financial report and registration document 2011 - Groupe SEB

1.4. GROUP STRATEGY
A long-term strategy
Groupe SEB implements a long-term strategy focused on creating value
through two major approaches:
� promoting growth by:
� aggressively implementing an innovative product policy differentiated
by brand, so as to design things that sell and stand out from the
competition in each country; by organising point-of-sale promotions;
and by asserting itself as a key market player, in both retail distribution
and fi nal consumption. In this way the Group creates value for its
retailer clients and consumers, defends the quality of its offering and
contributes to improving and upgrading the market and reaffi rming its
product leadership,
� leveraging the strength and complementarity of its brands. Thanks to its
large portfolio of six global (All-Clad, Krups, Lagostina, Moulinex,
Rowenta and Tefal) and 18 regional/local brands (including Calor and
Seb in France, Arno, Panex and Samurai, among others, in South
America, T-fal in the US, Supor in China, AsiaVina in Vietnam, Maharaja
Whiteline in India, etc.), the Group has an unrivalled international
presence as well as coverage of all market segments, from entry-level
to premium products,
� deploying a clear and well-segmented approach by retail distribution
channel and brand and reinforcing its presence in all existing channels
in the country, regardless of their format, to ensure the most extensive
coverage possible of markets and taking account of specifi c local
features. The goal is to develop a long-term constructive relationship
with distributors on the basis of the most extensive product offer on the
market and with strong brands, vectors of growth and profi tability for
each of the parties. Furthermore, the Group is developing a network of
its own retail brand outlets (Home & Cook Tefal shops, Super Lifestores,
etc.) in order to expand its sales operations in areas that are not or only
partially covered by modern or traditional channels. At the same time,
it has jumped into the booming business of e-commerce,
Innovation – Research and development
In a highly competitive market, innovation – whether applied to technology
or products – generates competitive advantages and competitiveness. The
Group uses innovation to offer unique concepts, new functional features,
designs, or differentiated marketing approaches. This provides real added
value for consumers, allowing Groupe SEB to stand out in an effective way
and thus strengthen its positioning and conquer new markets.
Financial Report and Registration Document 2011
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Presentation of the Group
Group strategy
� continuing its unique international expansion, in mature markets as
well as emerging markets, and targeting local leadership positions, or
in any case, the signifi cant improvement of its competitive position in
the market. This geographical development involves continued organic
growth – through new commercial operations in certain countries – and
an external growth policy via new acquisitions. The principle underlying
this basic approach is to develop as a priority in structurally growing
markets;
� maintain its competitiveness over time thanks to:
� the permanent and responsible adaptation of its industrial facilities as
well as its organisation and structures (administrative, logistical, etc.), in
order to base the business on some of the best standards in the world
and preserve the head start forged over the years. Beyond the required
industrial fl exibility, the systematic implementation of best practices,
shorter product times to market, plans to improve the effectiveness
of structures, the very upstream integration of a demanding quality
process and the optimisation of the supply chain are all recurring focus
points for the Group,
� rigorous daily management through strict control over all operating
costs, reduction of purchase costs – whether industrial, linked to
sourced products or out of production, and in the context of an extended
scope year after year – and keeping working capital requirements under
control.
These two fundamental approaches are closely linked since one of the major
pillars for improving the Group’s profi tability is the growth of sales linked to
innovation. The capacity to launch new concepts and products, through
differentiation and resulting improvement in the product mix, justifi es high
sales prices and generates better margins. This enhanced profi tability allows
the Group to invest again in R&D, marketing and advertising, with a boosting
effect on turnover, thereby creating a virtuous circle.
The innovation strategy is consistent with a pragmatic approach to product
creation that involves teams from research and development, industry,
procurement, logistics and strategic marketing, design and quality.
New products are the result of the in-depth analysis of consumer needs
(which include both expressed needs and latent needs), the invention of
breakthrough concepts, the evaluation of new technologies and the creation
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