F O R S U C C E S S F U L L I V I N G ConfidentialPA13/5/20121

CRISIS IN RETAIL MARKET

BUSINESS WEEK 2012Organised by: MBA’s Society

University of Piraeus

F O R S U C C E S S F U L L I V I N G ConfidentialPA13/5/20122

COUNTRY MAJOR MACROECONOMICS & RETAIL INDEXES

CRISIS: A DIFFERENT BUSINESS REALITY

DIESEL HOW DO WE ADJUST OURSELVES?

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AGENDAAGENDA

F O R S U C C E S S F U L L I V I N G ConfidentialPA13/5/20123

MACROECONOMIC & RETAIL INDEXES

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F O R S U C C E S S F U L L I V I N G 4

whenthecrisishitthefan.com

F O R S U C C E S S F U L L I V I N G 5

Gross Domestic Product (million €)

Country/Year 2010 2011 2012 2013

Eurozone (17 members) 8.479.574 8.609.996 8.649.054 8.764.694

Ireland 162.694 164.460 166.253 170.073

Greece 195.586 184.835 179.645 180.885

Spain 950.372 957.399 963.630 976.875

Italy 1.422.432 1.430.113 1.430.930 1.440.407

Portugal 157.683 154.735 150.038 151.707

Source: Eurostat

F O R S U C C E S S F U L L I V I N G 6

How much we spend compared to EU (million €)

Ireland Greece Spain Italy Portogal

2010 2011 2012 2013

Country/Year 2010 2011 2012 2013

Eurozone (17 members) 6.667.569 6.691.475 6.708.865 6.761.489

Ireland 105.308 102.494 101.386 101.208

Greece 180.825 168.757 159.926 156.666

Spain 740.471 742.556 742.718 749.648

Italy 1.153.906 1.159.895 1.160.193 1.163.062

Portugal 139.862 134.366 126.341 124.797

Source: Eurostat

F O R S U C C E S S F U L L I V I N G 7

Greece Spain Ireland Portugal Italy Eurozone (17 countries)

-3

-2

-1

0

1

2

3

4

5

6

2008

2009

2010

2011

Inflation to EU (%)

Country/Year 2008 2009 2010 2011Greece 4,2 1,3 4,7 3,1Spain 4,1 -0,2 2 3,1

Ireland 3,1 -1,7 -1,6 1,2Portugal 2,7 -0,9 1,4 3,6

Italy 3,5 0,8 1,6 2,9Eurozone (17 members) 3,3 0,3 1,6 2,7

Source: Eurostat

F O R S U C C E S S F U L L I V I N G 8

Europe Unemployment Rates

chartsbin.com

Country/Year Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Average

Eurozone (17 members) 10,6 10 9,8 10,1 10,4 9,8 9,9 10,09

Ireland 13,1 13,9 14,1 14,3 14,3 14,6 15,1 14,20

Greece 11,9 12 12,6 14,4 16,1 16,6 17,9 14,50

Spain 20,2 20,2 19,9 20,5 21,4 21 21,7 20,70

Italy 9,2 8,5 7,7 8,8 8,7 7,9 7,8 8,37

Portugal 11,2 11,2 11,5 11,7 13 12,8 13 12,06

Source: Eurostat

F O R S U C C E S S F U L L I V I N G 9

Index Volume Retail Changes (%) Feb 2012 vs Feb 2011

Retail Store Categories Change (%)Fuels -18,90Rest -16,00

Supermarkets -6,80Malls -19,20

Food, Alcohol and Cigarettes -14,10Pharmaceutical and Cosmetics -8,40

Clothes and Shoes -29,00Furnitures and Electricals -16,60

Books and Paper Stuff -8,90General Index -13,00

General Index without Fuels -11,80Source: Greek statistical authority

F O R S U C C E S S F U L L I V I N G 10

Index Volume Retail Changes (%) Feb 2011 vs Feb 2012

Fuels

Rest

Superm

arke

tsM

alls

Food, Alc

ohol and C

igar

ette

s

Pharm

aceu

tical

and C

osmet

ics

Cloth

es a

nd Shoes

Furnitu

res

and E

lect

rical

s

Books a

nd Pap

er S

tuff

Gen

eral

Index

Gen

eral

Index

with

out Fuel

s

-18.90

-16.00

-6.80

-19.20

-14.10

-8.40

-29.00

-16.60

-8.90

-13.00-11.80

Change (%)

F O R S U C C E S S F U L L I V I N G 11

August 2011

Total Enterprises Bankrupt Companies %

Attika 7.980 1.799 22,50%

Athens Down Town 2.861 699 24,40%

Piraeus 1.591 350 22,00%

Thessaloniki 2.325 444 19,10%

Kavala 428 61 14,30%

Veroia 657 94 14,30%

Edessa 442 87 19,68%

Larisa 1.110 183 16,50%

Tripoli 294 58 19,70%

Irakleio (Creta) 928 161 17,30%Source: Ministry of Labour and Social Insurance

Sum: 18.616 3.936

Average: 18,98%

When companies go bankrupt

F O R S U C C E S S F U L L I V I N G

CRISIS: A DIFFERENT BUSINESS REALITY

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F O R S U C C E S S F U L L I V I N G

Distributor’s model collapsing due to cash flow, Direct presence of Brands

Decrease of the number of wholesalers and small and medium (SME) enterprises (no funding)

Companies have decreasing budget for marketing & G&A expenses:– Cheaper means of advertising: Internet, face-book, twitter, mobile

applications– Less but efficient people Demand for multi task people

Change of business KPIs: Sales Volumes and Value targets are out of dated!!!!

Become consumer obsessed….

New retail channels Online, Outlets

Open market place is passing out….

Market rule : ‘Survival of the Fitest’ is more than ever applicable……

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F O R S U C C E S S F U L L I V I N G 14

DIESEL: HOW WE ADJUST OURSELVES

F O R S U C C E S S F U L L I V I N G

Distributor model is collapsing

Less W/S

Limited Budget

Change of business KPIs

Become consumer obsessed….

New market trends: Outlets

Open market place is passing out

Market rule : ‘Survival of the fitest’ is more than ever applicable…….

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Strong Brand Directly in Greece

Focus on healthy customers

Company restructuring…

Focus on cash flow & profits..

After sales support

Increase outlet presence

Focus on Malls and Dept. stores

Diesel belongs to the Only The Brave Group!

MARKET DIESEL

F O R S U C C E S S F U L L I V I N G 16

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