development of wholesale and retail markets in europe challenges and opportunities chandigarh, india...
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Development ofwholesale and retail markets in EuropeChallenges and opportunities
Chandigarh, India20-21 November 2012
Chandigarh, India20-21 November 2012
Agenda Importance of markets in Europe Purpose and definition of markets Advantages of markets Customer needs and marketing Goals for the management Historical development and parameters Lease contracts Provide competitive services Food safety Business economy
Chandigarh, India20-21 November 2012
Torben Flinch, m.sc.agr.Business development, consulting and board of directors
Chairman and board member WUWM 8 years
Managing director Copenhagen Wholesale Market 9 years
Managing director Agricultural Advisory Company 7 years
Chief of board education Danish Agricultural Council 3 years
Consultant Cooperative Development 3 years
Agricultural adviser Economics and production 4 years
Farming 20 years
Chandigarh, India20-21 November 2012
Importance of wholesale and retail markets in Europe
Wholesale markets – 21 EU countries
110 wholesale markets1 mill. employees42 bill. euro turnover p.a.40% of produce supply in Europe
Chandigarh, India20-21 November 2012
Importance of wholesale and retail markets in Europe Retail markets – 21 EU countries
25.000 retail markets1 mill. employees450.000 retail traders40 bill. euro turnover p.a.
Chandigarh, India20-21 November 2012
Purpose of wholesale marketsPromote food producers and wholesalers trade with professional buyers to strengthen their market position
and income by:Supporting rational tradeRent out space and logistic facilitiesProvide competitive servicesMarketing the market and the productsDevelop the range of goods, the buildings and the infrastructure
Chandigarh, India20-21 November 2012
Wholesale market advantagesKnown conceptTransparency and high market informationCooperation possibilities for products, logistics
and salesNew business areas or products can be tried easy
and at low costsModern facilities to help increasing product qualityInspiration, knowledge, innovationAll Customer groups are includedCustomers, suppliers and competitors are close by
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Customers want
Fresh products Large range of products Confident supplier relations High level of service Easy access Prices are not crucial(Investigated by Retail Institute Scandinavia 2008)
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Marketing Customer investigations
what do tenants and customers want? Web
market information Posters
product information Campaigns
usage of products, cooking and healthy diet
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Poster(example)
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Goals for the management to support the actors on the market
Service minded through all our relations
Eventful at every visit
Diversity product range and business concepts
Efficiency logistic, common services and trade
Safety people, food, environment
Knowledge customers, society and politicians
Chandigarh, India20-21 November 2012
Historical development of the wholesale/retail market conceptInfluence from external economic
and technologic conditions on markets
Structural development of producers, traders and retail supermarkets chains.
From small and many
Big, specialized and few
Chandigarh, India20-21 November 2012
Historical development of the market concept - 1
1950 Old market places in the town center
1950 – 1970 Separation of wholesale/retailRelocation of wholesale markets
1970 – 2000 Development of wholesale markets
infrastructure, services and marketing
Chandigarh, India20-21 November 2012
Historical development of the market concept - 22000 – now:
New owner structures public/privateRelocation or reconstruction
of wholesale markets (second time)Focus on logistic and food serviceDevelopment of retail marketsCollaboration between wholesale and
retail markets on competing the supermarkets
Chandigarh, India20-21 November 2012
Development parameters - 1 Wholesale and Retail
from integrated separate and rebuilding collaboration
Productsfrom field processing
Price formationfrom auction contract
Tradingfrom cash and carry distribution
Chandigarh, India20-21 November 2012
Development parameters - 2 Infrastructure and building
from market hall closed cool chains
Owner structure and managementfrom public private
Economic Modelfrom public service commercial business
Locationfrom town centre suburb
Chandigarh, India20-21 November 2012
Lease ContractRent: fixed pr. m2 (inflation/regulation).
Service fee: tenants pay for services.
Reconstruction: if tenant stops the lease:
Obligation: to maintain and
reconstruct the space.
Termination: on termination of lease:
Compensation: if management needs the space for other purpose.
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Competitive servicesAccess to efficient logistic facilitiesCommon opening hoursEntrance services and controlParkingWaste managementFork-lifts and gas servicesFood safety controlMarketingTenant association (involvement)
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Food Safety
Guide to good practice for wholesale market authorities and managers within the European Union
Clean, cold and efficient
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Guide to good practice for market managers - 1 Requirements for food premises Quality Control (htccp) Risks and responsibilities Water supply Cleaning Waste management
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Guide to good practice for market managers - 2 Pest control Temperature control and ventilation Lighting Services Personal hygiene Training
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Efficient logistic (example)
Chandigarh, India20-21 November 2012
Business Economy Example, Copenhagen Wholesale Market 2012 estimate, mill. DKK (Private owned commercial company)
Income (turnover) 51,1 Deprivation - 6,1Real estate tax - 6,8Maintenance - 5,0Operating costs - 12,9Consultants - 1,8Administration costs - 7,9Finance (interest on loans) - 7,5Tax (income) - 0,8Result (Net) + 2,3
Chandigarh, India20-21 November 2012
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