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The whosale’s role in contemporary Polish economy .

The whosale’s role in contemporary Polish economy . Dr M A Falinski. Basic wholesales formats in P oland. Classical wholesale in a traditional chain of delivery Grand retailers purchase / delivery centres Chained wholesalers : - cash&carry - franchise integrators

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The whosale’s role in contemporary Polish economy .

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  1. The whosale’s role in contemporaryPolisheconomy. Dr M A Falinski

  2. Basic wholesalesformats in Poland • Classicalwholesale in a traditionalchain of delivery • Grand retailerspurchase/deliverycentres • Chainedwholesalers: - cash&carry - franchiseintegrators - specializedservicers • Agriculturalwholesalemarkets CHALLENGE – how to holdretailers with?

  3. WhatisPolish food-wholesale market like? • Abundant: 200 B zloties in sales; • Based on domesticfarming and production (ca 90% of retail’soffercomes from Poland) • Extremelycompetitive: ca. 4.500 whosalers but the structureiswierd: - c&cchainsblock – in retreat - strongblock of servicers and franchiseintegrators – in a sway - traditionalwholesales stores and localchains – subject to consolidationorintegration • Deconcentrated but… stronglyconcentratingverstileretailformats • CONCENTRATION – a common denominator of market evolution • PREMANENT GROWTH – and decisive role of internal market in GDP generation (>60%)

  4. Players in numbers

  5. Strategies to „chain-up” distributionmarkets (opportunities for potentialinvestors) • Consolidations - takeovers, horizontal and verticalmergers: large market of small companies in distribution • Diversifications - Sales – yes,.. but portofoliomust be enhanced • Specializations: klients, suppliers, products, categories • Optimizations: shrinkingvolumes, cuttingcosts, investing in know-how Remarks: Medium-sizecompaniesawaitpartners!!! Thereis a problem with feasibilityexpertise and communication!!!

  6. Retailingcounterparts • Integrated small stores: ca 30.000 in franchise, ca. 20.000 in purchasinggroups and partnerships, agents – 5.000 • Prospectiveformats: supermarkets and convenience • Problem of discounts: 2700 4000 limit • Hypers-story: neverforgetthem • Movingcommerce: internet + 138.000 cars and trailers + directsales

  7. Stores in numbers - selected data

  8. Where and howare the agriculturalmarkets? • Theygraduallysubstitutetraditional food wholeselling (34 markets and goodprospects for the future) • Theyoffertheirwholesale service on theirown but absorbwhosalers from outside, either (chained stores, too) • Theyhavegoodcompetitiveposition - plethora of traditional stores - growingHOReCa - competitionmore and moreleant on quality and shortdeliverychains - franchised stores, despiteintegration, areobliged to sell „greens” as fresh as possible - eco, regional, bio, other extra-marked stores are in sway - chains by definitionhave problem with „veryfresh” assortments (big scaledoes not favorthesecategories) - time to start retailintegrationiscommingup (specialized stores, collonialgoods, etc): deconcentration of suppliersraise the first problem but the second one is… – createownretailrecipients (franchisewithin joint ventures?) - regional (CEE) marketsneedsourcing services and logisticalstoragefacilities - farmers and importersneed cross-dockingfacilities REMARK: information + promotion + investmentssupport (PPP+EU funds); regionalinitiativesendowed with guaranties

  9. Polishspecifics: a resume’ • Think East – act and exist West • Flexibility of wholesale and retail (strategies and formats) • Traditional trading iseffective and integrated (market penetrability – thinkthoroughly, selllocally) • Flexibility of formats/wide fan of choice for suppliers • Specificstage of market modernization: getintegratedordie • Assortmentsrefurbish: permanent chance to be taken by newsuppliers • Sales supportingisnecessary • Competitive market-game: be different of disapear

  10. The addenda… • Representation and communicationislame!!! • Policy vis a vis region isnecessary: tangibleinstrumentsinstead of declarations • Institution to suppoertcooperationisneeded (PAIIZ for FMCG?... Or anythingelse; better business thanoffice) • …. Questions and motionsarewellcome

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