Barcelona, 16th April 2015, 11.30 am
With IATA's New Distribution Capacity (NDC), the airlines industry is now one step closer to delivering more personalised travel. So, will 2015 be the year when "Big Data" combines with the promise of NDC to deliver the right product to the customer at the right time across any channel? Or will the drop in oil prices see the industry take its focuss off the revenues driven from ancillaries and merchandising? These issues will be addressed during the 9th Ancillary Merchandising Conference. This event will bring together industry stakeholders responsible for ancillary revenue generation to discuss the latest trends, best practices, actionable strategies and insights.
Continue reading "Euromonitor to speak at the Personalisation Summit - 9th Ancillary Merchandising Conference" »
Analyst Insight by Lidia Shuktomova - Research Analyst
With ongoing political and economic woes, 2015 is expected to be a challenging year for the Russian marketplace. Euromonitor International projects that in 2015 Russia’s real GDP will decrease by 3.8% and consumer expenditure will fall by 4.6%, in constant 2014 prices. As a result, many Russians are expected to trade down. In 2015, retail sales of tissue and hygiene in Russia are projected to see only 1% rise in constant value (US$ fixed 2014 exchange rate) to achieve US$4.4 billion. However, volume sales for many categories are expected to register stronger growth, reflective of weakened purchasing power and bargain shopping.
While challenging in the short term, Russia’s downturn creates a window of opportunity for domestic brands to capture consumer attention, build customer loyalty and drive domestic industry growth, helped by expanding local production and improved supply chain.
Continue reading "Russia: Current Challenges and Long Term Opportunities in Retail Tissue and Hygiene" »
Analyst Insight by Spiros Malandrakis - Senior Alcoholic Drinks Analyst
Keeping up with the marathon of legislatives changes, political posturing, taxation hikes and advertising restrictions in the freefalling Russian alcoholic drinks market over the past 5 years would prompt one to reach out for a stiff drink- even before factoring the rubble’s plunge or the geopolitical Gordian knot and resulting sanctions into the equation.
Begrudgingly doing so would probably lead to lacing said stiff drink with generous quantities of caffeine in the hope that the temporary buzz would provide short term insulation from the market’s crashing realities. From the 1st of May, even that – admittedly desperate – option will be illegal, at least in Moscow.
Continue reading "RTDs in Russia: Red Alert for Stimulants in Moscow" »
Analyst Insight by Povilas Sugintas - Research Analyst
Health and wellness is one of the most discussed trends in all Lithuanian FMCG industries and soft drinks products are usually recognized as one of the most impacted areas. Consumers, the argument goes, should avoid drinks perceived as unhealthy and either reduce their intake, abandon them altogether or seek a compromise by looking for healthier versions of the same drinks. However, in looking at Euromonitor International’s soft drinks data in Lithuania over the period of 2009 to 2014 (specifically, CAGRs – compounded annual growth rates) a rather different picture emerges. In fact, the best results were achieved by the same categories which have faced the most scrutiny. At the same time, categories appearing to be well-positioned to benefit from current healthy lifestyle trends were stagnating and even declining in some cases. Large marketing budgets and powerful branding have proven to be better indicators of growth than wellness positioning.
Continue reading "Despite healthier rhetoric, better branding and marketing drive Lithuanian soft drinks" »
Frugal innovation, or removing non-essential and often costly features from a product or service, can be a win-win for business – because it’s a process which is sustainable, cost-effective, and potentially very rewarding in terms of extending reach to new consumers. At its heart, frugal innovation is about focusing on customers, observing their core needs and designing products, services and business models that meet these needs.
Not just for emerging market consumers
In the past, frugal innovation has been seen as an idea for emerging market consumers and indeed many impressive ideas have come out of emerging and developing countries.
Continue reading "Frugal Innovation: When Less is More and Simplicity Sells" »
At the end of March 2015, the European Union will abolish milk quotas, meaning EU member states are no longer restricted on the amount of milk they can produce. This increased output means a likely oversupply of milk. Using Passport and Euromonitor's Competitor Analytics system, Euromonitor identifies key markets, categories and companies that ingredients suppliers should target.
Continue reading "Case Study: Identifying Potential Targets for Milk Products after the end of EU Milk Quotas" »
As most expected, the UK budget was not characterised by endless pre-election giveaways, however an important point was the forecast reduction in public debt. A sign of austerity working? More a sign of low inflation, reducing debt repayments, asset selling and real GDP growth. In 2014, UK public debt was the ninth highest in the EU, slightly above the EU average, but lower than France, Spain and Italy. In constant terms it increased by 75% since 2008 and reached £24,313 per capita last year. The government’s forecast of 71.6% of GDP in 2020 will take it back down to 2009-2010 levels, but remaining way higher than pre-crisis.
Continue reading "UK Budget 2015: Debt Reduction is Not Assured" »
Analyst Insight by Ugne Saltenyte - City Analyst
During the global economic downturn, household incomes fell in most of the developed world. Seven years later, in 2014, key North American cities had mostly recovered, with their average household disposable incomes being on average 4% higher than before the crisis in 2007. In Western Europe, household incomes exceeded the pre-crisis levels in a third of the major metropolises. However, regardless of the development in the average living standards, the urban poor (defined as the lowest-earning 10% of households in the city) still found themselves earning less in 2014 than they did in 2007 across both North America and Western Europe.
Change in Average Disposable Income of the Lowest-Earning 10% (decile 1) and the Highest-Earning 10% (decile 10) of Households, 2007-2014 (Constant 2014 Values)
Source: Euromonitor International
Continue reading "Urban Poor to be the Last to Climb out of the Recession" »
In the post-recessionary landscape, generational divides are looming larger. Crudely put, in many minds, the Baby Boomers correlate with the “haves” and the Millennials or Generation Y, to the “have nots”. This may be an over-simplification; Baby Boomers are not all wealthy, with the added complexity that some are spending significant amounts supporting their Millennial offspring. Nevertheless Millennials, the majority of whom have entered the labour force since 2007, are clearly at the forefront of significant change in consumer behaviour, driven in part by their recessionary inheritance.
A lost generation?
In Europe, challenges faced by Millennials are compounded by government austerity policies, which many believe have hurt the young the most. This is borne out by spectacular rates of youth unemployment – more than 55% in Greece in 2014 and 51.2% in Spain. It is not solely a European problem though, the rate of youth unemployment stood at 13.0% in the USA in the same year – more than twice the overall rate of unemployment.
Continue reading "Generational Divides: Millennials, Austerity and Consumption" »