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Swedish market - focus Fresh Fruit and Vegetables and

Lifestyle products

Sofie WikanderColombia November 19-20, 2014

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Swedish market for food

• Imports from within EU - Large part of imports from non EU- countries go via Netherlands (Rotterdam)

• Imports from EU and non-EU countries via ”middle men”

• Swedish large companies cover Scandinavia

• Market for food products imports 1,2 billion USD

• Increased by 33% (2005-2012)

• Re-export

• Trends makes the market move faster – more sales

• A few large retail companies in the food area dominate all of Scandinavia

• Exclusive relationships with agents/distributors - small market, sole representative

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What do we import?

• Fresh fruit

• Citrus

• Fresh vegetables

• Nuts

• Coffee, tea and cocoa

• Spices and herbs

• Wine

• Fish and seafood

• Processed fruit and vegetables (frozen, canned, dried)

• Meat

ICA

Coop

Axfood

Bergendahls

OthersMarket share %

ICA 41

Coop 18

Axfood (Hemkop, Willys) 14

Bergendahls (Citygross) 6

Others, (Lidl, Netto) 21

The Swedish Food Retail Market

• Consumers spend 14% of disposable income on foods & beverages• Consumers willing to pay relatively high price for premium

products• Meat products; Dairy products & fats; Fruit & vegetables; Bread

and Cereal products; Fish & seafood

Retail groups

Hotel, restaurants,

catering

Importers fruit and vegetables

Processors

Actors food

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Segments for exports•Hotell, restaurants, catering

•Wholesalers

• Food processing industry

• Large importers

•Retail

•Direct imports?

Supply Chain Model

© 2013 Archeus AB Helena Hafgren

Fruits & Vegetables

General trends in Food Retailing

Health/ nutrition

• Food safety

• Environment

• Organic

• Social responsibility – CSR

• Local production

• Climate change

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Foods –Trends

• Growing market for exotic (to Swedes) foods

• Organic foods

• Gluten-free food

• Sports & Energy beverages & Health bars

• Sliced ready-to-eat dishes

• Spicy snacks

• Hot sauces & spicy condiments

Market opportunities

• Increased imports with increasing population and demand (33% - 2005-2012)

• Also exporter – imports higher

• Quality increasingly important

• Imports from outside Europe are increasing

• Organic and fair trade imports are increasing

• Exporters that want to enter the Swedish market needs to have unique selling

points – to be competetive on the Swedish and EU market

• Quality products at competetive prices

Market access• Trade fair (Gastro Nord in Sweden (largest for the Nordic countries))

• Contact – make an appointment to show products

• Build business relation – not immidiate sales rather longterm

Sourcing for Suppliers

• Trade fairs

• Shops

• Recommendations

• Personal contacts

Market access through networking

• New contacts

• New knowledge

• Work together – selling and sourcing

• Common investments

• Common financial and/or negociating power

- Best strategy – by helping others you can grow

- Trust – recommendation – mutual interest

Buying Process

Self assessment – Company profile- How do you grow- Code of conduct- Certificates

Contact

Audits- Certifications- Importer

Increasing requirements

- ways to be competetive towards the market

Code of Conduct CSR

HACCP, BRC Sustainability

GMO Organic, Fairtrade

Packaging Transports

Recipe Traceability

Private standards?

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More information at www.chambertradesweden.se

The Swedish market for Lifestyle products

Textile, garments, leather

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SWEDISH MARKET LIFESTYLE PRODUCTS

• Textile

• Interior decorating (Handicraft)

• Clothing and shoes

• Accessories

We import all of the above

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SWEDISH MARKET LIFESTYLE

• Expanding markets – increased sales and imports but alsocompetition

• Increased imports? From outside EU

• No production domestically (labour, knowledge)

SWEDISH MARKET

• Imports well over the domestic market – re-exporters

• Swedish large companies cover Scandinavia and Northern Europe(even Middle East and US)

• Luxury goods are small – medium to low price with good quality

• Imports come from many countries – China still largest supplier but new markets and especially developing markets is increasingly interesting for Swedish buyers

• Trends makes the market move faster – more sales

Home textiles

Clothing

Sports goods

Shoes

Buyers and Retailers Lifestyle

TRENDS-MARKET AND SALES

• Growing market in Sweden both fashion and interior

• Design is important

• Products should have function (vase, tray, pot, lamp)

• Increased interest in home decoration, fashion, style

• Media coverage (magazines, TV)

• Hand-made / Offline

• Shift from quantity to quality

• Chainstores, e-commerce

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DEVELOPEMENT TRENDS

• Big market player gets bigger

• Hardening competition from new players

• From local to world brands

• From local shopping to malls and centers

• To niche concepts

• Development of new concepts for special target groups

• E-commerce

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CONSUMER TRENDS IN FASHION

• Quality & brands they can trust

• Preselected range, not endless choice

• News

• Clothes for varying occasional needs

• Clothes that fit well and are easy to combine

• Service, advice and information

• Additional values

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CONSUMER TRENDS IN HOME TEXTILES

• Increased interest in home decoration

• Media coverage (magazines, TV)

• Influences from the fashion industry

• Shift from quantity to quality

• Hand-made/ Offline

BUSINESS OPPORTUNITIES

• Increased imports from countries outside EU

• Outsourcing within the whole sector – few exceptions

• Shift from China and traditional manufacturing markets

• Companies looking for new markets, products and producers – small and large

• Buying collection and ready-made as well as manufacturing and production

WHO IS BUYING?

• Large importers with own manufacturing

- Own design, mainly looking for producers for their products

• Wholesalers (that sell to smaller and larger shops)

- Have own manufacturing but also buys readymade products and directfrom producers

• Small and medium interior shops

- Buys at trade fairs (abroad and in Sweden), from wholesalers, readymadeand directly from producers

Diversifying risk – looking at new markets for manufacturing and buying.

Looking at manufactured collection

MARKET ACCESS

• Trade fairs (exhibition and MEETINGS)– eg. FORMEX in Sweden • Through personal contacts – recommendations, travel• Internet (databases, social media)• Embassies/Trade associtations/Chambers/ SECTORAL

ASSOCIATIONS• Reference from others in the business ( Networking)• Contacted by email, mail or phone• Open suppliers list from other brands• Marketing in trade magazines

Buyer Requirements

• CSR / Sustainability / Code of Conduct• Tracability• Good payment terms• Delivery time• Production capacity• Trustable CSR- policy• Requested certifications

Meeting the buyer

• First impression is very important so be prepared with the following information:

• Company profile, preferably visualized with samples or pictures.

• Production potential and delivery time – important that this is relative to the production capacity - never promise more than you can deliver.

• Pricing information according to quantities that are requested.

• CSR and sustainability standards, the more precise the better.

• Lasting relationships are built upon trust.

• Keep regular contact and follow up all inquiries.

How does the buyer choose supplier?

Soft values- Confidence- Relationship- References

Right product- Attractive collection- Expected price level- Expected quality

Trial orders

Sustainability – What is it?

Key factors

• Water

• Chemical

• Energy

• Social and labour

Sustainability - Why do it?

• Your stakeholders are expecting it…

• Retailers are expecting it…

• Your competitors are doing it…

• Governments will soon regulate it…

• It is starting to make good financial sense…

• Resource shortages will soon require it…

Companies and actors from all levels are getting involved

Environmental ImpactsClimate Change

• Energy Use• Renewable Energy• GHG emissions Toxic Chemicals

• PVC• Solvent-based adhesives• Carcinogenics

Resource Impacts

Social Impacts

• Sources• Monitoring• Recycling

Resource Efficiency

• Waste• Materials efficiency• Recycled content

• Use of pesticides• Feedstock• Land intensity

• Health and Safety• Training• Living wages

• Violations• Complicity• Training hours

• Treatment• Transportation• Antibiotics• Execution

• Monitoring• Recycling of water• Waste water treatment

• CO2• Dust/particles• VOCs• SOX

• Pollination• Fibers• Clean water

• Positive contribution• Sponsoring• Schooling

Waste-water/Effluents

Water Use Land Use Biodiversity

Labour Conditions

Community impact

Animal rights

Human Rights

Emissions

Issues in the supply chain

CTS Market ReportThe Scandinavian Market for Fashion & Interior Design

Thank you!

sofie.wikander@chambertrade.sewww.chambertradesweden.se

Twitter: @chambertradesweFacebook: Chamber Trade Sweden

Sofie Wikander

sofie.wikander@chambertrade.sewww.chambertradesweden.seTwitter: @chambertradeswe

Facebook: Chamber Trade Sweden

QUESTIONS?

Sonia Albarello

Phone: +46 8 690 49 40

Fax: +46 8 690 49 41

E-mail: info@opentradegate.se

Internet: www.opentradegate.se