what is the news in retail and how does it affect seafood? - icwpf · 2015-11-12 · what is the...

What is the news in retail and how does it affect seafood?

jonathan@jonathanbanks-associates.co.uk +44 (0)7764 635379

Operational focus Consumer focus

Short term Long term

Tactical Strategic

Commodity traders Category partners

Followers Leaders

Your business direction…

Shellfish in the UK

Source: Kantar Worldpanel 52 we 11 October 2015

Consumer Confidence

Source: Nielsen Q2 2015

131

122

120

112

111

108

107

105

105

104

102

101

India

Philippines

Indonesia

Denmark

Thailand

UAE

China

Saudi Arabia

Hong Kong

Vietnam

Pakistan

USA

99

97

88

83

78

72

66

57

53

53

48

45

UK

Germany

Norway

Japan

Russia

Spain

France

Portugal

Italy

Greece

Ukraine

South Korea

4.6 4.1 5.4 4.6 6.7 8.3 8.7

5.2

21.6

0.5 1.6

-0.1

2.1 0.1

0.6 1.3

15.7

-0.6

InflationUnemployment

Are we happy?

5.1 5.7 5.3 6.7

10.0

20.9 21.0

Misery Index

Sources: Haver Analytics/The Economist September 2015

8.9 6.8

Urbanisation: world population Urban

Rural

The growth of modern retailing and economic development are highly correlated

GD

P P

er

Capita,

US $

Modern Format Retailing

India Indonesia

Malaysia

Thailand Philippines

Korea

Argentina

Taiwan

Singapore

U.K. Germany

France

Brazil

33% 66% 100%

China

Sources: CIA, Nielsen

Evolution of formats in Europe

14% 15% 16% 17% 18% 19% 20% 22% 23% 24% 26% 27% 28% 29% 30% 31% 32% 32% 33% 34% 34% 35% 35% 35% 35% 36% 36% 36% 36% 12% 12% 13% 13% 15% 16% 17% 18% 19% 19% 20% 20% 21% 21% 21% 21% 22% 22% 22% 22% 23% 23% 22% 22% 23% 23% 23% 24% 24%

25% 26% 26% 27%

26% 25% 25%

25% 24% 25%

25% 26% 26% 26% 26% 27% 27% 27% 27% 27% 26% 27% 27% 28% 28% 28% 27% 28% 28%

22% 22% 21% 21% 21% 21% 20% 19% 19% 18% 17%

16% 16% 15% 15% 14% 14% 13% 12% 12% 12% 12% 11% 11% 10% 10% 10% 10% 9%

26% 25% 23% 22% 20% 19% 18% 16% 15% 14% 12% 10% 9% 8% 8% 7% 6% 6% 5% 5% 5% 4% 4% 4% 4% 3% 3% 3% 3%

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Trad Supret SSM LSM HM

Source: Nielsen

Retailer issues • Profit and shareholder returns

• Low/no inflation

• Growing competition from discounters,

on-line

• Changing shopping habits: convenience,

top-up, more frequent

• Declining shopper loyalty

• Corruption, abuse of power, perceptions

Retailer responses

• Increased space for private label

• SKU reduction

– e.g. Tesco Project Reset removes 20-30%

• Increaed transparency

• Reduce number of ways of taking

money from suppliers

• Groceries Code compliance

Private Label evolution: brand architecture

Basic

Regular

Premium Better for you

Better for the planet

Health & Wellness

Value for

money

Responsible consumption

Imitation is…

Retailer responses

• Increased space for private label

• SKU reduction

– e.g. Tesco Project Reset removes 20-30%

• Increased transparency

– Reduce number of ways of taking money

from suppliers

– GSCOP (Groceries Code) compliance

The way forward

• Increased use of data

• Supply chain

• RMS, CPS, loyalty cards, qual and quant

• Insight led

• Category Management led

Source: The Daily Telegraph UK 16/9/12

Your context

761

1364

512

Total Fish Sales £2.6bn +0.7%

Frozen

Fresh

Canned

-5% +1%

+3%

Source: Kantar Worldpanel 12 we 11 October 2015

The consumer is not necessarily the shopper

4 megatrends

Health/ Well-Being

Ethical

Convenience/ Practicality

Indulgence Pleasure

Top 20 innovations of the 20th Century 1. Frozen food

2. Pasteurised milk

3. Sanitary products

4. Microwaveable food

5. Tea bags

6. Instant coffee

7. Ring pull cans

8. Sliced bread

9. Plastic bottles

10.Disposable nappies

11.Powdered baby milk

12.Chilled food

13.Ready meals

14.Vacuum-packed food

15.Disposable razors

16.Gravy granules

17.Artificial sweeteners

18.Tetra Pak cartons

19.Pre-packed meat and fish

20.Screw-top wine bottles Source: The Grocer/HI Europe online survey December 2004

How to turn 17.5p/100g into 35.5p/100g

Source: http://www.mysupermarket.co.uk/Heinz_-_Tomato_Ketchup_In_Tesco.html 15/10/11

80% of CEO’s believe their brand provides a superior customer experience

8% of their customers agree

Source: Bain & Company

Operational focus Consumer focus

Short term Long term

Tactical Strategic

Commodity traders Category partners

Followers Leaders

Your business direction…

Closing thought: Profits, people, planet...

“It is not your duty to finish the work, but neither are you free to neglect it.”

Source: Rabbi Tarfon, Pirke Avot, The Talmud