BCG-依视路Essilor中国渠道战略规划-20160427.pptx

1、Essilor China Distribution Strategy Field visits summary(3 cities)2016-05-09 Draft for discussion Essilor China Distribution Strategy_20160427_3 City Output v14.pptx 1 Draftfor discussion only Copyright 2016 by The Boston Consulting Group,Inc.All rights reserved.Agenda Field visits overview Distribu

2、tion in the 3 deep-dive cities Key considerations on distribution models Essilor China Distribution Strategy_20160427_3 City Output v14.pptx 2 Draftfor discussion only Copyright 2016 by The Boston Consulting Group,Inc.All rights reserved.What we have done 68 in-depth field interviews,18 store visits

3、,100 cold calls and 14 expert interviews in 3 cities In-depth field interview 68 interviews 19 corporate level1 interviews with chain purchase directors and WHS 29 store level interviews with store managers,covering chain store,independent store and hospital 20 interviews with BU managers Store chec

4、k and cold call 18 store checks in-store visits and mysterious shopping Covered 11 chain and 7 independent stores,in both urban and suburban area 100 cold calls telephone calls to check presence of Essilor brands 37 chained and 62 independent stores Geographically,covered 38 suburban stores and 61 u

5、rban stores Covered both Essilor and competitor brands Expert interview 16 expert interviews 4 major chain purchase managers,financial managers and flagship store managers 1 expert from Shanghai Optometric&Optical Association 10 competitor brands 1 national OEM expert 1.Corporate level refers to pur

6、chasing directors etc.at the HQ or regional level,and general managers of WHS Source:BCG analysis Essilor China Distribution Strategy_20160427_3 City Output v14.pptx 3 Draftfor discussion only Copyright 2016 by The Boston Consulting Group,Inc.All rights reserved.Interviews are conducted with key rol

7、es in the eco-system 775655323327433051015202530#of interviews Shenyang 19 1 Chongqing 20 1 1 Shanghai 29 Questionnaires are tailored to channels Interviews by channel in 3 cities Independent Regional/city Chain Hospital National Chain Others Wholesaler Note:others including local sales,etc Total=68

8、 Essilor China Distribution Strategy_20160427_3 City Output v14.pptx 4 Draftfor discussion only Copyright 2016 by The Boston Consulting Group,Inc.All rights reserved.Agenda Field visits overview Distribution in the 3 deep-dive cities Key considerations on distribution models Essilor China Distributi

9、on Strategy_20160427_3 City Output v14.pptx 5 Draftfor discussion only Copyright 2016 by The Boston Consulting Group,Inc.All rights reserved.Executive Summary There is opportunity for Essilor to better support national chain(N-C)in centralized marketing and category management Regional/city chain(R-

10、C)is an important channel in T2/T3 cities;Serving R-C directly can be more profitable and there is room to increase direct coverage Independent ECP is important in T3 and below cities,there is room to increase coverage through WHS but this requires stronger WHS management Overall Essillor has 30-50%

11、lens value share across 3 cities,Mingyue is the largest mid-tier competitor in T2 and below cities;remaining market is mostly OEM Most branded competitors have large percentage of sales from direct;Luxottica adopts 100%direct in most T1/2 cities Essilor direct model varies across BUs and have room t

12、o improve and will require stronger KAM1 function for N-C and top R-C as chains have been expecting more Consistently across 3 cities,Essilor WHS are not capable nor motivated.While EBN and Yauri tend to have larger WHS and EBN has better WS management system;there is room to improve WHS management

13、1.KAM:Key account management Essilor China Distribution Strategy_20160427_3 City Output v14.pptx 6 Draftfor discussion only Copyright 2016 by The Boston Consulting Group,Inc.All rights reserved.We investigated the eyewear market ecosystem of the 3 cities in a holistic approach Key dimensions we inve

14、stigated 1.Retail channel landscape and sophistication level of the ECPs#of ECPs,share of ECPs,evolving trend,etc.Consumer engagement,consumer insight understanding,etc.2.Essilor standing position,BU coverage and market share Level of penetration of local ECPs,sell-in value share,etc.3.BU distributi

15、on model ECP coverage by WHS vs.direct,sell-in value comparison,etc.Interaction with KA and ECPs,level of support provided,etc.Interaction with WHS,level of support,etc.Baseline key economics direct.vs.WHS 4.Key competitors and their distribution model Competitors practice in distribution and manage

16、ment of WHS WHS ECP(NC,RC,Hospital,independent)Competitors(Zeiss,Hoya,Mingyue,Luxottica)3 WHS ECP(NC,RC,Hospital,independent)BUs 1 4 2 3 Cities covered Shanghai,Chongqing,Shenyang(incl.findings on the nearby 4th tier cities Source:BCG analysis Essilor China Distribution Strategy_20160427_3 City Output v14.pptx 7 Draftfor discussion only Copyright 2016 by The Boston Consulting Group,Inc.All rights reserved.City landscape 3 deep-dive cities with different retail structure,Essilor positioning and d