how to grow sucessfully in emerging retail markets with openbravo
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© 2016 Openbravo Inc. All Rights Reserved. 1
How to Grow Successfully in Emerging Retail Markets with OpenbravoOctober 27th, 2016
© 2016 Openbravo Inc. All Rights Reserved. 2
Today’s Presenters
Xavier PlacesProduct Marketing Director@ Openbravo
Francesco LetoBusiness Development Director for New Markets@ Openbravo
© 2016 Openbravo Inc. All Rights Reserved. 3
Today’s presentation is available to download on the Attachment tab on the webinar page.
Visit openbravo.com/retailers/resources/overview/
Check out additional resources and don’t forget to share them with your colleagues.
Have a question? Click on the Question tab.Q&A will be at the end of today’s presentation.
Submit additional questions or comments after the webinar on Twitter.Hashtag: #webinar_OB
Simple steps to increase the value of today’s webinar experience
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Introduction Emerging retail markets How Openbravo helps Takeaways QnAs
Agenda
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What is an Emerging Market?
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Old World USA Japan Germany UK France
The New Economic Powers in 2020
New World China India Russia Mexico Brazil
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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
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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
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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
© 2016 Openbravo Inc. All Rights Reserved. 10
The Emergence of a New Middle Class
China 109mUSA 92mUK 28mIndia 24mFrance 24mCanada
13m
Mexico
13m
Brazil 11mTaiwan 11m
Source: Credit Suisse
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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
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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
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What you Need for Success
1.Strategic focus
2.Operational flexibility
3.Long-term vision
4.Expansion plan to drive rapid growth
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Top Emerging Markets
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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
© 2016 Openbravo Inc. All Rights Reserved. 16
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
© 2016 Openbravo Inc. All Rights Reserved. 17
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
© 2016 Openbravo Inc. All Rights Reserved. 18
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
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Rapid Growth in Ecommerce
Percentage of shoppers who shop online daily
Almost one in five of Chinese consumers shop online dailySource: PWC
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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
© 2016 Openbravo Inc. All Rights Reserved. 21
Challenge 1: Ambitious Expansion PlansNeed for…
SPEED Decathlon Sports India, Sporting Goods, India
Featured customer…
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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
Featured customer…
© 2016 Openbravo Inc. All Rights Reserved. 23
Challenge 2: Fast-Changing Market EnvironmentNeed for…
FLEXIBILITY & ADAPTABILITY
Featured customer…
PT. Bintang Indo Jaya, Bakery, Indonesia
© 2016 Openbravo Inc. All Rights Reserved. 24
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.
How does Openbravo help?Key Features Key Benefits
Need for…
FLEXIBILITY & ADAPTABILITY
Featured customer…
PT. Bintang Indo Jaya, Bakery, Indonesia
© 2016 Openbravo Inc. All Rights Reserved. 25
Challenge 3: Poor Network ReliabilityNeed for…
ISOLATION FROM NETWORK OUTAGES
Featured customer…
Halsted, Building Materials, Zimbabwe
© 2016 Openbravo Inc. All Rights Reserved. 26
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.
How does Openbravo help?Key Features Key Benefits
Need for…
ISOLATION FROM NETWORK OUTAGES
Featured customer…
Halsted, Building Materials, Zimbabwe
© 2016 Openbravo Inc. All Rights Reserved. 27
Challenge 4: Fast-Growing CompetitionNeed for…
INNOVATION & DIFFERENTIATION
Featured customer…
M&B Footwear, Footwear, India
© 2016 Openbravo Inc. All Rights Reserved. 28
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.
How does Openbravo help?Key Features Key Benefits
Need for…
INNOVATION & DIFFERENTIATION
Featured customer…
M&B Footwear, Footwear, India
© 2016 Openbravo Inc. All Rights Reserved. 29
Challenge 5: Workforce ChallengesNeed for…
MODERN & EASE OF USE
Featured customer…
Materiales Amezcua, Building Materials,
México
© 2016 Openbravo Inc. All Rights Reserved. 30
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.
How does Openbravo help?Key Features Key Benefits
Need for…
MODERN & EASE OF USE
Featured customer…
Materiales Amezcua, Building Materials,
México
© 2016 Openbravo Inc. All Rights Reserved. 31
Challenge 6: Strong Budget ConstraintsNeed for…
AFFORDABILITY
Featured customer…
Cheers, Wine, China
© 2016 Openbravo Inc. All Rights Reserved. 32
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.
How does Openbravo help?Key Features Key Benefits
Need for…
AFFORDABILITY
Featured customer…
Cheers, Wine, China
© 2016 Openbravo Inc. All Rights Reserved. 33
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.
© 2016 Openbravo Inc. All Rights Reserved. 34
Any Questions?
You can submit additional questions or comments after the webinar on Twitter.
Hashtag: #webinar_OB
#webinar_OB
© 2016 Openbravo Inc. All Rights Reserved. 35
© 2016 Openbravo Inc. All Rights Reserved. 36
Web: www.openbravo.com/contactEmail: info@openbravo.comSpain Office: +34 932 725 947France Office: +33 (0)1 70 08 73 62India Office: +91 33 23576501Mexico Office: +52 (155) 2506 1878
Thank you very much for your attention
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