Up until now, peptides have been essentially used to provide firming and anti-wrinkle properties in anti-agers. However, they are now spreading beyond their core facial care market. Indeed, the sun care industry is thriving after regulatory modifications have led to ingredient innovation in sun protection, with Melanin Activating Peptides (MAPs) now gaining momentum in self-tanning thanks to their efficacy. However, ingredients manufacturers could increase their sales by promoting their use in multi-functional skin care products.
Analyst Insight by Mykola Golovko, Analyst - Consumer Electronics, Euromonitor International
Of
all the products unveiled at the Apple Worldwide Developers Conference (WWDC)
2013, iOS7 and iTunes radio were the most important ones for the company’s
future. iOS 7 runs on the company’s popular iPhone and iPad product lines and
its new, minimalistic design was well received by developers. Aside from
cosmetic changes the software also gained functions like Control Centre which
allows users to manage settings and currently running applications from a
single menu. Critically important is that iOS 7 now allows applications to run
a wider range of functions in the background, bringing multitasking
capabilities to Apple’s mobile devices. To the dismay of many widgets,
cross-application data sharing, and ground-breaking features not available on
competing platforms were not part of the update.
The
launch of the subscription-based music service iTunes Radio was long
anticipated as services like Pandora continued to gain popularity threatening
the iTunes downloads revenue stream. With a large install base, and content
library iTunes Radio should be able to effectively compete with existing
offerings at launch. However, iTunes Radio offers no incentives or enhancements
for consumers to switch from third-party cross-platform services like Pandora
en masse which will limit is financial impact for Apple Inc.
iOS
7 and iTunes Radio bring Apple Inc’s feature set closer to that of competing
platforms and services, but offer no functions that could have a measurable
impact on device sales or the competitive landscape in tablets and smartphones.
Global attention has turned to tax, tax efficiency and tax evasion in recent months and predictably tax is also one of the main focuses of the upcoming G8 discussions in Northern Ireland. In a globalised world, countries compete against each other to attract big business and the tax environment is an important factor in this. It is a subject that has also come under the consumer spotlight – Amazon, Starbucks and Google are just a few examples of companies that have come under the public eye as a result of their tax planning. The backlash against companies who are perceived not to “pay their fair share” is likely to continue and many large companies are reviewing their tax planning as a result.
Euromonitor
asked about 250 analysts in 80+ countries about their personal style and shopping
habits in order to better understand how consumers shop for clothes.
Three distinct
types of consumers emerged, each with its own unique style influences, clothing
needs, and shopping practices: the Practical Purchaser, the Fit Fanatic, and
the Stylish Shopper.
In my previous article, I highlighted that Airbnb.com’s growth has garnered the attention of local governments and raised many legislative issues. In this second part of the extended series, I will review the various issues surrounding Airbnb.com and vacation rentals.
Airbnb.com decides to fight in New York City…
On 22 May 2013, a judge in New York City fined a man US$2,400 for breaking a New York City law that prohibits renting apartments out for less than 30 days unless the tenant is living there at the same time. This law was passed in 2010. The man, Nigel Warren, rented his room out to a traveller through Airbnb.com. New York City has issues with building owners converting their buildings, zoned for residential use, into illegal hotels (and posting advertisements on Airbnb.com, Expedia.com), which reduces residential supply and drives up rents. Although Airbnb.com was used in this particular case for the booking, other hosts finding renters through other websites are subject to the same law, so the vacation rental industry is watching this development carefully.
Analyst Insight by Damian Shore, Contributing Analyst, Euromonitor International
This second of a four-part
series highlighting some smaller, lesser known but nonetheless rapidly
expanding emerging pet care markets focuses on Morocco, where a rising urban
and an expanding and westernising middle-class is driving strong growth, in spite
of the fact that few Moroccans own pets and most of those who do tend to feed
them leftovers/table scraps, rather than prepared pet food.
Market
expands by 40% over five years
Pet care sales in Morocco grew
by 40.8% in constant value terms between 2007 and 2012, to reach US$52.8
million. It is the fourth largest market in the Middle East and Africa, behind
South Africa (US$668 million), Israel (US$154 million) and the United Arab
Emirates (US$98.4 million), as well as the second fastest growing market in the
region (behind Saudi Arabia). Real per household consumer expenditure in
Morocco expanded by 12.9% over the 2007-2012 period, to US$9,049, so the pet
care category is significantly outperforming the wider consumer market.
Analyst Insight by Diana Cowland, Analyst - Health and Wellness, Euromonitor International
Most of the health
benefits derived from consuming fish oil originate from the long
chain omega fatty acids EPA (eicosapentaenoic acid) and DHA (docosahexaenoic
acid), according to many clinical research studies. Flaxseed, canola and
soybean oils are typical non-animal sources that provide short
chain omega-3 fatty acids
in the form of alpha-linoleic acid (ALA) or omega-6 fatty
acids in the form of linoleic acid (LA). All of the above are becoming
increasingly familiar labels on dietary supplements and food and drink products
across the globe. Retail value sales of food (including milk formula) and drink
with added omega fatty acids reached US$30 billion in 2012, while sales of fish
oils/omega fatty acids in supplement format reached US$1.8 billion, and
interest is certainly not fading.
Dietary supplements the clear leader in adult intake of
omega fatty acids
The health
benefits linked to omega fatty acids range from aiding children’s brain
development to boosting the ageing brain’s health, heart health and even helping
to relieve depression. At the moment, excluding milk formula from food and
drink, dietary supplements are the clear leader with regard to adult intake. In
fact, in four of the seven regions covered by Euromonitor International’s consumer
health research, fish oil/omega fatty acid supplements ranked among the top
three fastest growing types of supplements over 2007-2012. In Australia, where this
is the second fastest growing type of supplement, consumers are embracing its
benefits for cardiovascular and mental health. Companies such as Blackmores and
Sanofi offer a wide array of fish oil options to people at different age
stages. In Latin America, fish oils/omega fatty acids are also gaining
importance. They have long been used as a paediatric supplement in many
countries but are now being promoted as an “omega” supplement.
Help your organization cut costs, build its reputation and decrease long-term dependency on natural resources
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Analyst Insight by Damian Shore, Contributing Analyst, Euromonitor International
With communications
technologies advancing at a rapid rate and falling in price, innovative
companies are adapting them to monitor the location and wellbeing of pets. With
dogs and cats increasingly being humanised, the pet obesity problem worsening
and pet healthcare costs spiralling, such products are likely to find a ready
market among affluent pet owners.
Smartphones
drive a data revolution
Much media coverage has been
devoted to “the quantified self” recently. This involves tracking metrics about
oneself over a period of time in order to facilitate self-improvement. Writing
in The Guardian newspaper, Chris Hollindale discussed his use of this
technology: “I currently use the ElectricSleep app to track my sleep, a
Withings scale to track my weight, a Nike+ FuelBand to track my steps and
football sessions, Runkeeper to track the runs I go for and MyFitnessPal to track
my food consumption, as well as a few others”.
Similar technologies are being
developed with pets in mind. These include computerised feeders that regulate
when and how much a pet is fed, pedometers to track how much they are moving
and global positioning system (GPS) technology to keep track of them.
Analyst Insight by Spiros Malandrakis, Analyst - Alcoholic Drinks, Euromonitor International
This monthly summary highlights the most interesting product launches in May, with a focus on the direction the alcoholic drinks industry is taking in terms of innovative developments.
Pimms o’clock
The cascading wave of flavours engulfing the alcoholic drinks industry’s landmark categories is finally hitting its outer reaches. It was, frankly, just a matter of time. Following cider’s and vodka’s pioneering momentum, bourbon’s irreverent and controversial experimentation, dark rum’s spiced ventures and tequila’s and scotch whisky’s shy babysteps under the guise of liqueur offerings, other spirits are belatedly joining the party.
Pimms is more of a British institution than a niche segment. It is, in effect, its own category. Back in the summer of 2010, in an opinion piece that is proving to be prophetic in more ways than one, we succinctly observed; Iconic and based on a recipe that is still shrouded in mystery, synonymous with the summer and tongue-in-cheek preposterously posh references, Pimm's is quintessentially English in the same way that hot weather is not.
And therein lies the brand’s main problem. As a succession of rain swept summers continues battering an already financially ravaged UK, innovation and organic growth beyond the confines of its country of origin is becoming more pressing than ever. The introduction of tried and tested flavours such as blackberry and elderflower (the recent acquisition of elderflower liqueur St Germaine by Bacardi speaks volumes on the flavour’s relevance and potential) alongside the adoption of a decidedly nostalgia-tinted design for the new variant, is hence ticking all the right boxes.
Interestingly and somewhat surprisingly, Diageo goes further than that though. Pimms is actually heading south leaving the British shores behind for the first time. Initially launched in Greece and soon to be rolled out in a yet to be specified number of western European markets, the brand is taking a seemingly dangerous gamble.
Southern Europe is not exactly the poster child of macroeconomic buoyancy at this juncture and the majority of players (including Diageo) are rushing for the exits while slashing investments in the region. On the other hand, Pimm’s primary fuel is sunshine, not premiumisation. And it is within that context that this move, on balance, appears to be the correct one. After all, we called it almost three long summers ago:
The brand’s almost unprecedented success unavoidably begs the following question - if Pimm's managed –against all odds – to successfully navigate the ongoing financial volatility, provocatively ignore contemporary trend dividing lines and cheerfully overcome the deluge that is the English summer, why have there been no attempts to introduce it to more welcoming climates?
And what about the sunny continental south? Three parts lemonade, ice, orange, strawberry and mint somehow seem very relevant in the context of the perma-summer Mediterranean coastline. Providing a hint of lucratively healthy and natural attributes, appealing to female consumption at first or using the ubiquitous English tourist influx as a building block to enter these markets are just some of the ways that could be used to build brand momentum. The spirit's relative affordability would only provide an additional incentive. Quintessentially English? Perhaps, but not necessarily.
Blackberry & Elderflower Pimm’s from Diageo
Diageo has launched the first flavoured variant of Pimm’s in the brand’s 190-year history. A mix of Pimm’s No.6 Vodka Cup with blackberry and elderflower, is available in 70cl and one litre formats in both the on- and off-trade with a lemonade premix also available in the off-trade. Diageo commissioned British designer Oliver McAinsh to create a nostalgic label inspired by a British hedgerow in summer. McAinsh ran with the theme, putting a butterfly balancing on a blackberry centre stage.
Diageo has also launched Pimm's in Greece, the first European country to host the liqueur brand outside its home UK market. Pimm's will be available in 3,000 on-trade venues in Greece, while the brand will roll-out to other western European markets later this year. The launch was supported by a flashmob in one of Athens' main squares and the arrival of the “Pimm’s O’Clock” double-decker British bus that had travelled from London for the event. And will be touring the country for two months.
