GLOBAL CONVENIENCE SYMPOSIUM growing demand, changing structures. Individual presentation from session 1: PROXIMITY RETAILING IN ASIA

Transcription

1 GLOBAL CONVENIENCE SYMPOSIUM growing demand, changing structures Individual presentation from session 1: PROXIMITY RETAILING IN ASIA

2 PROXIMITY RETAILING IN ASIA: A TALE OF TWO FORMATS Peter Gale Managing Director of Retailer APMEA, India and Greater China

3 STRONG GROWTH IN ASIA PACIFIC DRIVEN BY MODERN TRADE Fast Moving Consumer Goods Growth in Asia Pacific (Weighted average) 16% 14,3% 15,2% 14% 12% 11,0% 13,1% 11,4% 12,1% 12,1% 12,7% 12,7% 11,9% 12,9% 12,3% 10% 8% 6% 4% 2% 7,4% 8,0% 4,3% 3,1% 2,9% 6,2% 6,9% 8,1% 7,2% 7,2% 8,7% 6,6% 9,0% 9,2% 9,9% 3,8% 4,6% 6,7% 5,5% 3,4% 4,0% 3,1% 2,0% 2,2% 1,4% 2,2% 7,4% 8,5% 3,9% 7,2% 6,8% 7,0% 6,7% 8,0% 5,7% 5,4% 0% Q Q Q Q Q Q Q Q Q Q Q Q Q2 Unit value change Volume change Nominal growth Note: Regional Summary for APAC is based on Australia, China, Hong Kong SAR, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, and Vietnam. Indonesia has changed the retail census in Hong Kong SAR has changed the retail census in Vietnam has recalculated its growth rates based on new universe.

4 SMALL FORMATS LEADING STORE GROWTH +27% Grocery store numbers in total Asia % % % Minimarkets Convenience Store Supermarkets Hypermarkets

5 MOST SIGNIFICANT GROWTH IN KOREA AND CHINA progress over the past 12 months Korea and China added a total of 8000 more stores Stores in Thailand grew by 12%

6 HYPERMARKET GROWTH HAS SLOWED Hypermarkets Hyper & Supermarkets ,7% 32,6% 26,6% 27,3% 29,7% 28,8% 21,3% 20,8% 20,5% 19,0% 22,0% 21,8% Korea China Malaysia Taiwan Thailand Indonesia

7 SMALL FORMATS STORES SHOWING STRONGEST CHANNEL GROWTH Convenience Stores Convenience & mini-markets 29,5% 31,5% ,7% 19,7% 16,2% 12,2% 12,2% 12,3% 18,9% 22,4% 14,9% 14,1% 3,5% 3,8% Taiwan Thailand Korea Singapore Malaysia Indonesia Hong Kong*

8 CASE STUDY 1: CONVENIENCE STORES IN THAILAND

9 CONVENIENCE STORE SHOPPER BASE GROWING IN THAILAND as convenience store numbers grew from 3,000 to over 10,000 Frequency of Visiting Times per month % Urban Shoppers Visit in Last 7 Days ,0 12,9 15,0 63 6,

10 SIGNIFICANT ROOM FOR MOREGROWTH potential for 33,000 stores with same store density as korea Relative Store Density : Number of people per convenience store Philippines China Australia Malaysia Thailand Singapore Hong Kong New Zealand Taiwan South Korea 8,739 7,404 6,887 6,165 5,252 3,081 2,384 2,060 24,857 40,917 Thailand (2012) = 10,135 Source: No. of CVS from Retail Index, Population from CIA

11 IN ADDITON TO RETAILER INVESTMENT, MACRO FACTORS ARE DRIVING NEW STORE GROWTH Shrinking households Urbanization % 44% 2010 Retail business law: zoning regulatory enforcement to Large store format Source: National Statistic Office

12 INCREASING STORE TRAFFIC THROUGH INNOVATION IN PRODUCT OFFER Food Fresh Meat & Veg RTE Meal Non-Food Bakery Hot Served Snack Book & Magazine Media Restaurant Payment Service Direct Marketing Smoothie Home Appliance Auto & Travel product Fresh Coffee IT & Stationary Seasonal Product Movie Ticket Source: Secondary Data

13 CASE STUDY 2: MINI-MARKETS IN INDONESIA

14 MINIMARTS ARE LEADING THE WAY IN INDONESIA Where grocery shoppers spend most money Hypermarket Supermarket Minimarts Traditional Grocery Source: Nielsen Shopper Trends 2011

15 A TALE OF TWO LOCAL CHAINS 12,0000 new stores

16 TODAY, MINI-MARKETS ACCOUNT FOR 1/5 th OF GROCERY SALES Share of Trade for packaged grocery categories 74,8 67,6 55,8 21,8 22,2 20,2 22,4 4,9 10, Traditional Stores Super/Hypermarket Minimarket

17 CONVENIENCE IS THE DRIVER BUT IN-STORE EXPERIENCE IS KEY Store Image Alfamart v Carrefour Derived Importance Store Association (%) Low prices for most items 0,32 Attractive promotions Good value for money Provides their own brands Easy to find what I need Has reward programs Efficient checkout counters Staff provide good service Ease of parking 0,24 0,23 0,20 0,18 0,25 0,24 0,22 0,33 Service Levels/ Loyalty Pricing & VFM

18 SUCCESS IS NOT JUST ABOUT NEW STORES, IT S ALSO ABOUT ENGAGEMENT ALFAMART INDOMARET Valentine Mother s Day Fonterra Fair Valentine New Year School Holiday Homecare Fair Thematic Promotions Supplier Fairs Unilever Fair Olay Promotion Unilever Fair Weekend Promotion Weekly Promotions

19 BOTH CHAINS HEAVILY INVESTED IN LOYALTY PROGRAMS POINT COLLECTION SPECIAL EVENTS FOR CARDHOLDER : Alfamart Arisan

20 ADOPTION OF INNOVATIVE SERVICES IS INCREASING TRAFFIC ALFAMART INDOMARET Buy electronic mobile phone and online game voucher Pay utility bills, pay motorcycle installment, but train ticket, etc ATM inside the store Money transfer through Western Union

21 CASE STUDY 3: TAIWAN A GLIMPSE OF THE FUTURE?

22 TAIWAN LEADS ASIAN CONVENIENCE MARKET WITH 30% SHARE OF SALES Taiwan share of trade Supermarkets Convenience Store Hypermarkets Drugstores Traditional Based on FMCG categories tracked by Nielsen

23 TAIWANESE SHOPPERS MORE LIKELY TO DO EVERYDAY SHOPPING TRIPS Type of Shopping Trip last Visit 75% 74% 70% 67% 66% 30% 44% 45% 35% 52% 10% 15% 19% 18% Malaysia Singapore Philippines Korea Thailand Indonesia Taiwan Pantry Shopping Every Day Shopping

24 SHOPPERS LESS ENGAGED WITH MAIN GROCERY STORE CHOICE 89% Shopper Behavior/Views on Main Grocery Store Choice 65% 68% 53% 43% 38% 23% 18% Use same store all the time Stores are all the same Change stores because of advertising Store choice is important Taiwan Rest of Region

25 70% OF SHOPPERS STOCK UP ONCE A MONTH OR LESS what does this mean for Convenience store development? Frequency of Main Stock Shopping Trips Rest of Region Less Often 3% 27% Taiwan Monthly 29% 42% 2 Weeks 18% 30% Weekly 10% 37%

26 Thank You

27 CONTACT US FOR MORE INFORMATION send us an follow us on read our column: stay tuned for our new, upcoming youtube series meet us at the relevant global c-events Sep 23 rd, London, Future of Convenience Conference Oct 08 th, Las Vegas, NACS Show Nov 04 th, Cologne, first European Convenience Show