the carrefour group: a world leader in distribution an international retailer promoting the growth...
DESCRIPTION
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 GrowthTRANSCRIPT
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Xing Rui (Josie)Tang Siyang (Grace)Lin Zhihan (Chilly)Li Qinyue (Carol)
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Introduction
The Carrefour group: a world leader in distribution An international retailer
promoting the growth of local economics
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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
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In the 1990s:Carrefour continued growthIn the late 1990s and Beyond: Strategic
AcquisitionsIn 2008: Continuing growth in a challenging
environment
History
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Retail Industry
The exchange of food and weapon
Traders
ShopsStores(Specialty shops)
Department store
Industry Analysis
Shopping Centers and Malls
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Emerging Markets
China
India
Russia
Global Issue
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China
Largest City
Second and third tier cities
Until 1990s, foreign retailers began to be allowed in.
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Wal-Mart: The Announcement of Openness
India
Metro: Planning to Corporate with Local GovernmentTesco: A Successful entry
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Fierce competition with the traditional trade.
Risks
Business management of Retail Industry in emerging markets.The counterfeit problem.
The transportation cost
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Recruiting local people
Future Trends
Approaching the market
Innovating
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Market leader Brand recognition Focus on competitive prices
Company Analysis--Strengths
--WeaknessStagnant sales in France Declining of profitability Losses for on-line business
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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
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Global Expansion
Win-win target: both in France, and all subsidiaries
Encourage local economy
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1960S: NONFOOD BUSINESS
PARIS SOUTH AMERICA
UNDEVELOPED COUNTRIES
OCCUPIED MARKETS:
Examples
Expanded Steps
STARTED AS A FAMILY STORE
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Conducting Social Audits
Local Specialties
Labors: wages and hours
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Sustainability
Economic
Social
Environmental
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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
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New Departments
Retain the original architecture
Proper sites to build
Traffic jam vs. public safetyUrban
Rural
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Recruitment
SKILLED people
Fair ranking management
Training and motivation
Men and women Local and expatriate staff
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Tesco
Metro
Wal-Mart
Main Competitors in Retail Market
Carrefour Wal-Mart TescoMetro Others
Competitors
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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
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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
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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
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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
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Short-term Recommendations
Experienced Employees Local specialists vs. Expatriate staff
Political involvement Political inclination caused to profit crisis (China)
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Improving company's image
Making more effort on global expansion
Long-term Recommendations
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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
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