fspa india day - richard lowy, unicorn

India DayFSPA

May 25th 2011

Thank you

Richard LowySales Director

Privately Owned Family Business

Unicorn Products Limited

Quaint, Eccentric English Sports Goods

Unicorn Products LimitedHistory

Frank Lowy

The World’s First Better Dart For £51937

Innovation

1930

1970

1989

William GunnGM Factory 1901April 6th 1885

1989

Wood, Darts & Cues

The Company TodayHeadquartered Kent

Operations Centre NottinghamUnicorn China

Employ 75 in the UK

Crockham Hill

Head Office Finance

Unicorn ChinaUnicorn Product Development

Worldwide SalesExport & Import Logistics

Nottingham

Warehouse & Distribution Customer Services

Cricket Bat ProductionMarketing & Product Development

Unicorn China

Customers

Sell In More Than 100 Countries

Wide Retail DistributionSpecialist Sports RetailGeneral Sports Retail

Mass MerchantWholesale

Broad Product Ranges

India

Sensational Food

Wonderful People

Incredible Culture

StunningAmazing

Why are we in India?

Quaint, Eccentric English Sports Goods

We were already there….

India Statistics

5,000 year old ancient civilization325 languages spoken – 1,652 dialects

18 official languages3.28 million sq. kilometres - Area

7,516 kilometres - CoastlineWorlds largest democracy.

One of the largest economies.Largest English speaking

nation in the world.

1970 Nett Indian Purchaser

In 1959 Nett Seller to India

1864 Duty was 7.6%1990 Duty was 93%

2010 Duty 15%

2004 / WTO

London Chamber of Commerce

Very Interesting

Number of Fronts….

Widely Distributed!

Counterfeit

…even at my appointments!

Mr Manohar WagleWagle & Company

1865

12 Meetings, 7 Orders,

…and learned a lot!

The country, the people, the market place,

selling in sports trade

Very different from buying….

Average Indian salary was less than £40 per month

75% of the population earn less than £1.25 per day

50% of the cricketers in India don’t use the equipment we make!

Street Cricket

£135£27

£100

Made sales 25% Population have money

Liked a sales call!

Despite that…..

and………

Brands

What to do?

Stopped dealing with them all!

Appointed a Distributor

Licensed GM

Structured product & pricing for the Indian market

Distributor

In India since 1970

Approached by many

Profile

Licence

Supplier

Understand all aspects of the local market place and international trade

Sales Force

200 Retailers

License

License

DistributorLicenseeSupplier

Varied & UnorganisedThe Market

Styles to suit consumers

Individual Sports ShopsPoor to Excellent

Decathlon

Hypercity

Cash & CarryReliance Retail

On-line Retailers

HyperCity has had some success in sports other Mass Merchants

have not…..so far

Minimal impact on Independent sports shops working on much low margins

Is it going well?

Since 2004

Grown every year87% of the total in the last three

Doubled in 2011

………..why?

Increased percentage of spending on imported sporting equipment.

Rise in disposable income.

Career opportunities in sports.

Distributor has done a good job raising our profile

………..and

Support calls with Distributor in the market place

……..all in a days work!

Overall the sporting goods market in India is growing at a healthy rate

Invest more in developing infrastructure

Favorable Government policies

For India to develop & grow further

LogisticsThe Unexpected!Mechanical Handling

Amritsar - Delhi - Hyderabad – Chennai2600 km

Intellectual Property

Challenges?

2011 Indian Budget15% to 21%

Some product 28% Footwear Higher with Duty Protection

Duty!

Getting around

Demand for good quality sport product

India….I love it!Thank you