"The hardware and DIY sector is one of the most dynamic when it comes out of the crisis"
March 3, 2009
In the view of Raul Herranz, the brand of the distribution is capitalizing on values from a rational perspective; values based on the credibility and accessibility. The consumer responds well to innovations and concepts that fit into your lifestyle and the brand of the distribution is making use of it.
According to data provided by TNS, 77% of the buyers have taken into account in their purchasing decisions other variables before that price and 38% is maintained in a 'set' of major brands. Only 8.4 per cent of consumers change brand to a promotion and usually does so in those categories in which considers that there is little value differential (articles of household, for example).
For this reason, Raul Herranz assured within the framework of Aecoc to win for the consumer the main route is the differentiation and that we must find that differential value on the basis of axes as the time concept, health, ecology, accessible luxuryanti-globalization or return to the origin, among others.
Herranz point of sale is the place where it capitalizes on consumer purchase intention, and therefore the industry and the distribution should cooperate in such a scenario so that consumers can enjoy a good shopping experience.
"Marks of the distribution will not put an end to the manufacturer"
The coexistence of the brands of the dealer and the manufacturer also focused intervention in sectoral Congress of Aecoc of the director of the central purchasing of Leroy Merlin, Charles Malo. In his view, there is no need to opt for a strategy or on the other hand, as in the market there is room for both. However, companies must take into account that the brands based on tangible values will only be sustainable.
The director of the central purchasing of Leroy Merlin insisted that "there is no consumer marquistas and not marquistas" but that the value provided by the consumer for the brand is clearly determined by the segment, the market, the specific situation for which makes your purchase, etc.
For its part, the businessmen attending the Aecoc Congress of Ironmongery and DIY - more than 200 leaders of the major companies in its industry and distribution - have promised - through a system of voting in room - a future of clear growth for so-called 'white marks'. In this sense, 59% said that 10% and 26% that will make it much more will grow more, to be maintained. Only 14% has indicated that he believes that they decrecerán and the remaining 1% to decrecerán much.
Measures to survive the crisis
Also questioned on the measures which, in the field of human resources, they have had to take to deal with the crisis, 46% of those attending the Congress Aecoc of Ironmongery and DIY has acknowledged having had to reduce staff as a primary measure. 30% Have opted to wage cuts, 17% says have been focused on retaining talent in the company and a 7% reduction of their incentives.
Despite the strength of these figures, the Professor of the International Institute San Telmo, Fernando Faces, has manifested itself in the 12th Congress Aecoc of Ironmongery and DIY that this sector will be one of the most dynamic when it comes out of the crisis; a situation that has been defined as the longest they have faced. According to Faces, it's a crisis of double 'v', i.e. where it will bottom twice.
And that, as it has been argued, it should not be forgotten that there is a sick banking families are highly indebted, and Spain is the most indebted country of the OECD and in addition, in this context, the credit will be limited during the next 2 years.
Even so, Fernando Faces has encouraged companies to seek financing within the enterprise, consider appropriate financial products and be convincing to the Bank to ask for help. We must not forget, has indicated, that the companies that are able to show its solvency with solid projects will be 'the object of desire of banks'.
In this sense, 53% of attendees to the Congress Aecoc of Ironmongery and DIY has ensured not to have had no difficulty in getting financing, 37% said having suffered some difficulties and 10% real problems in this chapter of your business.
Congress Aecoc of Ironmongery and DIY who has gathered for two days in Madrid more than 200 leaders of a professional sector which represents 1.5% of GDP.
Challenges and opportunities of the current economic environment
Integration as a formula for maximum efficiency
Intelligent management of human capital
Financing the company at the time of crisis
According to him, "we have avoided the financial collapse, but the credit does not flow to companies." He said that the main problems of the banking system Spanish are high external debt (emissions), liquidity problems, and the growing delinquency: promoters, private individuals and companies. Ferdinand Faces, all this problems, proposed a new business model which has slim structure, shorten and streamline processes, simplifying the range of products and distribution channels, outsource processes that are not critical to the businessshorten and optimizing the processes of purchase, distribution, sale, stock, current assets, the balance of customers, improve the management of late payments and establish rigorous mapping of risks.
Another important factor to be taken into account according to Faces is gain credibility with banks with transparency and information, demonstrate the viability of the company in the long term, with accuracy, security and robustness, anticipate the problems with realistic and prudent action and restructuring plans, and with monitoring and frequency of contacts.
Some suggestions to deal with the crisis:
-The management team must make a real and accurate diagnosis of the situation of the company and agree on a plan of action and viability in the short and medium term.
-Transmit security to employees, as well as trusted customers, suppliers and banks.
-Present with transparency, rigour, domain and convinced the plan of action and feasibility to financial institutions.
-Improve the financial structure, reducing the financing needs, extending deadlines and capitalizing on the company to the extent possible.
-Lose weight the structure of the company and cut all spending that is not income generator.
-Design and implement a trade policy that is innovative, in products and markets.