PANAMA GENERAL INFORMATION
TABLE OF CONTENTS
Executive Summary Organization & Management Market Analysis Country and General Facts Political Outlook Economic Outlook The Automotive Market Total Market / Segment Top Ten Brands and Market Share Chinese Brands Competitors Network
Products Operation Plan Marketing and Sales Plan Portfolio Development Next Steps
EXECUTIVE SUMMARY
LADA is planned to be formed in Panamรก City, Panamรก, in response to the following market conditions:
EXECUTIVE SUMMARY
Startup opportunities exist for importing and distributing LADA products in Panamรก. Panamรก have grown consecutively for the last 10 years. GDP growth for 2018 is estimated at a minimum 5,4% and the automotive industry is approaching to increase. The creation of a company to import and distribute LADA brand in Panamรก will be supported combining the experiences of executives and investors with extensive background in managing and developing successful businesses within the automotive industry.
ORGANIZATION & MANAGEMENT THE KEY STRENGHT: SOLID ALIGNED SHAREHOLDERS
56,000 square feet each.
PMG strength will be based in the diversity and complementarities of its individual components, aligned to achieve a common objective. Shares will belong to two main groups, perfectly complemented:
2.Esmo Internacional, S.A. sells casual apparel wholesale in Mexico, the Caribbean, Central and South America. Owns six showrooms in Panama City and employ sales staff for the entire region. It began operations in 1998 with the brand Sculpture. We acquired the license of U.S. Polo Association for garments, shoes and accessories, which started in year 2000 for all Latin America and the Caribbean Islands.
ESKENAZI GROUP Eskenazi Group established in the Republic of Panama is made up of fifteen Panamanian corporations with annual sales over US$300 million. Additionally, the Group is one of the main shareholders of a bank, a hospital and a professional soccer team. Below it is detailed the most important companies that conforms the Eskenazi Group: 1.Deco Auto, S.A. an auto parts, car accessories and tires retailer situated in Panama City. We have two stores of
Yem, distributes the OP (Ocean Pacific) brand for 23 years. In 2005 Esmo and Yem joined forces to expand throughout Latin market. We also acquired Brookfield brand in 2016 3.Gadol Import Corp sells mostly clothes, house ware and toys throughout Latin America and the Caribbean. It owns a showroom and a warehouse in the Colon Free Zone and employs a staff responsible for sales throughout the region. It began its operations in 1973.
4.Lafayette, S.A. sells auto parts and accessories at wholesale to distributors and retailers in South America, Central America, and the Caribbean. It began operations in the Colon Free Zone in 1984. In the year 2004 it expanded its line with a complete hand tools line with a private brand Hunter Tools helping to double its sells. In 2010 we ventured in the lighting business with great success. Lafayette has 52,000 square feet showroom with 200,000 square foot warehouse. Some of the brands that we represent are Dunlop Tire, Nexen Tire, Carry Boy, Winbo, Delta lighting, Osram, Flos, Maxell lighting among others. 5.Paras S. A. A real estate holding company, which owns 189 commercial buildings, part of two shopping malls and over 180 acres of land in the Republic of Panama. 6.Piazza Internacional, S.A. sells apparel, athletic and casual footwear wholesale throughout South America, Central America and the Caribbean. It is the exclusive
distributor of Ocean Pacific casual footwear, Patrick athletic footwear (soccer shoes), Rockland footwear, Fisher Price children’s footwear, Lego children’s footwear, New Balance athletic footwear and sport wear, Saucony footwear and sport wear, Levy’s footwear and apparel, Dockers footwear and apparel, Nautica footwear, Xoxo footwear and Cobra footwear. It began operations in the Colon Free Zone in 1985. **New Balance sponsors the Costa Rica and Panamanian soccer teams for the World Cup Russia 2018** 7.TOP RIDE MEXICO In 2016 we opened a Car Accessories in Queretaro, Mexico, we are working into a Mexico retail car accessories store, as well as we do in DecoAuto Panama.
Regarding our participation as main shareholder, we can indicate: A.Global Bank is the second largest Panamanian bank. Eskenazi Group is a strong shareholder of the bank, recently bought a large bank with over 20 branches. B.Tauro Football Club is one of ten professional soccer teams in the Republic of Panama. Eskenazi Group owns 33% of the team. It has one of the largest Panamanian soccer fans since they won the first place eight times on its league during the last eleven years. Grupo Eskenazi provides Patrick soccer shoes without cost to the team members, in order to promote the brand in Panama and throughout the region where the team plays. Patrick shoes are now by far the most widely sold soccer shoes in Panama as a result of Eskenazi Group’s effective marketing efforts.
C. Punta Pacifica Hospital is the largest hospital in Panama, is affiliated with Johns Hopkins Hospital and it is the most modern and renovated hospital in Latin America, recently opened its new branch in Costa del Este. Eskenazi Group is a strong shareholder of the hospital.
MENDEZ GROUP Deep Understanding and Know How of the automotive business (former Nissan, Mitsubishi and all American Brands distributor) Experience in aviation business, real estate, construction, banking and financial business and agriculture.
OPERATIONAL ORGANIZATION Reporting to the General Director, PAG Panamรก will be organized into three main functional areas: Finance & Administration, Commercial management and After-Sales department. The Management Team & Board of Directors combine the experiences of executives with extensive backgrounds in managing and developing successful businesses within the automotive and premium product industries. GENERAL DIRECTOR
Finance & Administration Manager
Commercial Manager
BOARDS OF DIRECTORS
After-Sales Manager
MARKET ANALISYS Political Outlook Panama is an Independent, Panama has shown political Sovereign and Democratic State. stability, which has allowed it to generate sustained economic The Presidential period is 5 years. growth and a good atmosphere for The current President is Juan doing business. Carlos Varela, who must remain in charge until 2019.
Official Name: República de Panamá
Capital: Panama City
Population: Climate: It has a tropical climate, 4 million very hot throughout (BM 2016) the year.
Currency: US. Dollar
Major Cities: Panama City, David
Language: Spanish
Area: 75.420 km2
Main Sector: Main Exports: Bank and Agricultural Financial Services, products Logistics Services, Free Zone, Tourism
MARKET ANALISYS ECONOMIC OUTLOOK •Over the past decade, Panama has been one of the fastest growing economies worldwide. Average annual growth was 7.2 percent between 2001 and 2013, more than double the regional average. The Panamanian economy grew by 6.1 percent in 2014, coming down slightly to 5.8, 4.8 and 5.2 percent in 2015, 2016 and 2017, respectively. By 2018 the forecast remains at 5.4 percent, the highest in Latin America. •Private and public demand has been growing aggressively in the last 6 years and supports the economic expansion. •In the medium term, Panama’s growth is likely to remain one of the highest in Latin America. Public investments should also remain high, with planned construction of the second Metro line and expected additional traffic generated by the expanded Canal. Private investment should also remain strong. Prospects for high growth in the coming years are also supported by emerging opportunities for private sector-led growth in key sectors, such as transport and logistics, mining, financial services, and tourism.
THE AUTOMOTIVE MARKET
TOTAL MARKET & SEGMENT
TOP TEN BRANDS & MARKET SHARE
CHINESE BRANDS
COMPETITORS NETWORK