EFFECTS OF GLOBALIZATION ON THE RETAIL PETROLEUM

SECTOR ACROSS ASIA PACIFIC

Richard Chen

Managing Director – Asia Pacific

Email: Richard.Chen@OPWGlobal.com

INTRODUCTION

Richard Chen

• OPW brand is 123 years old

• Acquired Tokheim in Jan. 2016

• 4000+ employees

• Production facilities in: United States,

Australia, China, Malaysia, India, Brazil,

Canada, Czech Republic, Mexico, The

Netherlands, Poland, Russia, Sweden

and the UK.

• Leading with Quality and Innovation

• Managing Director of OPW AsiaPacific

• Involved in petroleum sector since 1992

• Developed and implemented OPW’s

AsiaPacific growth strategy

• Initiated & established production

facilities in China & India

• Has resources in 9 countries across

Asia, including 7 manufacturing facilities

OPW UNDERSTANDS GLOBALIZATIONAt Petroforum 2016, OPW has representatives from 8 different nationalities present!

GLOBALIZATION

For the purposes of this presentation, Globalization is the:

‘increased accessibility of high-performance, cost-effective

solutions to standard challenges’

Globalization

(Opportunities and Threats)

Competition

Customer Expectation and Needs

Economies of Scale

Choice of Location

M&A’s / Joint

Ventures

Increased Customer

Accessability

MACRO GLOBALZATION TRENDS

Energy demand globally to increase 40% by 2030

AsiaPacific becoming ‘more motorized’

New technologies and processes – Shale, Natural Gas etc

Investment lifecycle significantly shortened

Rise of regional / industry forums (ASEAN, EPA etc)

Growth / influence of China and other emerging markets

Increased cost of labour (but less demand for it)

VEHICLE OWNERSHIP PROJECTIONS

MOVEMENT OF OIL COMPANIES IN ASIA

Divestment of MOC’s from Asia Retail

New set of acquisitive industry leaders

across region

Focus on distribution rather than

production

Ambitions to expand quickly and grow

loyal customer bases

Establishing new supply chains

Simplify purchasing for DODO’s

Challenging the ‘norms’

WORLD’S LARGEST REGINERIES

Top 20 Refineries, 9 are in Asia

ASIA PACIFIC MARKET

Asia has 5 of the 10 top Emerging Markings on

the globe

NOC’s become ‘gatekeepers’ to new industry

members

International businesses are bringing new

technologies, processes and health and safety

guidelines into region

Increased standardization

Acceptance of a wide range of regulations (UL,

ATEX, China)

Move to self-service

Acceptance of China as a key equipment

supplier

Growth in DODO operators

ASEAN / FTA’s increasing regional transactions

Increased investment into Asia’s emerging

markets (Myanmar, Cambodia, Vietnam, Laos)

% refers to growth 2012-2017

CUSTOMER’S EVOLVING DEMANDS

Quality and Quantity

SafetySpeed of

transactionEase of

UseRewards

Access to Data

As Globalization takes effect, customers in Asia are demanding much more…

Oil companies have one fundamental aim => to have the customer return!

NEW TECHNOLOGIES / PROCESSES

- COPS- Telematics

- Sealed Parcel

- Supply Contracts - Total cost of ownership

- Short lead-times-Data collection and

analysis

- Environmental regulations- Payment processes

- Theft Prevention- Merchandising

- Onsite marketing and promotions

- Activity History- Shorter fuelling period

- Loyalty / reward schemes- New payment options

- Cleanliness / Ease of use of site

ASIA PACIFIC IN THE FUTURE

Customers

• Increased choice of fuel suppliers

• Thirst for data and rewards

• Increase cross-border activity

• Preference for clean, healthy sites

• Attracted to modernity

Oil Companies

• Operating across borders

• Environmentally savvy

• Efficiencies across entire value chain

• Follow standards, centralized purchasing

• Thirst for data analysis

Industry Suppliers

• Striving to become single source suppliers

• Supplement ‘hard’ products with ‘soft data’

• Increasingly manufacture within region

CONCLUSION

OPW HAVE EVOLVED WITH THE INDUSTRY TO CATER TO THE EVER-

CHANGING PREFERENCES OF CONSUMERS

End-to-End Solution

• Retail & Commercial Dispensers

• Automation & POS Systems

• Transaction & Data Management

• UST & AST Valves

• Piping & Containment

• Access & Fill Covers

• Hanging Hardware

• Emergency & Overfill Valves

• Stage I Vapor Recovery

• Fleet Fueling Systems

• Tank Gauges

• Car Wash Systems

OPW Can Supply the Value Chain Solution from Terminal to StationA Complete Solution – Terminal to Station