July 22, 2014

National Automotive Industry Development Plan (NAIDP) Drives Car Sales to Record Levels in Nigeria

Neil-KingAnalyst Insight by Neil King - Automotive Analyst

View Neil King's profile on LinkedIn

In October 2013, the Federal Government of Nigeria announced its National Automotive Industry Development Plan (NAIDP). In order to stimulate investment in local vehicle production and thereby bolster Nigeria’s economy instead of revenues heading abroad, a core component of the plan is an increase in import duties for passenger cars from 20% to 70% (35% duty and 35% levy) and to 35% for commercial vehicles. However, the duty applied to vehicles which are assembled locally is set at 10% for SKD (semi-knockdown) Part 2 kits, 5% for SKD Part 1 kits and 0% for CKD (complete knock-down) kits. Also, manufacturers that assemble vehicles locally can import up to twice as many FBU (fully built units) as they do kits at the reduced import duty rate of 35% for passenger cars and 20% for commercial vehicles.

The plan was fully implemented on July 1 and, not surprisingly, new car sales soared as consumers took advantage of the lower duty rates while they still could. The Executive Director of the Nigerian Automobile Manufacturers Association (NAMA), Mr Arthur Madueke, was quoted on July 8 on This Day Live that “between January and December 2013, about 52,000 new vehicles were imported, while by May this year, 37,000 cars have been imported.” With CBU imported vehicles paying the old rate of duty until the end of June, sales are likely to have boomed in the month and a 30% growth rate for the first half of 2014 is therefore not out of the question.

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Men's Grooming Habits in Emerging and Developed Markets

Mens-grooming-banner

When it comes to beauty and personal appearances, women report spending the most time and money perfecting their looks. Yet, over the last decade, the range of beauty and personal care (BPC) products regarded as socially acceptable for men has widened, and men are paying increasingly more attention to their personal appearances. One third of men spend more than thirty minutes a day grooming, opening up a number of opportunities for BPC companies to develop products targeted to the unique needs of this especially appearance-minded segment of men. Furthermore, as more men become interested in improving their appearance by extending their grooming habits and product usage, it will be essential for brands to create male-specific products that enable men to feel more comfortable in the beauty and personal care aisle.

Daily Time Spent on Personal Appearance and Grooming, by Gender

Source: Euromonitor International Personal Appearance Survey, 2014

Note:  Showing percent of respondents spending the indicated amount of each day cleaning and caring for appearance (e.g., brushing teeth, bathing, styling hair, applying make-up, etc.). Includes all time spent grooming during the day – morning, evening, and in between. Does not include time spent selecting or changing clothing.

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Vita Coco Poised for Success in Asia Pacific under Red Bull China

The Reignwood Group, owner and distributor of Red Bull China, recently purchased a 25 percent stake in Vita Coco with plans to distribute the coconut drink in the country. Although coconut water is not a new product, Red Bull China has vast retail connections, funds for advertisement and sponsorship and the understanding of consumer's growing demand for functional, healthy beverages. Red Bull China has no formal business relationship with Red Bull GMBH but has grown into a US$ 2.5 billion dollar brand in the country. If Vita Coco is promoted similarly, it could surpass sales in the US, which reached nearly US$ 240 million in 2013.

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The Next Big Thing in Consumer Electronics is Already Here

Weeteck_looAnalyst Insight by Wee Teck Loo - Head of Consumer Electronics

View Wee Teck Loo's profile on LinkedIn

Smartphones and tablets have dominated the headlines of consumer electronics for the past few years and will continue to be the key growth driver for both retail volume and value sales over the forecast period. At the same time, manufacturers and retailers are also on the search for the next big thing, like wearable electronics. Beyond looking at new products, there are still opportunities aplenty in “old” product categories like laptops and LCD TVs, as the latest Euromonitor International’s Consumer Electronics research can attest. 

Retail Sales of Key Electronic Products: 2013-2018

Retail sales of key electronic products

Source: Euromonitor International

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July 21, 2014

What’s Next for Malaysia Airlines?

Nadejda_Popova

With Nadejda Popova - Senoir Analyst, Travel and Tourism

The tragedies of the disappearance of Malaysia Airlines Flight 370 and the crash of Flight 17 are having a severe impact on Malaysia Airlines. Investor confidence is low, shares are plummeting and many are wondering why the airline chose a flight pattern over a conflict zone. With the airline already performing at sub-par levels, the next step may be filing for bankruptcy.

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Beauty Players’ Fit Response to World Cup-Stirred Opportunities

Ildiko-SzalaiAnalyst Insight by Ildiko Szalai - Senior Beauty and Personal Care Analyst

View Ildiko Szalai's profile on LinkedIn

The Brazil 2014 World Cup has undoubtedly captured the attention of a truly global audience, and most fmcg players have been on the ball about capitalising on the event. Many of them have aligned their global brands to Brazilian or football-themed product launches. In the beauty and personal care industry, colour cosmetics players have been especially quick to respond, but many other product categories have adjusted their advertising campaigns to benefit from the attention of the many millions of spectators watching the games. The response to the heightened interest in Brazilian/World Cup-themed products from beauty companies has not lacked speed, volume or creativity. Although the event has created an unmissable brand-building opportunity for most players, it is not likely to have a lasting impact on category growth forecasts in beauty and personal care.

FIFA has released a number of statistics indicating the size of the global audience. On the last night of the tournament, the World Cup final game between Germany and Argentina was watched by a staggering record global audience of one billion. The opening game between Brazil and Croatia on 12 June was watched by 42.9 million people on Brazilian network TV Globo, FIFA said, making it the most watched sporting event of the year in Brazil. Another record was broken in Japan; the national team’s game against Ivory Coast was seen by 34.1 million on Japanese TV channel NHK, double the size of the audience watching its next biggest sports broadcast this year.

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What Next for the BRIC Economies in 2014?

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View Sarah Boumphrey's profile on LinkedIn

The outlook for the BRIC for the second half of the year is as diverse as the grouping itself. Russia is set to suffer the worst performance of the BRICs, followed by Brazil. All four countries have seen their growth forecasts revised down since January, but for widely differing reasons.

Real GDP Growth Forecasts: 2014

SB1

Source: Euromonitor International from national statistics/Eurostat/OECD/UN/IMF

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Shopper Insights in Action Conference 2014 – IIR – Event Recap

Howard TelfordAnalyst Insight by Howard Telford - Beverages Analyst

View Howard Telford's profile on LinkedIn

This past Wednesday, the 14th annual Shopper Insights in Action conference concluded in Chicago, Illinois. As always, the event focused on strategies to improve shopper activation across all kinds of consumer retail categories and channels, providing the shopper side of consumer marketing (and its research suppliers) an engaging forum to share ideas and success stories.

From a beverages and food service perspective, the three-day event at Navy Pier left me considering the need to address three, macro-level organizational challenges in the drinks industry:

1.       Using ‘big data’ more effectively

As the event’s exhibit hall demonstrated, there are a myriad of methodologically different ways to collect, measure and interpret the in-store responses of consumers to your products and shelves. As an industry that frequently delivers and merchandises its products through a two-tier bottling system (or other independent direct delivery partners), measuring the effectiveness of in-store activity - displays and product location - is vital. How can marketing and channel management teams demonstrate that ‘soft’ information on shopper response, preference or opinion is robust and indicative of volume growth or incremental revenue? Brands and their retail partners must work harder to interpret and contextualise data and insights in order to effectively advocate for change within their businesses.

Research focused and data literate leadership certainly helps. Keynote speaker Sir Terry Leahy, former CEO of Tesco plc, spoke about the need to improve the dissemination and understanding of data within large retailers and other organizations. As research tools become more powerful and useful – from generating understanding of potentially new, developing markets, to specific, localised consumer segments and their behaviours – it remains important that these insights are clear and actionable while reaching the right pairs of eyes.   

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July 20, 2014

Fashion Speaks: The Growth Potential for Wearable Digital Electronics

Weeteck_loo MayLing_Tham

Euroasia_yvonne kok_LThumbWith Wee Tek Loo, Head of Consumer Electronics and May Ling Tham - Head of Personal Accessories and Eyewear 

Moderated by Yvonne Kok, Head of Industry Research


Wearable devices, such as the Nike Fuel Band and the Samsung Galaxy Gear are manufacturer driven products that do not yet address any major functions better than a smartphone. So far, only fitness tracking devices are driving sales in the category as they serve a practical and motivational purpose. Other devices such as the Galaxy Gear suffer from poor aesthetics and bulky design. Until Apple releases its highly anticipated watch, which has the potential to disrupt the industry in the same way that the iPhone did, many manufacturers of electronics and watches are adapting a wait-and-see approach to wearable devices.

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Imperial Propelled to Top of E-cigarettes Tree With Surprise Acquisition of blu in Reynolds/Lorillard Divesture

Zora MilenkovicAnalyst Insight by Zora Milenkovic - Head of Tobacco Research

It’s not often that the tobacco industry is caught on the hop, especially with a deal that’s been on the radar for the better part of half a year, but it was gasps all around on the 15th July when it was announced that the expected Reynolds American (RAI)/Lorillard (LO) merger would result in Imperial Tobacco (IMP) acquiring not only the cigarettes brands Winston, KOOL, Salem, Maverick, but also LO’s leading e-cigarettes brand blu, which the industry assumed was part of LO’s attraction for RAI in the first place. The acquisitions propel IMP from bit-player on the US cigarettes market to number three player and, more unexpectedly, from litigious outsider in the e-cigarettes market to number one player. And not number one player in any old market, but in the world’s largest e-cigarettes market, worth US$1.7 billion in 2014. What does this mean for IMP and for the vapour industry? Who are now the main tobacco players in this US$6billion global market and what are their vapour brands?

TOBACCO PLAYERS AND THEIR VAPOUR BRANDS 580 resized.png

 

Continue reading "Imperial Propelled to Top of E-cigarettes Tree With Surprise Acquisition of blu in Reynolds/Lorillard Divesture" »

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