On Wednesday, November 14, the annual event, organized by ACU (Association of Single Supermarkets), highlighted difficulties in the area. "Adapting to a Complex Time", the main panel of the day was summoned, where the subject of market conditions was analyzed (high inflation, sales volumes, credit and informal market growth) and other structural, consumer-friendly, and other competitors (such as wholesalers and online stores) customer's mistrust, promotion of promotions and rebuilding shops.
«All circuits are adjusted and they come in difficult months from 4 to 6, "corresponds to the industry. Experts predict mass consumption From 1.5% to 2.5% fall this year and will gradually be restored in 2019, but from the second semester. It's an issue of cross-agenda issues Economic he met Heads of 6 major countries in the country, Alfredo Coto (Coto), Agustín Beccar Varela (Walmart), Rami Baitiéh (Carrefour), La Anónima, Joaquín Santa Coloma (Cencosud) and Jean Christophe Tijeras (Libertad). The following is synthesis of what is discussed.
– Changes and amendments are introduced in supermarkets. In the mid-term period, how can chains be?
Scissors: We are introducing innovations and we have a pilot with a new market (selling new products), a new offer. In addition, we have a lot of commercial diversity, we pay attention to the consumer with a realistic price offer and public offer.
Becary Varela: Industry is going through a major devastation process around the world. From the standpoint of clients' habits and technology. It communicates with our customers and the type of competitor we meet is quite different.
– What do you say about the new competition?
Becary Varela: I refer to online world like Mercado Libre, like Amazon and Argentina. In my opinion, the rate of speed depends on the industry's competitive position. In Argentina, we have problems with time, energy, resources, and things that do not exist in other parts of the world. But we are trying to track what customer needs to do. We are convinced that we do not have one channel, it has only one format, but the client chooses where, when and how to buy it. Let's go to everybody, we go to everybody, and we take it seriously. We believe that we can rebuild existing stores and improve our purchasing experience (payment tools, fast payment networks) and faster formats that we think have a good potential. E-commerce, with home delivery. It is important to create alliances with other types of players, share investment, client data and skills. Today, we work with Mercado Libre in a scheme that is competitors and allies at the same time.
Baiti: When I come to Argentina in January, the client requires a lot of assortment, he requests diversification and strives to all places. First, go to the store, then E-commerce, which resolves according to the stock. This is most required and the future of consumption begins with the actions of today. We have a mission as doctors to help people live a good life.
– The experts point out that the Argentine people are far more loyal than other countries. Local customer specification or supermarkets are failing?
Santa Coloma: The market is ours and is so competitive that it sets up a client to understand and understand the brands and chains proposals, demanding many options and actions. This is a lot more visible in the country, where people have a lot of time and space. And, as necessary, everybody takes care of their pockets and we have a very well-groomed client who is looking for good deals.
Brown: I agree with all the changes, but I would like to note some of the peculiarities because we are in the inner space of our country. The client, located in the middle of nothing, differs greatly in the capital. For example, we have developed an online platform with very clear descriptions. One sells everything that is not in our stores or in the absence of space. Here's an example of a white line, something we did not have and we see that the digital channel included in logistics has great potential. Secondly, we develop our own map to build loyalty. And our two refrigerators give us a competitive advantage because there is a very positive relationship between external and internal markets: No one in Argentina like the bartender, because it has bone, can not be exported. This will allow the domestic market to be replenished with exports. This idea is to continue to grow together with these three tools throughout the country.
Coto: My very macro is that it is a lot of talk about. We are very clear where and where we should go, we make it through ideas and new recommendations. You should understand that this technology not only covers all commercial alternatives, but also other industries, such as automotive industry. It is everywhere and undergo radical changes. Coming to these innovations, companies' leaders have to make new ideas to keep you in the business. Now, at the general level, there must be a strong and strong public administration in the economic governance of the country. Obviously, this is going on in this direction, but the results will not be in the year, two or three years. From this we are seeing a growing China and it has a great potential market, and we should use it. Then, country competition is the only competition.
– Experts note another aspect of competition, especially the linkage of channels with one another: wholesalers who point to the end consumer; super offerings for use in stores; promotion of pharmacy. How do you analyze the problem?
Scissors: We see it in other countries, but they are formal, honest competence. Thanks to this competition, we have to invent ourselves again and again every day. But we can not afford it as an informal competition and a black market. Compete with different formats and we do it daily and weekly. And when we meet other competitors, the services we offer are a new way of providing services.
Becary Varela: If we analyze the rotating information, we will be able to adapt to misunderstand and think more about what our competitors think. Our competitor – any place where the customer can buy, it's a super, wholesaler, a fair, a pharmacy. They. We need to understand that the client should be able to offer the best. Not everyone is the same, but on our side there is a good opportunity to have a portfolio of multifunctional stores, including a digital channel. But we still agree that if the rules of the game are the same for all, then the greeting is the race. I can not compete with anyone on the table. The problem is when you compete with a person who does not follow these rules. Then the customer will buy the desired location: our goal is to get acquainted with and work with valuable offers, but not to always demand the same rules.
Baitiéh: Competition is a healthy thing that allows innovation. I watch some of my competitors' stores and learn some things. Competition in our profession is healthy. We now have the same rules in all the circuits we need. This is a fair market for us and for all people.
Santa Coloma: I agree with everything I said before. In our case, next year, we try to play games with each flag (Jumbo, Disco and Vea), which show different segments. We try to use a game that matches each of our brands. The biggest challenge with three good brands in our portfolio is to segment segments.
– In the past year supermarkets have warned about the growth and evasion of the informal market. What numbers do they work with?
BrownThe informal market is about 30%, but at the general level. Now, if we notice the situation in the domestic affairs of the country, in the mass consumption segment it will reach 70% in some places. It is not the sole responsibility of the present government – it is an endemic event that gets stronger in the toughest context. Fortunately, the Government is clear and there is a general agreement between the company and the administration. One thing is that in all countries there is unofficially. For example, in Chile, unfair competition is zero. The level in Argentina is very important.
– What business tax avoidance? Did you identify them?
Brown: From Asian stores to fair. Why the Government Promotes Fair? This is impossible and is of great importance. You need to understand that I can not access the informal business that sells half of those products.
Santa Coloma: I agree with Brown that in the interiors this topic is much more important. I also think it will help to avoid high tax burden. Higher taxes (Gross Income and Fees) have many opportunities for informality. If supermarkets pay more than 7 to 8 points in black, this will require that privilege.
– You agree that the black market is very high and it is important. Is there a national, remote, or municipal level failure?
Coto: For example, it is very difficult to control a country without currency. It tells about economists and tells us what we are talking about today. This is an endemic problem for many years. If we follow the path of many European countries, it will eventually be formalized. We have a wonderful state, I repeat, there are many opportunities in the agro-industry. But many things still need to be done, where production can double or even triple.
– These chains carry out advertising campaigns to attract the public. Experts warn that such offers are misleading and that they are confused with the price. How come from this? Need to reform them?
Scissors: We want the customer to have clear definitions. Our main goal is to concentrate all the shares (10%, 15% discount) to explain it as much as possible. This year we did this and in 2019 we will repeat this strategy.
Becary VarelaThere are companies operating in the world with "low cost quotation". Walmart is one of them, and others will often use the withdrawal strategy. In my opinion, the system that works "at low prices" is not inflation by 30% or 40% inflation, because people lose reference to cost of items. We try, but our limitations are the level of population acceptance.
– Do you really want to take advantage of time? Do you think so
Becary Varela: Our idea is to keep prices / product relationships as long as possible. Initially we have achieved, but now the inflation is much more difficult. However, here in this table we are a supermarket, but there are also suppliers that promote promotions as a formula to reduce the average price. I think we will be together here and eventually this is a decisive customer and delivering the most accurate message to let the consumer make the best decisions.
Baiti: Carrefour has been in the retail market for 70 years and has been working in Argentina for 35 years. We have two rules: first, the lowest price. And if there is an opportunity to reach a good deal with the supplier later, we can deal with the so-called propagation or the ability of the client to use it. Now you need to fix your advertising theme. There are unfavorable ads for the client and should return to the promotion beginning with offering this opportunity. The "bold prices" campaign launched last year is a good idea to go back to the principle of having a "good price". And the client warns him. This year, we received more than 2 million tickets, not with customers. We adjust prices, promotions and assortments within the strategy that defines the client as a cultural change. This policy already works, has more revenue, and more clients.
– The Argentine society is considered to be very loyal. Only 36% are buying only one place. This is due to uncertainty about prices. How can it be solved?
Santa Coloma: I think we need to work on this issue. We conducted researches that satisfied the customers' needs. Sometimes we do not understand the suggestions: customers understand. In this regard, we are moving forward in the interior with specific offerings based on price / product, but agree with Agustín (Beccar Varela), which is extremely difficult for high inflation. But I think we should work to help the client because today it is difficult for a consumer to visit a supermarket, and what we are looking for is simple.
Becary Varela: Last year, as we were our brand, we introduced a new price system based on the "invaluable products" basket. The truth is that transparency of prices is highly appreciated by customers. To avoid mistake, we went out to report it.
Brown: We are here, and I share what I have said. In our case, our strategy is based on three axes: to make it more and more intelligent in the development of its brand. Secondly, we analyze our recommendations more effectively. Third, we try to reduce logistic costs. You need to look for opportunities and develop them. This amount will allow us to continue our development.
– This is the second move of the brand. Can I make a balance?
Coto: Respecting the quality of the product, the development of its own brand is a good offer. The theme of the second brand is quality. We, the largest retail chain, have quality control. When we look at the product, we have the ability to control it.
Scissors: Like all of us, we have our brand, second and third brands, pricing, caring price and range from 5 to 6 brands at different prices. This will allow you to create a different basket and improve your suggestion.
Becary Varela: We are going to debate with our brands.
– I think manufacturers of leading brands do not like the idea. Are they strong arguments?
Becary Varela: They are debating (laughs). But this idea is about how we feel about people. In the domestic case, we think that our customers are our buyers. We want them to buy and get what they need. Our offer is leading brands, but offers for cheap brands. In this sense our brand is the main tool and has grown very strong. In some categories, they take up to 18%.
– Are there any remaining circuits?
Baitiéh: The "Priceless price" campaign is based on the products of our brand. Basically, we can help a vendor who has no brand name, and we'll exchange it for a good price. When this feature is available, it allows the customer, the supplier, and our list of benefits. Own brand owns an average of 10%.
Becary Varela: Own brand reaches 18% in certain categories, but in the general environment it is about 16%.
– What are the priorities of each of the following chains?
Santa Coloma: Both advantages: first, the square meter of shops, especially the biggest surface and hypermarket, to optimize profitability. In this sense, we are looking for a reduction in some metrics and transfer it to other boxes, with the possibility of renting it to third parties and we are in the public domain. Then you should save it with a brand disco brand. The goal is to upgrade the legacy Disco stores. Finally, make a lot of effort to reduce operating costs. You have to do something, but there are always new ideas.
Brown: In the past, it's time to fix all the processes, along with the rates hoping to speed up in the past. In this sense, there are a lot of changes in the search for multiple payments, the introduction of payment instruments, productivity, and price reduction. Today, we are in a non-lending country because this is not a credit to all organizations, which is a weakness for local companies because we have a very difficult financing program. Now, after this process, we can revisit the growth project in our history.
Coto: We are the same. Біз өсуде тезірек барғымыз келеді, бірақ біз сақ болуымыз керек, себебі біздің компанияның табысы тым көп қарызға түспеуі керек. Тұрақты валюта жоқ елде мiндеттеме ақылды болуы керек. Біз аздап өсіп келе жатырмыз және егер тағы бір ауызды ашу мүмкін болса, біз мұны бірнеше есе арттыратындықтан істейміз.
Қайшы: 2019 жылы бізде үш жұмыс осі бар. Жаңа нарықтың жобасы (жаңа өнімдер), электронды сауда-саттықты күшейтеді және электронды коммерцияны арттырады. Ақыр соңында, мен өзімнің супермаркеттеріміз үшін ғана емес, бүкіл ел үшін де тұрақты емес, бүгінгі күні қолайсыз қаржылық шығындарды азайтуды ұсынамын.
Бекар Варела: Үш жыл бұрын біз үш пунктке негізделген трансформациялау процесін бастадық: баға-тәжірибе коэффициентін жақсарту, дүкендерді, кассалық желілерді және электронды коммерция каналын жасартуға үлкен қаражат салу. Екінші ось – процестердегі инновация. Біз бәсекеге қабілетті болуымыз керек. Үшінші ось – біз жұмыс істейтін тиімділік. Және мұны жалғыз тәсілі талантпен бірге, неғұрлым икемді, икемді және цифрлық түрде.
Baitiéh: Басымдық өзгерістермен жалғастыру және командамен тезірек итеру. Сондай-ақ, біздің дүкендерімізді қолданыңыз және сатып алуды жеңілдету үшін онлайн тапсырыс жасаңыз.