Marks And Spencer Group Plc · LSE:MKS
Marks And Spencer — Investor Presentation (2013)
24 slides from Marks And Spencer's investor presentation, 2013
Slide 1: 1
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Slide 2: Part 4: Franchise Model
PART 4: FRANCHISE MODEL Mark Koprowski Regional Director of MENA 2
Slide 3: The franchise model is attractive for us
The franchise model is attractive for us Strong partners Capital light Local market knowledge Low risk Immediate returns Accelerated growth 3
Slide 4: Our partners' revenue
Our partners’ revenue Reported Sales Actual Retail Sales 2011/12 £m 2011/12 £m MENA 239.9 541.9 Europe 85.6 152.3 Asia 63.5 170.9 Total 389.0 865.1 % to International 36% 56% 4
Slide 5: Middle East & North Africa franchise partners
Middle East & North Africa 4 franchise partners operating in 17 countries FIBA Group - Russia, Turkey & Ukraine Al Futtaim - Gulf, Levant & Egypt Al Hokair - Saudi Arabia & CIS Supermarkets 1960 - Malta, Libya & Morocco
Slide 6: Europe
Europe 8 partners covering 7 territories Top franchise partners: Sandpiper - Jersey Creaseys - Guernsey Voici La Mode & Symeonides- Cyprus
Slide 7: Asia
Asia 5 franchise partners operating in 6 markets Top partners: Robinsons - Singapore & Malaysia MAP - Indonesia Rustans - Philippines
Slide 8: Criteria for choosing new franchise partners
Criteria for choosing new franchise partners Established, large organisations Financial stability Existing Infrastructure Ambition for growth Shared philosophy of operating business 8
Slide 9: What do we bring?
What do we bring? LOCAL KNOWLEDGE THE BRAND COMPETITIVE LOCAL LEASES / MARKETING PROPERTY MARKETING STORE DESIGN ADVANTAGE OUR STAFF COSTS PARTNERS AMBITION FOR GROWTH SOURCING M&S VM CAPABILITY LEVERAGE RELATIONSHIP ECONOMIES OF WITH LOCAL SCALE WITH LOGISTICS PRODUCT & IT MARKET OTHER BRANDS FUNDI
Slide 10: New franchise agreement
New franchise agreement OUR PARTNERS M&S Comprehensive guidelines Greater control of the brand Established system Better compliance More support Accelerated growth Confidence to invest Long-term partnership 10
Slide 11: Summary
Summary Capital light Low risk, high return Profitable growth Accelerated expansion 11
Slide 12: Part 7: Multichannel Update
PART 7: MULTICHANNEL UPDATE Laura Wade-Gery Executive Director, Multi-channel e-commerce 12
Slide 13: Why go online in International markets
Why go online in International markets Globalisation is allowing increased competition and reducing barriers to entry Channel shift is global A big potential opportunity Capital light Low risk Opportunity to leverage and broaden the reach of a strong brand 13
Slide 14: Capabilities required for operating online
Capabilities required for operating online Manage the web business Products Provide Display & Take payment Handle Manage customer merchandise Trading strategy & manage delivery & orders service products fraud returns support Website operations Create digital assets (product images, descriptions, vid
Slide 15: We reviewed the online markets in our quadrant
We reviewed the online markets in our “quadrant” and this has driven our online focus ATTRACTIVENESS: Example: Size of market Online penetration FOCUS: Credit card ownership Developed Western European markets Fast growing, big Asian markets EASE OF ENTRY: Emerging possibilities Example: Ease of impo
Slide 16: Three main ways to go international in e-commerce
Three main ways to go international in e-commerce ROUTE A ROUTE B ROUTE C UK site Local website Local website UK supply chain UK supply chain Local supply chain infrastructure infrastructure infrastructure 81 countries around the e.g. France, Ireland, e.g. China, Russia world, e.g. Australia, German
Slide 17: Franchise agreements and e-commerce
Franchise agreements and e-commerce The standard franchise agreement relates to stores It leaves M&S with the rights to operate e-commerce within a franchise country However • We want to continue to build on our strong relationships with our partners • Local expertise and infrastructure can add valu
Slide 18: Russia provides an attractive option
Russia provides an attractive option Largest internet audience in Europe & growing Russian e-commerce market is forecast to grow ~25% in 2013 Clothing & footwear is the fastest growing online sector at ~70% CAGR Fragmented online clothing market There are capital light, low risk methods of entry ava
Slide 19: The model we have agreed for Russia
The model we have agreed for Russia Website will be run in-country by FIBA using local third parties FIBA recognise retail sales to customer M&S recognise shipments to FIBA as per existing franchise model, plus an additional on going fee based on the support provided 19
Slide 20: The model we have agreed for Russia
The model we have agreed for Russia Manage the web business Products Provide Display & Take payment Handle Manage customer merchandise Trading strategy & manage delivery & orders service products fraud returns Website support operations Create digital assets (product images, descriptions, video, con
Slide 21: Part 8: Summary
PART 8: Summary Jan Heere Director of International 21
Slide 22: Driving International growth
Driving International growth Grow our key markets Strong focus on Fully integrated FUTURE: Middle East franchise growth multi-channel strategy Selected growth in Russia new areas Western Europe India China
Slide 23: Summary
Summary Stronger organisational capability High operating margin in International Flexibility of business model to choose from Strong growth coming from focus markets Future opportunities
Slide 24: International Update - Istanbul 2013
INTERNATIONAL UPDATE - ISTANBUL 2013 24
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