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Expertise in financial services Web: www.finaccord.com. E-mail: [email protected]

Global Retailer Consumer Finance and Banking

© Finaccord Ltd., 2014 1

Global Retailer Consumer

Finance and Banking Report prospectus

July 2014

http://www.finaccord.com/

mailto:[email protected]




Prospectus contents

What is the research?

What is the rationale?

What methodology has been used?

How do retailers surveyed break down?

Which specific retailing groups have been researched

What is the report structure?

What are the key features of the research?

How can the research be used?

How can the PartnerBASE™ be used?

Who can use the research?

What are some of the key findings?

What is the cost and format?

What other reports are available?

How can the research be purchased?

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What is the research?

Global Retailer Consumer Finance and Banking is a report, based on a survey of over 6,000

prominent retail brands in 60 countries, about the provision of consumer finance at the point of sale

by major retailers worldwide. Retailer initiatives in savings deposits, personal loans, mortgages and

international remittances are also considered.

In total, the research identifies over 1,000 consumer finance schemes and over 400 product

initiatives in retailer banking, thereby providing a definitive analysis of retailer consumer finance and

banking around the world that goes far beyond the scope of previous published research.

Moreover, the PartnerBASE™ dataset that accompanies the report details each of the many retailer

consumer finance and banking programs traced by Finaccord, specifying the operating models

used by retailers and the identities and ultimate holding companies of the ultimate product

providers in each case.






What is the rationale?

A number of factors, some of which are specific to consumer finance or banking and some to

retailing, provide the rationale for the development of this report. With reference to consumer

finance and banking, in particular, these factors include those which follow:

- the consumer credit markets of many countries are continuing to grow and retailers can take

advantage of this through setting up their own consumer finance schemes;

- in terms of the outright number of opportunities, retailing is one of the most important fields in

which providers of consumer finance can establish partnerships;

- retailer-branded banks can represent an attractive alternative to mainstream consumer banks in

markets in which banking sector consolidation has reduced the range of options available;

- the customer information gathered from consumer finance and banking products can be used to

cross-sell insurance and other services.

Furthermore, dynamics in the retailing market itself also give rise to increasing rationale both for

retailer consumer finance and banking and a comprehensive worldwide study on the subject.






What is the rationale? (continued)

Key developments in the retailing sector include:

- an improving environment for consumer lending, thereby encouraging retailers to develop their

own consumer finance schemes in order to capture a share of this market;

- retailer consolidation in both more and less developed markets which helps to produce national

champions with the branding, muscle and general profile needed to succeed in the consumer

finance and banking sectors in these countries;

- retailer growth in the less developed markets as an increasing proportion of consumers allocate

their expenditure to formal retailing concepts as opposed to informal street markets and the like;

- a mature environment for retailing in the more developed markets which signifies that retailers

need to investigate new means of achieving revenue growth which can include financial services, in

general, and consumer finance and banking, in particular;

- increasing internationalisation which potentially paves the way for cross-border alliances between

retailers and mainstream banks.






What methodology has been used?

The main research input into this study is Finaccord’s on-going investigation of the involvement in

financial services, in general, and consumer finance and banking, in particular, of over 6,000 major

retailing brands across 60 countries worldwide.

In the specific context of this report, the aim of the investigation is to gather top-level data concerning

the consumer finance and banking products offered by the organisations in question, the operating

models that they use and the providers with which they work in this context.

Naturally, given that there are literally millions of smaller retailers in total in the territories reviewed,

the majority with just a single outlet, Finaccord has sought to focus on the very largest entities that

are likely to be of most strategic interest to organisations involved in the consumer finance and

banking sectors. Indeed, the major retailers break down by category and by country as illustrated in

the graphics overleaf.






How do retailers surveyed break down? (1)

BY TYPE BY DISTRIBUTION MODEL

Mixed, 41.4%

Online only,

13.6%

Offline only,

45.0%

Fashion, 20.1%

Supermarket /

hypermarket,

16.0%

Consumer

electronics,

15.8%

DIY / furniture /

home, 11.1%

Department

store / variety,

9.0%

Health and

beauty, 7.6%

Specialty, 6.7%

Fuel, 6.3%

Sporting goods,

4.0%

Books and

media, 3.4%






How do retailers surveyed break down? (2)

BY REGION

Asia, 19.7%

Southern and

Western Europe,

19.7% Eastern and

South-Eastern

Europe, 12.3%

North America, 11.0%

Latin America, 10.8%

Australasia, 4.2%

South Africa, 2.9%

Northern and Central

Europe, 19.4%






Which specific retailing groups

have been researched?

Among the major retailing groups included in the research are:

3 Suisse's

AEON

Hold

Alde

Alabama

Alliance Boots

Amazon

AS Watson

Aachen

Bertelsmann

Best Buy

Best Denki

Bossing International

Brilliance Group

Canadian Tire

Carrefour

Casino

Cencosud

Chedraui

Coles Group

Conforama

Coop Norden

Dairy Farm International

Dansk Supermarked

Dixons Retail

E. Leclerc

EDEKA

El Corte Inglés

Empresas Ripley

Eroski

Euronics

Expert International

ExxonMobil

Falabella

FamilyMart

Famsa

Far Eastern Group

GOME

Groupe Galeries Lafayette

Grupo Deib Otoch

Grupo Elektra

Grupo Exito

Grupo Inditex

Grupo Pão de Açúcar

Harald Nyborg

Harvey Norman

Home Retail Group

House of Fraser

Hudson's Bay Company

ICA

IFH Peru

IKANO

Isetan Mitsukoshi

Jardines

Kering

Kesko

Kroger

Leroy Merlin

Lotte

Louis Delhaize

Macy’s

Mango

Marks & Spencer

Maus Frères

Mercator

Metro Group

Migros

Modelo Continente

Office Depot

Olímpica

OTTO

Overwaitea

President Chain Store

Rakuten

Reitan

Reliance Industries

Resurs Group

REWE

Royal Dutch Shell

Rustan Group

Sears

Sedmoi Continent

Seven & I

SOK

Soriana

Staples

Stockmann

Svyaznoy

Tata Retail

Tchibo

Tengelmann

Tesco

The North West Company

Viveks

Walmart

Warehouse Group

Wesfarmers Group

Weston

Woolworths (Australia)

Yamada Denki






What is the report structure?

0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale, description of methodology and other related notes.

2. Global Overview: a worldwide overview of the activity of major retail brands in consumer finance

and banking. As well as a comparative analysis of operating models used in these areas, this

section also analyses the importance of providers owned by major financial and retailing groups

such as AEON, Alliance Data, Auchan, BNP Paribas, Carrefour, Crédit Agricole, Falabella, JACCS,

Otto, Santander, Société Générale, and Walmart.

3. Argentina: an in-depth analysis of the market for retailer consumer finance and banking in

Argentina. Key partnerships are identified between major Argentine retail chains and providers of

consumer finance, and detailed commentary is also provided to describe the involvement of the

same universe of retailers in the field of banking products, namely savings deposits, personal

loans, mortgages and international remittances.

4 - 60: chapters for all other countries are structured along similar lines to that for Argentina.

61. Appendix: this final section provides a comprehensive listing of retailers operating in the areas

of consumer finance or banking through captive or joint venture providers.






What are the key features of the research?

Key features of this report include:

• definitive coverage of the involvement in consumer finance and banking of over 6,000 major retail

brands in 60 countries worldwide;

• focus on over 1,000 consumer finance schemes: which providers of point-of-sale finance are

strong in which countries and with which retailers do they collaborate?

• comprehensive listing of retailers using captive or joint venture point-of-sale finance divisions or

subsidiaries for their consumer finance schemes;

• identification of over 400 individual product initiatives in retailer banking including the split by

country, retailer category and retailer distribution model (i.e. offline-only, online-only and mixed);

• identification of numerous consumer finance and banking product providers with which major retail

chains co-operate including both long-established banking organisations and innovative new

entrants.






How can the research be used?

You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of

the following ways:

• gain rapid access to a unique source of intelligence covering virtually all significant retail brands

across a wide range of geographies around the world;

• appreciate how the prevalence of initiatives in retailer consumer finance and banking varies by

country, by retailer category and by retailer distribution model;

• monitor the activity of key national and international competitors in the retailer consumer finance

sector;

• evaluate the potential for acquiring the existing consumer finance portfolios of retail groups by

purchasing equity stakes in captive finance entities or taking over internally-managed schemes;

• learn more about the growing number of retailer banks worldwide including AEON Bank, Banco

Azteca, Banco Falabella, Banco Walmart, Canadian Tire Bank, ICA Banken, Rakuten Bank,

Sainsbury's Bank, Seven Bank and Tesco Bank.





© Finaccord Ltd., 2014

Retailer Category Country Product typeProduct

offered?Operating model Partner(s) UHC(s) of partner(s)

Flamingo Supermarket / hypermarket Colombia Consumer finance Yes Internal

Floors-2-go DIY / furniture / home UK Consumer finance Yes External partner Pay4Later Pay4Later

Føniks Computer Consumer electronics Denmark Consumer finance Yes External partner Ekspres Bank BNP Paribas / Galeries Lafayette

Foot Locker Fashion US Consumer finance Yes External partner Bill Me Later / Comenity Bank eBay / Alliance Data

Forli Fashion Paraguay Consumer finance Yes Internal

FÖRR DIY / furniture / home Sweden Consumer finance Yes External partner Klarna Klarna

Filter by type

of retailer

Choose operating model Identify product

providers

Look up

specific retailers Filter by

product type

Select country Identify ultimate

owners of partners

13

How can the PartnerBASE™ be used?






Who can use the research?

1. Consumer finance companies: this study is an up-to-date and comprehensive source of information

about retailer consumer finance in 60 countries and represents an indispensable guide to over 1,000

retail brands that operate consumer finance programs;

2. Banks and insurance companies: consumer finance schemes can form an effective basis either for

developing broader retailer banking operations or for marketing a range of insurance products to large

and well-defined groups of consumers;

3. Retailers: consumer finance programs represent an important activity for numerous retail brands

around the world but how do they organise their involvement in this field and with which partner

organisations do they collaborate?

4. Providers of international remittance services: in addition to coverage of the mainstream banking

products of savings deposits, personal loans and mortgages, the research also identifies partnerships

between major retailers and providers of international remittance services;

5. Management consultancies: are you either assisting a retailer with the development of a consumer

finance or banking scheme or advising a bank or other lending institutions with respect to partnership

opportunities with major retail brands? This research will help you to evaluate the options in retailer

consumer finance and banking, saving time and effort on researching the subject yourself.






What are some of the key findings? 1. Retailers in the DIY, furniture and home product category are the

most likely to have established schemes for consumer finance

Source: Finaccord PartnerBASE

0% 20% 40% 60% 80% 100%

Books and media

Consumer electronics

Department store / variety

DIY / furniture / home

Fashion

Fuel

Health and beauty

Speciality

Sporting goods

Supermarket / hypermarket

Online only

Offline only

Mixed

% of major retail brands investigated with a consumer finance scheme

6.8%

37.4%

25.7%

41.6%

6.4%

1.0%

4.1% 13.7%

14.3%

9.8%

22.9%

11.5%

22.8%






What are some of the key findings? (cont.)

2. JACCS is likely to be the leading provider of point-of-sale finance in Japan

whether its partnerships are viewed in unweighted or weighted terms

UNWEIGHTED SHARE OF PARTNERSHIPS WEIGHTED SHARE OF PARTNERSHIPS

Source: Finaccord PartnerBASE

JACCS, 46.9%

Orico, 18.8%

Credit Saison, 15.6%

AEON Credit Service, 9.4%

Cedyna, 9.4%

JACCS, 52.0%

Credit Saison, 17.8%

Cedyna, 15.1%

Orico, 11.7%

AEON Credit Service, 3.4%







3. Where personal loans, mortgages or savings accounts are offered by major retail brands,

these are most commonly organised through captive banks owned by the retailers themselves

0% 20% 40% 60% 80% 100%

Source: Finaccord PartnerBASE % split of operating models used for retailer banking

Asia

Australasia

Eastern and South-Eastern Europe

Latin America

North America

Northern and Central Europe

South Africa

Southern and Western Europe

Total

Single external provider

Multiple external providers

Captive provider

Joint venture provider

Other







4. Key findings from the executive summary include:

• of the consumer finance programs found, just over three quarters of them rely entirely upon one or

more external partners, with 64.5% based around a single external partner and 11.0% around more

than one external partner, while 8.4% employ a captive provider and a further 13.2% of retailers

active in this sphere reportedly manage and fund their finance schemes themselves without support

from a separate partner, either external or captive;

• retail brands in the DIY, furniture and home product category are the most likely to offer consumer

finance with a provision rate of 41.6%, followed by those in the field of consumer electronics

(37.4%) and then by department stores and variety retailers (25.7%);

• by region, South Africa hosts the major retail brands most likely to offer a general banking product,

with a provision rate of 9.2%, followed by Latin America at 6.0%;

• 110 major retail brands (or 1.7% of those surveyed) offer international transfer or remittance

services with Western Union used as a direct provider in 60 cases and as a joint venture partner in

the case of Seven & I's Seven Bank International Money Transfer service.






What is the cost and format?

Global Retailer Consumer Finance and Banking is available as a standard PDF document. The

PartnerBASE™ that accompanies it at no further charge is in Excel format. Costs for this research

set and selected other comparable, international titles are as follows:

* For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For

a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate,

if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available.

Global Retailer Consumer Finance and Banking GBP 2,495

Global Retailer Insurance and Assistance GBP 2,495

Global Retailer Online Payment Acceptance GBP 3,495

Global Retailer Payment, Gift and Loyalty Cards GBP 3,495

Retailer Consumer Finance and Banking in the Asia-Pacific Region GBP 995

Retailer Consumer Finance and Banking in Europe GBP 1,295

Retailer Consumer Finance and Banking in North and Latin America GBP 995

Retailer Insurance and Assistance in the Asia-Pacific Region GBP 995

Retailer Insurance and Assistance in Europe GBP 1,295

Retailer Insurance and Assistance in North and Latin America GBP 995

Retailer Online Payment Acceptance in the Asia-Pacific Region GBP 1,295

Retailer Online Payment Acceptance in Europe GBP 1,995

Retailer Online Payment Acceptance in North and Latin America GBP 1,295

Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region GBP 1,295

Retailer Payment, Gift and Loyalty Cards in Europe GBP 1,995

Retailer Payment, Gift and Loyalty Cards in North and Latin America GBP 1,295






What other reports are available?

Australia GBP 795 France GBP 795 Malaysia GBP 795 South Korea GBP 795

Brazil GBP 795 Germany GBP 795 Mexico GBP 795 Spain GBP 795

Canada GBP 795 India GBP 795 Poland GBP 795 Turkey GBP 795

Chile GBP 795 Italy GBP 795 Russia GBP 795 UK GBP 795

China GBP 795 Japan GBP 795 South Africa GBP 795 USA GBP 795

Retailer Payments, Banking, Insurance and Assistance in...

A variety of country-specific reports and associated PartnerBASE™ datasets about retailer

payments, banking, insurance and assistance are also available from Finaccord, as listed below.

These are based in part upon the same research programs as the multi-country titles but focus

instead on particular countries.

* The same notes apply here as on the previous page






How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord web site available at

http://www.finaccord.com/order_global_rfsr.htm and fill in the online order form, clearly indicating:

• report required

• type of corporate user licence, if required *

• billing name

• address and e-mail address

• purchase order number, if applicable

Please allow up to one working day for the delivery of electronic copy by e-mail.

* For the corporate user licence please choose one of the following options:

1. One office, one country: no supplement over and above basic cost of reports ordered

2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered

3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered

4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.



http://www.finaccord.com/order_global_rfsr.htm









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