The Merchants
Mec Group 2: Alex S. Chemali, Amalie Rasmussen, Mads Vangsgaard,
Sofie Reland & Sandra Beenfeldt-Hansen
Mak Group 8: Mie, Neele, Monika, Irina
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
❖ Examples for Industries/Companies:
➢ Fashion Clothing
■ Bestseller
● 10.000 stores in 38
countries
❖ Long-term & trustful relationship to
customer and suppliers
■ H&M
❖ Strong business acumen (streamlined)
■ IC Group a/s
❖ Creating value across borders
■ Zara
❖ How do we excel?
➢ Danish corporation has mastered
business plan & management style
that functions internationally/
globally.
➢ Tourism
■ NOVOSOL
➢ Energy
■ Danske Commodities
➢ Home furniture
■ JYSK
How Denmark Excels in the Home
Furniture Industry
❖ Having a strong brand (Scandinavian design)
❖ Innovative products
❖ Meeting customers needs
❖ Create value for customers
❖ Good relationships with suppliers
❖ Delivering products at a perceived fair price
❖ Having economies of scale
❖ 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
Indonesia Economic Climate
❖ 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
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)
❖
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)
How Denmark Excels in the Fashion 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 on 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
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
❖ Jysk has a manual of their processes that are followed when they are
developing or penetrating in the market.
❖ 419 suppliers in China (2 in Indonesia) → so close to Indonesia
❖ Effective supply chain - using local suppliers
❖ Wide assortment
❖ Economies of scale
❖ Competitive prices
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 DK
Comparison between Denmark and Indonesia prices
❖ Denmark / Indonesia
Bedlinen 250 / 195 DKK
Bedlinen 229 / 180 DKK
Matras 1,499 /1,325 DKK
❖ Average monthly income Denmark / Indonesia
27,000 / 8,400 DKK
❖ Disposable monthly income Denmark / Indonesia
17,500 / 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
Premium segment:
❖Market penetration
➢Market penetration
❖Market development
➢Divestment
❖No acquisition plans, vertical integration plans
Non-core business
Fast Fashion segment
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
❖ Horisontal integration
Sources
-
http://www.business.dk/detailhandel/ic-companys-ser-muligheder-i-asien
-
http://www.thaigarment.org/Report/050555/THE%20JAPANES%20APPAREL%20MARKET%2
0AND%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
Sources
uhttp://www.bcg.com/media/PressRe
leaseDetails.aspx?id=tcm%3A12-129295
u