Mec Group 2: Alex S. Chemali, Amalie Rasmussen, Mads Vangsgaard, Sofie Reland & Sandra Beenfeldt-Hansen

Mak Group 8: Mie, Neele, Monika, Irina

The Merchants

Uniqueness for the Category

❖ Buy products from a supplier to sell them

❖ Constantly seeking for best deals

➢ Lower their own costs = cheaper prices/products for customers

❖ Long-term & trustful relationship to customer and suppliers

❖ Strong business acumen (streamlined)

❖ Creating value across borders

❖ How do we excel?

➢ Danish corporation has mastered business plan & management style that functions internationally/ globally.

❖ Examples for Industries/Companies:

➢ Fashion Clothing

■ Bestseller

● 10.000 stores in 38 countries

■ H&M

■ IC Group a/s

■ Zara

➢ Tourism

■ NOVOSOL

➢ Energy

■ Danske Commodities

➢ Home furniture

■ JYSK

How Denmark Excels in the Home Furniture Industry

❖ Having a strong brand (Scandinavian design)

❖ Innovative products

❖ Create value for customers

❖ Meeting customers needs

❖ Delivering products at a perceived fair price

❖ Having economies of scale

❖ Good relationships with suppliers

❖ Vertical integration (both backwards and

forwards)

Home Furniture industry in Indonesia!❖ Opportunities

➢ Middle class growing

➢ Property growth

➢ Home Furnishing industry growing (12% in 2013)

➢ Storage furniture fastest growth

➢ LED bulbs increasing

➢ Free trade - ASEAN, Japan, Switzerland, proposed to US

❖ Threats

➢ Other home furniture stores entering the market

➢ Nationalism: Law investment change in May 2014

➢ Trade activities → ASEAN

➢ CEPA Indonesia and EU

❖ Average monthly salary in Indonesia: 8,400 kr

❖ Monthly disposable income: 2,380 kr❖ Exchange rate is stable over a 10

year period❖ GDP is stable slightly increasing

Indonesia Economic Climate

The Fashion and Apparel Industry❖ One of the world’s largest consumer goods markets

❖ Danish fashion is third biggest export industry in Denmark

❖ Biggest markets: Germany (25 %) , Sweden and Norway

❖ 600 brands (1200 brands before crisis)

❖ Total export in 2012 : 22.697 mio DKK

❖ Total turnover in 2012 : 38.299 mio DKK

❖ Export growth with 8 % in 2014 ( with 2 % in 2013)

Overview over 5 biggest companies within fashion and apparel industry

❖ Characteristics of the clothes of danish fashion industry is:

Chic and trendy yet affordable

❖ Footsteps begins in the 1950th at the copenhagen fashion week

❖ Focus på design, development, sales, distribution and service

❖ Good combination of quality and price

❖ Difficult for new players to enter the industry

Overview over 5 biggest companies within fashion and apparel industry

How Denmark Excels in the Fashion Industry

Threats and Opportunities

❖ Threats:

➢ Fashion risk (brands are heavily influenced

by fashion trends/change in collections)

➢ Business cycles of the countries they

export to

➢ Big competition between companies

❖ Opportunities:

➢ Online sales

➢ Business development in emerging

markets

Fashion and Apparel Industry in Japan

❖ Population: 127 millions

❖ Reason: There is a great demand

for Malene Birger and the others

brands

❖ Total import of clothing: 2,6 billion

Yen (2011)

❖ High GDP: 4,92 billion USD

(2013)

Thanks for your awesome attention!

Group 2: Alex S. Chemali, Amalie Rasmussen, Mads Vangsgaard,Sofie Reland & Sandra Beenfeldt-Hansen

Competitive Advantages

❖ Strong history/ brand and royal supplier

➢ Opened first store in DK in 1979 by Lars Larsen

➢ Jysk has a manual of their processes that are followed when they

are developing or penetrating in the market.

➢ 2200 stores worldwide - 37 countries

❖ 419 suppliers in China (2 in Indonesia) → so close to Indonesia

❖ Wide assortment

❖ Economies of scale

❖ Competitive prices

❖ Effective supply chain - using local suppliers

Growth Strategies

❖ Main growth strategies:

❖ Market development strategy - Geographic expansion to new market

and offering existing products

❖ Market penetration strategy - entering a new market their strategy

then shifts to the in order to gain a greater market share in these

markets.

❖ Related diversification - buys up shares in ILVA,

❖ Unrelated/Conglomerate diversification - investing in “Travel Rejser”

Export Knowledge

❖ Jysk has been in the export game since 1984

❖ Jysk now operates in 37 countries

❖ These experiences have given jysk extensive knowledge about these

countries and it has also given

❖ Jysk a template of what factors a company needs to look into before

opening a store in a given country

Jysk Indonesia comparison to DKComparison between Denmark and Indonesia prices❖ Denmark / Indonesia

Bedlinen 250 / 195 DKKBedlinen 229 / 180 DKKMatras 1,499 /1,325 DKK

❖ Average monthly income Denmark / Indonesia27,000 / 8,400 DKK

❖ Disposable monthly income Denmark / Indonesia17,500 / 2,380 DKK

Recommendations in Indonesia market

❖ Product Development:

➢ Plastic storage containers specifically for apartment organisation

➢ Supplier or develop own brand in LED bulbs

❖ Market Penetration

➢ Increase stores in Indonesia

❖ Market Development:

➢ Going into other Asian countries

IC GROUP A/S

❖ BRAND PORTFOLIO

❖ SIZE OF OPERATIONS

➢ Revenue of DKK 2.6b and approx. 1,000 employees

❖ DISTRIBUTION CHANNELS

➢ Wholesale, e-commerce, own retail, franchise and outlets

Growth strategy❖ Merger & Acquisitions

❖ Divestment

2001 Merger between InWear Group A/S and Carli Gry International A/S forms IC Companys A/S.2002 Acquisition of the brand Saint Tropez.2003 Joint venture with the brand Malene Birger. Acquisition of the brand Tiger of Sweden.2013 The brands Jackpot and Cottonfield are divested.2014 The four brands InWear, Matinique, Part Two and Soaked in Luxury are divested.

Core business Non-core business

- Market penetration - Market penetration

- Market development - Divestment

- No acquisition plans, vertical integration plans

Competitive advantages

❖ Multi-branding strategy

❖ Outsourcing

Top competitors:

Bestseller A/S Friis Co. Signal Clothing A/S DK Company A/S

Export Knowledge❖ more than 4,300 distributors in more than 25 countries

❖ group's total turnover is 80% outside Denmark

❖ main markets are concentrated mostly in the countries of Northern Europe, primarily

Scandinavia, Benelux countries, the UK and Germany

❖ most earnings comes from Nordic countries

❖ only 6 % of earnings comes outside Europe

Future growth strategies

❖ Market penetration

❖ Market development

❖ Verical integration

Sources

- http://www.business.dk/detailhandel/ic-companys-ser-muligheder-i-asien

- http://www.thaigarment.org/Report/050555/THE%20JAPANES%20APPAREL%20MARKET%20AND%20IMPORTS%202012.pdf

- http://borsen.dk/nyheder/virksomheder/artikel/1/279721/ic_companys_saelger_fra_igen_-_rival_overtager_maerker.html

Thank you for your attention

things to look into Thursday:- buying so much get cheaper in indo- taxes- investors - exchange rate- how many in city? Who buys? Average

salary

- Smart phone (merchants docs) increasing - customers attend to come back

- 485 suppliers (500+) 419 in China

Sources

uhttp://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm%3A12-129295u