The « hairy » assumptions of LeShops` business plan
Transcrição
The « hairy » assumptions of LeShops` business plan
from utopia to reality… CTI Invest, CEO Day Sept. 20th [email protected] – CEO LeShop.ch The « hairy » assumptions of LeShops’ business plan 1998-2004: Gain market leadership in online food retailing by challenging and winning over Migros & Coop. 1999 : Sell fresh fruits & vegetables per internet to women and have the Swiss Post delivering them. 2002: Survive the burst of the internet bubble and refinance the company within 20 days during christmas & new year. 2003: « The mouse eats the elephant ». 2006: Online food retailing, a truly profitable business? [email protected] – CEO LeShop.ch 1 We believed is was fairly easy to innovate considering the value proposition of traditional supermarkets was so poor. poor. For grocery shopping in traditional B&M supermarkets, this is what an average customer is bound to perform every year : – Log 3 tons of groceries home! – Stay 1 week standing in a queue! – Stroll 45km through crowded aisles! – Search for your prefered products when 25% of the assortment changes every year. – Manipulate and pack 10‘000 items! – Burn 260 liters of gas in traffic jams! – Fight 120 times for a parking lot! – Make you feel you make a deal when you still spend € 10‘000 a year in groceries. [email protected] – CEO LeShop.ch Our Techno Website 1998 advertising banner advertising banner special offers 2 The reality of an online supermarket The reality of an online supermarket Christian Wanner – CEO LeShop.ch 3 That’s how we started (1998-99) 2001 : Automated warehouse layout [email protected] – CEO LeShop.ch 4 Regional Confectionning Center : Bremgarten (AG) [email protected] – CEO LeShop.ch 100 tons of food delivered every day. [email protected] – CEO LeShop.ch 5 Value proposition : 1’500 dry grocery products. 27 out of the TOP 30 products sold are fresh produce or dairy and meat! meat! Assortment : 7’500 products Average basket value : Sfr 217.Fresh product penetration : 90% 1 BananenMaxHavelaar;MaxHavelaar 2 DieButter250g.;- Früchte & Gemüse 16 Longobardi;-GehacktegeschälteTomaten400g; Milchprodukt 17 ÄpfelMaigold;Schale Früchte & Gemüse 3 4 5 Rispentomaten;Schale Früchte & Gemüse 18 Zwiebeln1kg;Netz Früchte & Gemüse Chicorée500g;- Früchte & Gemüse 19 6 SchweizerEier;Bodenhaltung Karotten1kg;- Früchte & Gemüse 20 Clementinen2kg;- 6 Broccoli;- Früchte & Gemüse 21 M-Budget;-Toilettenpapier18Rollen;- Trockenartikel 7 Valflora Milch-Drink4x1Liter;4x1Liter Milchprodukt 22 6SchweizerBioEier;Freilandhaltung Milchprodukt 8 Fenchel;Schale Früchte & Gemüse 23 Jogh.Mokka2x180g;Mokka Milchprodukt 9 Gurke400g; Früchte & Gemüse 24 BrumeZopf400g;- 10 SalatIceberg300g;- Früchte & Gemüse 25 ÄpfelGolden; 11 M-Budget Milch2lUHT;UHTVollmilch Milchprodukt 26 FloralpVorzugsbutter200g.;- 12 BananenChiquita;Chiquita Früchte & Gemüse 27 ÄpfelGala;süsslich Früchte & Gemüse 13 Zucchetti;Schale Früchte & Gemüse 28 Peperoni3Farben; Früchte & Gemüse 14 CherryTomaten250g; Früchte & Gemüse 29 MeloneCantaloupe; Früchte & Gemüse 15 OrangenMoro2;5kg; Früchte & Gemüse 30 HopiClassicHaushaltspapier4Stk. Trockenartikel Milchprodukt Früchte & Gemüse Brot Früchte & Gemüse Milchprodukt Trockenartikel Status 2006 1.1.-23.3.2006 [email protected] – CEO LeShop.ch 6 2004 : « dream assortment » for the Swiss household. [email protected] – CEO LeShop.ch our business objectives Î No. 1 in Switzerland • be the first virtual grocery shop in Switzerland operational by the first quarter ‘98 Î CHF 100+ Mio turnover in 5 years • achieve 5+ Mio turnover in first year and 100Mio by 2003 Î 70’000+ customers in 5 years • build a customer base of 15’000+ in year 1 and 70’000+ by 2003 (equivalent to ~10% penetration on core target group) 7 Online grocery in 2006 weights more than Sfr 100Mio Swiss Market Sales Growth in E-Groceries (Mio CHF) 120.0 100.0 Mio CHF + 48% 60.0 40.0 20.0 Estimate + 49% 80.0 + 58% + 31% + 27% MIGROS + 54% MIGROS - 2000 2001 2002 2003 2004 2005 2006 [email protected] – CEO LeShop.ch E-grocery in 2005 in Europe : € 2,2 billion sales (+18% vs. YA) € 66 Mio 0,24% of retail € 1’600 Mio 1,26% of retail Inactive market € 200 Mio 0,14% of retail € 50 Mio 0,20% of retail € 250 Mio 0,42% of retail Inactive market ONLINE SUPERMARKETS [email protected] – CEO LeShop.ch 8 Switzerland has still a potential to grow by a factor of 6 to catch up with UK. Theoretical Unexploited e-Grocery Potential in Europe vs. UK market in 2005 source : LeShop.ch Industry Research, September 2005 0.21% Switzerland Unexploited Potential : € 246 Die Schweiz hat noch ein unausgeschöpftes Potential von €246MM ! UK development as a benchmark for other markets 1.26% UK 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Falls in England bereit 1.26% des Detailhandelsmarktes Online abgesetzt werden, wie gross wäre das Potential in anderen Ländern bei gleichbleibendem Prozentsatz? [email protected] – CEO LeShop.ch The Future is exciting for e-grocers : Services : Margin with no logistic costs. Non Food : Basket size and Margin Groceries : Volume and Frequency -> Loyalty. Understand much deeper the customer dynamics and expectations. Much further Mass-customize the product offering, the pricing, the promotions and the communication. Maximize the Share of Wallet in groceries but also leverage the relationship to sell all other product categories. [email protected] – CEO LeShop.ch 9 Thank you ! Christian D. Wanner CEO LeShop.ch [email protected] [email protected] – CEO LeShop.ch 10