GOODS product brief report by exporTTLtd

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Market Survey of the French Caribbean Product Brief

GUADELOUPE 127, rue Nobel Carré Nobel – ZI Jarry 97122 Baie-Mahault

MARTINIQUE 41, Bd Sainte Catherine 97200 Fort-de-France

Tel / Fax : 0590 24 56 82

Tel / Fax : 0596 54 22 10

Project Manager : Caroline Ventura, cventura@cayribe.com, +596 696 31 39 50

Reference: CAYRIBE - ExporTT – Market Survey French Caribbean - Preliminary Report_01_A CAYRIBE SARL Société à responsabilité limitée au capital de 60.000 Euros R.C.S. Pointe-à-Pitre 531 976 215 Siège social : 127, rue Nobel – ZI Jarry – 97122 Baie-Mahault CAYRIBE ® - Reproduction interdite - PTF_RAO_V1.1

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Versioning Date

Référence

Objet de la modification

05/10/2015

Document creation

06/22/2015

Amendments answering the comments made by exporTT on 06/09/2015

Approval Société

Nom

Fonction

Date

CAYRIBE

Caroline Ventura

Directrice Martinique

06/23/2015

Signature

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Table of contents 1.

INTRODUCTION

GLOBAL RECOMMENDATIONS

2.1.

Product analysis

2.2.

Placement

2.3.

Price strategy

2.4.

Promotion

2.5.

Success factors for mass market

FOCUS ON CHLORINE GAS AND SODIUM HYPOCHLORITE

SAUCES & CONDIMENTS & PREPARED PRODUCTS

9 10

4.1.

Competitive environment (brands)

4.1.

Examples of packaging and labelling

4.2.

Price range in €

4.3.

Opportunities and threats

4.4.

Recommendations

PASTA

5.1.

Competitive environment (brands)

5.2.

Examples of packaging

5.3.

Price range in €

5.4.

Opportunities and threats

5.1.

Recommendations

BISCUITS & SNACKS

6.1.

Competitive environment (brands)

6.2.

Examples of packaging

6.3.

Price range in €

6.4.

Opportunities and Threats

6.5.

Recommendations

NONALCOHOLIC BEVERAGES

7.1.

Competitive environment (brands)

7.2.

Examples of Packaging

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7.3.

Price range in €

7.4.

Opportunities & Threats

7.5.

Recommendations

BLEACH & DETERGENTS

8.1.

Competitive environment (brands)

8.2.

Examples of packaging

8.3.

Price ranges in €

8.4.

Opportunities & Threats

8.5.

Recommendations

TOILET PAPER

9.1.

Competitive environment (brands)

9.2.

Price range in €

9.3.

Opportunities & Threats

9.4.

Recommendations

10.

PLASTIC BOTTLES

11.

ALUMINUM PROFILES AND PRECAST JOINERIES

11.1.

Price range in €

11.2.

Recommendations

12.

METAL FLOOR DECKING AND ROOFING SHEETS

12.1.

Metal floor decking

12.2.

Roofing sheets

12.3.

Recommendations

13.

BEDDING PRODUCTS

13.1.

Competitive environment (brands)

13.2.

Examples of products

13.3.

Price range in €

13.4.

Recommendations

14.

ANNEXES

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1. Introduction This document contains the product related information collected during the market survey on the French Caribbean Outermost Regions. Considering the FCOR market, the list of products provided by exporTT has been divided into two groups: -

Mass market retail products with all food and beverage and tissue products B2B products

On the retail sector we have gathered the following information on the three territories: -

Market trend Retailer markup for most types of products (the wholesaler markup should be around 10%) Competitive environment with the different brands found on site at the time of the survey (May 2015) Price range with the different price levels found on the market at the time of the survey (May 2015)

The prices are provided in € since it is the currency of the market. Potential exporters should be aware that, since the most trade relationships are held in €, importers are more familiar with that currency. The product brief is completed with a strategic view of the sector in terms of threats and opportunities for a new supplier and with our market entry strategy recommendations. We also included pictures of the shelves and of products to illustrate packaging standards. In the price range tables, MM stands for Mass Market. The detailed tables are provided in the annexes. On the B2B sector, we have met with representatives of the local industry and the corresponding chapters relate our feedback from these encounters. The detailed tables with contact numbers and names are provided in the annexes.

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2. Global recommendations Place Food & beverages

Price

Mass market and convenience stores via wholesalers Wine shop

Market strategy

penetration

Detergents

Mass market and convenience stores via wholesalers

Market strategy

penetration

Plastic bottlers

Distributors

Market penetration strategy To be negotiated

Rum

Construction materials materials)

(raw

Bedding products (raw materials)

2.1.

Distributors Local manufacturers Local manufacturer

To be negotiated

Promotion Billboards, mass media Tasting event Private events Luxury packaging Community management Efficacy demonstration on local TV Demonstrations on site

Easy terms payment

Product analysis

After the European norms issue, the first recommendation on the products is to make them compliant with European packaging since size and appearances are quite standard. It means, at least: -

Knowing the standard size for each product Adopting the International Metric System Translating into French

The product origin should not be identified by the packaging even though it can be used in promoting the product. Food and beverage products are popular products in the FCOR but are also subject to consumer tastes. People tend to like food to be spicier, more sugary and salted than in European countries and are therefore closer to the Caribbean tastes. Still it is a very competitive sector with local firms on each territory who adapt their products to the local tastes. The first step of any attempt to export any food or beverage product to these territories is to have an onsite taste testing campaign to ascertain that the products will not be rejected. Concerning cleaning products, effectiveness is the key; products need to demonstrate their efficacy as the consumers are generally loyal either to a brand or to a price level associated with good value for money. It should be noted that detergents and toilet paper are manufactured by companies of the same group in all three territories. The plastic bottles market is not yet well covered and small local beverages producers buy their products directly from mineral water bottling factories since they manufacture their bottles from plastic sheets. To enter this specific market, Trinidadian firms must be able to comply with norms on food containers and provide the rightly-sized products (mostly 0.5l, 1l and 1.5l).

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The aluminum joineries market and bedding products market are quite similar since they are highly competitive in all three territories with local manufacturer. In contrast to bedding market, there are many imported products much of the joinery is locally made to measure. We recommend that these markets should be first entered by Trinidadian firms as raw materials providers.

2.2.

Placement

The distribution channels will vary depending on the product. There are 3 channels for food and beverage products and detergents: -

Supermarkets Minimarkets Convenience stores

The choice of the channel depends mainly on the financial means of the exporting firm. Firms with extensive means will be able to reach wholesalers and supermarkets while reduced means firms should target minimarkets and convenience stores. In both cases, it is strongly advised to work with a wholesaler. In order to reduce the perceived risk for final distributors of proposing unknown products, a test could be made with a few shops with improved conditions during the period (for example on payment or markup). Bedding products and plastic bottles distribution contracts should be signed directly with distributors with Trinidadian firms as referenced product suppliers. Because of the existence of groups with branches in more than one territory, construction materials can be sold to both manufacturers and distributors depending on the partnership that may be built.

2.3.

Price strategy

To succeed in entering the retail mass market it is important that the price of the product is set to the market price. We generally recommend two price levels: -

A penetration price at first below market price Then a rise to the regular market price

The middle term strategy is to be discussed at least with the wholesale. In the case of detergent, more than the price, the value for money is to be considered. Generally, on the retail market, since the three FCOR markets are small ones, it is important to apply the same policy with all the distributors. The success in entering the B2B market is correlated to the partnership built with the distributors (bedding products) or the manufacturers (in the case of raw material selling). There the price comes second after compliance with European norms. We therefore recommend a two time price negotiation process: 1. Building of relationship with potential buyers to evaluate the volumes 2. Evaluation of the impact on prices of the European norms compliance

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2.4.

Promotion

Promotion issues concern mainly retail products. Usual means of communication in mass marketing are billboards, mass media and special offers. Those are the recommended promotion media, especially for food and beverage (except for Rum). In the case of pasta and sauces, more and more offers combine both to provide final consumers with all-in-one packages. This packaging strategy is very efficient either for a market entry or for foreign food (e.g. roti skins). Last, we recommend having a local representative In charge of -

Staying in contact with the distributors Provide follow up for the products Manage the info line Manage the commercial events and special offers

Even though it is not necessary to hire one representative for each territory, this person must be perfectly fluent in both English and French.

2.5.

Success factors for mass market

Before any other consideration, the products have to comply with European norms as detailed in the “Standard & Regulations” section.

Local representation •Fluent in both English and French •Knowledgeable on the local market •With sales and commercial negociation competencies Locally pertinent translation •Transaltions to be made by a local communication agency •Taking into account the differencies between the 3 territories •Eventually translation into other languages for French Guiana - this point is to be asserted European standards packaging •Visual standards •Size, weight, quantity

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3. Focus on Chlorine Gas and Sodium Hypochlorite PROCHIMIE SAS is a local firm based in Martinique which owns both SOPRODIG in French Guiana and CHLOREX HYGIENE in Guadeloupe. These companies manufacture detergents and cleaning products as well as tissue products, for their own marks, on distributors demand and under franchising agreements. PROCHIMIE used to import Chlorine gas from Trinidad and Tobago but had to change due to a change in regulation imposing standards that its Trinidadian supplier could not meet. These changes refer to: -

The size of the chlorine gas bottles Security standard in the sealing system of the bottles

PROCHIMIE is not against buying its raw materials from Trinidad and Tobago anew if the European norms can be met. In this case two other constraints should be met -

Regularity in supply since the norms on chlorine gas stock allows no buffering Attractive pricing compared to the current supplier

The same goes for sodium hypochlorite on which the norms are less strict but also for any other raw material. Since price levels are not easily obtained in the B2B sector, PROCHIMIE expect its potential suppliers to make an offer providing a baseline for negotiations. Considering the activities of the society (detergents and tissue paper) and other activities in aluminum products, group PROCHIMIE’s parent company is globally interested in discussing any collaboration that could be built with Trinidad.

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4. Sauces & Condiments & Prepared products The sauce & condiments market is highly competitive with a large range of products and brands covering different tastes and prices. The markup of the retailer for the sauces & condiments is around 25 to 30% and around 20% for the prepared products. It should be noted that the three territories already have their own specific traditional sauces. Specific products like roti skins can find a market, however it will be a niche market with small volumes. These products need any way to come with specific packaging and promotion techniques

4.1.

Competitive environment (brands) Guadeloupe

Martinique Lessieur, Amora, Casino, Carfefour, Heinz

French Guiana

Tomato Ketchup

Amora, Heinz, Casino, Carrefour, Leader Price

Heinz, Amora, Carrefour, leader Price, Casino

Mayonnaise

Amora, Casino, Carrefour, Leader Price

Amora, Carrrefour, Lessueur, Casino

Amora, Benedicta, Carrefour, Casino, Leader price

Pepper Sauce

Baron, Bello, Hot sauce Louisiana

Benedicta, Carrefour, Lessueur

Carrefour, Benedicta, Casino

Amchar,Kuchela and Similar preparations

Sharwoods

Curry

Not found

Ducros

Lesieur, Suzi wan

Casino, Lessieur

Ducros

Cereals

Kellogg's, Casino, Carrefour, Leader Price

Nestlé, Lion, Casino, Carrefour, Leader price

Nestlé, Joe’s farm, Casino, Carrefour, Leader price

PopCorn

MagicPop

Magicpop, Riglopop

Carrefour, Menguy’s

Prepared Potato

Lay’s, Casino, Carrefour, Leader Price

Leader price,findus Mc Cain, Casino, Carrefour

Mousseline, Maggi

Fried & Pepper

Kellogg’s, Leader Price

Ducros, Leader price

Chick Peas

Bonduelle,

Bina

Casino, Bonduelle, A. legal, Leader price

Split Peas

Vivien Paille

Isis Celimen

Carrefour, Casino, Bonduelle

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4.1.

Examples of packaging and labelling

4.2.

Price range in €

Product

Guadeloupe

Martinique

French Guiana

Tomato Ketchup

MM Min price

1.02

1.39

1.20

(1 kg)

MM Max price

3.18

4.21

4.90

Leader Price

1.14

1.13

1.59

Mayonnaise

MM Min price

1.50

2.19

0.50

(250 g)

MM Max price

3.98

4.19

3.90

Leader Price

1.78

0.99

1.99

Pepper Sauce

MM Min price

1.99

1.39

1.25

(490 g)

MM Max price

2.95

3.15

1.35

Leader Price

1.29

Not Found

Amchar,Kuchela and Similar preparations

MM Min price

3.02

Not Found

2.17

MM Max price

5.66

Not Found

2.50

Leader Price

Not Found

Curry

MM Min price

1.25

1.14

2.28

(420 g)

MM Max price

4.60

1.95

2.49

Leader Price

1.10

Cereals

MM Min price

2.68

1.79

2.65

(375 g)

MM Max price

4.85

5.05

5.79

Leader Price

Not Found

1.62

3.95

PopCorn

MM Min price

2.80

0.99

1.45

(270 g)

MM Max price

Not Found

2.95

3.10

Leader Price

Not Found

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Prepared Potato

MM Min price

3.95

1.08

1.29

(600 g)

MM Max price

4.70

6.43

7.45

Leader Price

2.99

1.39

1.05

MM Min price

1.49

Not Found

0.89

MM Max price

3.35

Not Found

3.35

Leader Price

1.98

Not Found

1.89

Chik peas

MM Min price

1.25

0.99

0.89

(500 g)

MM Max price

1.59

1.56

2.79

Leader Price

0.69

1.15

1.65

Split Peas

MM Min price

1.10

1.01

1.19

(265 g)

MM Max price

2.39

1.43

3.09

Leader Price

1.35

Not Found

1.95

MM Min price

1.04

0.82

Not Found

MM Max price

1.99

1.92

Not Found

0.79

Not Found

Fried & Pepper

Curry(Spice) (42 g)

Leader Price

4.3.

Opportunities and threats

Opportunities • Traditonnal or local sauces are not much represented • Indian sauces are not really reprsented on the market. • The market of split and chick peas is not highly competitive

4.4.

Threats • Large offer for classic products like ketchup or mayonnaise • The consumption of certain product, such as popcorn, is not entrenched in these societies

Recommendations

Beyond the necessary taste test, since the sauce and condiments are very popular products, we recommend, in terms of communication and promotion, to create proximity with the consumer by pushing forward the idea of “local” products (from a Caribbean stand point) in comparison to standard international products. This proximity can be induced with demonstrations and tasting of the products on site. We also recommend the creation of bundled packages with recipes to fight possible reluctance of the consumer who does not know how to use the product.

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•Taste approval by local population •European standard packaging with locally adapted texts

•Tasting events •Word of mouth

•Market entry below market price •Market price

Product

Price

Proximity Promotion

Placement via wholesalers •Mass market retailing •Convenience store

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5. Pasta The pasta market in the FCOR is fully covered with imported products. Even the local brand, Sagittaire, imports bulk products to pack them in local plants. Demand is still growing but consumers want higher quality and/or more practical products (shorter cooking time, packages…). There has recently been a strong increase in the sales of premium products (old fashioned recipe, bio, gluten free …) The markup of the retailer is around 20%.

5.1.

Competitive environment (brands)

International groups are represented by strong brands, Panzani, Barilla and Lustucru. The market is segmented as follows: -

International brands placed on middle and high end of the market or on new products o Panzani o Barilla o Lustucru Distributor label with entry point brands and a few qualitative references o Carrefour o Casino o Leader Price Local brand : Sagittaire

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5.2.

Examples of packaging

5.3.

Price range in €

Product

Guadeloupe

Martinique

French Guiana

Spaghetti

MM Min price

1.95

1.13

0.95

(500 g)

MM Max price

2.05

1.99

2.69

Leader Price

1.45

1.69

Macaroni

MM Min price

0.98

1.05

0.95

(500 g)

MM Max price

2.77

2.08

2.69

Leader Price

1.69

1.55

1.99

Shells

MM Min price

1.09

1.22

0.95

(500 g)

MM Max price

1.87

2.08

2.95

Leader Price

Not Found

1.19

3.10

Noodles

MM Min price

0.96

1.09

1.49

(500 g)

MM Max price

1.89

1.92

2.89

Leader Price

1.69

0.95

1.25

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5.4.

5.1.

Opportunities and threats

Opportunities

Threats

• Consummer ready to pay more for quality • Few noodles products

• Large offer on classic products in the whole spectrum • Premium brands setting the standards for innovation

Recommendations

The pasta market is now mature and highly competitive therefore we recommend entering with combined products sauce & pasta. Packaging should be adapted to local standards for visuals as well as texts. After a special offer period for the introduction to market, prices should be set to the market level for equivalent products. In addition to merchandising and packaging efforts, firms should expect important communication budgets to promote their products: -

Mass media, billboard and presence in promotional leaflets Special offers animation

We recommend organizing a special operation for the launching of the products: -

Advertising and promotion to let consumers know the product Special size or flavor packaging Recipe book for adults and children

•Combined with sauces •European standard packaging with locally adapted texts

•Billboard & leaflets •Recipe leaflet for adults and children

•Market entry below market price •Market price for equivalent quality

Product

Price

Mass media Promotion

Placement via wholesalers •Mass market retailing •Convenience store

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6. Biscuits & Snacks Studying the overall French market shows that, while there is a decrease in the revenues, sales volumes are globally stable. 90% of the products are sold in mass market retailer and consumed mostly for snack time or breakfast. The FCOR population displays, on that precise point, the same behavior. The market is considered to be hard to enter since it is well covered with well-known national brands, attractive store brands and low price brands. The latter ones’ products come from the national brands plants diversification strategy. The market also provides regional specialties prepared by local firms answering local tastes. These products tend to be distributed in minimarkets, convenience stores and even ambulant sellers. It should be noted that there is a growing concern about the impact of manufactured food on the health condition of children. Therefore, the brand LU signed in 2013 an engagement to reduce fats and use whole wheat to increase the fibre content of its biscuits. The biscuit sector is anyway in the process of being normalized (AFNOR). The markup of the retailer is around 20%.

6.1.

Competitive environment (brands) Guadeloupe

Martinique

French Guiana

Chocolate Confectionery

Lindt, Casino, Carrefour, Leader Price

Cote d’or, Lindt, Nestlé

Nestlé, Poulain, Carrefour, Casino, Leader Price

Sweet Biscuits

Lu, Pimps, Casino, Carrefour , Leader Price

Casino, Carrefour, Lu, Leader Price

Lu, Oréo, Carrefour, Casino, Leader Price

Wafer & Waffles

Loacker, Casino, Carrefour, Leader Price

Not found

Serebis

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6.2.

Examples of packaging

6.3.

Price range in €

Product

Guadeloupe

Martinique

French Guiana

Sweet Biscuits

MM Min price

1.49

1.39

0.45

(200 g)

MM Max price

4.95

3.67

5.10

Leader Price

4.50

Not found

2.95

MM Min price

1.15

1.57

2.10

MM Max price

2.56

2.85

7.35

Leader Price

1.49

4.90

MM Min price

1.59

Not found

MM Max price

2.48

Not found

Leader Price

2.46

Not found

3.59

Chocolate Confectionery (100 g) Wafer & Waffles

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6.4.

6.5.

Opportunities and Threats

Opportunities

Threats

• Large price range • Limited offer on waffles

• Saturated market

Recommendations

We recommend working on the “Caribbean product” image to propose popular products close to the population’s tastes. Promotion should focus on billboards and radio broadcasting: -

Billboards to expose the product to the consumers and arouse their desire to taste Radio broadcasts at chosen hours to target selected populations

NB: The radio channel providing the best exposure in the three territories is RCI. Depending on the resources to be allocated to promotion, biscuits firms should focus either on the mass market or on the proximity distributors. Choosing the mass market distribution channel imposes to adapt the packaging to local standards for visuals as well as texts when choosing proximity distributors combined with a “Caribbean product” image may allow keeping the original packaging. It should be noted that when working only with convenience stores and proximity distributors it is important to have a local agent in charge of following up the product distribution.

In all cases, the taste of the products will have to be tested on local population and the price strategy should be tuned for market penetration: -

A penetration price at first below market price Then a rise to the regular market price

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•Taste testing •European standard packaging with locally adapted texts

•Billboard & broadcasting •Taste animations

•Market entry below market price •Market price for equivalent quality

Product

Price

Mass media Promotion

Placement via wholesalers •Mass market retailing •Convenience store

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7. Nonalcoholic Beverages All three territories have their own local spring water (Capès Dolé, Chanflor and Matouba) in addition to Didier and Capès, aerated spring water that are also distributed in French Guiana. These brands all have a high level of loyalty from the population, each one on its own territory. The market coverage is completed by other spring waters from Europe and low cost spring water. Therefore any challenger product on the market of water (still, aerated or flavored) should be at least based on spring water. The market of aerated beverages is also saturated with Coca Cola occupying more than 90% of the shelves followed by Pepsi and then the local brands. The local production of aerated beverages is done by one group on the three territories. There is a segmentation on the French juice market associated with two specific appellations for two different kinds of products: “jus” (100% fruit juice) and “nectar” (refined from fruit concentrate). Any product targeting this market should have a label compliant with that segmentation. The market is dominated by local brands followed by the chain brands. A new segment has been created a few years ago with energy drinks having a real success, mostly with young consumers. The main brands are RedBull and LongHorn, the latter being locally produced.

7.1.

Competitive environment (brands) Guadeloupe

Martinique

French Guiana

Orange Juice

Joker, Réa, Banga, Casino, Carrefour, Leader Price

Casino Carrefour Royal Jocker, Rea, Leader price

Casino, Bravo, Joker, Réa, Carrefour, Leader Price

Mixtures, fruit Juice

Joker, Jaïgo, Casino, Carrefour, Leader Price

Casino Carrefour Royal Jocker, Rea, Pamphil, Leader price

Sunland, Joker, Jaïgo, Carrefour, Leader Price

Aerated beverages

Coca-Cola, Orangina, Ordinaire, Gwada Cola, Vaval tropique, Amigo, Casino, Carrefour, Leader Price

Casino, Orangina Royal soda, Zwel, Coca Cola, Fanta

Orangina, Casino, amigo, Leader Price

Tea

Lipton

Carrefour, Casino, Lipton, Chanflor, Leader price

Lipton, Casino, Carrefour,

Flavored Water

Volvic, Chanflor

Chanflor Vittel, Contrex ,Leader price

Matouba, Chanflor,

Aerated Water

Capès, Didier, Saint Pellegrino, Perrier, Fine Ligne

Didier, Pellegrino, Vichy

Didier

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7.2.

Examples of Packaging

7.3.

Price range in €

Product

Guadeloupe

Martinique

French Guiana

Orange Juice

MM Min price

2.19

1.75

1.25

(1 l)

MM Max price

4.24

2.55

3.25

Leader Price

2.26

1.45

3.25

MM Min price

1.79

1.71

1.75

MM Max price

3.29

2.55

3.79

Leader Price

2.06

1.15

3.20

Mixtures, fruit juice (1 l)

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Aerated Beverages

MM Min price

1.25

1.45

0.95

MM Max price

2.75

2.85

3.50

Leader Price

1.10

0.85

1.20

Tea

MM Min price

Not Found

1.98

1.65

(1 l)

MM Max price

Not Found

3.05

2.89

Leader Price

Not Found

1.99

2.29

Flavored Water

MM Min price

1.63

1.59

1.69

(1 l)

MM Max price

2.55

1.74

2.29

Leader Price

Not Found

0.58

1.39

Aerated Water

MM Min price

0.98

1.15

1.30

(1 l)

MM Max price

1.25

1.99

1.30

Not Found

0.78

Not Found

(1.5 l / 2 l)

Leader Price

7.4.

Opportunities & Threats

Opportunities

Threats

• Lack of a complete • Strong brand loyalty to product range on the products of the tropical juices local industry • Increase of demand for • Strong competition energy drinks between international and local brands • Specific tastes

7.5.

Recommendations

There are two possible ways to attack a saturated market: -

A low cost strategy, depending on actual and transport costs A “added value product” positioning allowing high prices if there is a real competitive edge

Because of the increased interest of the FCOR population in health issues, we recommend to enter the market with products with a healthy identity at the market price of other products (around 2€/l). Packaging should also be a permanent issue since, nowadays, size and appearance of the beverages evolve during the year, these evolutions being used to reinforce the identity of the product and stimulate the promotion. The product size should be set to local standards: 0.5l, 1l, 1.5l and 2l. Consumer will be sensitive to the name of the product / brand therefore we also recommend to work with a local agency to choose the product name. In case of mass market distribution, promotion will have to be creative and all year long relying on various supports for the consumer to associate the product with both their lifestyle and a positive image.

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An efficient launching strategy will need at least the following: -

Special launching price Extra free samples for promotion by the distributors Sales contests Referencing in retailers leaflets

•Taste testing •Locally adapted and evolutive packaging with bright colors and eventually a differenciating bottle

•Higher perceived quality at market price

•Billboard, movie theater advertising, sport event sponsoring •Taste animations

Product

Price

Mass media Promotion

Placement via wholesalers •Mass market retailing •Convenience store

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8. Bleach & detergents Bleach is an inescapable product in these companies; its use is rooted in their practice consequently its demand remains constant. This is a highly competitive market where reputation and price are determining. Indeed local production is confronted with mass distribution discount imported brands which are essentially French due to the strict regulation in place. There is a large range of detergent products, mainly sold in mass market retailers. The products come both from Europe and the local industry with firms solidly established in the three territories (PROCHIMIE, CHLOREX and SOPRODIG, the three of them belonging to the same group). It is to be note that bleach is commonly sold in small size refills. The retailer mark-up goes from 20 to 40%.

8.1.

Competitive environment (brands)

Product

Guadeloupe

Martinique

French Guiana

Bleach

Lacroix, BEC, Ajax, Casino, Carrefour, Leader Price

Tropic force, Bref, LaCroix, Leader Price

Tropic force, Bref, Lacroix, Leader Price

Dish washing

Paic, Chlorex, Casino, Carrefour, Leader Price

Casino, Mir PAIC, Carrefour

Casino Maison Verte, Kris, PAIC, Carrefour

Detergents

Not Found

Casino , Carrefour Saint marc,Lacroix, Cillit Bang , Leader Price

Cilit bang, Vigor, Casino, Carrefour, Leader price

Disinfectants

Sanytol, Casino

Casino, Carrefour,Canard Harpic , Leader price

Casino, St-Marc, Dettol, Leader price

Treatment of textiles, materials or other materials

Ariel, Gama, Skip, OMO, Le chat, X-TRA, Casino, Carrefour, Leader Price

Casino, Carrefour Doudou, Lenor, Soupline, Leader Price

Dash, Mechat, Carrefour, Casino, Leader Price

Carrefour, Casino

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8.2.

Examples of packaging

8.3.

Price ranges in €

Product

Guadeloupe

Martinique

French Guiana

Bleach

MM Min price

3.01

1.95

1.10

(2 l)

MM Max price

6.25

4.31

5.35

Leader Price

2.44

2.19

2.28

Dish washing

MM Min price

1.54

1.49

0.90

(750 ml)

MM Max price

5.15

2.99

5.40

Leader Price

1.59

1.79

Detergents

MM Min price

Not Found

1.75

1.99

(1 l)

MM Max price

Not Found

3.95

6.85

Leader Price

Not Found

1.39

3.75

Disinfectants

MM Min price

1.95

2.13

1.45

(1 l)

MM Max price

4.49

7.89

3.59

Leader Price

Not Found

2.19

MM Min price

4.49

3.39

2.29

MM Max price

12.48

7.21

18.15

Leader Price

6.18

3.99

9.95

Treatment of textiles, materials or other materials (1.8 l)

8.4.

Opportunities & Threats

Opportunities

Threats

• Consumers sensitive to • Strong brand loyalty product efficacy or at when satisfied least value for money • French regulation • Market is essentially occupied by French Brands Reference: CAYRIBE - ExporTT – Market Survey French Caribbean - Preliminary Report_01_A CAYRIBE SARL Société à responsabilité limitée au capital de 60.000 Euros R.C.S. Pointe-à-Pitre 531 976 215 Siège social : 127, rue Nobel – ZI Jarry – 97122 Baie-Mahault CAYRIBE ® - Reproduction interdite - PTF_RAO_V1.1

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8.5.

Recommendations

Once satisfied by the quality of a detergent, the FCOR consumer is loyal to its brands, or, at least, to its level of value for money. Since the key factor is the efficacy of the product, we recommend focusing on quality in both product conception and promotion. If possible, the product should meet both criteria of quality and price. The promotion message will therefore be able to emphasize on it in advertisement with “before/after” trailers.

•Locally adapted packaging

•TV broadcast of effeciency test

•Market price for equivalent quality

Product

Price

Mass media Promotion

Placement via wholesalers •Mass market retailing

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9. Toilet paper The toilet paper market is mostly occupied by products locally manufactured since the three firms established in each territory produce their own brands products, some retailer brands products (Leader Price) and also, under franchising, international brands products. It should be noted that these three firms belong to the same group owning the bleach and detergent factory. The retailer mar up is around 30%.

9.1.

Competitive environment (brands)

The market is segmented as follows: -

International brand placed on middle and high end of the market or on differentiated products (color, fragrance…) o Lotus Distributor label with entry point brands and a few qualitative references o Carrefour o Casino o Leader Price Local brand : o Doudou o Doucine o Chlorex

9.2.

Price range in €

Product

Guadeloupe

Martinique

French Guiana

Toilet Paper

MM Min price

1.68

4.3

2.20

(12 rolls)

MM Max price

3.90

6.35

7.99

Leader Price

7.34

2.39

4.49

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9.3.

Opportunities & Threats

Opportunities

Threats

• Products are not really • Quasi monopolistic differenciated position of one groupe

9.4.

Recommendations

Toilet paper is neither glamourous nor a high added value product which induce selling techniques from retailers based on repeated special offers Since consumers are focused on price, entering this market needs be done with an aggressive price policy. Still these late years trend in toilet paper communication is to associate the product with a sense of wellbeing to erase its down-to-earth image. An efficient launching strategy should be supported by: -

Special launching price Discount coupons Distinctive packaging

•Locally adapted packaging eventually differentiating

•Discount coupons •Referencing in leaflets

•Lower than market price

Product

Price

Mass media Promotion

Placement via wholesalers •Mass market retailing

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10.Plastic bottles On the three territories, the main beverage producers thermoform their bottles in their plants. The market is therefore reduced to local juices or coconut water producers. That market, albeit small, is a developing one since more and more juice producers appear on the market. There are currently not many plastic bottles resellers and the market is not very competitive with prices considered high. For example, a 1l plastic bottle can be sold in Martinique at 0.60 €. Capès Dolé in Guadeloupe is the main producer of plastic bottles while its main activity is producing bottled spring water. There are a few well established plastic articles reseller which don’t sell plastic bottles and who say to be interested by a new supplier. To enter the plastic bottle market, we recommend negotiating directly with these plastic articles reseller.

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11.Aluminum profiles and precast joineries On the three FCOR territories made to measure product are ruling the market. The market of prefabricated aluminum joinery is developing but, since there are numerous local manufacturers, the precast products are still mainly locally manufactured. There is only one store in French Guiana and Martinique selling standard products, and even in this case window, doors and louvres are locally produced. The three markets have reached different levels of maturity. In Guadeloupe there are around 200 companies working on made to measure aluminum joineries. In Martinique, since lots of construction sites are on hold in the waiting of the establishment of the unique assembly, the demand is decreasing leading to the closing down of many companies. The sector is therefore less competitive than in Guadeloupe but still with major actors. French Guiana is still a developing market due to construction projects related to spatial and military activities. Companies keep being created even by firms from Martinique or Guadeloupe. The well established and known companies are the following: -

ABD fermetures (Guadeloupe & Martinique), Rollestrore (Guadeloupe) Eurostore (Guadeloupe) Alusinor (Guadeloupe) Storemeraudes (Guadeloupe) SOCOMI (Martinique and French Guiana), SAMIR (Martinique) Alu discount (Martinique) Glass alu (French Guiana) Guyane Aluminium (French Guiana)

Surprisingly, the aluminum profiles market is not highly competitive with only a few suppliers all from Europe: -

Schuco Technal Rexal Profil System Sepalumic

Some joinery manufacturers have expressed that they may be interested in importing from the Caribbean if the proposed quality is as good as and less expensive than what they have now. Since the quality of the profiles directly impacts the quality of the final product, buyers are and will stay cautious on the quality issue. Both price and quality are important since in Guadeloupe final consumer are becoming more demanding on quality while, in Martinique they price focused and getting interested in discount joinery.

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11.1. Price range in € Product

Guadeloupe

Louvre

Companies were unable to provide us with a price since they using a special software for that purpose

Window Door

Martinique 280 (80 cm x 80 cm) 560 (120 cm x 120 cm) 700

French Guiana Companies were unable to provide us with a price since they using a special software for that purpose

(90 cm x 220 cm)

11.2. Recommendations Considering the structure of the different markets, we recommend to Trinidadian aluminum manufacturers to enter the FCOR market as aluminum profiles suppliers for the existing industry. Information about sales as well as price is hard to obtain and the supplier position is the best one to get to understand the markets. Negotiations should start with the main local manufacturers of each territory to evaluate the size of the market then be extended to distributors. Since the markets are narrow, special attention should be put into applying the same conditions to all clients, or at least the same policy. It should be noted that SAMIR belongs to the same group that owns PROCHIMIE, CHLOREX and SOPRODIG.

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12.Metal Floor decking and Roofing sheets 12.1. Metal floor decking The use of metal floor decking is not yet widespread in the FCOR. It is currently mainly used on important construction sites and plywood formwork, which is currently more affordable, is predominant in the construction sector. However, consumers are interested in the use of new workform methods and the sale records are good albeit the poor choice in products size. The market is not mature yet which leaves place for new products but on this developing market Arcelor Mittal is already well known and its international brand well rooted. The existing companies proposing the product are: -

Arcelor Mittal (Guadeloupe, Martinique and French Guiana) Sopimat (Guadeloupe) René Cotrell Acier (Martinique) Profil Guyane (French Guiana)

12.2. Roofing sheets The market is highly competitive in Guadeloupe where the profiling know-how is widely spread while Martinique does not produce much aluminum roofsheets with its two local profiling companies. Therefore when Guadeloupe may be interested in importing raw materials, Martinique will be open to importation of transformed products. French Guiana is still a different challenge since there is a strong competition from Suriname where construction materials are cheaper and the overall demand is decreasing. However final customers are searching for quality so there may be some market shares to gain. The existing companies on the market are: -

Biometal (Guadeloupe and Martinique) Acelor Mittal (Guadeloupe, Martinique and French Guiana) Etablissement Pomez (Guadeloupe) Top Caraibe (Guadeloupe) Tropic profil Guadeloupe (Guadeloupe) Profil Guyane (French Guiana)

12.3. Recommendations For these two kinds of products, we recommend entering the market via construction material distributors, either with raw materials or manufactured products.

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13.Bedding products The market of bedding products is highly competitive with both imported international brands and local manufacturers in Guadeloupe and Martinique. Both have a large range of prices

13.1. Competitive environment (brands) Product

Guadeloupe

Martinique

French Guiana

Mattress support

Not mentioned

Mattress

Dunlopillo, Matelas Baptistide, Selina, Diroy, Bultex, Sonjia, Dremea

Dunlopillo, Body impression, Ebac, Kalmboe, Simmons, Dremea, Epada

Dreamea, Duniopillo, Epeda, Simmons, Treca

Pillows

Sweet dreams, Dodo, Diroy, Ergoform

Tempur, Dreams, meribel

Dreams, Meribel

13.2. Examples of products

13.3. Price range in € Product Mattress support

Guadeloupe

Martinique

French Guiana

Market Min price

171

82.80

Market Max price

1 190

894

488

Mattress

Market Min price

109

193

99.99

(140 cm x 190 cm)

Market Max price

2 295

1294

758

Pillow

Market Min price

9.99

5.99

(60 cm x 60 cm)

Market Max price

119

(140 cm x 190 cm)

13.4. Recommendations Considering the high level of competition on that market, it can be entered either as raw material supplier or as mattress provider. However, we recommend starting by providing raw materials to the local industry to better understand the structure of the markets and evaluate its size.

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14.Annexes 1. 2. 3. 4. 5. 6.

Mass Market price list – Guadeloupe Mass Market price list – Martinique Mass Market price list – French Guiana B2B market – contact list - Guadeloupe B2B market – contact list – Martinique B2B market – contact list – French Guiana