The Carrefour group: a world leader in distribution An international retailer promoting the growth...
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Transcript of The Carrefour group: a world leader in distribution An international retailer promoting the growth...
Xing Rui (Josie)Tang Siyang (Grace)Lin Zhihan (Chilly)Li Qinyue (Carol)
Introduction
The Carrefour group: a world leader in distribution An international retailer
promoting the growth of local economics
History
1959:Carrefour was established.1960:The first Carrefour store opened and was an immediate success.1963:Carrefour established its first hypermarket.1970:The company went public.In the 1970s-80s:International Growth
In the 1990s:Carrefour continued growthIn the late 1990s and Beyond: Strategic
AcquisitionsIn 2008: Continuing growth in a challenging
environment
History
Retail Industry
The exchange of food and weapon
Traders
ShopsStores(Specialty shops)
Department store
Industry Analysis
Shopping Centers and Malls
Emerging Markets
China
India
Russia
Global Issue
China
Largest City
Second and third tier cities
Until 1990s, foreign retailers began to be allowed in.
Wal-Mart: The Announcement of Openness
India
Metro: Planning to Corporate with Local GovernmentTesco: A Successful entry
Fierce competition with the traditional trade.
Risks
Business management of Retail Industry in emerging markets.The counterfeit problem.
The transportation cost
Recruiting local people
Future Trends
Approaching the market
Innovating
Market leader Brand recognition Focus on competitive prices
Company Analysis--Strengths
--WeaknessStagnant sales in France Declining of profitability Losses for on-line business
Strong growth potential in Asia New stores Agreements with Coop Atlantique
Opportunities
Threats Stiff competition from discount retailers in FranceIncreasing labor costs in EuropePoor retailing outlook in the Eurozone
Global Expansion
Win-win target: both in France, and all subsidiaries
Encourage local economy
1960S: NONFOOD BUSINESS
PARIS SOUTH AMERICA
UNDEVELOPED COUNTRIES
OCCUPIED MARKETS:
Examples
Expanded Steps
STARTED AS A FAMILY STORE
Conducting Social Audits
Local Specialties
Labors: wages and hours
Sustainability
Economic
Social
Environmental
Unique logistics
Utility
Diversified transportability
Use of geographic resources
Good traceability
Automated pallet traceability system
Alleviate environmental impact
A. Rail
B. River
C. Truck load
PURPOSES: GOODS QUALITY AND SAFETY, TIME-EFFICIENCY
New Departments
Retain the original architecture
Proper sites to build
Traffic jam vs. public safetyUrban
Rural
Recruitment
SKILLED people
Fair ranking management
Training and motivation
Men and women Local and expatriate staff
Tesco
Metro
Wal-Mart
Main Competitors in Retail Market
Carrefour Wal-Mart TescoMetro Others
Competitors
The humanistic care
----Every shopper needs every little help
Korean Market
Tesco
The first movement among the top
The fourth largest global retailer
The most potential competitor
Metro Cash & Carry: No credit account
Metro GroupNO.1 in German Retailer Market
Media Markt, Saturn: Electronic Retailers
Real (including Extra), Galeria Kaufhof
Experiences in self-service wholesale
The largest one in the world’s retail industry
Wal-Mart
In 1990, beating Sears and K-Mart
The most significant reason for customers’ shopping there----Low Price
The 100th store in China in 2007
Chinese Markets’ competition between
two giants
Quick Expansion---from metropolis to central and western of China.Local Product SourcingFlexibility and Creation
Short-term Recommendations
Experienced Employees Local specialists vs. Expatriate staff
Political involvement Political inclination caused to profit crisis (China)
Improving company's image
Making more effort on global expansion
Long-term Recommendations
On track to attain 2008 objectivesContinuing and deepening action planCarrefour well positioned to continue
growing in a challenging environment• Essentially a food retailer• Multi-format• Increasingly international• Solid debt profile
Conclusion
Thanks !