Development of
wholesale and retail
markets in Europe
Challenges and opportunities
Chandigarh, India
20-21 November 2012
Agenda
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Importance of markets in Europe
Purpose and definition of markets
Advantages of markets
Customer needs and marketing
Goals for the management
Historical development and parameters
Lease contracts
Provide competitive services
Food safety
Business economy
Chandigarh, India
20-21 November 2012
Torben Flinch, m.sc.agr.
Business development, consulting and board of directors
Chairman and board member WUWM
8 years
Managing director
Copenhagen Wholesale Market
9 years
Managing director
Agricultural Advisory Company
7 years
Chief of board education
Danish Agricultural Council
3 years
Consultant
Cooperative Development
3 years
Agricultural adviser
Economics and production
4 years
Farming
Chandigarh, India
20-21 November 2012
20 years
Importance of wholesale
and retail markets in Europe
Wholesale markets – 21 EU countries
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110 wholesale markets
1 mill. employees
42 bill. euro turnover p.a.
40% of produce supply in Europe
Chandigarh, India
20-21 November 2012
Importance of wholesale
and retail markets in Europe
Retail markets – 21 EU countries
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25.000 retail markets
1 mill. employees
450.000 retail traders
40 bill. euro turnover p.a.
Chandigarh, India
20-21 November 2012
Purpose of wholesale markets
Promote food producers and wholesalers trade with
professional buyers to strengthen their market position
and income by:
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Supporting rational trade
Rent out space and logistic facilities
Provide competitive services
Marketing the market and the products
Develop the range of goods, the buildings and
the infrastructure
Chandigarh, India
20-21 November 2012
Wholesale market advantages
 Known concept
 Transparency and high market information
 Cooperation possibilities for products, logistics
and sales
 New business areas or products can be tried easy
and at low costs
 Modern facilities to help increasing product quality
 Inspiration, knowledge, innovation
 All Customer groups are included
 Customers, suppliers and competitors are close by
Chandigarh, India
20-21 November 2012
Customers want
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Fresh products
Large range of products
Confident supplier relations
High level of service
Easy access
Prices are not crucial
(Investigated by Retail Institute Scandinavia 2008)
Chandigarh, India
20-21 November 2012
Marketing
 Customer investigations
what do tenants and customers want?
 Web
market information
 Posters
product information
 Campaigns
usage of products, cooking and healthy diet
Chandigarh, India
20-21 November 2012
Poster
(example)
Chandigarh, India
20-21 November 2012
Goals for the management
to support the actors on the market
Service minded  through all our relations
Eventful  at every visit
Diversity  product range and business concepts
Efficiency  logistic, common services and trade
Safety  people, food, environment
Knowledge  customers, society and politicians
Chandigarh, India
20-21 November 2012
Historical development of the
wholesale/retail market concept
Influence from external economic
and technologic conditions on markets
 Structural development of producers,
traders and retail supermarkets chains.
From small and many
 Big, specialized and few
Chandigarh, India
20-21 November 2012
Historical development
of the market concept - 1
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1950
Old market places in the town center
1950 – 1970
Separation of wholesale/retail
Relocation of wholesale markets
1970 – 2000
Development of wholesale markets
infrastructure, services and
marketing
Chandigarh, India
20-21 November 2012
Historical development
of the market concept - 2
2000 – now:
 New owner structures public/private
 Relocation or reconstruction
of wholesale markets (second time)
 Focus on logistic and food service
 Development of retail markets
 Collaboration between wholesale and
retail markets on competing the supermarkets
Chandigarh, India
20-21 November 2012
Development parameters - 1
Wholesale and Retail
from integrated  separate and rebuilding collaboration
Products
from field  processing
Price formation
from auction  contract
Trading
from cash and carry  distribution
Chandigarh, India
20-21 November 2012
Development parameters - 2
Infrastructure and building
from market hall  closed cool chains
Owner structure and management
from public  private
Economic Model
from public service  commercial business
Location
from town centre  suburb
Chandigarh, India
20-21 November 2012
Lease Contract
Rent: fixed pr. m2 (inflation/regulation).
Service fee: tenants pay for services.
Reconstruction: if tenant stops the lease:
 Obligation: to maintain and
reconstruct the space.
Termination: on termination of lease:
 Compensation: if management needs the
space for other purpose.
Chandigarh, India
20-21 November 2012
Competitive services
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Access to efficient logistic facilities
Common opening hours
Entrance services and control
Parking
Waste management
Fork-lifts and gas services
Food safety control
Marketing
Tenant association (involvement)
Chandigarh, India
20-21 November 2012
Food Safety
 Guide to good practice for wholesale
market authorities and managers
within the European Union
 Clean, cold and efficient
Chandigarh, India
20-21 November 2012
Guide to good practice for
market managers - 1
 Requirements for food premises
 Quality Control (htccp)
 Risks and responsibilities
 Water supply
 Cleaning
 Waste management
Chandigarh, India
20-21 November 2012
Guide to good practice
for market managers - 2
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Pest control
Temperature control and ventilation
Lighting
Services
Personal hygiene
Training
Chandigarh, India
20-21 November 2012
Efficient logistic (example)
Chandigarh, India
20-21 November 2012
Business Economy
Example, Copenhagen Wholesale Market
2012 estimate, mill. DKK
(Private owned commercial company)
Income (turnover)
51,1
Deprivation
- 6,1
Real estate tax
- 6,8
Maintenance
- 5,0
Operating costs
- 12,9
Consultants
- 1,8
Administration costs
- 7,9
Finance (interest on loans) - 7,5
Tax (income)
- 0,8
Result (Net)
+ 2,3
Chandigarh, India
20-21 November 2012
Welcome in WUWM
To get information and share
experiences across boarders
Chandigarh, India
20-21 November 2012