How to grow sucessfully in Emerging Retail Markets with Openbravo

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How to Grow Successfully in Emerging Retail Markets with OpenbravoOctober 27th, 2016


Today’s Presenters

Xavier PlacesProduct Marketing Director@ Openbravo

Francesco LetoBusiness Development Director for New Markets@ Openbravo


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Introduction Emerging retail markets How Openbravo helps Takeaways QnAs

Agenda


What is an Emerging Market?


Old World USA Japan Germany UK France

The New Economic Powers in 2020

New World China India Russia Mexico Brazil


2000 2015

$525

$1,490

Retail Sales Per Capita

Go for Growth in Emerging Markets

More than half of retail spending in the world now comes from consumers in emerging markets. Source: Credit Suisse


Emerging Markets Outpace Developed Markets2000-2008 2009-2012 2013-2015

Emerging Markets 11.4% 11.7% 0.0%Developed Markets 5.7% 4.0% -2.7%

Total 7.8% 7.4% -1.3%

Retail Sales in Emerging and Developed Markets (USD trillion)

Emerging ■Developed ■

Source: AT Kearny


Initial Focus on Luxury Consumer

No. millionaires

% of population

China 1.3m 0.1%India 185,000 0.0%Brazil 168,000 0.1%Mexico

122,000 0.2%Source: Credit Suisse


The Emergence of a New Middle Class

China 109mUSA 92mUK 28mIndia 24mFrance 24mCanada

13m

Mexico

13m

Brazil 11mTaiwan 11m

Source: Credit Suisse


Rising Expectations

What is the impact on retailers?

• Expanded assortments• Higher margins• Increased spending on

durables• Increased spending on apparel

Expanding middle class + Increased purchasing power


Mind the gap• Watch out for gaps in the supply and value

chain, such as logistics or personnel.

Price is still king• Consumers buy a lot of low-priced products

but also care about quality.

Think locally• Understand local product and service standards

to provide a differentiated experience.

Lessons Learned


What you Need for Success

1.Strategic focus

2.Operational flexibility

3.Long-term vision

4.Expansion plan to drive rapid growth


Top Emerging Markets


China

• Population of 1.37 billion• Median age: 37.1• % of people aged 15-64: 73%• $3.05 trillion in total retail sales• 9.7% CAGR in retail sales (2013-

2015)

Advantage: Huge potential market Disadvantage: Very competitive market, supply chain weaknesses


India

• Population:1.31 billion• Median age: 27.6• % of people aged 15-64: 66%• $1.01 trillion in retail sales• 8.8% CAGR in retail sales (2013-2015)

AdvantageEconomic stability, regulatory reforms create more business-friendly environment DisadvantageReal estate availability, intermittent network connectivity, and weak logistics


Mexico

• Population:127 million• Median age: 28• % of people aged 15-64: 66%• $465 million in total retail sales• 5.2% CAGR in retail sales (2010-2014)

Advantage Growing private consumption, increased access to credit, and strong job creation expand retail market

DisadvantageMarket is approaching maturity


Other Countries

CountryPopulation

(million)

Total Retail Sales

(billions)CAGR Retail

Sales (%)Indonesia 256 324 2.6

Vietnam 92 87 7.1

Colombia 48 91 (-11.9)

Peru 32 70 (-3.3)

Sri Lanka 20.7 29.8 10.3

Kenya 44 26 4.6


Rapid Growth in Ecommerce

Percentage of shoppers who shop online daily

Almost one in five of Chinese consumers shop online dailySource: PWC


Key Business Challenges Impacting Technology Selection

1. Ambitious Expansion Plans

2. Fast-Changing Market Environment

3. Poor Network Reliability4. Fast-Growing Competition

5. Workforce Challenges

6. Strong Budget Constraints

How Openbravo Helps You Succeed in Emerging Markets


Challenge 1: Ambitious Expansion PlansNeed for…

SPEED Decathlon Sports India, Sporting Goods, India

Featured customer…


Challenge 1: Ambitious Expansion Plans

Full web and Cloud-ready.

Centralized multi-store management.

Highly interoperable platform.

Simplified IT landscape with faster technology deployments in AWS.

Set-up of new stores in less than one business day.

Faster integration and visibility from HQ with capacity to seamlessly integrate with any ERP.

How does Openbravo help?Key Features Key Benefits

Need for…

SPEED Decathlon Sports India, Sporting Goods, India



Challenge 2: Fast-Changing Market EnvironmentNeed for…

FLEXIBILITY & ADAPTABILITY


PT. Bintang Indo Jaya, Bakery, Indonesia


Challenge 2: Fast-Changing Market Environment

Truly modular and highly scalable architecture in the Cloud.

Scalable from a Store Solution to an All-in-one Retail ERP.

Fast update of products, prices and promotions.

Adapt faster to local needs and grow with confidence in the Cloud.

Extend easily to future new business needs in a single product

Make new products and prices available in your stores in minutes.


Need for…

FLEXIBILITY & ADAPTABILITY


PT. Bintang Indo Jaya, Bakery, Indonesia


Challenge 3: Poor Network ReliabilityNeed for…

ISOLATION FROM NETWORK OUTAGES


Halsted, Building Materials, Zimbabwe


Challenge 3: Poor Network Reliability

Standard browser-managed off-line support.

Store Server component for more demanding scenarios.

Ensure uninterrupted sales operations.

Gain greater deployment flexibility with hybrid deployment scenarios.


Need for…

ISOLATION FROM NETWORK OUTAGES


Halsted, Building Materials, Zimbabwe


Challenge 4: Fast-Growing CompetitionNeed for…

INNOVATION & DIFFERENTIATION


M&B Footwear, Footwear, India


Challenge 4: Fast-Growing Competition

Modern mobile and Web POS.

Flexible technology platform ready to build omnichannel services.

Truly modular commerce architecture.

Deliver a highly differentiated assisted sale everywhere in the store.

Gain capacity to integrate online and offline seamlessly.

Adapt easier and faster for competitiveness.


Need for…

INNOVATION & DIFFERENTIATION


M&B Footwear, Footwear, India


Challenge 5: Workforce ChallengesNeed for…

MODERN & EASE OF USE


Materiales Amezcua, Building Materials,

México


Challenge 5: Workforce Challenges

Stylish, very easy to use and highly productive solution.

Mobile Web POS with training mode.

Mobile-enabled platform: sales, inventory.

Attract talented people, increase user adoption and boost team collaboration.

Train new store associates in minutes to ensure customer service levels.

Embrace mobility for greater staff productivity.


Need for…

MODERN & EASE OF USE


Materiales Amezcua, Building Materials,

México


Challenge 6: Strong Budget ConstraintsNeed for…

AFFORDABILITY


Cheers, Wine, China


Challenge 6: Strong Budget Constraints

Open source stack.

Flexible subscription-based pricing.

Full web and cloud-ready architecture.

Eliminate need of additional licenses, so reducing total software cost.

Reduce initial risk with lower initial investments.

Gain IT store agility while lowering overall store IT costs.


Need for…

AFFORDABILITY


Cheers, Wine, China


Key Takeaways More than half of retail spending in the world

now comes from consumers in emerging markets.

Emerging markets are by definition in transition, so consumers’ tastes and habits are evolving and unpredictable.

Increased competition in many emerging markets obliges retailers to adopt efficient systems and boost productivity.

Emerging market retailers do not often have legacy IT issues so they are ideally placed to benefit from state-of-the art retail IT solutions.


Any Questions?

You can submit additional questions or comments after the webinar on Twitter.

Hashtag: #webinar_OB

#webinar_OB



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