José Bascon: Exploring the potential of purchasing synergies

11F, Nikos Plaza, 528, Honxu RdShanghai, Chinawww.coopgs.com

Member of ICA

contact: [email protected]@coopgs.com

Cape Town, 1st - 5th November 2013

Synergies among consumer Co-operatives

COOPCOOPGLOBALGLOBAL

SOURCINGSOURCING


An extraordinary opportunity for Consumer Cooperatives

Coop Global Sourcing• Activity of Coop GS

CGS History and Evolution• Coop Global Sourcing in Asia• New Organization

Cooperative movement and business development• Our experience and vision on business among Co-operatives• Opportunities

2Content of documentContent of document


3The importance to be hereThe importance to be here• Consumer cooperatives, have a big responsibility • Employing millions of people, representing millions of members• Supporting the spending power of dens of millions of households

SynergySynergy


4The second retailer in the worldThe second retailer in the world

Turnover 2010, Billion USD

*

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Retailers

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* 2009 Corporate Annual Report, Exchange rate used: Euro 1=USD 1.37; £ 1=1.54 USD** 2008 Global 300 Cooperatives, report by International Cooperative Alliance (ICA)


5Speaking the same languageSpeaking the same language

Core Values

across the countries and different businesses

Part of the DNA

Corporate philanthropyPerpetrating a marketing purpose

Profit

COOPCOOP CorporationsCorporations


6The future is not what it used to beThe future is not what it used to be

On line Shopping

Global retailers

Standardized needs

Demand for low price

Business Consolidation

Recipe for the futureRecipe for the future

Common

platform on

communication

ChallengesChallenges


7A base in AsiaA base in Asia

• Asia remains the world factory delivering competitive

prices and technologies

It’s a strategic advantage to have a purchasing base in Asia dedicated to the co-operatives






8Content of documentContent of document


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Coop Global Sourcingis a Purchasing Organization

Activity of COOP GLOBAL SOURCING


Sourcing and productsfor consumer Cooperatives


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• Market leader in Italy• 13.5 billion Euro turnover• 1500 stores• 6 million members• 60 thousand employees

• Nr 4 in Spanish market• 8 billion Euro turnover• 2300 stores•3 million members• 45 thousand employees

COOP ITALIA




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Sourcing products for COOPSourcing products for COOP

• Kitchen tools

• Homeware

• Do It yourself

• Garden

products

• Furniture

• Toys

• Electronics

• Home

Appliances

• Garments

• Underwear

• Nightwear

• Footwear

• Canned food

• Coffee

•Oil

• Other

Commodities


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ELECTRONIC

SDA Brown goods Accessories

HOUSEWARE

KITCHEN HOUSEHOLD H TEXTILE

DIY Garden Car

DIY-GARDEN

Fitness Toys Stationery

LEISURE

Sourcing products for COOP

Sourcing products for COOP HARDLINESHARDLINES


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Sourcing products for COOP TEXTILETEXTILE


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Top 10 items from ASIA


Sourcing products for COOP FOODFOOD


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Sourcing ModeSourcing Mode


Ship PackQualityAssurance

Supplierqualification

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Sourcing

Technical audit• Assess factory capability

Social responsibility• Compliance with social standards

Quality Engineers• Testing• Inspections

Supply Chain• Follow up• Shipment

Packaging team• Artwork development

Commercial• 50 people merchandising team

How we do businessHow we do business






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Content of documentContent of document


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1978-2000 2000-2012 2013

History of COOP GLOBAL SOURCING



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~ 18 million members~ 200K employees~ 9.000 stores~ 40 billion € turnover

Denmark

Norway

SwedenFinland

Italia

1978-20121978-2012




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~ 8 million members~ 100K employees~ 9.000 stores~ 20 billion € turnover

Italia

20132013Disaggregation of the Nordic cooperatives



CGS Team

70% 30%

Merchandisers 25

CategoryManagers 7

Assistants 3

QualityQASC*

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Shanghai

25-30 30-35 >35

Age group

Buying office/Retailers 100%

Demographics

Expertises

Team

60% 20% 20%

Gender

60% 40%Experience EU market

Experience other markets

<5 5-10 >10

30% 50% 20%

Years experience

* SC also covering Textile Dept21


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• We source products allover Asia, with 4 direct offices

Shanghai

Hong Kong

Vietnam

Bangladesh

North India

South India

Pakistan

COOP GLOBAL SOURCING OfficesCOOP GLOBAL SOURCING Offices


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New Status New Shanghai company status

From Representative Office to Trade company including import and export license for Food and NF

From March 2013 member of ICA, International Cooperative Association







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• Although we share the same values, it is difficult for cooperatives to cooperate at the commercial level

•The retail industry has seen the growth of Global Retailers, but we tend to split rather than be united

• Cooperative retailers are still winners in the Global landscape, maintaining distinctive tracts

• There is a common ground that could bring huge benefits in terms of savings and strength in the market

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Our experience in business Cooperation

Our experience in business Cooperation


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Czech Republic Netherlands

Denmark

• Co-operatives represent an enormous network of enterprises operating under the same values

A tremendous potentialA tremendous potential


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VALUES BUSINESS

Co

op

erat

ive

Dn

aILLUSTRATIVE

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• Global retailer s are often in the opposite situation

• Tending to maximize the synergies on volumes

Contradiction of COOP retailersContradiction of COOP retailers


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• Understanding that there is a business synergy to be explored, to bring benefits to the cooperative and its members

• Contribution that an sourcing company dedicated to Coop, operating in Asia for 30 years, can bring to other cooperatives

• Set a concrete plan to study business cooperation

What we expect from this meetingWhat we expect from this meeting


Member of ICA

contact: [email protected]@coopgs.com

Cape Town, 1st - 5th November 2013

Synergies among consumer Co-operatives

THANK YOU!THANK YOU!