business week 2012 - boboni
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F O R S U C C E S S F U L L I V I N G ConfidentialPA13/5/20121
CRISIS IN RETAIL MARKET
BUSINESS WEEK 2012Organised by: MBA’s Society
University of Piraeus
F O R S U C C E S S F U L L I V I N G ConfidentialPA13/5/20122
COUNTRY MAJOR MACROECONOMICS & RETAIL INDEXES
CRISIS: A DIFFERENT BUSINESS REALITY
DIESEL HOW DO WE ADJUST OURSELVES?
2
AGENDAAGENDA
F O R S U C C E S S F U L L I V I N G ConfidentialPA13/5/20123
MACROECONOMIC & RETAIL INDEXES
3
F O R S U C C E S S F U L L I V I N G 4
whenthecrisishitthefan.com
F O R S U C C E S S F U L L I V I N G 5
Gross Domestic Product (million €)
Country/Year 2010 2011 2012 2013
Eurozone (17 members) 8.479.574 8.609.996 8.649.054 8.764.694
Ireland 162.694 164.460 166.253 170.073
Greece 195.586 184.835 179.645 180.885
Spain 950.372 957.399 963.630 976.875
Italy 1.422.432 1.430.113 1.430.930 1.440.407
Portugal 157.683 154.735 150.038 151.707
Source: Eurostat
F O R S U C C E S S F U L L I V I N G 6
How much we spend compared to EU (million €)
Ireland Greece Spain Italy Portogal
2010 2011 2012 2013
Country/Year 2010 2011 2012 2013
Eurozone (17 members) 6.667.569 6.691.475 6.708.865 6.761.489
Ireland 105.308 102.494 101.386 101.208
Greece 180.825 168.757 159.926 156.666
Spain 740.471 742.556 742.718 749.648
Italy 1.153.906 1.159.895 1.160.193 1.163.062
Portugal 139.862 134.366 126.341 124.797
Source: Eurostat
F O R S U C C E S S F U L L I V I N G 7
Greece Spain Ireland Portugal Italy Eurozone (17 countries)
-3
-2
-1
0
1
2
3
4
5
6
2008
2009
2010
2011
Inflation to EU (%)
Country/Year 2008 2009 2010 2011Greece 4,2 1,3 4,7 3,1Spain 4,1 -0,2 2 3,1
Ireland 3,1 -1,7 -1,6 1,2Portugal 2,7 -0,9 1,4 3,6
Italy 3,5 0,8 1,6 2,9Eurozone (17 members) 3,3 0,3 1,6 2,7
Source: Eurostat
F O R S U C C E S S F U L L I V I N G 8
Europe Unemployment Rates
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Country/Year Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Average
Eurozone (17 members) 10,6 10 9,8 10,1 10,4 9,8 9,9 10,09
Ireland 13,1 13,9 14,1 14,3 14,3 14,6 15,1 14,20
Greece 11,9 12 12,6 14,4 16,1 16,6 17,9 14,50
Spain 20,2 20,2 19,9 20,5 21,4 21 21,7 20,70
Italy 9,2 8,5 7,7 8,8 8,7 7,9 7,8 8,37
Portugal 11,2 11,2 11,5 11,7 13 12,8 13 12,06
Source: Eurostat
F O R S U C C E S S F U L L I V I N G 9
Index Volume Retail Changes (%) Feb 2012 vs Feb 2011
Retail Store Categories Change (%)Fuels -18,90Rest -16,00
Supermarkets -6,80Malls -19,20
Food, Alcohol and Cigarettes -14,10Pharmaceutical and Cosmetics -8,40
Clothes and Shoes -29,00Furnitures and Electricals -16,60
Books and Paper Stuff -8,90General Index -13,00
General Index without Fuels -11,80Source: Greek statistical authority
F O R S U C C E S S F U L L I V I N G 10
Index Volume Retail Changes (%) Feb 2011 vs Feb 2012
Fuels
Rest
Superm
arke
tsM
alls
Food, Alc
ohol and C
igar
ette
s
Pharm
aceu
tical
and C
osmet
ics
Cloth
es a
nd Shoes
Furnitu
res
and E
lect
rical
s
Books a
nd Pap
er S
tuff
Gen
eral
Index
Gen
eral
Index
with
out Fuel
s
-18.90
-16.00
-6.80
-19.20
-14.10
-8.40
-29.00
-16.60
-8.90
-13.00-11.80
Change (%)
F O R S U C C E S S F U L L I V I N G 11
August 2011
Total Enterprises Bankrupt Companies %
Attika 7.980 1.799 22,50%
Athens Down Town 2.861 699 24,40%
Piraeus 1.591 350 22,00%
Thessaloniki 2.325 444 19,10%
Kavala 428 61 14,30%
Veroia 657 94 14,30%
Edessa 442 87 19,68%
Larisa 1.110 183 16,50%
Tripoli 294 58 19,70%
Irakleio (Creta) 928 161 17,30%Source: Ministry of Labour and Social Insurance
Sum: 18.616 3.936
Average: 18,98%
When companies go bankrupt
F O R S U C C E S S F U L L I V I N G
CRISIS: A DIFFERENT BUSINESS REALITY
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F O R S U C C E S S F U L L I V I N G
Distributor’s model collapsing due to cash flow, Direct presence of Brands
Decrease of the number of wholesalers and small and medium (SME) enterprises (no funding)
Companies have decreasing budget for marketing & G&A expenses:– Cheaper means of advertising: Internet, face-book, twitter, mobile
applications– Less but efficient people Demand for multi task people
Change of business KPIs: Sales Volumes and Value targets are out of dated!!!!
Become consumer obsessed….
New retail channels Online, Outlets
Open market place is passing out….
Market rule : ‘Survival of the Fitest’ is more than ever applicable……
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F O R S U C C E S S F U L L I V I N G 14
DIESEL: HOW WE ADJUST OURSELVES
F O R S U C C E S S F U L L I V I N G
Distributor model is collapsing
Less W/S
Limited Budget
Change of business KPIs
Become consumer obsessed….
New market trends: Outlets
Open market place is passing out
Market rule : ‘Survival of the fitest’ is more than ever applicable…….
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Strong Brand Directly in Greece
Focus on healthy customers
Company restructuring…
Focus on cash flow & profits..
After sales support
Increase outlet presence
Focus on Malls and Dept. stores
Diesel belongs to the Only The Brave Group!
MARKET DIESEL
F O R S U C C E S S F U L L I V I N G 16
THANK YOUTHANK YOU