GCC markets-Middle East

Transcription

GCC markets-Middle East
Growing the success of Irish food & horticulture
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009
The Gulf Co Operation Council
Common religion, language and culture create
general traits and features for the region, yet each
country is unique in its own way.
The macro economics and level of development of
the group varies tremendously
GCC Food Imports
80-90% of food in the GCC is imported
Food imports US$53.1bn by 2020, double the value
in 2010 (US$25.8bn)
Saudi Arabia (60% by value),
UAE 14% and Kuwait 9%
The GCC countries are attempting to put together
uniform laws relating to labelling, shelf life and food
safety for the region.
Exports to Middle East 2013
1%
€320m
4%
20%
Beef
Beverages
Dairy
Edible Hort
Pigmeat
Poultry
Prepared Foods
Seafoods
Sheepmeat
1%
74%
Source: CSO
GCC Food Imports 2020, by Value
3%
14%
Value: US$53.1BN
9%
8%
6%
Bahrain
Kuwait
Oman
Qatar
Saudi Arabai
United Arab Emirates
60%
Source EUI
GCC Members Estimate GDP % Change
14
12
10
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
8
6
4
2
Source IMF.org
0
2011
2012
2013
2014
2015
2016
2017
2018
GCC Member Population % Increase, 2000-2010
250
Source UN
200
150
100
50
0
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
GCC Age Profile 2010
Source: UN
2%
0%
18%
26%
0-4yrs
15-39yrs
40-64yrs
65-79yrs
80+yrs
54%
Urbanisation in the GCC
The urban dominance will have increased somewhat
by 2020 according to the UN:
Urban Population 2020, %
Bahrain
89.4
Kuwait
98.4
Oman
75.7
Qatar
99.5
Saudi Arabia
84.1
UAE
86.7
Food Security
Economic
Growth
Changing
Dietary
Habits
Population
Growth
Increased
Demand for
Food
Food
security is
a Strategic
Concern
Environment
Unsuitable
for Food
Production
Halal Certification
Islamic Foundation of Ireland (IFI) is the only Halal
accreditation centre in Ireland recognised by the
government municipalities in the UAE.
Steps of Halal Certification:
Registration of product(s) to be certified.
Pre-audit assessment.
On-site audit.
Post-audit evaluation.
Halal certificate issuance.
Development of new product/production facility.
Halal certificate renewal.
•
•
•
•
•
•
•
Modern Retail Trade
Within modern trade, 3 major retailers operate
across the whole region:
– LULUs, Carrefour & Spinneys
In UAE, the top 4 retailers= 37%
In Saudi, the top 4 retailers= 24%
91% of all modern trade exists in the UAE (53%) &
Saudi (38%)
The Kingdom of Saudi Arabia
KSA Economic Overview
Oil-based economy
80% of budget revenues, 45% of GDP, and 90% of
export earnings
GDP $921.7 billion
GDP +6.8%
Inflation 4% Source CIA WorldFactbook, 2013
Economic Indicators
2013 (EUR)
Inhabitants
GDP
GDP per capita
GDP % nominal growth
Consumer Spending
Consumer spending per capita
29,632,000
541,268,380,128
18,266
-2.25
154,632,878,527
5,218
Macroeconomics
Macroeconomics
KSA Population
Source: CIA Factbook 2013
Retail Overview
Saudi Arabia is the second largest retail market
Retail sales of over €72billion
Competitive market
Modern Trade 46%
Access to the traditional trade is important for
women in Saudi as they cannot drive to the larger,
out of town stores
Retail Landscape
Savola Group.
Operate across M.
East. Largest retailer
in Saudi w/nationwide
presence
Targeted at traditional,
middle to low income
Saudi’s. 80% Othaim’s
shoppers = nationals
Target to be #1 Family
Retailer Expanding
Nationwide. Target
upper income shoppers.
Grocery Retailers
Retailer
Grocery sales
2012
(US$ mn)
Grocery Sales
2012 (€)
(Exchange rate
US$1=€0.738)
% Change in
IGD grocery
grocery sales 11- retail market
12*
share 2012
Number of
stores 2012
Al Azizia Panda 2,537.4
1,873.8
11.0%
6.5%
145
Al Othaim
1,109.4
819.3
28.0%
2.8%
107
937.2
692.5
6.0%
2.4%
30
Farm
327
Unknown
Unknown
0.8%
43
Al Sadhan
481.9
356.1
10.6%
1.2%
8
435.9
322.1
2.9%
1.1%
13
Saudi Marketing 374.7
276.9
14.6%
1.0%
55
Al Raya
Supermarket
271.6
200.7
27.4%
0.7%
29
Al Tamimi Group 242.1
178.9
4.4%
0.6%
14
Bindawood –
Danube
Majid Al Futtaim
(Carrefour)
Note: excludes Cash & Carry and Members Club operations
Source: IGB Retail Analysis Saudi Arabia
Hypermarkets and Superstore Leaders
Panda
#Hyper
#Super
#Riyadh
#Dammam #Jeddah
44
107
58
11
19
2011
€2,690 M
2012
€ 3,263
2013
€ 3,615
Operational Indicators
Net sales Euro
Aggressively expanding its geographic coverage of
KSA cities each year. Presence in 33 cities in KSA.
6 new outlets-2013
Passport Grocery Retailers in Saudi Arabia Euromonitor International March 2014
Al Othaim
Branch Corner Ware
house
Whole
sale
Hyper #Riyadh
#Dammam #Jeddah
88
9
5
0
24
3
58
4
Net sales (SR million)
2011
2012
2013
€ 1,120
€ 1,134
€ 1,131
Nationwide coverage, Strongest presence is in
Riyadh in the central region
own strong distribution division named Universal
Marketing.
Bin Dawood/Danube
Brand
Hyper Super #Riyadh #Dammam #Jeddah
Bin Dawood 5
13
0
0
7
•Danube
L
0
11
2
0
8
2011
2012
2013
€ 906
€ 848
€ 885
Net sales (SR million)
Stagnanat-slow expansion plans and fierce
competition.
No new openings since 2011.
Farm
Superstores MiniMarkets #Riyadh
#Dammam #Jeddah
47
11
6
2012
€ 380
2013
502
17
0
Net sales Euro
2011
€ 246
Strongest Eastern Province.
Plans to aggressively expand geographically.
Carrefour
Hyper
6
Super
7
Market #Riyadh
1
6
#Dammam #Jeddah
4
2
Net sales Euro
2011
€ 578
2012
€ 647
2013
€ 647
Operates the second-highest number of
hypermarket outlets in Saudi Arabia after Hyper
Panda.
Exporting to KSA
Saudi Food and Drug Authority (SFDA)
The vast majority of food products are subject to a
5% import duty while other products carry 12% or
20% import duty
It is recommended to find a strong Saudi partner;
Appetite for “Western” Goods.
Visiting the market is key
Fast Food Outlets by Numbers
Chain
Number of Outlets
Cone Zone
350
Baskin-Robbins
201
Pizza Hut
177
KFC
143
McDonald’s
120
Burger King
65
Subway
45
Canadean Saudi Arabia Foodservice Report July 2012
The United Arab Emirates (UAE)
High population of
expatriates
Islam 96%
Work Sunday to
Thursday
Capital city is Abu Dhabi
UAE Economic Overview
Oil construction & tourism based
GDP per capita is now at $49,800
GDP will grow by 3.9% in 2014
75% of food imported
Free Trade Zones attract foreign investors
Economic Indicators
2013 (EUR)
Inhabitants
GDP
GDP per capita
Consumer Spending
9,031,000
293,767,280,188
32,529
-1.66
147,669,030,468
16,351
Macroeconomics
Macroeconomics
Demographics
Source: CIA Factbook 2013
Top Grocery Retailers 2013
Company
Emke Group
(LuLu
International)
Carrefour
Spinneys
Al Safeer
Abu Dhabi Co-op
Géant
Choithrams
Total Sales Area Average Sales
SQM
Area SQM
Grocery Banner
Sales (EUR)
445,200
7,546
942,359,906
261,500
134,600
123,000
94,900
Unknown
Unknown
6,081
1,819
2,795
4,995
Unknown
Unknown
811,554,061
776,179,439
420,340,378
360,932,886
Unknown
Unknown
Planet Retail Country Report UAE
Retail Channels
Continued shift from traditional to modern grocery
retailers
Hypermarkets and superstores
•
Carrefour, Casino (Géant), Emke group (Lulu
International)
Supermarkets and neighbourhood stores
Retail landscape is dominated by supermarkets and
small format neighbourhood stores
Lulu
Supermarkets
20
Convenience/Forecourt Stores
39
Emke Group (LuLu International) is a major Indian
conglomerate
GCC, India, Malaysia, Indonesia
Targets the price sensitive end of the market
Carrefour
Hypermarkets
Convenience Markets
16
14
Entered the UAE in 2000 via a joint venture with
local partner Majid Al Futtaim
Targets wealthy local Arab and Western Expat
markets
Carrefour is now one of the top five players and has
taken the lead in terms of innovation and
modernisation.
Spinneys
Superstores/Supermarkets
36
Convenience/Forecourt Stores
22
First convenience stores, opened in 2006
Premium focus on the Western Expat market
Al Saeer distribution business
Waitrose
Safeer
Founded in 1992, based in Sharjah, UAE
Part of Al Safeer Group
Core business lies in Hypermarkets
35 hypermarkets/supermarkets located across all
the Emirates, Qatar and Oman
Own label business
Abu Dhabi Coop
Hypermarkets
3
Supermarkets
6
Founded 1981
60,000 customers every single day
Aggressive expansion plans
Géant
Hypermarkets
2
Supermarkets
7
Géant Hypermarket opened in Dubai in 2005
Average of 65000 Product lines which include food,
grocery, apparel, house ware, consumer electronics,
beauty care, etc.
UAE’s first online Hypermarket
Choithrams
Hypermarkets
11
Supermarkets
24
Choithrams operates a distribution business, and
has stores in Oman, Bahrain and Qatar.
Tesco PL
Asian expats
Exporting to the UAE
Selecting a logistics model is a critical step
Food and beverage items subject to a five per cent
import duty (excluding alcoholic beverages).
Food labelling regulations-DFCA, ADFCA etc.
No alcohol can be used as an ingredient or additive
Import of pork and pork products is permitted
No food labels can have pictures or recipes listing
pork or alcohol
Kuwait
Economic Indicators
2013 (EUR)
Inhabitants
GDP
GDP per capita
Consumer Spending
3,890,000
137,436,409,348
35,331
-3.86
30,419,612,226
7,820
Macroeconomics
Macroeconomics
Company
Number of
Outlets
Total Sales
Area SQM
Average
Sales Area
SQM
Grocery
Banner Sales
(EUR)
The Sultan
Center
29
74,100
2,555
292,519,123
City Centre
3
45,000
15,000
164,885,420
Emke Group
(LuLu
International)
4
60,000
15,000
113,341,536
Casino
7
28,000
4,000
66,408,281
18
3,600
200
43,513,454
Alliance Boots
Oman
Economic Indicators
2013 (EUR)
Inhabitants
GDP
GDP per capita
Consumer Spending
3,186,000
61,817,727,511
19,403
1.25
18,899,095,028
5,932
Macroeconomics
Macroeconomics
Company
234,000
Average
Sales Area
SQM
18,000
Grocery
Banner Sales
(EUR)
465,296,832
32
64,000
2,000
295,891,202
Carrefour
5
56,380
11,276
205,060,524
Al Safeer
16
50,000
3,125
166,029,692
Spinneys
12
18,000
1,500
155,971,748
Emke Group
(LuLu
International)
Khimji
Number
of
Outlets
13
Total Sales
Area SQM
Bahrain Economic Indicators
2013 (EUR)
Inhabitants
GDP
GDP per capita
Consumer Spending
1,174,000
21,468,816,692
18,287
1.07
6,661,449,934
5,674
Macroeconomics
Macroeconomics
Company
Number of
Outlets
Total Sales
Area SQM
Emke Group
(LuLu
International)
5
100,000
20,000
188,902,560
Fu-Com
6
18,000
3,000
147,610,441
Casino
2
27,200
13,600
59,685,721
Carrefour
1
11,000
11,000
39,225,293
John Lewis
6
12,258
2,043
33,281,154
Average
Grocery
Sales Area Banner Sales
SQM
(EUR)
Qatar Economic Indicators
2013 (EUR)
Inhabitants
GDP
GDP per capita
Consumer Spending
1,910,000
150,872,219,544
78,991
0.49
18,948,047,379
9,920
Macroeconomics
Macroeconomics
Company
Number of
Outlets
Total Sales
Area SQM
Average
Sales Area
SQM
Grocery
Banner Sales
(EUR)
Emke Group
(LuLu
International)
6
54,000
9,000
280,213,245
Family Food
Centre
4
18,400
4,600
131,711,901
Carrefour
6
39,480
6,580
127,808,189
Casino
1
12,500
12,500
54,279,664
Panda
4
16,000
4,000
53,630,604
Market Entry
Irish Exporter
Saudi Exclusive Agent
Importers
European Consolidator
Major Saudi
Hyper/Supermarkets
Consumer
Hyper/Supermarkets
Institutional Customers
Wholesalers
Saudi Importers
Hypermarkets
Supermarkets
Grocery Stores
Consumer
Consumer
Wholesalers
Consumer
Convenience Stores
Consumer
Tips for Doing Business
Know Whom You’re Meeting
Understand the culture
Be mindful of local customs
Make it personal
Go with the flow and accept changes
Understand negotiating style
Be careful when choosing a go-to-market model
Buyer Targets for Marketplace 2015
8 Dairy
4 Seafood
4 meat
7 (frozen, bakery, confectionery & snacks)
Primary focus on KSA & UAE
Questions
Thank you
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009

GCC markets-Middle East

Transcription

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