Wednesday, July 28, 2010

How Long Will A Silicone Fish Tank Last

Great food distribution: the price war will not happen ... at hard discounters

Après une excellente année 2008 et alors que la période de crise laissait présager une belle croissance au hard discount, la part de marché de celui-ci est en régression depuis 2009.

La principale cause généralement citée* est la politique tarifaire agressive super and hypermarkets , which explain the decrease in the average basket of hard discount stores including the most expensive products. If Leclerc (still very aggressive on prices) has had recently quit his fault Guarantee Promo readability, other groups have joined the race at low price: for example Intermarché and his campaign on the "good deals", Auchan and communication focused mainly on price, and Carrefour and its range of products at low prices (Carrefour Discount) whose prices are aligned with those of discount stores. What

alternative so for discounters ? Se differentiate and innovate.

Why not indeed, said the LSA puique as last May, nearly 60% of consumers when they speak speak fun shopping in supermarkets and half the French say they are willing to forego their usual product for a novelty!

To cope, discounters (hard and soft) so they change course .

Ed / Dia: launches last June loyalty card in France with a system for immediate delivery twice a month for fifteen days.

Leader Price: Integrating this month of national brands in its linear 250 references about this fall (~ 7% of supply), expands its range of fresh produce and launch the Bio discount, more in line with consumer expectations and Urban responding to the problem of limited budget

Netto: single Hard discounter to succeed at the game, benefited from the success of its new concept: building supply, introduction of national brands, creating a private label Netto and implementation of a promotion system consisting of original batch virtual regressive (the more you buy, the more the discount is significant) - Brezet Frederick, Director of the brand speaks of a " hard discount supermarket, with the convenience of buying supermarket "

The challenge of the hard discounters, which already have the competitive advantage of proximity but are losing the price, is differentiation.

In parallel, key issues for large signs , super and hypermarkets, are of course their price positioning but also ad aptation to new shopping patterns , mainly through close ( see my article on this blog ) and innovations in multi .

The question today on the positioning of actors hard discount who behave like supermarkets is whether they are not walking into a middle way, to obscure the consumer who stands to lose heavily in readability ...


*: In addition to aggressive pricing of major retailers, you can also add to the reasons for the loss of speed of the hard discount: 1. because of the crisis, diminishing food budget poorest people, the main clientele of hard discounters 2. The repeal of the Galland law which allowed a lower price les marques nationales

Sources : LSA numéros de Mai-Juin-Juillet 2010, Linéaires 07/12/09 "Nouveau concept Netto", Etude Precepta Mai 2009 "Enjeux de la distribution alimentaire", L'Expansion 13/07/10, Etude LSA / Nielsen 2009 "Nouvelle année record pour le hard discount"

Thursday, July 1, 2010

Port Royale 2 Moninpeli

Bricorama shows the way ... and runs away!

« Bricorama électro suffisant et vert » : c’est le titre d’un article de Décisions Durables , un nouveau magazine que j’apprécie énormément pour sa qualité éditoriale, la pertinence de ses sujets, ainsi que pour le caractère très business oriented de ses articles. But this is not the subject!

Bricorama investing in 2006 then in 2008 in a wind farm that allows him produce more energy than it consumes ! With 12 turbines and an output of 24 MW (a device that would meet the energy needs of 24,000 people), the group is undoubtedly an example to follow.

But what the article does not mention is that trying to sell Bricorama its wind farm Breton since 2008 ( the year of its inauguration and after having invested 12 million Euros) but found no buyer. In its 2009 annual report published last April, the group class in the power generation assets to be transferred, thereby incorporating a tax benefit associated with the termination of the net assets of approximately 4 to 5 m illion euros. The group may well show a net increase of 3.3% over the previous year. What would have happened if he had kept his Bricorama park?

Net income decreased by 15% ... for the second consecutive year! We understand better maneuver. But the real question is why did he not Bricorama anticipated this charge corporation tax on its wind farm? I believe the group had good early but found himself in one of the following two cases:


1. Speculation: the group had planned to realize a quick gain on the construction and subsequent sale of its wind farm enjoying the favorable development of green energy (regional grants / ADEME? (1) declining balance accelerated granted to equipment renewable energy production? (2) Reduction 50% of the rental value for equipment to save energy? (2))

2. Optimism: the group planned to better results in 2008 (including greater increase of sales, less sharp deterioration in financial results ...) and had to quickly find a way to improve its bottom line - hence the lack of communication on electro-sufficiency that would Bricorama yet been very supportive of his image


But leaving aside the resale of the wind farm and its Bricorama mysterious reasons, I would still like to note Bricorama that the example is a very good line of differentiation for companies who wish to show their commitment to environmental issues (even when their actions do not allow them to become electro-sufficient): evaluate for example the cost of installation of solar panels on roofs of shops or the impact would have on the consumer the construction of a wind (even if only 250 or 500 kW) on parking their hypermarket ...



(1): http://www.ademe.fr/midi-pyrenees/a_2_11.html

(2): http://www.environnement.ccip.fr/Transversal/Aides-et-taxes/Energie/Aides-dans-le-domaine-de-l-energie/Aides-fiscales/Mesures- tax-savings-to-energy-and-renewable-energies