Analyst Insight by Emily Potts, Contributing Analyst, Euromonitor International
When it comes to HE washing machines, which
compartment does the detergent go in? What about fabric softener? Washing
machine drawers bring confusion to many. While some consumers research this problem online – a quick search of ‘washing machine drawers’ brings up plenty
of queries, hints and instructions – plenty will rely on guesswork, and more
industrious souls might read the instructions that came with the machine, if
they can find them. With many of the symbols used on washing machine draws
having little consistency between brands and also the labels on detergent and
softener brands themselves, it is little wonder consumers get confused.
This is also an indication of the lack of connection
which still exists between the software (brand) and hardware (appliance)
providers in this corner of the fmcg industry. In these days of convenience-driven
innovation in both consumer appliances and laundry care, there is surely
opportunity for detergent manufacturers in collaboration with machine
manufacturers to simplify one of the most confusing parts of the laundry
process, innovation that may also herald an opportunity to do away with the
mysterious drawer all together.
Continue reading "Ditch the Drawer Part I: Laundry Care Innovation Ditches the Drawer" »
Analyst Insight by Jeremy Cunnington, Senior Analyst - Alcoholic Drinks, Euromonitor International
Most of the leading international spirits companies struggled to achieve the same rate of growth (3.6%) as the wider spirits category in 2012 and consequently lost global share.
It is perhaps unreasonable to expect many of the international companies to match global growth, which has been driven primarily by local spirits categories or brands in Asia Pacific, such as Baijiu in China and other (Indian) whiskies in India. However, it does shed light on the performances and strategies of key international players.
Continue reading "Leading International Spirits Companies Struggle to Maintain Global Share" »
Analyst Insight by Mindaugas Starkus, Analyst - Industrial, Euromonitor International
India’s computer and related
services industry is expected to surpass that of China in 2014 and double over
2013-2017, exceeding US$200 billion by the end of the period. This will firmly
put India among the three largest IT service providers in the world, together
with the US and Japan. Indian and foreign companies benefit from an abundance
of well-educated, English-speaking IT professionals on relatively low wages,
coupled with tax incentives provided by the government.
Some of the tax benefits given
to companies in the country’s Software Technology Parks (STPs) expired in March
2011 and they now have to pay profit tax on export revenue. However, the
industry remains highly profitable and the increase in taxation is unlikely to
force a rethink among global IT giants as to the best location for their
outsourcing operations. India’s computer and related services industry had a
profit margin of 44% of turnover in 2011. This was significantly higher than
14% in the US, 21% in China or 22% in Germany.
Continue reading "India to Become the Third Largest Computer and Related Services Provider in 2014" »
Analyst Insight by Serena Jian, Senior Analyst - Home Care, Tissue and Hygiene, Euromonitor International
Reckitt Benckiser launched
Dettol Kitchen Gel in India in February 2013, extending the country’s leading
brand in surface care into hand dishwashing liquids, a category which is seeing
rapid growth. Positioned as a “complete kitchen cleaner”, Reckitt Benckiser
expects to capture a significant share of the Indian dishwashing category by
encouraging consumers to use one product for all cleaning tasks in the kitchen.
Riding on its brand equity in household antiseptics/disinfectants, Dettol’s new
launch implies the importance of adding value in product development while
keeping costs down in order to expand in emerging markets where consumers’ disposable
incomes are still low.
Continue reading "Dettol – One for All and All for One" »
Analyst Insight by Hope Lee, Senior Analyst - Beverages, Euromonitor International
As fresh coffee manufacturers look for growth opportunities from pod machines, tea giant Unilever can also consider creating its own branded system. In a Q1 2013 financial release, Unilever reported improved tea revenues, achieving mid-single digit growth. The company attributed its good results to “improved product quality, stronger mixes and improved in-market execution”. Analysts are asking if these factors are sufficient to maintain the long-term growth of its tea business. In a recent conference, Unilever’s Executive VP of Global Beverages was reported as saying that tea capsules and the out-of-home market offer a premium opportunity. Tea, a minor business for the fmcg giant, could make a positive contribution to its corporate financial objective of achieving revenues worth €80 billion by 2020 if this premium opportunity is seized at the right time.
Continue reading "Unilever: Is Creating its Own Tea Pod Machine a Risk Worth Taking?" »