mercredi 24 décembre 2008

From CONSUMER to CONSU- ACTOR


In France, INSEE confirmed the 0.2% increasing of the index of prices in supermarkets for the month of NoveImber. On one year, this index has rise to 4.2% against 1.6% in November 2007. In these times of crisis, prices comparative sites between supermarkets are useful for consumers to help buy cheaper. The most comprehensive of these sites in term of number of products compared is certainly http://quiestlemoinscher.com/.



However, we must take precautions to use it because this site is hosted by the Leclerc group which naturally tends to favourite its products. However, other comparative sites are easily exploitable, allowing consumers a choice in its most significant purchases. From consumer to consu- actor...

lundi 22 décembre 2008

Folder Wal Mart in the World : OPA on D&S a Chiliean retailer

To start the folder "Wal Mart in the world," I wanted to offer a brief that seems the best way to characterize the international politics of the giant supermarkets.

Wal Mart is launching a takeover bid for the Chilean D & S retail company

Monday December 22 2008 at 9:00 am local time, Wal Mart officially launched a takeover bid for the largest supermarket chain in Chile. This should be achieved during the Tuesday 23 December.

Chile is one of Latin America country who have developed a true culture of large hypermarkets as in the U.S.. This market remains one of the most competitive of the continent.

The takeover highlights the willingness of Wal Mart to strengthen its presence in the world.
At the opening of the Chilean stock exchange Monday, heading D & S rose by 28% to 250 pesos per share.

The impact of giant causes a shock wave in the environment of the Chilean supermarkets. How will they be able to prevent this giant to seize market knowing that they have huge sums of investment?


lundi 15 décembre 2008

Major retailers involved in the GREEN BUSINESS

This week, the Auchan group welcomed its new headquarters in Villeneuve d'Ascq. The latter was built in an entirely environmental demarche. Major retailers increased in recent days a lot of signs of environmental protection; Carrefour created structures closest to the consumers (Carrefour Contact) so that they are not obligated to use their vehicles. Casino promotes carpooling to these customers. Jerome Bédier, President of the Federation of Commerce and Distribution announces the abolition of plastic bags by 2010.

It would appear therefore that there would be an ecological link between the major distribution companies and their customers. This doesn’t omit that this effort must also be realized between retailers and their suppliers ...

lundi 8 décembre 2008

Lars Olofsson : the new CEO of Carrefour


Carrefour, 2nd world actor retail industry, announced on November 18 the nomination at the post of CEO of Lars Olofson, 56 years. He will take the leadership of the group on January 1, 2009.


Carrefour weakens by the current economic crisis

Carrefour has difficulties because of the current financial and economic crisis. Indeed, the sales in France decreased approximately by 5,7% this year. Moreover, Carrefour always makes about half of its turnover in France (48%). This dependence is not encouraging at all when it is known that the french household consumption decreases because of the current economic and social context. And with the fall of the CAC40, the Carrefour security moved back of more than 40% since the beginning of the year 2008.

José Luis Duran (future ex-CEO)"picks up the pieces" and will be replaced by the Swede Lars Olofsson. His main mission will be to improve the position of Carrefour in France and especially to decrease this "French dependance" by actively persuing the international development of the company.


Who is Lars Olofsson?

Lars Olofsson, 56 years was to now the director of the strategy, the marketing and the sales of the Swiss group Nestle. Moreover, it passed the essence of its career within Nestle.
He entered Nestlé in 1976 as product manager of Findus. Then he was named in 1981 in Nestle France and there occupies various sales and marketing functions. In 1992, he becomes general manager of Findus France. Three years later, he takes the head of the Scandinavian activities (Sweden, Norway, Finland, Denmark) of the Nestle group. In 1997, he returns to France to become General manager of Nestle France. He will leave this job 4 years later to become Director of Nestle Europe before occupying its last position at Nestle: director of the strategy, marketing and the sales.

He will bring his knowledge about negociation between suppliers and retailers and will consequently facilitate the business between Carrefour and its mai supplier Nestle.

Taking into account the current economic situation, Lars Olofsson will not have much breathing space to successfully fulfill his mission and bad results could weaken the title in the stock market and tensions can appear with its main shareholder Blue Capital who holds nearly 14% of the French group.

french website Cdiscount launches its free VOD service

Cdiscount has just launched its offer of free movie downloading. To set up this service, the website was sponsored by the radiostation NRJ. After he dowloaded the movie, the client can watch it for a couple of weeks. Since December 3rd, four movies are available on the website, and there will be three more by next week. To use this service, the client will just have to suscribe to the site, and as a consequence to its newsletter, that could potentially drive him into buying something online. The fact that the number of movies available is really low could be a strategic choice, as the website also sells DVDs.

The site ensures that it "has bought the rights of the movies that are proposed on free downloading on the website. By buying these rights towadrs producers and retailers, Cdiscount makes sure that the people concerned will be fairly retributed, which is not the case when these movies are illegaly downloaded.". The firm has a contract according to which each movie can be downloaded 30 000 times. After these 30 000 users, the movie will no longer be available.

jeudi 4 décembre 2008

A Mass Market retailers /Mobile telecommunications companies agreement on the payment of goods by mobile phone.


On 2 December 2008, the distribution giants including Carrefour, Auchan and Intermarché and the three main mobile telecommunications companies, Orange, SFR and Bouygues Telecom have signed an agreement to complete the implementation of payment by mobile phone in participant shops. Tests will be made from Christmas 2009 that will allow customers of the three companies to pay their purchases contactless via their mobile phone. Since November 2007, the technology is being tested in two French cities: Caen and Strasbourg. The main obstacle to its development was the need of an agreement between mains players around a common technical solution and a profitable business model. We need, for example, to ensure the universality of the technology to avoid the Japan case, where the technology has developed rapidly, but where the offer is proposed by a single company NTT DoCoMo. The French agreement appears as a "sacred union" between the competitors. It demonstrates the importance of the issue.
The used technology NFC-type, for near field communication uses the functionality of the mobile phone interactivity. It may be used to exchange information in short distance by three modes: emulation card, peer to peer and reader.

In the area of Mass Market, this new use of mobile phones is a revolution in sales and marketing. Required to provide more information on products, stores may dematerialize labels, notices and even offer customized-promotions to their customers. By approaching their mobile phones near a contactless spot customers will obtain product information. The payment by mobile phone should flow transactions. In addition, the economic model chosen wouldn’t include additional cost for the seller. These cost will be on customers who are using payment by mobile.
To be adopted, this mode of payment should provide a substantial advantage, especially because the French culture is hard to change. We all remember the fiasco of Moneo. For customers, the use of mobile phone as a means of payment seems appropriate to the expenses of daily life. Exit coins, blue cards and loyalty cards. The mobile phone, which many of us keep near, will do it all. The success of this new method is likely in a country where almost 80% of French people aged over 15 have a mobile phone. However, customers will have to change their mobile phone. Nokia, Samsung and LG, the most advanced manufacturers announce the arrival of terminals for Fall 2009. An estimation indicates that in 2011 one third of sold mobile phones worldwide should be equipped with a contactless microchip, for transactions amounting to 34 billion of dollars. Remains open the question of the security process. In the event of mobile theft, the network of the telecommunication companies will be used to disable the application. But what about the hacking?

Against the wasting of large retailers : the emergence of the Freegan movement

Restaurants of the Heart reopen their generous closets this winter for the 24th consecutive year. For while the centers are now open all year for the poorest, the launch of the distribution of winter (from December 1 to March 31) remains highly symbolic: it is qu'affluent mass victims of cold and this year especially, the economic crisis.


Officials of the association founded by Coluche fear indeed to beat a new record attendance, because of this' social and economic climate very difficult and unprecedented. " Last year, some 51,500 volunteers have served more than 91 million meals to about 700,000 beneficiaries.

"There are more people to help"

In Seine-Saint-Denis for example, entries are open since mid-November - are "already up 10%" argued an official of Restaurants of the Heart. And the figure will likely increase, as the winter progresses, it also fears. Nationally, the trend is much the same: enrollment increased by 5 to 10% say those responsible.

Faced with increased insecurity and declining purchasing power explain how supermarkets who throw the food.


Supermarkets, fast food restaurants, bakeries, stations, airports, etc.. Reject each day tons of food. A treasure that some do not hesitate to recover. These are called the freegans. Their credo: Fighting over!


The militants' freeganisme "are not bums, but active, usually urban, that gain all that food stores and supermarkets put in the trash. In doing so, "freegans" criticize the consumer society they believe, in turn, responsible for violation of human rights, environmental destruction and animal torture, close the ban.
For them, consumption market can not be a criterion for defining the well-being.

Meanwhile, the few professionals of large retailers who agree to speak on the subject prefer to put forward their donations to food banks and branches reclamation of waste they put in place.

For other followers of the movement, be "freegan" is also trying to awaken consciences more violently. With increasing insecurity and poverty, food for all should take precedence weapons programs.

And if everybody does not necessarily anti-belief of freegans, the debate over many questions

Because the waste bins beyond supermarkets and, if freegans do not attack our waste, our bins do not least teem mountain of food wasted. You figure that every day 1 300 000 yoghurt pots go in the trash without being opened.

Similarly 5 500 chickens were dumped without ever seeing the inside of the oven, at a time when food prices are rising sharply.

If the trash is making a case of militancy for some, for others it is a matter of necessity and survival. Pascal, Melanie, are few.
He arrived in Pascal, a student without a penny, to the dustbins of Mc Do in the city.

Melanie: "In gleaning market I save 15 € per week"

Protected by its cherry red umbrella, Melanie was crouched between crates and cardboard. At a time when the market Cristal folds its trestles, the student license Glane English fruit and vegetables unsold.

On reflection, Melanie recognizes that it can get fruits and vegetables aware of the incredible waste product that the consumer society. But his choice is guided primarily by economic reasons that students know: "I have a budget of € 200 per month. My mother pays me rent - 415 € - for a few months. Then it will take me débouille alone. In picking fruit and vegetable market, I save a good fifteen euros per week. "

Most share a common knowledge for months. A 32-year and 60, and Andre Bernard receive meager 440 euros each of RMI. Lidl in their bag, a big rag reach just a few mushrooms. "It's too expensive! The prices of vegetables have risen further, we can not afford them, "Andre is sorry. In this Saturday, the harvest is a little thin and they come back the next day ...
In response, we will not change our ways and our consumption habits

Nokia 5800 will miss Christmas!

Nokia will miss the crucial period of Yule concerning the launching of its new Smartphone, the N5800.

New Smartphone from Nokia, N5800, will be marketed before Christmas only in few emergent countries like India, Indonesia, the United Arab Emirates, Hong-Kong, Taiwan and Russia. But in France and in other countries, it will be available only in the beginning of 2009. Apple and RIM will benefit a lot from this situation.
Nokia, worldwide mobile phone industry leader, had to react by launching a touch screen multi-media mobile in order to compete with Apple Iphone 3G or Blackberry of RIM. Consequently on the 3rd October 2008, Nokia announced the launching of Nokia 5800.
With already more than one year of delay within the launching process initially provided by the Finnish company, N5800 was to be marketed at the end of 2008 at the price of 400€ including all taxes (except grant operator).

However, a new delay has disturbed its introduction on the market. According to Nokia, the time-table of his new mobile launching process is similar to what it is observed from many other competitors products, It can be explained by the required time for personalization of compounds for each operator. "The integration of a tactile interface makes just more complicated this personalization, added the Finnish manufacturer" (Reuters)

The leadership of Nokia can be threatened on the market of Smartphones. Indeed, the market share of the Finnish company on this market fell in the third quarter of 2008 to 38,9%, against 51,4% one year ago over the same period. In the same time, Apple and RIM leaped respectively with market share of 17,3% and 15,2%.
This situation is quite similar to the error that Sony made when launching the Playstation 3 in Europe.There Sony could measure the consequences by selling less PS3 than Wii or Xbox 360. And as we have seen before, the positions in the smartphone market seem to be already established.

mardi 2 décembre 2008

Large retailers facing economic crisis : Winners and losers, abstract.


Retailing actors are one of the most important tags showing the evolution of the economic crisis on the markets. Indeed, shortly after the start of the crisis, consumers became very careful with their money. In order to avoid temptation, people prefer modifying their way of consumption going to grocers and supermarkets rather than hypermarkets. So, since October 2008, consumption has lost 0.55 %. The volumes of alimentary expends are quite stationary concerning large establishments (thanks to supermarkets) although non alimentary goods (clothes, electronics, books, records…) are in regression.


The great winners are hard discounters and low-prices strategy


Wal-mart, world’s n°1 retailing company, appears to be the great winner. It’s marketing strategy is a succeed, leading the company in the USA to be considered as the one proposing the lowest prices and permitting it to realize a 12% raising of it’s quoted value.

In France, Casino group, with it’s two jewels Franprix and Leader price actually in high development, is quickly growing. Even Carrefour is tempting to use the same way of development: “Carrefour’s project is to sell it’s hard discount division (brands Ed and DIA), recently considered under the shareholder’s pressure, is no more actual”, says a retailing specialist (Study 2007, les échos).


The great losers, the companies who have not developed their own brands.


The great retailing companies who didn’t manage to protect themselves from the crisis are those who didn’t understand that they had to low their prices and to diversify their products too. Those two elements are present in the retailers own brands (ROB).

The ROB, cheaper than national brands, are logically very popular. Carrefour group, in which brand’s development has never be a priority, let go a good opportunity to limit the impact of the economic crisis. Since October, although keeping to be one of the cheapest hypermarkets, Carrefour has strongly limited his promotions.


Abstract


The economic crisis leads in retailing, as in many other sectors, to a major fall of the purchase power of the French. It’s international extension is going to modify the consumer way of buying around the world. He tries to save his money, buying the cheapest goods, mostly those of the retailers own brands.

Gradually some of the hypermarkets stop selling electronic goods. If this low price strategy seems to be the solution to minimize the effects of the crisis, can it be a long term strategy ?

lundi 1 décembre 2008

Opening blog Retail Core

We are pleased to announce that the RetailCore blog has been launched. It is dedicated to strategic analysis and the influence of large retailers in the world.

This blog is run by students enrolled in a Master programme in Competitive Strategy and information analysis at the Ecole de Guerre Economique. This is a projet overseen by Tarik Mousselmal.