Outdoor Business in LATAM - Camping Issue

An overview of the market and opportunities for brands looking to access this

  1. Sebastin Lagunas Berrios
    An overview of the market and opportunities for brands looking to access this
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    Outdoor Business in LATAM - Camping Issue
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    • 1. Camping overview LATAM Outdoors Business Sebastian Lagunas B. Santiago de Chile, June 6, 2014
    • 2. AGENDA Key Objectives Business Environment Outdoor Market Summary Competition Brand & Sales Plan
    • 3. KEY OBJECTIVES Thetechnicaloutdoormarketinselected markets. Look for category leadership. Lead1 Make it a premium profitable high margin business premium3 Follow a medium / long term strategy strategy4 In segments were 50% of the income is (ABC1, D) Position the brand2
    • 4. Strategies Sharp brand focus Communicate the brand’s roots and international charm through team with vast experience in outdoor retail and actions sports. Dedicated organization to XXX XXXXX in LATAM Entrepreneurial environment Focus start in Retail
    • 5. SWOT ANALISIS ...................... ...................... : The GAP quality between private labels and heritage brands like marmot and TNF. Outdoor market is growing 20-25% STRENGTHS OPPORTUNITIES
    • 6. SWOT ANALISIS 1.- Late arrive to some markets. Big brands precence 5+ years. With medium to high penetration and efficiency 2.- Big volume sold by national brands or local retailers. o Ex. Some brands represent 50-60% in bigbox retailers o Products are middle quality but very well communicated and marketed 1.- Local and Mercosur production 2.- China production for private labels is high. Weaknesses Threats
    • 7. AGENDA Key Objectives Business Environment Outdoor Market Summary Competition Brand & Sales Plan
    • 8. For a better understanding of this big and diverse market the emerging Latin American economies are grouped in 6 subregions. OVERVIEW OF THE MARKET The andean Brazil Mexico The Caribbean ntral America Southern Cone
    • 9. Doing Business 2014 Half of the economies of Latin America, among the best in the world to do business Chile, Mexico, Colombia, Peru and Costa Rica, in the list of countries with good business climate.
    • 10. Why LATAM Brazil is expected to be the fourth largest economy in 2050. Expansion of foreign brands - many companies such as Burberry, Mothercare and Adolfo Dominguez are focusing on Latin America. Latin America has some of the most attractive markets in comparison country risk and market potential (2012 GDRI)
    • 11. Why LATAM Strong expansion of the middle class Supermarkets and depart. stores segment's are retail areas with higher growth. Penetration is still low (25-30 m2/1000 inhabitants), a strong sales growth and surface are expected. U.S. $ 6.348 million will invest the six largest retailers in Latam 2017 (Cencosud, Falabella, Ripley, Walmart, Parque Arauco and SMU). Objective: Peru, Argentina, Colombia and Brazil. Big % of market is dominated 4-5 large retailers. Therefore competition (no competition) is high. Growth prospects 3-4% on average. Countries above the media Chile (5%), Colombia (4.5%), Peru (6%). Controlled inflation in several countries. Brazil, Mexico and Chile are the countries with the highest retail development. Colombia is the star, too much interest in Peru.
    • 12. GRDI country attractiveness
    • 13. AGENDA Key Objectives Business Environment Outdoor Market Summary Competition Brand & Sales Plan
    • 14. Most important outdoor markets Colombia Perú Ecuador Dominican Republic, Puerto Rico Costa Rica, El Salvador, Guatemala Panamá. Argentina, Chile and Uruguay Brazil
    • 15. Market size Performance, action sports & outdoors US$ 1.000 Millions Market Opportunity (Excluding Mexico) MM $450 MM $320 MM $230 MAIN ACTOR: Coleman Doite TNF National Geographic Intex Bestway Private labels Mountain Gear Klimber Apparel Footwear Equipment Equipment
    • 16. AGENDA Key Objectives Business Environment Outdoor Market Summary Competition Brand & Sales Plan
    • 17. Main competitors country overview 60 stores (2013) 20-25% growth expected (2014) Part. Market estimated 15-18%. Last movements and projections: Since 2012 direct representation office (Cali). Double market share and revenue in 2014. Installed with a factory for textiles in the region (5 + years) COLEMAN - Main markets COLOMBIA
    • 18. Main competitors country overview Keeps 9 years a strategic alliance with Jeep. Strong promotion (Latam) line of tents Instant Dome COLEMAN - Main markets VENEZUELA
    • 19. Marketing Tactics CAMPING market opportunity is about MMUS$ 120 (retail sales). 15-20% annual sales growth. COLEMAN is leading sales in almost every market, but PRIVATE LABELS have been growing fast in the last years. Falabella private labels have reached the same level of sales coleman. Most of the countries have high taxes, retail prices for xxx xxxx remain competitive and atractive, even when consider open doors at bigbox retailers. Ex: Coleman 4 pax tent Retail Chi US$200: Col. US$ 318 XXX XXXX 4 retail at US$ 179-189 Ex: Sleeping bag (30ºF) Coleman Retail US$ 60 XXXXXX similar retail at US$ 49
    • 20. Marketing Tactics Target prices (Falabella, Ripley, Sodimac) Airbeds & Mats: US$ 20 - 59 Tents: US$ 39-109 low quality US$ 159-329 Best quality Sleeping Bags: US$ 39 - 99 Camp. Accesories: US$ 9-29-99
    • 21. Opportunities o XXXX Brand o Key end-user insights: o XX million runners in Latam: X% = the core of market (enthusiast and active buyers). o Runners also participate in other activities: strength training (59%), cycling (36%), swimming (53%) and hiking (28%) o Shelters, canopy and furniture: via sodimac and big box retailers. Internet! Ex: Brasil Kanui.com.br (action sports specialist) Retail US$ 120 mill, growth 9.000%.
    • 22. Key to Success in Latin America Overcoming Trade Barriers It is important to partner with locals how will help to navigate among regulatory issues and tap into the market potential there. Offer Low Price Points for masive retailers. Pacific coast must be the place to focus on. Brazil - is considered impenetrable by many outdoor brands. And Argentina is also dismissed as being particularly hostile toward imports of manufactured goods.
    • 23. About me (skills) + 6 years of experience in managing a sales team with multiple retailers and categories. Experience in managing independent sales reps and agencies. Worked with almost every big brand and retailer in the region, that give me a full understanding of the products, market needs, business models, negotiation skills and networks to succeed. Knowledgeable and active in human powered outdoor activities. One of my plus is the experience in the Consumer Goods industry I got the ability to travel the region as necessary. Experience in crunching and analyzing data to produce action plans Demonstrated history of attention to detail and follow-through Independent, creative self-starter with the ability to work independently with limited direct supervision. Entrepreneur Excellent communication, follow-up, organization and interpersonal skills. Manage forecasting and reporting of financial commitments
    • 24. Camping overview LATAM Outdoors Business For any further information contacte me at sebastian@onebiz.cl @seblag
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