outdoor business in latam - camping issue
DESCRIPTION
An overview of the market and opportunities for brands looking to access this big and diverse market.TRANSCRIPT
Camping overview
LATAMOutdoors Business
Sebastian Lagunas B.Santiago de Chile, June 6, 2014
AGENDA
Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan
KEY OBJECTIVES
The technical outdoor market in selectedmarkets.Look for category leadership.
Lead1
Make it a premium profitable high marginbusiness
premium3
Follow a medium / long term strategy
strategy4
In segments were 50% of the income is(ABC1, D)
Position the brand2
StrategiesSharp brand focusCommunicate the brand’s roots andinternational charm through team with vastexperience in outdoor retail and actions sports.Dedicated organization to XXX XXXXX in LATAMEntrepreneurial environmentFocus start in Retail
SWOT ANALISIS
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The GAP quality between private labels andheritage brands like marmot and TNF.
Outdoor market is growing 20-25%
STRENGTHS
OPPORTUNITIES
SWOT ANALISIS1.- Late arrive to some markets. Big brands precence 5+ years. Withmedium to high penetration and efficiency2.- Big volume sold by national brands or local retailers. o Ex. Some brands represent 50-60% in bigbox retailers o Products are middle quality but very well communicated andmarketed
1.- Local and Mercosur production2.- China production for private labels is high.
Weaknesses
Threats
AGENDA
Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan
For a better understanding of this big anddiverse market the emerging LatinAmerican economies are grouped in 6subregions.
OVERVIEW OF THE MARKET
The andean
Brazil
Mexico
The Caribbean
Central A
merica Southern Cone
Doing Business 2014Half of the economies of Latin America, amongthe best in the world to do business Chile, Mexico, Colombia, Peru and Costa Rica,in the list of countries with good businessclimate.
Why LATAM
Brazil is expected to be the fourth largest economy in 2050. Expansion of foreign brands - many companies such as Burberry,Mothercare and Adolfo Dominguez are focusing on Latin America. Latin America has some of the most attractive markets in comparisoncountry risk and market potential (2012 GDRI)
Why LATAMStrong expansion of the middle class Supermarkets and depart. stores segment's are retail areas with highergrowth. Penetration is still low (25-30 m2/1000 inhabitants), a strong salesgrowth and surface are expected. U.S. $ 6.348 million will invest the six largest retailers in Latam 2017(Cencosud, Falabella, Ripley, Walmart, Parque Arauco and SMU). Objective:Peru, Argentina, Colombia and Brazil. Big % of market is dominated 4-5 large retailers. Therefore competition (nocompetition) is high. Growth prospects 3-4% on average. Countries above the media Chile (5%),Colombia (4.5%), Peru (6%). Controlled inflation in several countries. Brazil, Mexico and Chile are the countries with the highest retaildevelopment. Colombia is the star, too much interest in Peru.
GRDI country attractiveness
AGENDA
Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan
Most important outdoor markets
ColombiaPerú
Ecuador
Dominican Republic,Puerto Rico
Costa Rica, El Salvador, Guatemala Panamá.
Argentina, Chile andUruguay
Brazil
Market size Performance, action sports & outdoors
US$ 1.000 Millions Market Opportunity(Excluding Mexico)
MM $450 MM $320 MM $230
MAIN ACTOR:ColemanDoite TNFNational GeographicIntex BestwayPrivate labelsMountain GearKlimber
App
arel
Foot
wea
r
Equ
ipm
ent
Equipment
AGENDA
Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan
Main competitors country overview
60 stores (2013)20-25% growth expected (2014)Part. Market estimated 15-18%.
Last movements and projections: Since 2012 direct representation office (Cali). Double market share and revenue in 2014. Installed with a factory for textiles in the region (5 + years)
COLEMAN - Main markets
COLOMBIA
Main competitors country overview
Keeps 9 years a strategic alliance with Jeep. Strong promotion (Latam) line of tents Instant Dome
COLEMAN - Main markets
VENEZUELA
Marketing Tactics
CAMPING market opportunity is about MMUS$ 120 (retail sales).15-20% annual sales growth.COLEMAN is leading sales in almost every market, but PRIVATE LABELShave been growing fast in the last years. Falabella private labels havereached the same level of sales coleman. Most of the countries have high taxes, retail prices for xxx xxxx remaincompetitive and atractive, even when consider open doors at bigboxretailers. Ex: Coleman 4 pax tent Retail Chi US$200: Col. US$ 318 XXX XXXX 4 retail at US$ 179-189 Ex: Sleeping bag (30ºF) Coleman Retail US$ 60 XXXXXX similar retail at US$ 49
Marketing Tactics
Target prices (Falabella, Ripley, Sodimac)Airbeds & Mats: US$ 20 - 59Tents: US$ 39-109 low quality
US$ 159-329 Best qualitySleeping Bags: US$ 39 - 99Camp. Accesories: US$ 9-29-99
Opportunities
o XXXX Brand o Key end-user insights: o XX million runners in Latam: X% = the core of market (enthusiast and active buyers). o Runners also participate in other activities: strength training (59%), cycling (36%), swimming (53%) and hiking (28%) o Shelters, canopy and furniture: via sodimac and big box retailers. Internet! Ex: Brasil Kanui.com.br (action sports specialist) Retail US$ 120 mill, growth 9.000%.
Key to Success in Latin America
Overcoming Trade Barriers It is important to partner with locals how will help tonavigate among regulatory issues and tap into themarket potential there.Offer Low Price Points for masive retailers.Pacific coast must be the place to focus on.Brazil - is considered impenetrable by many outdoorbrands. And Argentina is also dismissed as beingparticularly hostile toward imports of manufacturedgoods.
About me (skills)+ 6 years of experience in managing a sales team with multiple retailersand categories. Experience in managing independent sales reps andagencies.Worked with almost every big brand and retailer in the region, that give mea full understanding of the products, market needs, business models,negotiation skills and networks to succeed.Knowledgeable and active in human powered outdoor activities.One of my plus is the experience in the Consumer Goods industryI got the ability to travel the region as necessary.Experience in crunching and analyzing data to produce action plansDemonstrated history of attention to detail and follow-throughIndependent, creative self-starter with the ability to work independently withlimited direct supervision. EntrepreneurExcellent communication, follow-up, organization and interpersonal skills.Manage forecasting and reporting of financial commitments
Camping overview
LATAMOutdoors Business
For any further informationcontacte me [email protected]@seblag