Diapositiva 1

CASE HISTORY COIN
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COIN: one hundred years of history
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1916 Vittorio Coin starts the Gruppo Coin activities
1926 First Coin Store (Mirano, Venice)
1965 Coin P.za 5 Giornate opens (Milan)
1972 First “Organizzazione Vendite Speciali” (Oviesse) store
1986 Coin is the first retailer to develop a fidelity card program in Italy
1995 Oviesse become an apparel retailer
1998 Acquisition of La Standa
1999 Listing of Gruppo Coin on the Milan Stock Exchange
2005 PAI equity fund becomes Gruppo Coin majority shareholder
2008 Acquisition of Melablu
2010 Acquisition of UPIM
2011 BC Partners becomes Gruppo Coin majority shareholder
2011 Excelsior opens in Milan
2012 Acquisition of IANA
2013 Excelsior opens in Verona
2014 Coin Excelsior opens in Rome
Coin in a snapshot
Established in 1926, Coin is the largest
Italian department store
€413,2 m net sales in 2014
77 stores in Italy and 20 abroad,
located downtown in the most important
Italian cities and shopping areas
Portfolio of 800 brands
46 million visitors every year
21,6 million items sold and 12 million
receipts
3
Where we come from: Net Sales and Sqm building 2008–2010–2012
TOTAL CATEGORY (Beauty and Home not included)
● NET SALES
2010
2008
2012
11%
35%
33%
41%
hb
50%
32%
ws
57%
concession
17%
24%
NET SALES (€/1000): 273.814
NET SALES (€/1000): 232.935
NET SALES (€/1000): 276.158
● SQM BUILDING
2010
2008
8%
2012
26%
35%
hb
31%
43%
ws
48%
61%
concession
26%
22%
SQM: 82.010
SQM: 74.100
4
SQM: 91.335
Where we come from: Trend 2007-2011
Ebitda trend (2007 – 2011 ) is positive thanks to network development otherwise
is offset because of division costs and the decrease of LfL Ebitda Store
Bridge Ebitda (2007-2011)
Ebitda Coin 2007
∆ Store Ebitda
LfL
∆ Store Ebitda
New opening/closure
∆ Division Costs
∆ HQ costs
∆ Ebitda Coin 2011
*Capex 2007-2011: 61,7 mio € (Italian new openings, conversions and refurbishing)
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Where we come from: Trend 2007-2011
Ebitda trend is negative because of the Gross Margin decrease is higher than rent
incomes increase
Bridge Ebitda of the same dos from 2007 to 2011
Network
2007
Space Impact:
Sales Density:
Gm Impact:
Store Ebitda
2007
Partners
Wholesales
Housebrand
Total
0,6
7,5
31,4
39,5
∆ GM
0,0
-11,8
-34,0
-45,8
∆ Personnel
costs
-6,5
2,4
8,2
4,1
∆ Rent
-8,0
1,4
4,2
6
-2,4
-36,1M€
-7,7M€
-2,0M€
∆ Space
costs
-2,6
0,6
1,9
-0,1
∆ Operating
costs
-4,2
0,9
2,9
-0,4
∆ Rent
income
41,4
0,0
0,0
41,4
Store Ebitda
2011
20,7
1,0
14,6
36,3
∆
2007-2011
20,1
-6,5
-16,8
-3,2 M€
Going Forward
1. WHAT WORKED AND WE FURTHER IMPROVE:
• Concession Model
• Cost control
• Format Coin (customer experience)
2. WHAT HAS NOT WORKED AND WE ADDRESS:
• Wholesales man/woman/ accessories: reduction of sales
density and Ebitda
• House brand: fall of sales density
• Upim conversion and new opening underperforming
3. WHAT WE “ TURN AROUND”
• Customer Experience
 “consumer have to dream while walking”
 “memorability and uniqueness of the experience”
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The market share of department stores in Italy is the lowest in Europe but…
% share men/women/kids clothing market in terms of value per sales channel
Source:
European Customer Panel 2012
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# Monobrand POP breakdown by channel of distribution: Based on 21 brands
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…showing significant growth opportunities vs. independent multibrand
-3,0%
3,0
7,1
3,5
-5,0%
-6,5%
3,0
7,0
3,4
Market Share
3,0
6,5
3,3
Other Channels (w/o Outlets&E-Commerce)
Market
34,7
32,7
29,7
0,8
1,5
7,5
3,6
3,6
2,4
7,1
4,0
4,0
41,2
44,0
9,0
3,2
3,2
38,7
Multibrand
Channels
Hyper+Super
Independent stores
E-Commerce
Large Surface retailers
Department
Store
Department
2011
2012
2013
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Specialized retail channels
stores
Italian Market Concentration
In 2013, over 7.000 independent apparel stores
went out of business; (1°quarter 2014 -3.000)
Multibrand apparel
channel 51.000 (without
footwear)
apparel
54,9%
footwear
18,6%
leather
2,5%
children
14,1%
sport
underwear
5,5%
4,4%
Source : Fashion Bank
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Apparel/accessories consumption according to price range
VAR % 13/12
CORR. VALUE
Total Var
Luxury
-6,6
Price index numbers
2012
2013
BRIDGE /
BEST
-4,6
323
310
BETTER
-8,6
209
204
GOOD
-10,0
141
141
Accessible
luxury
Medium
price
MODERA
TE
-5,0
95
98
Low
price
MASS
-3,3
49
50
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Source: Fashion Consumer Panel
and internal elaboration
WHAT WE HAVE DONE: Coin Strategy
CONSOLIDATE THE MARKET, CREATING A PREMIUM DEPARTMENT STORE
NETWORK:
•Increase the space allocated to brands in concession (33%) with a positive impact on
the business profitability and working capital (stock/sqm -29% in the last 4 years),
limiting the presence of housebrands/wholesale to the minimum
•Trading up brand mix, leveraging concession model with accessible luxury brands,
growing average ticket.
• Progressive conversion of the most relevant stores in the Coin Excelsior format
(premium contemporary) following Coin Excelsior Rome extremely positive results.
• Optimizing sales people kpi efficiency (sales/eft, sqm/eft), improving performance
via selection training and incentive plans
EBITDA
++
CASH FLOW
++++
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BRAND
POSITIONING
UPGRADE
+++
Sales and sqm per commercial mix
TOTAL CATEGORIES (Perfurmery and Home escluded)
● NET SALES
2008
2013
2010
11%
35%
30%
hb
41%
32%
55%
ws
57%
partner
15%
24%
NET SALES (€/1000): 273.814
NET SALES (€/1000): 232.935
NET SALES (€/1000): 268.215
● SQM BUILDING
2008
2013
2010
8%
26%
38%
hb
31%
43%
ws
48%
61%
partner
26%
19%
SQM: 82.010
SQM: 74.100
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SQM: 90.797
Italian Market Share: upgrade evolution
Market share
2013
Coin Italy
2013
Luxury
Over 400%
of leverage price
LV,
Chanel,
Dior,
Cucinelli,
Gucci,
Lanvin,
Prada….
Luxury
0%
Ralph
Lauren,
Moncler
MaxMara,
Zegna, Fay
More 200%
of leverage price
?
From 75 to 125%
of leverage price
Fast Fashion
Medium Price
From 50 to 75%
of leverage price
Low Price
Up to 50%
of leverage price
Seventy,
Longcha
mp,
Furla,
Boggi,…
Twin Set, Liu
Jo, M. Kors,
MbyM, Paul
Smith, …
Marlboro
Classics
Marina
Yacthing
Miss Siixtiy
Esprit
Benetton
Accessible
luxury High
38-45
Accessible luxury
medium low
1,9%
Stefane
l,
THilfige
r,
.
Medium price
1,9%
Fast fashion
Medium price
32-38%
Low price
0%
Low price
11-13%
Zara,
Mango, Motivi..
Upim, Piazza Italia, Terranova,
Iper, mercatini
Luxury
12-13%
Accessible
luxury High
0,8%
Accessible Luxury
From 125 to 200%
of leverage price
Market share
2013
OVS, H&M
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Coin MKt Share:
2012
1,36%
2013
1,49%
Italian Market Share: upgrade evolution
Market share
2013
Coin Italy
2013
Luxury
Over 400%
of leverage price
Chanel,
Dior,
Cucinelli,
Gucci,
Lanvin,
Prada….
Luxury
0%
Fast Fashion
Medium Price
From 50 to 75%
of leverage price
Low Price
Up to 50%
of leverage price
Seventy,
Longcha
mp,
Furla,
Boggi,…
Accessible
luxury High
38-45
Twin Set, Liu
Jo, M. Kors,
MbyM, Paul
Smith, …
Marlboro
Classics
Marina
Yacthing
Miss Siixtiy
Esprit
Benetton
Accessible luxury
medium low
1,9%
Stefane
l,
THilfige
r,
.
Medium price
1,9%
Fast fashion
Medium price
32-38%
Low price
0%
Low price
11-13%
Zara,
Mango, Motivi..
Upim, Piazza Italia, Terranova,
Iper, mercatini
Luxury
12-13%
Accessible
luxury High
0,8%
Ralph
Lauren,
Moncler
MaxMara,
Zegna, Fay
Accessible Luxury
From 75 to 125%
of leverage price
Coin MKt Share:
2012
1,36%
2013
1,49%
2014
1,62%
LV,
More 200%
of leverage price
From 125 to 200%
of leverage price
Market share
2013
OVS, H&M
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Brand Mix Evolution
hgh
luxury
HIGH PRICE
medium
.
CLASSIC
CONTEMPORARY
NEO TRADITIONAL
CONTEMPORARY
entry price
TRADITIONAL
LOW PRICE
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TRENDY
Stores and Brand Mix Evolution
2005 / 2008
2009 / 2013
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2014
COIN EXCELSIOR - Roma Cola di Rienzo
2012
2014
(K/€)
Building Sqm
3.140
4.240*
Concession Sqm
1.232
2.320 * (+88%)
Building Sales
27.816
45.790 (+65%)
Sales Density
8.858
10.800 (+22%)
Average Ticket
49,16
70,26
*with food market
** current rent
***calculated on building net sales
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(+35%)
(+43%)
MBASSADOR
(12):
Store Clusters
– Clusterization Criteria
• Market > 500 mln €
•AMBASSADOR
Population > 1 mln (12, of which 5 potential Coin Excelsior)
• Market> 500 mln euro
• Population> 1 mln
••Sales/sqm
> 4.500
Average
market income > 100
••% ofSales/sqm
total Building>Sales
Coin: 42%
4.500
of Store
totale
Builiding
••% of%total
EBITDA
Coin: Sales
48% Coin: 42%
% of
total Store EBITDA Coin: 48%
••Central
locations
• Central locations
• High quality stores
• High quality store
• Average market income > 100
CITY BOUTIQUE (28):
BOUTIQUE
(11)
•CITY
% of total
Building Sales
Coin : 40%
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•
% of total Building Sales Coin: 40%
% of total Store EBITDA Coin: 39%
• % of total Store EBITDA Coin: 39%
SHOPPING CENTER (5)
CENTER
(7)13%
•SHOPPING
% of total Building
Sales Coin:
of Store
totalEBITDA
Building
Sales
••% of%total
Coin:
13% Coin: 13%
•
% of total Store EBITDA Coin: 13%
COIN FACTORY STORE (8):
•OTHERS
Size < 2.000(24)
mq
2,000Sales Coin: 5%
••% ofSize
total <Building
• % of total Building Sales Coin: 5%
• Rent 10%
••Popular
areas in
large cities
or central
areas
in small cities
Popular
areas
in large
cities
or central
areas in small
cities
• Rent ≈ 10%
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Direct Store Network - 2014
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Becoming a Total Retailer
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Becoming a real omnichannel retailer:CRM to enhance the Customer Experience
ON LINE
• Email
• Web Site
• Social Network
• Ecommerce
OFF LINE
• In Store Windows
• Video Wall
• Digital Totem
• Radio
• TV
• Leaflet
BETWEEN ON & OFF LINE
• SMS
• Push Notification
• App
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Customer Omnichannel Experience
CRM : the Key for Omnichanneling
CRM is the Bridge between the Customer and the Brand channels.
CRM is the key to obtain a omni-channel retail strategy to promote your brand,
improve the consumer experience and increase revenues.
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Digital Communication – In-Store TV
In-Store TV
250 monitors located on the ground floor of
33 stores
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Digital Communication – Radio & Digital Totem
Radio & Digital Totems
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Coin Music Design is present in all stores
with a radio station broadcasting the best of
international pop, electro dance and R’n’B
music.
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Digital Communication – Digital Windows
Digital Showcase
Innovative Digital Windows: a backdrop
comprising FullHD screens to combine digital
contents
and product display
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Digital Communication – Proximity Marketing
iBeacons & Proximity marketing
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Innovative Third Parties APP to start using
iBeacons tecnology in the Store
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Digital Communication – Events combining Online & Offline
Google Glass test in store
Blogger Engagement
Coin FaceBook Page
In Store Event, using Video Wall
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Digital Communication – Google Hangout
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Digital Communication – Google Virtual Tour
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Digital Communication – Digital Assets
Coincasa.it
Launched in November 2014, the first
Coin E-commerce.
Coin.it
200,000 unique visitors per month // 1 million page views
per month // 11 millions DEM sent per year //
From April 2015 Click & Collect will be
available
Social Networks with a high level of fan activities
Andorid & IOS App
Twitter // Facebook // Google Plus //
Launch in March 2015
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Customer Omnichannel Experience – The role of COINCARD
Coincard
Large database (over 2 millions people)
862,000 active consumer (84% women, 16% men)
47% of Coin sales
Virtual Coincard
From March 2015 even on your Smartphone for existing users and new ones
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