Brazil's Business Environment: Consumption in Economic Slowdown

250_brazilBusiness-v1.0On the surface, Brazil looks like an attractive market. It is the seventh largest global economy and has a population of 200 million, with high consumer expenditure and high demand for commodities.
But Brazilians are spending less, industrial confidence is deteriorating, and inflation is rising, meaning a future of slow growth and economic recovery.

Consumer goods companies operating in Brazil need to adapt their strategy to integrate the global market place. What are the reasons behind this slowdown and how can organisations work it to their advantage? 

Download our white paper today to learn:

› How Brazil’s rapid currency depreciation has affected its economy and consumers 

› Which consumer industries are slowing down and which have new opportunities

› Why the middle class is changing Brazil’s economic landscape

Download-Now

May 23, 2015

Frenemy with Benefits: How can Toys Makers Capitalise on the Rise of Toy Rental in Asia? – Part 1

Jane-NguyenAnalyst Insight by Jane Nguyen - Research Analyst

View Jane Nguyen's profile on LinkedIn

In 2014 sales of traditional toys and games in Asia hit US$19 billion, marking 7% year-on-year growth and an 8% CAGR over 2009-2014. Being the runner-up in both market size and growth rate, Asia should have boosted its impressive performance in traditional toys and games. However, the rise of digital gaming, age compression and the prevalence of copycat products put mounting pressure on toymakers in the region. New growth avenues should be sought.

Disruption from sharing economy

In late 2005 toy rental services started to make headlines in Western countries. Four years later, when the global financial crisis hit hard in many parts of the world, the Netflix business for toys also stepped into Asia. During that time toy rental met the demand of parents in Asia, who needed to cut discretionary spending due to economic difficulties. Upon the economy recovery toy rental is surprisingly not out of vogue. Instead, it is prospering. In Indonesia the number of online rental companies exceeded 30 in 2014. In Vietnam and India, despite no official statistics, news regarding toy rental services is spreading widely. In Singapore three new toy rental companies entered the market in 2014, bringing the number to six. The success is largely attributed to improved delivery services, favourable return policies, attractive pricing and high standards of sanitation.

Continue reading "Frenemy with Benefits: How can Toys Makers Capitalise on the Rise of Toy Rental in Asia? – Part 1" »

May 22, 2015

Sofia: Affordable European Tourism Destination

Although tourists heading to Bulgaria tend to favour the Black Sea resorts, the capital city draws growing attention too.

According to Euromonitor International’s Sofia City Review, the number of international tourist arrivals to Sofia has risen by 8% per year on average since 2009. The affordability of Sofia is a strong factors for international tourists coming to the city. The Bulgarian capital has been appointed as the most affordable European tourist destination by multiple ratings, including the TripAdvisor TripIndex Cities and Trivago Hotel Price Index, as of 2013. According to the latter, spending a night in the Bulgarian capital costs seven times less than in Geneva, four times less than Milan or Paris, and two times less than neighbouring Bucharest.

High-Quality Internet Access

In the 2009 Broadband Quality Research Report, drafted by the University of Oxford and the University of Oviedo, and sponsored by Cisco, Bulgaria's capital came 10th in the world for the quality of its Internet access. The report awarded Sofia 56 points out of a possible 100, ranking it next to technologically advanced metropolises such as Seoul and Osaka.

Continue reading "Sofia: Affordable European Tourism Destination" »

Fast Casual in International Markets: Where’s the Opportunity?

ElizabethFriendAnalyst Insight by Elizabeth Friend - Senior Consumer Foodservice Analyst

There’s no question that fast casual has become the centre of foodservice growth in the US, but it has become an international phenomenon as well, albeit one that has taken a much different form. Euromonitor International’s 2015 global fast casual data, launched May 19th, paints a very different picture of domestic and international growth. Rather than manifesting via explosive growth through a few seemingly unstoppable chains, international fast casual has come as a result of a slow and steady evolution in consumer preferences. Just like American consumers, young people in wealthier cities all over the world are shifting toward more modern, more casual dining experiences, opening up opportunities for plenty of global fast casual growth over the long-term.

So far, fast casual segments in most developed markets have experienced an entirely different growth trajectory than in the US. The largest international fast casual markets are so far developing in Western Europe, with Germany, the UK and France topping the list with between US$1-2 billion each in 2014. However, each of the three has seen the segment growing slowly but steadily over the past five years at an average annual rate of between 2-8%. On its face this might seem to indicate that fast casual hasn’t been quite as successful in Western Europe, but that doesn’t tell the whole story. In all three of these markets, fast casual has grown to a percentage share of the total fast food market that ranges from 7 in the UK to 14% in Germany, well within the range of the US’s 10% fast casual share.

Continue reading "Fast Casual in International Markets: Where’s the Opportunity?" »

World Green Tea Growth Prospects

Emi_greenTea-v1.0

The global green tea market is highly fragmented; the leaders Ito En and Unilever are close rivals, with just 4% value shares each in 2014. The potential for growth is huge, thanks to green tea’s health benefits. Unilever should look to address its weaknesses in Asia Pacific, particularly in China and Indonesia, in order to seize growth opportunities, thus defending its future global status.

May 21, 2015

The Lighter Side of Wine and Beer

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

View Amin Alkhatib's profile on LinkedIn

Euromonitor International figures show that volume sales of wine declined marginally in developed markets in 2014, while beer sales were up marginally. Brewers have been trying to boost volume sales in these regions, for example by including female drinkers or millennials in their target consumer group. Wine makers, unlike brewers, have to deal with a relatively less consolidated market category-wise, but, like the brewers, aim to expand their sales to a wider demography. However, there are some niches that both industries can look at to attract attention towards their brands, one of which is low-calorie products.

Exploiting a niche trend – low-calorie wine and beer

Developed markets have been witnessing a shift in consumption away from high-calorie non-alcoholic drinks and food to low-calorie ones. This has been reflected in the decline in per capita daily calorie purchase in markets such as the US, Germany and Canada. Other developed markets have been witnessing a decline in one or the other.

Low-cal-wine

Source: Euromonitor International

Continue reading "The Lighter Side of Wine and Beer" »

Targeting the Senior Consumer in Japan: A Case Study

Many companies have traditionally ignored later lifers – men and women over 60 – because they are seen as frugal spenders with lower incomes and the ability to resist marketing messages. In Japan, companies in the packaged food, consumer electronics and retail and foodservice sectors are targeting senior consumers with new concepts and products. Learn more about the challenges and opportunities in targeting the senior consumer by downloading our free whitepaper today.

Is Radio Dead?

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Listen as MP3

Based on ownership statistics, radio is a declining medium. Radio possession rates dropped by a significant percentage between 2009-2014, and listening rates dropped by a third over the same period. Still, global radio ad spend has remained stable. Listen to the podcast for complete insights.

Pavel_MarceuxPodcast features Pavel Marceux - Technology, Media and Communications Specialist

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May 20, 2015

Airports: More than Getting from A to B…

Daphne KasrielAnalyst Insight by Daphne Kasriel-Alexander

View Daphne Kasriel's profile on LinkedIn

As the consumer experience of flying has perhaps become more basic for most of us in recent years, with ‘no-frills’ airlines and even scheduled airlines limiting perks to keep prices down, airports have blossomed into more than utilitarian transportation hubs. They now feel like odes to the consumption of goods and services, with a plethora of shopping and dining options and more recently fitness, sleep and tranquillity zones on offer. Globally, US$385 billion worth of airport projects are in progress, led by China and the Middle East, according to estimates by research body the CAPA Centre for Aviation. 

Customers prefer airports offering an experience

The biggest annual survey of airport passengers, the World Airport Survey, better known as the Passenger Choice Awards, from Skytrax, with 13 million completed surveys, offers ample proof. Voted the world’s best airport for the third year running in the latest edition of this barometer of air passenger satisfaction is Singapore's Changi Airport, which was also voted best airport for leisure amenities.  

Continue reading "Airports: More than Getting from A to B…" »

The Success of Korean Beauty Products in the United States

South Korea is known for its smartphones, K-dramas, and K-pop. Now this Asian country is having success exporting its beauty products outside of Asia. BB creams originated in Korea and have exploded around the world. We are now seeing cushion compact foundations that blend color with skin care benefits as well as sleeping masks you wear overnight. What’s driving their success? Korean beauty products offer the latest in technology, cute packaging, and affordable prices. In the US, Korean beauty products have moved beyond ethnic Korean grocers to Target, Sephora, and Urban Outfitters.

Virginia LeeVideo features Virginia Lee - Senior Research Analyst

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Confira nossa apresentação na Cleaning Products Latin America – São Paulo 2015

CPLA_final1Nome do evento: Cleaning Products Latin America 2015

Data: 23 a 25 de Junho de 2015

Data da apresentação: quarta-feira (24) às 15h, Hotel Pullman São Paulo Ibirapuera

Sobre o evento: Realizada pela primeira vez no Brasil, a Cleaning Products Latin America 2015 abre um espaço para que os principais profissionais do segmento se atualizem e discutam sobre as tendências mundiais que estão afetando seus negócios em casa. O programa oferece um olhar aprofundado sobre as últimas inovações e avanços tecnológicos que vão afetar os negócios no mercado latino-americano.

Sobre a apresentação: Ian Bell, analista-chefe de Home Care da Euromonitor, apresenta “O futuro dos cuidados com o lar (América Latina): O ritmo e a forma das coisas para chegar ao Consumo Médio Global”. A América Latina é a casa para o consumo médio mundial em cuidados com o lar. Isto não é dizer que o mercado latino americano é mediano; de fato, é o contrário. A região está se modernizando em ritmo acelerado e avançando no gasto com os cuidados com o lar e o formato dos produtos são uma clara indicação de que a região está migrando para uma posição mais madura. Dito isto, evidências de outros setores sugerem que maturidade não chega sem problemas; a armadilha da classe média precisa ser evitada e o desenvolvimento dos produtos precisam se manter com a evolução de forma ampla na sua cadeia de abastecimento (não linear).

Website: www.cleaningproductsconference.com/cpla

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Recent Posts

Frenemy with Benefits: How can Toys Makers Capitalise on the Rise of Toy Rental in Asia? – Part 1

Sofia: Affordable European Tourism Destination

Fast Casual in International Markets: Where’s the Opportunity?

World Green Tea Growth Prospects

The Lighter Side of Wine and Beer

Targeting the Senior Consumer in Japan: A Case Study

Is Radio Dead?

Airports: More than Getting from A to B…

The Success of Korean Beauty Products in the United States

Confira nossa apresentação na Cleaning Products Latin America – São Paulo 2015