Succeed in Emerging Markets: Selection, Strategy and First Steps

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250_MarketSelection-v1.1When making the decision to enter an emerging market, every business should include the following four pillars in its market entry strategy:

Market incorporates macroeconomic stability, consumer market size, growth and openness. 

Population focuses on demographics: this assists in understanding how a business product or service will fit into a competitive landscape.

Access, or the reality of market entry: if a country is not easily accessible, businesses will not successfully produce goods in the market or reach consumers.  Other topics discussed within the access pillar are infrastructure, Internet, partners and the retail landscape.

Business environment emphasizes the regulatory environment and corruption. 

 

According to Euromonitor’s Head of Strategic, Economic and Consumer Insight, Sarah Boumphrey, “Too many companies perform inadequate amounts of research prior to launching a product or service in a new market.  This is problematic because some markets simply might not work. Utilising Euromonitor’s four pillar model before entering new markets provides a better understanding of the needs of consumers and the business environment in countries of interest.”

Euromonitor’s four pillar market entry strategy model should be tailored on a case-by-case basis based on sector-specific and business-specific factors to ensure the best information is used for each business. This white paper gives you all the tools you will need to implement this approach for your customized best results.

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November 25, 2014

Regional Trends in Consumer Foodservice

Euromonitor International and Nation's Restaurant News are pleased to present the list of top 25 consumer foodservice operators in non-North American regions. This video looks at insights and trends in foodservice across these global regions.

Global Foodservice Sales Reach US$2.6 Trillion in 2013

NRN-2014_Top-25-CoverOur new list, compiled in collaboration with Nation's Restaurant News, focuses on the top 25 international foodservice operators of outside North America.  This list and corresponding regional analysis is prominently featured in Nation’s Restaurant News latest issue.   

Asia Pacific leads the way in foodservice sales with US$1 trillion dollars, followed by North America with US$544 billion and Western Europe at US$535 billion respectively. However, Eastern Europe experienced the most fixed year-on-year growth in 2012-2013with 10.8% sales growth, while Latin America also experienced strong growth with 9.7% expansion.  

In Latin America, Brazilian chain Habib’s still leads the way in sales, reflecting the continuing importance of value-priced local brands and in Western Europe, UK-based Costa Coffee has expanded with an additional 25 markets in the region, increasing their rivalry with Starbucks.

Michael Schaefer, Head of Consumer Foodservice Research, says, “Utilizing our extensive global research helps us formulate the top 25 list and provides unique insights to not only what is going on in foodservice globally, but what is trending regionally. This in turn offers operators an opportunity to better understand their own markets, as well as markets they may wish to expand into in the future.”

Download the Top 25 International Restaurant Chains List

To read the rest of the analysis provided by Euromonitor and Nation’s Restaurant News please visit: http://nrn.com/

India Planning Outright Ban on E-Cigarette Products

Shane_MacGuillAnalyst Insight by Shane Mac Guill - Senior Tobacco Analyst

An unfortunate trend to the radical regulation of e-cigarettes progressed further today as Reuters reports that the Indian government is considering a total on the products. We have written recently on the WHO’s flawed policy stance on e-cigarettes, which fed into a policy position from the 6th Conference of the Parties to the FCTC in Moscow in mid-October, leaving open the option of bans for the products. It is in this prohibitionist context that the proposed measures in India need to be viewed. 

Eon.pngWhile smoking prevalence in India, because of the pervasive use of smokeless tobacco products is relatively low at 6.5%, the sheer size of the population means that there are 52 Indian million smokers, the 3rd largest global smoking population behind China and Indonesia. In total there are some 275 million tobacco consumers in India and the Indian government has been proactively seeking to control all forms of tobacco consumption in the country.

Continue reading "India Planning Outright Ban on E-Cigarette Products" »

November 24, 2014

Top 3 Challenges in Reaching the Chinese Consumer

An HodgsonAnalyst Insight by An Hodgson - Income and Expenditure Manager

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With decades of economic growth, rising incomes, over 1.3 billion consumers and a surging middle class with an insatiable appetite for Western brands, the allure of the Chinese consumer market – the world’s second largest – is obvious. But, as many consumer goods companies have recognised at their own cost, China is a tough market to enter, compete and survive in, let alone prosper. Yet, in the face of moderating growth and rising costs, the challenges facing international consumer goods businesses in China will not get easier in the long term.

Annual Real GDP Growth and Household Annual Disposable Income Growth in China: 2008-2020

Source: Euromonitor International from national statistics/Eurostat/OECD/UN/International Monetary Fund (IMF), World Economic Outlook (WEO)

Note: Data for 2014-2020 are forecasts. 

Continue reading "Top 3 Challenges in Reaching the Chinese Consumer" »

Euromonitor to Speak at Hong Kong Toys and Games Fair

Toys & Games Fair logo

Date: January 12-15, 2015

Location: Hong Kong Convention and Exhibition Centre, Hong Kong

Event Description: Organised by the HKTDC and held at the HKCEC, the Hong Kong Toys & Games Fair is the largest toy industry event in Asia. Exhibits include educational toys and games, electronic and radio/remote control toys, festive and party items, outdoor and sports toys, toy packaging, smart-tech toys, plush toys, dolls and video games. The fair also includes a Kidult World featuring hobby goods, vehicles, mechanical toys and action figures.

Utku_TanselSpeaker: Utku Tansel, Head of Toys and Games Research at Euromonitor International

View Utku Tansel's profile on LinkedIn

Continue reading "Euromonitor to Speak at Hong Kong Toys and Games Fair" »

Risks to the Global Economic Outlook in 2015

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The outlook for the global economy in 2015 is looking increasingly uncertain, clouded by a myriad of risks. The most important amongst them are geopolitical instability and the challenges facing the eurozone – namely the threat of deflation and stagnating economic growth. These risks have global ramifications and could have important spillover effects.

Have a question or a thought to add? Leave us a comment below.

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November 23, 2014

International Business Provides Moderate Positives in Japan Tobacco Interim Results

Shane_MacGuillAnalyst Insight by Shane Mac Guill - Senior Tobacco Analyst

In the context of elevated levels of domestic competition and contractions in some of its major international markets, Japan Tobacco’s results for the quarter and year up to September 2014, released on the 30th of October were broadly positive albeit in so far as significant volume decline can ever be so described. The results clearly indicate the impact of excise increases in Japan, the company’s reliance on Russia and the trend to lower value products in many markets, also referenced by both BAT and Imperial in recent results.

Domestic struggles 

It is testament to the continuing decline in importance to the company of its domestic market that a set of group results, of which a 10% volume decline in Japan formed a part, can still be characterised as positive. An overarching industry contraction in Japan prompted by the April 2014 excise hike and a tough competitive environment in which JT is having to graft for every basis point of share contributed to a 10% sales volume decline between April and September 2014. Difficult pricing meant that the company had to rely on cost reduction to marginally mitigate volume loss to just over 7% operating profit decline.

Continue reading "International Business Provides Moderate Positives in Japan Tobacco Interim Results" »

A Few Factors Monster May Want to Know When Tackling China – the Thirsty Dragon

Hope.LeeAnalyst Insight by Hope Lee - Beverages Analyst

Monster Beverage Co has certainly tasted the sweetness of distribution support from The Coca-Cola Company (TCCC). Its global market share has climbed significantly since the distribution deal started a few years ago and it is now the biggest threat to Red Bull GmbH. Upon the completion of the deal, Monster and TCCC will be able interplay with their energy drink brands and subbrands in different regions or core markets and make strategic decisions as to how to grow their combined brand portfolio.

Before the new Monster fully grows and forms, Monster’s management started to show its long-awaited ambition to enter China. Euromonitor International data shows that China is an apparently underdeveloped market for the two ambitious partners. Without a solid physical presence in this strong growth region, TCCC/Monster could lose out on playing a part in China’s energy drinks boom. Monster said that, “China is a very long-term strategic goal for us – we want to be there, we want to get there as quickly as we can. There’s a complex regulatory procedure to get through to register.” These words show its eagerness to make an entry and its desperate need for help from TCCC. So let’s have a look at the opportunities and challenges China may present to the new Monster.

Continue reading "A Few Factors Monster May Want to Know When Tackling China – the Thirsty Dragon" »

Monster: Marketing Energy Drinks in China – the Soft Aspects

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analyst

Marketing-wise, Monster needs to consider how to position itself and what story to tell to win the young consumers’ hearts. TC Pharmaceutical’s Red Bull held the Red Bull Hip-Hop Challenge and set up the Red Bull Style Hip-Hop Party, which were popular among Hip-Hop and fashion fans. It also launched “Extreme Domino”, showing a variety of extreme sports to create a domino effect, and bringing its audience a rich world of imagination as well as vividly embodying the brand’s “personality”. Shenzhen Eastroc Beverage Co Ltd reported that it splashed out RMB107 million to obtain advertising rights on prime-time CCTV in 2014. Likewise, Monster may be looking for an association with a national sports team, a film star or even a well-known US star for endorsement purposes. Even the Chinese translation of the brand name needs to be distinctive, attractive and easy to remember. So far, Monster’s Hong Kong Chinese website does not seem to have a Chinese version name. As things stand, the energy drinks market is very much a manufacturer-led industry, in which the targeted consumers tend to be influenced by clever and continuous marketing campaigns. Some brand names are acceptable in certain cultures, but may not sound right in others. The direct translation of Monster into Chinese would be “an ugly object” – and Monster is unlikely to want to be associated with this not so favourable meaning.

Continue reading "Monster: Marketing Energy Drinks in China – the Soft Aspects" »

November 22, 2014

Panorama de retail en Latinoamérica ¿estaremos realmente tan afectados?

El desarrollo del retail va muy de la mano de la economía. Actualmente la economía global está pasando por un momento difícil pero la industria de retail se mantiene estable en Latinoamérica en general con tasas de crecimiento de 4% anual en términos constantes para los próximos 5 años, según datos de Euromonitor International. La región se compone de países cuyo mercado retail está más desarrollado como Chile, México y Uruguay y países donde aún hay muchas oportunidades de expansión como Bolivia, Guatemala y República Dominicana. Por su parte, el crecimiento de la clase media ha ayudado a impulsar el mercado. Aunque los efectos de la economía aún no se han materializado en el retail, se puede esperar que en el futuro las tasas de crecimiento sean más moderadas.

Continue reading "Panorama de retail en Latinoamérica ¿estaremos realmente tan afectados?" »

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Recent Posts

Regional Trends in Consumer Foodservice

Global Foodservice Sales Reach US$2.6 Trillion in 2013

India Planning Outright Ban on E-Cigarette Products

Top 3 Challenges in Reaching the Chinese Consumer

Euromonitor to Speak at Hong Kong Toys and Games Fair

Risks to the Global Economic Outlook in 2015

International Business Provides Moderate Positives in Japan Tobacco Interim Results

A Few Factors Monster May Want to Know When Tackling China – the Thirsty Dragon

Monster: Marketing Energy Drinks in China – the Soft Aspects

Panorama de retail en Latinoamérica ¿estaremos realmente tan afectados?