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© 2016 Openbravo Inc. All Rights Reserved. 1

How to Grow Successfully in Emerging Retail

Markets with Openbravo October 27th, 2016


Today’s Presenters

Xavier Places

Product Marketing Director

@ Openbravo

Francesco Leto

Business Development Director

for New Markets

@ Openbravo


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Introduction

Emerging retail markets

How Openbravo helps

Takeaways

QnAs

Agenda


What is an Emerging Market?


Old World

USA

Japan

Germany

UK

France

The New Economic Powers in 2020

New World

China

India

Russia

Mexico

Brazil


$525

$1.490

2000 2015

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


Emerging Markets Outpace Developed Markets

2000-2008 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


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


The Emergence of a New Middle Class

China 109m

USA 92m

UK 28m

India 24m

France 24m

Canada 13m

Mexico 13m

Brazil 11m

Taiwan 11m Source: Credit Suisse


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


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


What you Need for Success

1.Strategic focus

2.Operational flexibility

3. Long-term vision

4.Expansion plan to drive

rapid growth


Top Emerging Markets


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


India

• Population:1.31 billion

• Median age: 27.6


• $1.01 trillion in retail sales


Advantage

Economic stability, regulatory reforms create more

business-friendly environment

Disadvantage

Real estate availability, intermittent network

connectivity, and weak logistics


Mexico

• Population:127 million

• Median age: 28


• $465 million in total retail sales


Advantage

Growing private consumption, increased access to

credit, and strong job creation expand retail market

Disadvantage

Market is approaching maturity


Other Countries

Country Population

(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


Rapid Growth in Ecommerce

Percentage of

shoppers who

shop online daily

Almost one in

five of Chinese

consumers shop

online daily

Source: PWC


Key Business Challenges Impacting Technology Selection

1. Ambitious Expansion Plans

2. Fast-Changing Market Environment

3. Poor Network Reliability

4. Fast-Growing Competition

5. Workforce Challenges

6. Strong Budget Constraints

How Openbravo Helps You

Succeed in Emerging Markets


Challenge 1: Ambitious Expansion Plans

Need for…

SPEED Decathlon Sports India, Sporting Goods, India

Featured customer…


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



Challenge 2: Fast-Changing Market Environment

Need for…

FLEXIBILITY & ADAPTABILITY


PT. Bintang Indo Jaya, Bakery, Indonesia


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.



Need for…

FLEXIBILITY & ADAPTABILITY


PT. Bintang Indo Jaya, Bakery, Indonesia


Challenge 3: Poor Network Reliability

Need for…

ISOLATION FROM NETWORK OUTAGES


Halsted, Building Materials, Zimbabwe


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.



Need for…

ISOLATION FROM NETWORK OUTAGES


Halsted, Building Materials, Zimbabwe


Challenge 4: Fast-Growing Competition

Need for…

INNOVATION & DIFFERENTIATION


M&B Footwear, Footwear, India


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.



Need for…

INNOVATION & DIFFERENTIATION


M&B Footwear, Footwear, India


Challenge 5: Workforce Challenges

Need for…

MODERN & EASE OF USE


Materiales Amezcua, Building Materials,

México


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.



Need for…

MODERN & EASE OF USE


Materiales Amezcua, Building Materials,

México


Challenge 6: Strong Budget Constraints

Need for…

AFFORDABILITY


Cheers, Wine, China


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.



Need for…

AFFORDABILITY


Cheers, Wine, China


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.


Any Questions?

You can submit additional questions or

comments after the webinar on Twitter.

Hashtag: #webinar_OB

#webinar_OB



Web: www.openbravo.com/contact

Email: [email protected] Spain Office: +34 932 725 947

France Office: +33 (0)1 70 08 73 62

India Office: +91 33 23576501

Mexico Office: +52 (155) 2506 1878

Thank you very much

for your attention

http://www.openbravo.com/contact

mailto:[email protected]

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How to Grow Successfully in ... - · PDF fileVisit openbravo.com/retailers/resources/overview/ Check out additional resources and don’t forget to share them with your colleagues