How to Grow Successfully in Emerging Retail Markets with ... · PDF fileBakery, Indonesia...
Transcript of How to Grow Successfully in Emerging Retail Markets with ... · PDF fileBakery, Indonesia...
© 2016 Openbravo Inc. All Rights Reserved. 1
How to Grow Successfully in Emerging Retail
Markets with Openbravo October 27th, 2016
© 2016 Openbravo Inc. All Rights Reserved. 2
Today’s Presenters
Xavier Places
Product Marketing Director
@ Openbravo
Francesco Leto
Business Development Director
for New Markets
@ Openbravo
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Today’s presentation is available to download on
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Introduction
Emerging retail markets
How Openbravo helps
Takeaways
QnAs
Agenda
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Old World
USA
Japan
Germany
UK
France
The New Economic Powers in 2020
New World
China
India
Russia
Mexico
Brazil
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$525
$1.490
2000 2015
Retail Sales Per Capita
Go for Growth in Emerging Markets
More than half of retail
spending in the world now
comes from consumers in
emerging markets. Source: Credit Suisse
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Emerging Markets Outpace Developed Markets
2000-2008 2009-2012 2013-2015
Emerging Markets 11.4% 11.7% 0.0%
Developed Markets 5.7% 4.0% -2.7%
Total 7.8% 7.4% -1.3%
Retail Sales in Emerging and Developed Markets (USD trillion)
Emerging ■
Developed ■
Source: AT Kearny
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Initial Focus on Luxury Consumer
No. millionaires % of population
China 1.3m 0.1%
India 185,000 0.0%
Brazil 168,000 0.1%
Mexico 122,000 0.2%
Source: Credit Suisse
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The Emergence of a New Middle Class
China 109m
USA 92m
UK 28m
India 24m
France 24m
Canada 13m
Mexico 13m
Brazil 11m
Taiwan 11m Source: Credit Suisse
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Rising Expectations
What is the impact on retailers?
• Expanded assortments
• Higher margins
• Increased spending on durables
• Increased spending on apparel
Expanding middle class + Increased purchasing power
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Mind the gap
• Watch out for gaps in the supply and value chain, such as logistics or personnel.
Price is still king
• Consumers buy a lot of low-priced products but also care about quality.
Think locally
• Understand local product and service standards to provide a differentiated experience.
Lessons Learned
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What you Need for Success
1.Strategic focus
2.Operational flexibility
3. Long-term vision
4.Expansion plan to drive
rapid growth
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China
• Population of 1.37 billion
• Median age: 37.1
• % of people aged 15-64: 73%
• $3.05 trillion in total retail sales
• 9.7% CAGR in retail sales (2013-2015)
Advantage:
Huge potential market
Disadvantage:
Very competitive market, supply chain
weaknesses
© 2016 Openbravo Inc. All Rights Reserved. 16
India
• Population:1.31 billion
• Median age: 27.6
• % of people aged 15-64: 66%
• $1.01 trillion in retail sales
• 8.8% CAGR in retail sales (2013-2015)
Advantage
Economic stability, regulatory reforms create more
business-friendly environment
Disadvantage
Real estate availability, intermittent network
connectivity, and weak logistics
© 2016 Openbravo Inc. All Rights Reserved. 17
Mexico
• Population:127 million
• Median age: 28
• % of people aged 15-64: 66%
• $465 million in total retail sales
• 5.2% CAGR in retail sales (2010-2014)
Advantage
Growing private consumption, increased access to
credit, and strong job creation expand retail market
Disadvantage
Market is approaching maturity
© 2016 Openbravo Inc. All Rights Reserved. 18
Other Countries
Country Population
(million) Total Retail
Sales (billions) CAGR Retail
Sales (%)
Indonesia 256 324 2.6
Vietnam 92 87 7.1
Colombia 48 91 (-11.9)
Peru 32 70 (-3.3)
Sri Lanka 20.7 29.8 10.3
Kenya 44 26 4.6
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Rapid Growth in Ecommerce
Percentage of
shoppers who
shop online daily
Almost one in
five of Chinese
consumers shop
online daily
Source: PWC
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Key Business Challenges Impacting Technology Selection
1. Ambitious Expansion Plans
2. Fast-Changing Market Environment
3. Poor Network Reliability
4. Fast-Growing Competition
5. Workforce Challenges
6. Strong Budget Constraints
How Openbravo Helps You
Succeed in Emerging Markets
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Challenge 1: Ambitious Expansion Plans
Need for…
SPEED Decathlon Sports India, Sporting Goods, India
Featured customer…
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Challenge 1: Ambitious Expansion Plans
Full web and Cloud-ready.
Centralized multi-store management.
Highly interoperable platform.
Simplified IT landscape with faster
technology deployments in AWS.
Set-up of new stores in less than one business day.
Faster integration and visibility from HQ with capacity to seamlessly integrate with any ERP.
How does Openbravo help?
Key Features Key Benefits
Need for…
SPEED Decathlon Sports India, Sporting Goods, India
Featured customer…
© 2016 Openbravo Inc. All Rights Reserved. 23
Challenge 2: Fast-Changing Market Environment
Need for…
FLEXIBILITY & ADAPTABILITY
Featured customer…
PT. Bintang Indo Jaya, Bakery, Indonesia
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Challenge 2: Fast-Changing Market Environment
Truly modular and highly scalable
architecture in the Cloud.
Scalable from a Store Solution to an All-in-one Retail ERP.
Fast update of products, prices and promotions.
Adapt faster to local needs and grow
with confidence in the Cloud.
Extend easily to future new business needs in a single product
Make new products and prices available in your stores in minutes.
How does Openbravo help?
Key Features Key Benefits
Need for…
FLEXIBILITY & ADAPTABILITY
Featured customer…
PT. Bintang Indo Jaya, Bakery, Indonesia
© 2016 Openbravo Inc. All Rights Reserved. 25
Challenge 3: Poor Network Reliability
Need for…
ISOLATION FROM NETWORK OUTAGES
Featured customer…
Halsted, Building Materials, Zimbabwe
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Challenge 3: Poor Network Reliability
Standard browser-managed off-line support.
Store Server component for more
demanding scenarios.
Ensure uninterrupted sales operations.
Gain greater deployment flexibility with hybrid deployment scenarios.
How does Openbravo help?
Key Features Key Benefits
Need for…
ISOLATION FROM NETWORK OUTAGES
Featured customer…
Halsted, Building Materials, Zimbabwe
© 2016 Openbravo Inc. All Rights Reserved. 27
Challenge 4: Fast-Growing Competition
Need for…
INNOVATION & DIFFERENTIATION
Featured customer…
M&B Footwear, Footwear, India
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Challenge 4: Fast-Growing Competition
Modern mobile and Web POS.
Flexible technology platform ready to build omnichannel services.
Truly modular commerce architecture.
Deliver a highly differentiated assisted
sale everywhere in the store.
Gain capacity to integrate online and offline seamlessly.
Adapt easier and faster for competitiveness.
How does Openbravo help?
Key Features Key Benefits
Need for…
INNOVATION & DIFFERENTIATION
Featured customer…
M&B Footwear, Footwear, India
© 2016 Openbravo Inc. All Rights Reserved. 29
Challenge 5: Workforce Challenges
Need for…
MODERN & EASE OF USE
Featured customer…
Materiales Amezcua, Building Materials,
México
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Challenge 5: Workforce Challenges
Stylish, very easy to use and highly productive solution.
Mobile Web POS with training mode.
Mobile-enabled platform: sales, inventory.
Attract talented people, increase user
adoption and boost team collaboration.
Train new store associates in minutes to ensure customer service levels.
Embrace mobility for greater staff
productivity.
How does Openbravo help?
Key Features Key Benefits
Need for…
MODERN & EASE OF USE
Featured customer…
Materiales Amezcua, Building Materials,
México
© 2016 Openbravo Inc. All Rights Reserved. 31
Challenge 6: Strong Budget Constraints
Need for…
AFFORDABILITY
Featured customer…
Cheers, Wine, China
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Challenge 6: Strong Budget Constraints
Open source stack.
Flexible subscription-based pricing.
Full web and cloud-ready
architecture.
Eliminate need of additional licenses,
so reducing total software cost.
Reduce initial risk with lower initial investments.
Gain IT store agility while lowering overall store IT costs.
How does Openbravo help?
Key Features Key Benefits
Need for…
AFFORDABILITY
Featured customer…
Cheers, Wine, China
© 2016 Openbravo Inc. All Rights Reserved. 33
Key Takeaways More than half of retail spending in the world now
comes from consumers in emerging markets.
Emerging markets are by definition in transition, so
consumers’ tastes and habits are evolving and
unpredictable.
Increased competition in many emerging markets
obliges retailers to adopt efficient systems and
boost productivity.
Emerging market retailers do not often have
legacy IT issues so they are ideally placed to
benefit from state-of-the art retail IT solutions.
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Any Questions?
You can submit additional questions or
comments after the webinar on Twitter.
Hashtag: #webinar_OB
#webinar_OB
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Web: www.openbravo.com/contact
Email: [email protected] Spain Office: +34 932 725 947
France Office: +33 (0)1 70 08 73 62
India Office: +91 33 23576501
Mexico Office: +52 (155) 2506 1878
Thank you very much
for your attention