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Kína tækifæri í austri Magnús Bjarnason. Iceland generates higher export revenue per capita from fisheries than any other independent country in the world,

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Presentation on theme: "Kína tækifæri í austri Magnús Bjarnason. Iceland generates higher export revenue per capita from fisheries than any other independent country in the world,"— Presentation transcript:

1 Kína tækifæri í austri Magnús Bjarnason

2 Iceland generates higher export revenue per capita from fisheries than any other independent country in the world, it is a key strategic goal to establish a solid infrastructure for export from Iceland to China. Source: McKinsey Iceland Report 2012 Contributed 11 per cent of GDP Generated more than ¼ of all export revenues Directly employes over 9,000 people 2

3 Global footprint with 600m in sales Key global drivers Major global followers Less connected states USA: Icelandic brand plus new business developements Europe: UK, Bene-Lux, Spain, France & Italy Asia: China & Japan Source: Bain MTG Analysis, October 2011

4 Icelandic China Based in Qingdao 15 people in sales and administration and 90 people in our newly opened factory BRC approved and technical expertise required to offer service to retailers and foodservice customers in the UK & Asia Icelandic sells 8,000 mt of fish products 2012 / 2013 into the Chinese market, 80% sold in bulk (containers), 20% in pallets (boxes) – 25m in sales Icelandic plans to grow on the back of the new FTA providing superior seafood products to the Chinese market and create a unique access for producers in Iceland to the fast growing Chinese market 4

5 Icelandic China Business (%) Red Fish (Hong Yu ) Norwegian Mackerel (Nuo Wei Hai Yu ) Greenland Halibut (Bimuyu ) Capelin (Duochunyu ) Cod (Zhenxueyu ) Haddock (Heixianyu ) Herring Large Halibut –Heads –Tails –Body Small Halibut –Sold to Chinese restaurants Mackerel –US$2.5-US$3kg –Sold to small processors –Japanese Restaurants Capelin –Roe sold to small processors and Japanese restaurants –Whole sold to wholesale 100 Domestic Re-Export 10,000 15, (tons) Iceland Import for Re-Process : Major Species Iceland Import for Domestic Distribution : Major Species Mackerel Halibut 100 6,000 The Icelandic China business today is Mackerel, Greenland Halibut and Capelin

6 China Consuming Class (millions people) 700 5k-12k k+ Source:InterChina 400 Consumption is being driven by increasing numbers of middle class consumers CAGR (%) Consuming class = Per capital US$5k plus at 2005 values

7 This is largely driven by urbanization … 20 million new urban residents every year Source: China City Planning & Design Institute % 50% 60% Urban residents (Million people) Urbanization rate (%) 55% 40% 51% 690m 56% 790m For the first time, there are more people residing in the cities China Urbanization:

8 CAGR: 14% CAGR: 13% CAGR: 18% CAGR: 19% Retail Sales Of Consumer Goods (RMB Billion) CAGR: 15% CAGR: 13% CAGR: 19% CAGR: 17% Retail Sales Of Consumer Goods (RMB Billion) Source: China Statistical Yearbook. YOY: 16% YOY: 18% YOY: 13% YOY: 18% T2+T3 Cities T1 Cities Interior (West, Central) Coastal (East, Northeast) The strongest growth is from the smaller cities and interior regions Retail sales in smaller cities are accelerating ahead of the bigger cities … … and retail sales in interior regions are increasingly tracking coastal regions

9 4 star hotel International Retail Chain KFC National Supermarket Chain Example: Taizhou in Zhejiang Even in Tier 4 cities we are seeing the impact of growth and modernization

10 ` Beijing Xun River Huang River Yangtze River Guangzhou Qingdao Chengdu Dalian Xian Fuzhou Shanghai Wuhan Tianjin Xiamen Jinan Zhengzhou Changsha Shenzhen Chongqing Shenyang Regional Clusters Number of Cities in the cluster Yangzte River Delta (YRD)58 Hebei Shandong (incl. Beijing/Tianjin) 63 South (incl. Guangdong) 37 Henan/Shaanxi/Shanxi31 Sichuan (incl. Chengdu/Chongqing) 31 Hunan/Hubei47 Anhui/Jiangxi20 North East22 Hefei Because these new consumers are increasingly spread across 100s of cities it is useful to think of China as a collection of markets Tier 1=6 Tier 2=32 Tier 3=264 Tier 4=374 China is a cluster of markets China : Regional Clusters

11 China restaurant formats growing at ~13% p.a.; FSR accounts for ~75% of the market Note: Other incl. 100% home delivery/takeaway, self-service cafeterias, and pizz consumer foodservices Source: Euromonitor; Bain analysis 13% Customer segments/accounts- restaurant

12 Western chained FSR/QSR market is more concentrated compared to Asian ones Note: Chained restaurants in other segment (100% home delivery/takeaway, self-service cafeterias, and pizza consumer foodservices) not included here (total size is minimal) Source: Euromonitor; Bain analysis Customer segments/accounts- restaurant

13 China retail: Strong growth in retail market; modern trade gaining share Customer segments/accounts- retail Source: Annual reports; GS Supermarkets report; Access Asia; Euromonitor; Statistical Yearbook of China Chain Stores; Expert Interviews; Lit research; Bain analysis; EIU exchange rates Modern trade

14 Note: Includes all large supermarkets (>6000 sq meters) Source: Bain experience Retail chains: fragmented with national players and many different regional/provincial players Customer segments/accounts

15 Top 12 Imported Species in 303 (US$m) US$/Ton Tons (000s) ~US$2.7b or ~80% The top 12 species account for about 80% of frozen fish imports (1)Includes Atlantic, Pacific, Greenland, Blue, Black (2)Includes Atlantic, Sockeye and other (3)Excludes Halibut, Plaice, Turbot, Sole Source:China Customs 1,299 2,225 2,702 1,653 1,804 1,612 9,524 2, , , ,473 (1) (2) (3)

16 Top 12 Imported Species in 303 (000 tons) Iceland Quota How Much Stays? (1) (2) Comment (3) Iceland quota overlaps with some imported species that China wants (1)Includes Atlantic, Pacific, Greenland, Blue, Black (2)Includes Atlantic, Sockeye and other (3)Excludes Halibut, Plaice, Turbot, Sole Source:China Customs N/A N/A 1.4 <10% 20% 50% 15% 40% ? ? 90% Cod, Saithe, Blue Whiting, Russian, Norway American plaice, plaice But can Source Nil ? 90% 10% Herring, Loophole 1,2 Greenland Halibut 190 Lemon sole 6.4 But can Source

17 Attract and retain top talent with expert knowledge of seafood and consumer behavior Best-in-Class operations, with focus on efficiency, quality and flexibility Unique access to the seafood resource in the North Atlantic through ownership and strategic alliances Market driven with a deep understanding of consumers needs and trends Innovated seafood category manager with focus on R&D throughout the value chain 17 Icelandic inspires consumers in its core markets to eat more quality fish from sustainable resources Icelandic Group Vision Built on our Core Competences

18 China is our growth market


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