Sinersis Distribution Strategies
General Data:
Company Name: SINERSIS ESTRATEGIAS DE DISTRIBUCIÓN S.A.
Sector: Home Appliance Retail
Year Established: 2005
Headquarters: Bravo Murillo, 377 – 4ºA – 28020 Madrid
Number of Partners: 20
Number of Associates: 1,200
Number of Stores: 1,580
Total Number of Employees (Direct and Indirect): Over 5,000
Website: www.sinersis.es
Brief history of the company:
Sinersis emerged in 2005 from the merger of two national federations of purchasing groups in the household appliance sector, Dinel and Densa, which operated in the market with the brands Milar, Tien21, Confort, and Ivarte. Both originated in the late 1970s and early 1980s through the collaboration of regional groups that, in turn, had been formed by the merger of household appliance stores.
In 2017, a third national federation joined Sinersis. This was Euronics, which was part of Euronics International, the largest group of household appliance and electronics retailers in EMEA.
Currently, Sinersis has approximately 1,600 points of sale throughout Spain, operating under the Milar, Euronics, and Tien21 brands. With a combined turnover of nearly €1.1 billion in 2022, it is the leading organization in the Spanish market and ranks among the top 20 non-food retail companies in the country. Its market share means that one in four household appliances sold in Spain is sold in a Sinersis store.
Organizational Model:
Model description:
Sinersis is the organization that coordinates the commercial interests of the 21 associated regional platforms.
Sinersis’ objective is to increase productivity in sales management, as well as improve its competitive capacity by directing the marketing strategies of the brands and negotiating framework and promotional agreements with suppliers.
Sinersis’ three brands—Tien21, Milar, and Euronics—position us as a leader in the Spanish home appliance sector. In all our stores, you can find top appliance brands in a welcoming environment with personalized service that only a local shop can offer.
Main roles and responsibilities:
The key element of Sinersis is the physical point of sale, since the entire organization is structured to serve it and help it in its development, to serve the consumer.
Sinersis manages annual agreements with over 100 manufacturers of electronics, household appliances, computers, mobile phones, and air conditioning. These agreements are then implemented at regional platforms as a framework for commercial transactions. Retail outlets receive product deliveries from warehouses, which can then ship directly to the customer’s home or to the store.
The platforms give Sinersis national coverage of its brands, managing them in assigned territories, so that each platform has an area of influence and manages between one and three brands within it.
Sinersis also manages centralized sales initiatives and monthly marketing campaigns, with a constant presence on national television and media. The regional platforms are responsible for conducting marketing campaigns within their respective areas of operation.
Sinersis is the interlocutor with Euronics International, holding the vice presidency of the organization, a seat on the board, participation in the board and assembly, as well as prominent roles in the product and marketing teams.
Tools and technologies used:
All points of sale are connected to the platform, providing access to comprehensive information on the thousands of product references available in the warehouses, including stock levels, transfer prices, and reference to the retail price. The system also facilitates assortment recommendations based on available space, market data, turnover rates, promotions and offers, order status, and more.
Sinersis owns three online stores featuring its brands. Thousands of products are uploaded to the websites daily, based on stock availability across its 21 warehouses. Prices are set using cost and market algorithms.
Each time a user visits a website, the system uses geolocation to show them their nearest physical store and featured products available in its closest warehouse. The ultimate goal of this tool is to direct them to the physical store or make them aware of its location, allowing them to access it directly from the website’s information page via phone, WhatsApp, or by using geolocation on their mobile device. If the user decides to make a purchase online, accessing the offers available in their nearest warehouse first guarantees delivery to their home or chosen store,
in many cases within 24 hours.
Sinersis also co-owns and manages over 1,000 Google My Business listings for its stores. This centralized management improves the search engine ranking of the retail locations and ensures that the listings are up-to-date and contain complete information.
As a result, more than half of the traffic to physical stores comes from previous visits to websites or Google My Business listings.
Business Model:
Main value proposition:
Customer focus and proximity are Sinersis’ core values. Users can access any of its more than 1,500 stores from the comfort of their homes in under 15 minutes. The combination of extensive network, service, and digital support makes its omnichannel business model unmatched.
Participation of partners and associates:
Sinersis is one of the clearest examples of strength in unity. Its more than 1,500 stores, working in coordination with their logistics platforms, under the coverage provided by Sinersis headquarters and the international umbrella of Euronics International, form a benchmark value proposition in Spain and Europe.
Business Case:
Challenge:
Decision-making centers have long since moved beyond our borders. The global nature of the market and the need to interact with major global manufacturers demand a supranational presence to ensure adequate dialogue and attention from them.
Solution implemented:
Although the size, scope, prominence and work carried out by Sinersis makes it an indisputable benchmark in the Spanish market, it is essential to raise the level of dialogue to international forums through alliances with similar organizations that are committed to the physical point of sale, the promotion of the channel brand and omnichannel strategies.
With this clear objective, Euronics International was created, which is currently the leading organization in the sector in EMEA with more than 23 billion in revenue.
Results:
This privileged position allows Sinersis to have high-level communication, attending meetings with the top executives of the world’s largest suppliers. Manufacturers also consider Sinersis a key player in our market. This leads to highly beneficial agreements for retailers and initiatives that foster their growth.
Similarly, Sinersis’s prominent position within Euronics International allows it to assert the Spanish perspective on commercial activities, marketing, and sustainability. Examples of this include brand management, sponsorship of UEFA Women, and collaborative efforts aimed at achieving net-zero emissions for our organizations.
Tips and Reflections:
We need to think big and understand that customer service and the care of the physical store are fundamental pillars. We need to decide where we want our business model to be in the future and what it takes to get there. At Sinersis, it has always been a guiding principle that collaboration between similar models, with generosity and honesty, is essential to ensuring that future.
Learning from others, sharing experiences and giving up some autonomy to improve, have allowed Sinersis to become a benchmark in commerce in Spain and Europe.
Future:
The challenges are constantly evolving, just as consumers are. Faster decision-making and collaboration across all areas will remain essential to continue delivering value. We will need to strengthen our commitment to brands, vertical integration, service, and omnichannel strategies, always built upon the solid foundation of the physical store. The best way to predict the future is to create it.