fspa india day - richard lowy, unicorn
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FSPA INDIA DayTRANSCRIPT
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