vendredi 30 janvier 2009

The fair trade hypocrisy (1/2)

The press speaks more and more about fair trade: the products resulting from fair trade are new actors in the retailing sector. The products are more expensive than the products known as "traditional". But is this really in order to remunerate better the producers?

At the beginning, the fair trade starts from a good attention because it was created to remunerate better the producers so that they can continue to remain. But this idea will generate certain threats. Indeed, the low volume of production involves an increase in the transport costs because it is impossible to make sufficient economies of scale. Moreover, there are other costs compared to the traditional products like the costs of certification and communication.

It is noticed that the consumer is completely manipulated because when he buys a fair trade product, he pays a symbol; symbol which is approximately 10% more expensive than a traditional product. According to some studies of the French Agricultural Research for Developing countries (CIRAD), "the share of the price of a fair trade product which is allocated to the producer… is weaker than for traditional products".

Finally, we can wonder if either the consumer is not informed of this hypocrisy, or it knows it, but it wants to give itself a clear conscience.

Next week, I will give another view about the fair trade hypocrisy. This time it will be about the professionals of the retailing sector.

jeudi 29 janvier 2009

Less transparency in the price of meat


According to an article to appear for UFC-Que Choisir, the price of meat in French supermarkets increased significantly in the last fifteen years, while the purchase price from farmers tend to decline.

The survey compares prices between 1990 and 2008 and the results speak for themselves:

- For the beef: the prices in supermarkets increased by 50% while the purchase costs among producers fell by 15%.

- For the pork: the prices in supermarkets increased by 40% while the purchase costs among producers fell by 20%.

- For the poultry: prices in supermarkets increased by 30% while the purchase costs among producers rose only 15%.

Thus, large retails that hold a virtual monopoly on the sale of meat in France (80%) should be more transparent on their margins. The consumer must be informed of this situation and the reason for the large retails of their margins ...

dimanche 25 janvier 2009

Ends of the organics

Before to show you a podcast from a radio broadcast describing our problem, I would like to trace the content of an article published in Nature in France in 2006:

"The European Commission has recently proposed to amend regulations concerning the method of production and bio preparation, in order to make it clearer for consumers and the industry, but also to facilitate free trade in Europe . Intended to be implemented in 2009, this bill very discussed should be adopted by June this year, leaving little time for professional organizations and consumers to respond.

Indeed, if the project offers some advanced rules for organic wine, or the possibility of exempting smaller distributors bio cost control, in general it calls into question the foundations of organic farming . Thus, if adopted, would chemistry its entrance with the possibility of using pesticides for crops, and use of allopathic medicines for animals. In addition, with this text, the European Commission would bring GMOs in the Bio, tolerating a level of pollution by 0.9%. "

Here is a podcast of a radio extract on 26 December 2008.




This excerpt relaunch the debate launched in 2006 but this time the threat of the reform of biologic specifications is imminent. What is at stake is the entry of GMOs in Europe (genetically modified organism) and the withdrawal of the subsidiary Bio.

This post is intended to warn you about this danger, which requires short-term support of engaged consumers.

vendredi 23 janvier 2009

Abrogation of the Royer Law

This law dates back from December, 27th 1973, and was created in order to protect little shops from big retailing firms, that had to meet different criteria to get the right to expand or create new buildings. They had to ask for an authorization if the retailing surface was over 1000 square meters in a city of less than 40 000 inhabitants (1 500 sqm for more than 40 000 people). Since 1996, retailing companies had to ask for this authorization at the “Commission départementale d’équipement commercial”.

The 205th proposal of the Attali Report proposes to abrogate this law. Brussels considers that it hinters free installation. The government first thought about it last summer as part of the law for the modernization of economy, but it lat retailing companies do all they wanted. So the parliament stopped it, and thought about it again in October.

UMP (right wing French Party) MP Jean-Paul Charié was charged by French president Nicolas Sarkozy to write a report that could end up into a law. This law should be abrogated little by little, according to the publication by each department of a document of commercial activities orientation. The opening of new shops would only depend on urbanism, with building permits.

mercredi 21 janvier 2009

Carrefour goes into corner stores

The first Carrefour City opened its doors in the 16th district of Paris. This store will have as characteristics to be relatively small (approximately 410 m²), to be located in town centre and to have opening hours adapted to the urban life (6/7 days of 7:00AM to 11:00PM). This "mini-market" will be composed of 3 distinct areas:
o snacking and ready-made meals
o traditional products
o relaxation area at the store entrance (microwaves, coffee machines, bar and chairs)

That shows that Carrefour tries to widen its horizons by deciding to target the urban population who does not want to move out to the downtown areas to make its purchases.
It is a premiere in France but Carrefour had already tried out this system in Brussels since a similar store had opened in September 2008 on the Chaussée de Charleroi.
Carrefour thinks about opening two other Carrefour City away from Paris:
o in Nimes on January 23rd
o in Avignon on February 4th

I have personally tested out it in Belgium and I can say that it is a very good system for the people who do not wish to make haute cuisine. But the store sells interesting number of products.

mardi 20 janvier 2009

Carrefour to open 28 new retail location in 2009

Despite very bad results for year 2008, the french ‘s giant retail company carrefour announce the creation of 28 new market in China for 2009.

Carrefour has already launch a profit warning for year 2009, explaining that this exercice won’t be better than the 2008 because of the global economy slowdown. Carrefour is also afraid that Tesco, the third global retailer which is better implant in BRIC area take the lead on Carrefour.
During 2008, carrefour opened 22 hypermarket in China, we can assist to an increase of power of the french implantation on chinese soil.

Despite a strong economy slowdonw, carrefour which is badly affected by the crisis continue to invest on the most profitable market and in the same time restructur his activities in Europe where hypermarket attract less and less customers in profit of small local retail center.

Are chinese investment going to save carrefour’s world second place ? Carrefour is facing a lack of influence in India, country whithout which it can’t pretend to be such a world leader.

Tesco has strong chances to win this battle.

lundi 19 janvier 2009

La grande distribution au Vietnam

Le Vietnam est arrivé premier des marchés émergents en termes d’attractivité pour les distributeurs mondiaux du Global Retail Development Index 2008 (GRDI), réalisé par la société de conseil AT Kearney. Ce classement consacre l’ouverture récente du Vietnam où plusieurs enseignes de grande distribution alimentaire sont présentes. Parmi ces enseignes certaines sont vietnamiennes, comme Fivimart et ses 16 magasins. Saigon Co.op, aussi, créé en 1998 qui compte aujourd'hui 34 supermarchés et qui prévoit d'en porter le nombre à 100 en 2015. Pour les groupes étrangers, le français Casino implanté en 1998 y possède sept magasins de l’enseigne Big C. Implanté en 2002, on compte 8 Metro au Vietnam.
Pour la mission économique de l’ambassade de France au Vietnam, la distribution au Vietnam devrait évoluer principalement dans deux directions : "la montée en gamme des centres ville, ouvrant l'accès à des biens jusqu'à présent peu ou pas distribués au Vietnam et l'expansion des chaînes de grandes surfaces généralistes ou spécialisées".
À l'approche du Têt, qui consacre traditionnellement une forte hausse des prix, l’engouement des Vietnamiens pour ces lieux de distribution se fait sentir. Comme l’explique M.Hang client du Fivimart d'Hanoi "même si les prix sont un peu supérieurs à ceux des boutiques de la rue, la qualité est toujours assurée". Dans la mégapole du Sud, Ho Chi Minh, les supermarchés sont aussi bondés. Il faut dire que les grandes surfaces font preuve d'imagination pour attirer les clients en proposant des spectacles gratuits, des promotions sur certains produits. "Nous baissons nos prix sur plus de 500 articles d'ici à dimanche prochain. Nous sommes aussi engagés à ne pas augmenter les prix de certains produits. Toutes les marchandises de première nécessité sont prêtes depuis 2 mois, les stocks étant pleins", fait savoir Duong Thi Quynh Trang, directrice chargée des relations extérieures de Big C. Même son de cloche du côté des supermarchés Saigon Co.op qui prévoit suffisamment de stocks pour pouvoir baisser les prix des produits de première nécessité de 5 à 10%.



Sources:




dimanche 18 janvier 2009

Retailers are recruiting ...


To address the current crisis, many general companies are tempted to dismiss. In contrast, those of retailers still have a large dynamic hiring. Carrefour, for example, in 2009 will hire 45,000 people, including 600 managers and 15,000 fixed-term contracts. All figures on the other distributors are available on the web site of challenge to the address below:

http://www.challenges.fr/classements/entreprises_recrutent.php

samedi 17 janvier 2009

Crisis and balances, a risky rescue.

Started in France on January 7, the balances are, for a large number of shop, the last chance to save a 2008 year-end catastrophe and to guard against an early 2009 rather badly engaged.

Whether England with sales up 70% at Harrod's or France with discount - 90% in Brandvalley, dealers expect a lot from these sales.

It seems that this year it will be the most affected areas of fashion and Hi-Tech that will offer more opportunities. With a decline of -5% for the month of December on the textile sector in France, signs will definitely need to get rid of their stocks.

Finally, consumer's reaction remains unknown. They continue to tighten their belts and they eagerly awaited the start of the sale to make their purchases.
The response in 5 weeks ...

mercredi 14 janvier 2009

Carrefour, the second best retailer in the world

According to the study by Deloitte, Carrefour reaches the 2nd place ranking of the 250 largest retailers with a turnover of 112.6 billion dollars. The French group is still far outpaced by the U.S. giant Wal Mart (375 billion dollars in sales in 2007). Tesco is English (95 billion dollars in sales) who completes the podium.
Even if the top three is unchanged from 2008, the 2009 edition of the Champions distribution reveals many changes. Deloitte noted that discounters are benefiting from the economic crisis and lower consumer spending. Thus, the German group Schwarz (owner of Lidl stores) has won three seats compared to the previous edition and is the 7th ranking. His compatriot Aldi (10th) joined this year's top ten.
Another major trend: the rise of distribution groups from emerging countries. "Four of the six distributors have experienced the strongest growth in five years come from the emerging countries," says Deloitte citing the example of Russian specialist electronics Euroset. Between 2002 and 2007, the turnover of the retailer rose by 108.5%.

mardi 13 janvier 2009

When food kills

In March 2008, the Paris Correctional Court dismissed the committee Salines de France, which continued for defamation Pierre Meneton. The latter had accused of minimizing the risks of excess salt on health. It is a rare victory, that of a whistle-blowers. Pierre Meneton, a researcher at the National Institute of Health and Medical Research (Inserm), was pursued by producers of salt. They accused him of having defamed by accusing minimize the risk of excess salt on health.
The remarks reported by the salt from France (FSC), a union where the majority of French producers of salt, dates back to 2006. Pierre Meneton had said in an interview with the monthly TOC, that "the lobby of salt producers and the food sector was very strong" and "lies” health professionals and the media."
The article, titled "Food Scandal: salt, defect, was accompanied by a box of salt containing the words" salt kills ", comparable to that found on cigarette packets. The journalist who wrote the article, Pierre Cattan, and the director of the publication of monthly, Arnaud Champremier were also prosecuted. Asserting that "the lobby of salt producers and the food sector was very strong" and "disinformation health professionals and the media" about the risks of excess salt on health is not defamatory. This was decided by the Paris Correctional Court, in a case between the Comité des Salines de France (FSC) to a researcher at the National Institute of Health and Medical Research (Inserm).
The genesis of this case is instructive as to the means employed by a group of professionals to protect his business, even ignore health considerations proved. When the researchers from Inserm, Pierre Meneton, dared, in an article published in 2006 ( "Scandal food salt, defect"), drawing attention to the consequences of excess salt in food the union of French producers of salt drew artillery judiciary. And therefore lost.
It is not so much that the salt sprinkled on food that is in question, the salt hidden in all prepared foods manufactured or processed by the food industry.
Why so much salt? Because it is a good conservative, a flavor enhancer, it improves the taste and appearance of food. It is, therefore, pervasive in our food. Even where, apparently, it has nothing to do chocolate, biscuits, yoghurt and dairy desserts, soft drinks and jars ... baby.

According to a survey measuring the dietary intake of sodium, bread, crackers, sausages, soups, cheese, dishes, pizzas, quiches and savory pastries, the pastries, condiments and sauces and pastries are top ten "vectors of salt with more than 80% of daily intake.
The results show an average of between 8 and 10 grams per day, which corresponds closely to the standards set by the World Health Organization but is still under the U.S. medical journal New England Journal of Medicine recommends that not exceed 6 grams per day (one teaspoon).

AFSSA (French agency for food safety), does not rule in the short term for a general reduction of salt consumption, the evidence that high intakes of sodium are harmful to healthy individuals n has not been made.
A high intake of salt can be harmful for hypertensive, obese and heart failure.
Lack of scientific certainty on the optimal consumption of salt, public campaigns about the dangers of salt are not on the agenda. Other public health issues such as tobacco, alcohol and obesity are much more worrying.
He remains in France, seven million people suffer from hypertension (voltage above 14 / 9) that taking drugs is not sufficient in itself to deal with.
Too much salt is affecting not only blood pressure. It also aggravate osteoporosis, increase the risk of stomach cancer and could even affect the cardiovascular system.
Although lacking certainty, the general interest is to eat less salt. The difficulty in putting this principle into practice from what we have no exact knowledge of the salt content of food trade, labeling information only on the presence of salt, not quantity.
Therefore, the common sense to consume less of foods high in salt, to give preference for fresh products, manufactured at home and have the main light to salt food.

lundi 12 janvier 2009

The Classification of emerging countries in terms of retailing potential

Every Year, the management consulting firm AT Kearney publishes its GRDI (Global Retail Development Index) classification which evaluates the attractiveness of emerging countries according to 4 criteria :
o Country Risk
o Market attractiveness
o Market Saturation
o Time Pressure

This is the top-10 of GRDI classification





For the first time, it is Vietnam which occupies the first place of this classification in front of India, Russia and China. That can be surprising to find Vietnam in front of these 3 large countries but the country represents a real opportunity for the world distributors since the deregulation of the retailing sector.

samedi 10 janvier 2009

Development of mass market in Morocco


Moroccan trade structure is still largely dominated by traditional business, but the supermarkets gradually gaining market share. Absent some ten years, they now represent 10% of retail. Mass market in Morocco appears as a growth area and the number of outlets increasing at a sustained pace.
The supermarket chain Label'Vie, with 18 large stores, a subsidiary of Best Financial Holding, will open three new hypermarkets in Morocco. These openings refer to the strategic plan for the period 2008-2011, which provides for the number of stores to 40. In 2007, several shareholders of the chain had defected from the hedge fund and Cyrus Capital banker Othman Benjelloun, who create the chain of supermarkets Hanouty.
Label'Vie is number two in Morocco behind the ONA which operated until 2007 with Auchan hypermarkets Marjane (17 stores) and supermarkets Acima (25 stores). In third place comes Assalam Aswak who has 7 hypermarkets, but the opening will bring the number to 15 by 2012, with an average of the opening of 2 stores per year.
Makro, a representative of the German Metro, which is focus on cash-and-carry with eight stores. The hard-discounters BIM (Turkey) and Lidl (Germany) are followers, like Carrefour, which seeks Moroccan partners.

vendredi 9 janvier 2009

reliable assessment classification signs distribution


In April 2008, at the World Retail Congress held Barcelona, Interbrand revealed its classification labels of the most successful at European level. Carrefour ranks 2nd place and in the first place great brands of food distribution.

Below the rank of Interbrand 'Europe's Top Performing Retail Brands 2008 "

1 H&M Sweden
2 Carrefour France
3 Ikea Sweden
4 Tesco UK
5 M&S UK
6 Zara Spain
7 Aldi Germany
8 Boots UK
9 El Corte Inglés Spain
10 Auchan France
11 ASDA UK
12 MediaMarkt Germany
13 Lidl Germany
14 Edeka Germany
15 C&A Netherlands
16 Sephora France
17 The Body Shop UK
18 Argos UK
19 Mango Spain
20 Sainsbury’s UK
21 Kaufland Germany
22 Mercadona Spain
23 FNAC France
24 Rewe Germany
25 Carphone Warehouse UK

More information is available on http://www.lesechos.fr/medias/2008/0411//300256526.pdf

We await the rankings in 2009 to see if there was a crisis symptom ...

mardi 6 janvier 2009

Woolworths, The end of a giant english retailer


For two days, we could see on the streets of Brixton, one of south London, a display of a countdown indicating: "More than two days," 70% discount "," All must disappear. "

Indeed, tonight Woolworths will end his reign. This great institution of the British distribution for over a century has marked the commercial landscape of the United Kingdom is today in total liquidation . More than 800 stores will close their doors forever this evening and 30 000 jobs will disappear.

This is not a surprise, already in 2008, the ravages of the crisis had with more than twenty-nine retail chains into administration. This concern continues with the announcement of the bad result of Marks & Spencer, Debenhams, Home Retail Group and Next; bankruptcy of dozens of so-called moderate (approximately 200 stores) in January.

Those who have limited the damage are the discount chains such as Albi, Lidl and Primark increasing their market share by attracting middle-class now.

As elsewhere, the only winners of this crisis are sales distributors via the Internet continues to rise.

The advisory group Deloitte, administrator, is always looking to sell, in each case, some of the shops whose location could interest other labels as Sainsbury's, Asda, Tesco.

lundi 5 janvier 2009

Russia : Next step of confrontations between the leaders of retail industry


Russia is one of the emergent countries in the distribution sector. Indeed, the turnover of the sector was already of 200 billion dollars in 2004 and could reach 500 billion dollars in 2010. This market attracts more and more the world leaders such as Carrefour and Wal-Mart.

Moreover, the local actors are still very present in this sector either via small shops of districts, or via supermarkets and other hypermarkets. The German distributor Metro is the only one among the 10 larger world distributors to be established in Russia. Currently, Wal-Mart and Carrefour are not yet present in Russia but it would seem that the two giants are decided to attack this market in a near future.
Indeed, Carrefour should open during 2009 its first hypermarket in Russia in a shopping mall of Krasnodar (southern of the country). An agreement with the governor of Krasnodar gives a report on an investment of Carrefour of 100 million dollars over 5 years to open several hypermarkets, supermarkets and other structures in the area of Krasnodar. Carrefour is looking also on russian distributors in order to purchase shares and to be more present on the market. One of them is Lenta. Wal-Mart is also in race in order to take the control of the russian distributor Lenta.

If Carrefour manages to leapfrog Wal-Mart on this point, the french multinational could finally restore its former glory after several failures such as India. To the contrary, if Wal-Mart wins this battle, the American giant will enter easily the Russian market.