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The Wholesale Landscape in Polish Economy: Challenges, Concentration, and Opportunities

Explore the role of wholesale formats in Poland's contemporary economy, market challenges, concentration trends, growth strategies, and the evolving retail landscape with key insights for investors and stakeholders. Discover the dynamics of the food wholesale market, emerging distribution trends, and the significance of regional markets in Poland.

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The Wholesale Landscape in Polish Economy: Challenges, Concentration, and Opportunities

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  1. The whosale’s role in contemporaryPolisheconomy. Dr M A Falinski

  2. Basic wholesalesformats in Poland • Classicalwholesale in a traditionalchain of delivery • Grand retailerspurchase/deliverycentres • Chainedwholesalers: - cash&carry - franchiseintegrators - specializedservicers • Agriculturalwholesalemarkets CHALLENGE – how to holdretailers with?

  3. WhatisPolish food-wholesale market like? • Abundant: 200 B zloties in sales; • Based on domesticfarming and production (ca 90% of retail’soffercomes from Poland) • Extremelycompetitive: ca. 4.500 whosalers but the structureiswierd: - c&cchainsblock – in retreat - strongblock of servicers and franchiseintegrators – in a sway - traditionalwholesales stores and localchains – subject to consolidationorintegration • Deconcentrated but… stronglyconcentratingverstileretailformats • CONCENTRATION – a common denominator of market evolution • PREMANENT GROWTH – and decisive role of internal market in GDP generation (>60%)

  4. Players in numbers

  5. Strategies to „chain-up” distributionmarkets (opportunities for potentialinvestors) • Consolidations - takeovers, horizontal and verticalmergers: large market of small companies in distribution • Diversifications - Sales – yes,.. but portofoliomust be enhanced • Specializations: klients, suppliers, products, categories • Optimizations: shrinkingvolumes, cuttingcosts, investing in know-how Remarks: Medium-sizecompaniesawaitpartners!!! Thereis a problem with feasibilityexpertise and communication!!!

  6. Retailingcounterparts • Integrated small stores: ca 30.000 in franchise, ca. 20.000 in purchasinggroups and partnerships, agents – 5.000 • Prospectiveformats: supermarkets and convenience • Problem of discounts: 2700 4000 limit • Hypers-story: neverforgetthem • Movingcommerce: internet + 138.000 cars and trailers + directsales

  7. Stores in numbers - selected data

  8. Where and howare the agriculturalmarkets? • Theygraduallysubstitutetraditional food wholeselling (34 markets and goodprospects for the future) • Theyoffertheirwholesale service on theirown but absorbwhosalers from outside, either (chained stores, too) • Theyhavegoodcompetitiveposition - plethora of traditional stores - growingHOReCa - competitionmore and moreleant on quality and shortdeliverychains - franchised stores, despiteintegration, areobliged to sell „greens” as fresh as possible - eco, regional, bio, other extra-marked stores are in sway - chains by definitionhave problem with „veryfresh” assortments (big scaledoes not favorthesecategories) - time to start retailintegrationiscommingup (specialized stores, collonialgoods, etc): deconcentration of suppliersraise the first problem but the second one is… – createownretailrecipients (franchisewithin joint ventures?) - regional (CEE) marketsneedsourcing services and logisticalstoragefacilities - farmers and importersneed cross-dockingfacilities REMARK: information + promotion + investmentssupport (PPP+EU funds); regionalinitiativesendowed with guaranties

  9. Polishspecifics: a resume’ • Think East – act and exist West • Flexibility of wholesale and retail (strategies and formats) • Traditional trading iseffective and integrated (market penetrability – thinkthoroughly, selllocally) • Flexibility of formats/wide fan of choice for suppliers • Specificstage of market modernization: getintegratedordie • Assortmentsrefurbish: permanent chance to be taken by newsuppliers • Sales supportingisnecessary • Competitive market-game: be different of disapear

  10. The addenda… • Representation and communicationislame!!! • Policy vis a vis region isnecessary: tangibleinstrumentsinstead of declarations • Institution to suppoertcooperationisneeded (PAIIZ for FMCG?... Or anythingelse; better business thanoffice) • …. Questions and motionsarewellcome

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