[ppt]state of global retailing in russia - maurizio ammannato · web view36.6 today & tomorrow...
Post on 17-Jun-2018
213 Views
Preview:
TRANSCRIPT
-
State of Global Retailing
A Closer Look at Russia
Artem Bektemirov, CEO
Pharmacy Chain 36.6
NRF Annual Meeting
16 January 2005
-
Soviet-Style
Retailing
-
Retailing Today
-
Shopping at Apteka 36.6
-
RUSSIA: #1 EMERGING RETAIL
GROWTH MARKETA.T. Kearneys 2004 Global Retail Development Index
RankingCountryCountry RiskMarket AttractivenessMarket SaturationTime PressureScore1Russia5656771001002India62349272883China7142629086
-
Market Growth: 10% annual growth in the next 5 years. Already one of the 10 largest retail markets in the world.
Strong Economy: Driven by strong trade balance, growth in productivity and investment, and fiscal responsibility.
Market Opportunities: With rising incomes, consumers seek greater quality and choice offered by modern formats.
Government Support: Relatively liberal policies in consumer economy balance traditional hurdles.
Strong Local Players Emerging: Russia retailers now emerging with operating efficiencies comparable to international benchmarks.
WHY RUSSIA IS #1
RETAIL GROWTH MARKET -
RUSSIAS TWO ECONOMIES
Consumer-BasedResource-Based% of GDP50%25%Growth Rate (2002-04)15-20%10-15%Govt InfluenceLimitedSignificantPrivatizationEntrepreneurial start ups after 1990sPrivatized State Resources in 1990sPolitical RisksAdequateVery HighCompany SizeSMEs and MMEsDomestic Blue ChipsConcentrationVaries by SectorHighInvestmentUnder-investedHighly-invested
-
Real growth of consumer income and retail turnover % y-o-y
Source: State statistic committee, IRG estimations
6-Year Annual Average:
Retail:
9.1%
Income: 10.3%
RUSSIAS RETAIL MARKET:
$170 BILLION AND GROWING -
RETAIL MARKET SEGMENTS
Source: GKS, UFG, Euromonitor
Annual
Forecast Growth
2004-2010*
Electronics 15%
DIY 14%
Food 12%
Cosmetics 11%
Pharmaceuticals 9%
*nominal USD, CAGR
Pharmaceuticals
-
RUSSIAN RETAIL MARKET
REMAINS FRAGMENTED5%
Food
36%
Electronics
9%
DIY
6%
Pharmaceuticals
Source: UFG Research
Top-5 Players Marketshare
Food:
Metro
Electronics: Eldorado
Pharmaceuticals:
36.6
DIY:
Starik
Hottabych
Top Russian
Retailers
-
FOOD RETAIL:
RUSSIA vs. INTERNATIONALSales per Square Meter (2002)
USD
-
PHARMACY RETAIL CHAINS:
RUSSIA vs. INTERNATIONALSales per Square Meter (2003)
USD
-
RUSSIAN RETAIL: FUTURE TRENDS
New Formats: New and different formats (DIY, convenience stores).
Consolidation: Small chains bought by larger retailers.
Regional Expansion: Cities with population +1 million.
Foreign Retailers: Continued expansion over next 2 - 3 years.
Large Format Retail: Trade centers and hypermarkets.
-
RUSSIAN RETAIL: MAIN BARRIERS
Capital: Lack of investments for domestic retail chain development.
Consumer Income: Low income of Russian population outside Moscow.
Real Estate Shortage/Prices: Lack of space and high rental and purchase prices.
Competition: Particularly with unorganized trade and open markets.
Bureaucracy & Red Tape.
-
PHARMACEUTICAL
MARKET FORECASTSource: Pharmexpert, RMBC, DSM, 36.6
Moscow
Regions
Russia
3,671
4,038
4,442
4,886
5,375
5,805
6,269
2003-2009 CAGR*
Russia
9.3%
Regions
10%
Moscow
5.8%
*Compound Annual Growth Rate
USD Millions
-
PARA-PHARMACEUTICAL
MARKET FORECAST*Includes medical devices (blood pressure meters, thermometers, glucometers, etc.), first aid (adhesive bandages, wound care materials, etc.), patient care products, specialty hosiery and support products.
Source: Euromonitor, Pharmexpert, Supplier data, Internal estimates
Dietary supplements
Other*
Total PPh
343
399
477
566
667
783
911
2003-2009 CAGR
Total PPh
18%
Other
20%
Supplements
15.8%
USD Millions
-
COSMETICS AND TOILETRIES
MARKET FORECASTSources: AIPM/RMBC, UFG, GKS, Euromonitor
GROWTH
Y-o-Y, %
MARKET
USD billions
Diapers 16.1%
Sanitary
Protection 15.5%
Skin Care 14.6%
Fastest Growing
% CAGR
(2003-2008)
-
Pharmacy Chain 36.6
Russias Leading Health and Beauty Retailer
-
36.6 AT A GLANCE
sales in 2003. EBITDA was 9.3% in 2003.
market capitalization. 20% of shares placed
in 2003 IPO.
topline annual growth: 30% in retail, 20% in
manufacturing.
in 7 Russian regions.
purchases in 4th quarter 2004.
in the generic portfolio of Veropharm.
skilled personnel and experienced
management team.
250
pharmacies
145
million
25%
290
products
6000
employees
147.8
million
7.3
million
-
36.6 EXPANSION
250 pharmacies
7 regions
30 million
customers
-
36.6 IS RUSSIAS MOST
RECOGNIZABLE BRANDSource: Gallup Media Survey, 2003
Also leads in:
attendance 49%
purchases 40%
-
CUSTOMER VALUE PROPOSITION
Convenient locations.
Reliable quality products.
Excellent shopping experience.
Wide assortment.
Competitive prices.
We strive to increase the value of the company by providing our customers with a reason to come back.
-
36.6 TODAY & TOMORROW
By 2008:
$800 million in sales
10% of market
60 million customers
0
5
0
1
0
0
1
5
0
2
0
0
2
5
0
3
0
0
$55
$76
$45
$45
$39
STORES
2003
SALES 2003
USD millions
36.6
o3
rigla
first aid
natur produkt
-
Address: 105082 Moscow,
36 Bolshaya Pochtovaya str.
Tel.: +7 (095) 792-5207
Fax: +7 (095) 792-5206
E-mail: info@oao366.ru
www.pharmacychain366.com
5.8
6.6
7.5
8.4
9.4
10.2
11.1
12.8%
15.0%
13.3%
12.4%
10.8%
9.4%
8.4%
0%
5%
10%
15%
20%
2002
2003
2004
2005
2006
2007
2008
0.0
2.0
4.0
6.0
8.0
10.0
12.0
617
660
706
749
786
826
867
3,054
3,378
3,736
4,137
4,588
4,979
5,402
2003
2004F
2005F
2006F
2007F
2008F
2009F
11.9
8.5
8.9
14.6
10.2
9.0
9.0
10.9
9.2
8.0
9.2
8.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2000
2001
2002
2003
2004F
2005F
Income
Retail turnover
163
199
237
278
322
368
413
180
200
240
288
346
415
498
2002
2003
2004F
2005F
2006F
2007F
2008F
Apparel
13%
Other
19%
Food
47%
Furniture
7%
Consumer
electronics
4%
Cosmetics
& toiletries
4%
2%
DIY
4%
72.4%
67.2%
63.2%
63.0%
62.6%
58.9%
56.2%
56.2%
52.3%
51.2%
36.6
GUM
TsUM
IKEA
Detsky Mir
Starik Khottabych
Technosila
M.Video
Okhotny Ryad
Mir
15500
14080
16500
9400
5600
4900
22000
Tesco
Sainsbury
Safeway
Morrisons
Pyaterochka
Perekrestok
Sedmoy Kontinent
7,000
4,120
7,500
9,100
Walgreen
CVS
Rite-Aid
36.6
top related