supplier/retailer relationships
  will be determined by
• Retailer concentration and its impact on brands,
  retailer brands and supplier listing
• Ability of retailers to work in several countries
  and food distribution fields such as
  supermarkets, C-stores, catering supplies
• Price transparencythe great leveller

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Filling the proximity gap
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Convenience and food service

• The drive towards convenience in Europe means
  more foodservice, now representing
• 25 of food expenditure (c.f. nearly 50 in the
  USA)
• 10 of food volume (c.f. nearly 35 in the USA).
• The same convenience gap can be seen in retailing
  itself
• supermarket sales are losing market share in the
  US, as more convenient locations are being
  preferred (gas stations, specialty stores,
  delis)
• but supermarkets are still gaining market share
  in many parts of Europe, where small local stores
  are still closing down.But convenience foods are
  a growth market

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Is the USA a signpost for the future in Europe?

• Yes!
• the same socio-economic forces are operating on
  consumer-citizens
• falling cost of food and equipment
• rising value of time and individualism
• favouring HMR, convenient retail,
  food-on-the-run, portable packs, etc.

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Is the USA a signpost for the future in Europe?

• No
• socio-cultural differences will not disappear
  overnight
• food wont become just a fuelnot even in the UK
• food-scares force an interest in food quality and
  traceability
• structures wont change overnight either
• HD versus Walmart, proximity solutions

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B2C or e-tailing

• Is this a consumer revolution?

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Home delivery - a uncomfortable marriage of high
and low tech
customer
picking
delivery
orders
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Why limited growth of B2C in Europe and the USA?

• The main limit to growth is home delivery, which
  adds a high cost, most of it presently covered by
  the B2C operator
• 90 at least of all B2C activity operates at a
  loss
• Primary uses are checking price, accessing
  coupons and checking the weeks special offers
• Most products bought are bulky a low margin
• It is likely that non-retailer based B2C may find
  a niche in specialty shopping such as for ethnic
  foods.

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B2B

• What markets will it take?

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e-marketplaces

• Three main types of B2B operators
• Retailers tendering and ECR
• Manufacturer catalogue and ECR
• Independent e-market places commodity exchange
• Helps commodity suppliers
• Will lead to SME and retailer groupings
• Can competing retailers really work together in
  such a key area as buying? A will the legislator
  allow them to?
• and lots of confusion until the situation
  becomes clearer.

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Key issues for retailers
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Key Issues for Retailers
Building Tomorrow's Food Drink Retailing
who'll still be there?
The Structure of Retailing
what formats where?
outside influences
competition
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ECR interlocking across the board linking
supplier retailer
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EDLP is a serious threat
The end of discount promotions?
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Will there be winner loser formats?

• F - Hypermarket
• how to adapt it to new consumers ?
• need for non-food and high turnover m2
• chances of success in GB and Italy ?

• D - Hard Discount
• just one part of the retail offer consumers want
• taking on a "convenience" role abroad
• will "German" HD be able to adapt at home and
  abroad ?

• GB - Supermarket
• has the "gloss" started to come off ?
• can it continue to be all-things -to-all-men ?
• how to avoid in-store sclerosis ?

Wal-Mart, Colruyt, Tesco Metro, Ahold,
Tengelmann Home Meal Replacement, e-tail, EDLP,
non-food
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Survival guide
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Survival guide for retailers

• Upstream economy of scale (buying power,
  logistics)
• Innovative Retailer Brands (catching the
  upmarket)
• Filling the HMR gap
• B2B
• Price mechanism (negotiation)
• Fast consumer response
• B2C
• To add to offer/fascia image niche products,
  ethnics, dietetics
• But don't think it will soon make a profit for
  mineral water, milk, and other low price/high
  volume/bulky goods

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Survival guide for suppliers

• Brand focus on key brands, show why theyre
  the best
• to guarantee leader "search brand" status in
  neutrality, mass markets
• Lots of POP, low prices, and health guaranties
• to provide "excitement" in valorised segments of
  demand
• Lots of advertising and promotion
• Lots of NPD
• Tailor the offer to the retailers specific needs
  / image / clientèle
• Be proactive in EDI / ECR / B2B to link in with
  the retailer the way he wants it

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