1. The Merchants
Category: Number of different industries. Macro-eco: Important to mention those factors
Individual/Industries: Other impact the different industries.
- Just include it in the different factors how to relate
Company: What’s most important – convincesly Chose a geografic area or country. – as long as we can tell /ague for why we chose..
Mec Group 2: Alex S. Chemali, Amalie Rasmussen, Mads Vangsgaard, Sofie Reland & Sandra Beenfeldt-Hansen
Mak Group 8: Mie, Neele, Monika, Irina

2. Uniqueness for the Category
Buy products from a supplier to sell them
Constantly seeking for best deals
Lower their own costs = cheaper prices/products for customers
Long-term & trustful relationship to customer and suppliers
Strong business acumen (streamlined)
Creating value across borders
How do we excel?
Danish corporation has mastered business plan & management style that functions internationally/ globally.
Examples for Industries/Companies:
Fashion Clothing
Bestseller
stores in 38 countries
H&M
IC Group a/s
Zara
Tourism
NOVOSOL
Energy
Danske Commodities
Home furniture
JYSK
Acumen → the ability to make good judgements and take quick decisions
Generally about Merchant category:
Some of the factors for the category The Merchants is buying products from a supplier to sell them to customers. The Merchant is always seeking for the best deals from the suppliers - so they can lower their own costs and at the same time offer cheaper prices/products for the customers. As well this means they are creating a long-term and trustful relationship to the customer and suppliers. They are strong business acumen people - so they are good at making judgements and making quick decisions. They are creating value across borders by delivering the same concepts and products at roughly the same price. In addition what makes danish merchants excel within their industries are their ability to maintain and practice their retail approach, value chain approach, and supply chain approach across borders.
Danish merchant companies who succeed internationally usually have a strong founder who has adopted business acumen into their guiding principles of their business. The business acumen should be practiced by all employees. Good business acumen is not just about buying cheap and selling with a sizable markup, it is more about product innovation, service provisions and physical presence in growing markets.

3. How Denmark Excels in the Home Furniture Industry
Having a strong brand (Scandinavian design)
Innovative products
Create value for customers
Meeting customers needs
Delivering products at a perceived fair price
Having economies of scale
Good relationships with suppliers
Vertical integration (both backwards and forwards)

4. Home Furniture industry in Indonesia!
Opportunities
Middle class growing
Property growth
Home Furnishing industry growing (12% in 2013)
Storage furniture fastest growth
LED bulbs increasing
Free trade - ASEAN, Japan, Switzerland, proposed to US
Threats
Other home furniture stores entering the market
Nationalism: Law investment change in May 2014
Trade activities → ASEAN
CEPA Indonesia and EU
GDP (if economy operates good or not)
Trade activitites
Financial
Opportunities:
Indonesia has a growing middle class where they account for 32% of the population (74 million ppl) - the growth in economy and rising disposable income.
The growth in property in Indonesia is increasing where apartment buildings are expanding due to lack of land. With the rise in household income there is a demand for housing and home furnishing. Home furnishing has a healthy and consistent value of 5% CARG in Indonesia where with the increasing property, home furnishing is a strong industry to remain in based on the forecast to Smaller home furnishings such as bed sheets, bath textiles is more frequently brought as these are at a lower price point therefore more people are able to afford these items and larger home furnishings are not a high replacement purchase.
Due to smaller compact apartment buildings the need for storage furniture in particular plastic storage has the fastest growth at 7% CAGR, where these are affordable and durable to consumers.
An opportunity for the home furnishing industry is the fast growth in LED bulbs where the value is at 12% value CARG. The percent of LED growth is 150% from 2008 and is set to reach 25% of the total value sales in light soures by 2018.
Indonesia has free trade in place with ASEAN, Japan, Switzerland and proposed to have a free trade agreement in US. This means any manufacturers in these countries will be less cost for the company in regards to goods tax etc.
Threats:
Home furniture stores entering the market such as Ikea has an impact on the market share.
Nationalism: In May 2014 the Indonesian government changed the law in regards to foreign investment where they have barred investment in retail stores that sell electronics, footwear, textiles, toys and food.
With the free trade within ASEAN, Japan and Switzerland this can put pressure on trade with other countries

5. Indonesia Economic Climate
Average monthly salary in Indonesia: 8,400 kr
Monthly disposable income: 2,380 kr
Exchange rate is stable over a 10 year period
GDP is stable slightly increasing
Employment rate is down,
GDP is up - economy is expanding
exchange rate is stable good environment for investors (Rupiah not gonna drop suddenly!)
Economy expanding - investment in the country is increasing which creates job + people spend more money. (Unemployment rate going down as well!)
= more disposable income

6. The Fashion and Apparel Industry
One of the world’s largest consumer goods markets
Danish fashion is third biggest export industry in Denmark
Biggest markets: Germany (25 %) , Sweden and Norway
600 brands (1200 brands before crisis)
Total export in : mio DKK
Total turnover in 2012 : mio DKK
Export growth with 8 % in ( with 2 % in 2013)
Overview over 5 biggest companies within fashion and apparel industry

7. How Denmark Excels in the Fashion Industry
Characteristics of the clothes of danish fashion industry is: Chic and trendy yet affordable
Footsteps begins in the 1950th at the copenhagen fashion week
Focus på design, development, sales, distribution and service
Good combination of quality and price
Difficult for new players to enter the industry
Overview over 5 biggest companies within fashion and apparel industry

8. Threats and Opportunities
Fashion risk (brands are heavily influenced by fashion trends/change in collections)
Business cycles of the countries they export to
Big competition between companies
Opportunities:
Online sales
Business development in emerging markets
CEPA -

9. Fashion and Apparel Industry in Japan
Population: 127 millions
Reason: There is a great demand for Malene Birger and the others brands
Total import of clothing: 2,6 billion Yen (2011)
High GDP: 4,92 billion USD (2013)

10. Thanks for your awesome attention!

11. Group 2: Alex S. Chemali, Amalie Rasmussen, Mads Vangsgaard,
Hi, we are JYSK!
Concept: We want to be cheap.
Group 2: Alex S. Chemali, Amalie Rasmussen, Mads Vangsgaard,
Sofie Reland & Sandra Beenfeldt-Hansen

12. Competitive Advantages
Strong history/ brand and royal supplier
Opened first store in DK in 1979 by Lars Larsen
Jysk has a manual of their processes that are followed when they are developing or penetrating in the market.
2200 stores worldwide - 37 countries
419 suppliers in China (2 in Indonesia) → so close to Indonesia
Wide assortment
Economies of scale
Competitive prices
Effective supply chain - using local suppliers

13. Growth Strategies Main growth strategies:
Market development strategy - Geographic expansion to new market and offering existing products
Market penetration strategy - entering a new market their strategy then shifts to the in order to gain a greater market share in these markets.
Related diversification - buys up shares in ILVA,
Unrelated/Conglomerate diversification - investing in “Travel Rejser”
Why is Jysk a Merchant?
Jysk is an International retail company that is known as a leading merchant in the Danish market. Jysk has over 500 suppliers and are located in 37 countries, 19,000 employees. Opened first store in 1979 in Aarhus by Lars Larsen. Jysk Group contains of Jysk Nordic and Danishes Bettenlager and Franchises (Greenland, Faeroisland, island, Canada, Leatvia, Indonesia,
What growth strategies are Jysk currently using:
Jysk is currently not using the product development strategy, as they are focusing on conquering new markets with their current product portfolio, which is called market development strategy.
One of Jysk’s main growth strategies is geographic expansion to new markets by implementing the market development strategy. When they have entered a new market their strategy then shifts to the market penetration strategy in order to gain a greater market share in these markets.
Jysk tried to use unrelated diversification or the conglomerate growth strategy, by expanding into the traveling industry with their brand “Larsen’s rejser”, which went bankrupt and was subsequently bought by the swiss company “Kuoni”. They still use this growth strategy but to a lesser extent than the related diversification strategy.
Some of the current unrelated diversified companies are “Letz Sushi”, “Backtee”, “Eovendo”, “Garia”, “Ferdinand” and “Himmerland”. A lot of these stores are managed separately.
Jysk uses both backwards and forwards vertical integration, as they own “Scancom” and “Interstil” who supply goods to the jysk stores. They utilize forward vertical integration by having DOS. In some countries they have outsourced or franchised some of their Jysk stores.
Their growth strategies are based on the desire to conquer market share from Ikea which is the market leader and their main competitor.
Jysk realized that it would be best for them to use the related diversification growth strategy, and they own many different retail merchants such as, Idemøbler, Ilva, Bolia,
Jysk Acquired Danish bed company Seng Specialisten in 2014 which is a market development strategy to take a larger share in the bed industry in Denmark.

14. Export Knowledge Jysk has been in the export game since 1984
Jysk now operates in 37 countries
These experiences have given jysk extensive knowledge about these countries and it has also given
Jysk a template of what factors a company needs to look into before opening a store in a given country
Jysk has extensive export knowledge as they have been expanding outside of Denmark since Today Jysk operates in 37 countries all around the world.

15. Jysk Indonesia comparison to DK
Comparison between Denmark and Indonesia prices
Denmark / Indonesia
Bedlinen 250 / 195 DKK
Bedlinen 229 / 180 DKK
Matras 1,499 /1,325 DKK
Average monthly income Denmark / Indonesia
27,000 / 8,400 DKK
Disposable monthly income Denmark / Indonesia
17,500 / 2,380 DKK

16. Recommendations in Indonesia market
Product Development:
Plastic storage containers specifically for apartment organisation
Supplier or develop own brand in LED bulbs
Market Penetration
Increase stores in Indonesia
Market Development:
Going into other Asian countries

17. IC GROUP A/S BRAND PORTFOLIO SIZE OF OPERATIONS
Revenue of DKK 2.6b and approx. 1,000 employees
DISTRIBUTION CHANNELS
Wholesale, e-commerce, own retail, franchise and outlets

18. Growth strategy Merger & Acquisitions Divestment
2001 Merger between InWear Group A/S and Carli Gry International A/S forms IC Companys A/S.
2002 Acquisition of the brand Saint Tropez.
2003 Joint venture with the brand Malene Birger. Acquisition of the brand Tiger of Sweden.
2013 The brands Jackpot and Cottonfield are divested.
2014 The four brands InWear, Matinique, Part Two and Soaked in Luxury are divested.
Core business Non-core business
- Market penetration - Market penetration
- Market development - Divestment
- No acquisition plans, vertical integration plans

19. Competitive advantages
Multi-branding strategy
Outsourcing
Top competitors:
Bestseller A/S
Friis Co.
Signal Clothing A/S
DK Company A/S

20. Export Knowledge
more than 4,300 distributors in more than 25 countries
group's total turnover is 80% outside Denmark
main markets are concentrated mostly in the countries of Northern Europe, primarily Scandinavia, Benelux countries, the UK and Germany
most earnings comes from Nordic countries
only 6 % of earnings comes outside Europe

21. Future growth strategies
Market penetration
Market development
Verical integration

22. Sources

23. Thank you for your attention

24. things to look into Thursday:
buying so much get cheaper in indo
taxes
investors - exchange rate
how many in city? Who buys? Average salary
Smart phone (merchants docs) increasing - customers attend to come back
485 suppliers (500+) 419 in China

25. Sources
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The merchant presentation:
The merchant category:
How Denmark excels at that:
Threats:
Opportunities: growing middle class, more people are moving into the urban areas,
Jysk presentation:
Short introduction:
Competitive advantages:
Growth strategies:
Export knowledge:
Descriptive economics: