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April 4, 2014

Government Clampdown on Extravagance Leads to Underperforming Luxury Categories in China

Fflur_RobertsWith Fflur Roberts, Global Head of Luxury Goods Research

 The government clampdown on extravagance in China is impacting the luxury market, with luxury accessories, wines and men’s timepieces taking the brunt of the law’s impact. The clampdown is aimed at officials who spend government money lavishly as the new ruling party takes steps to reshape its image. Since most government officials are male, men’s luxury categories are underperforming. However, women’s luxury categories such as beauty and personal care and women’s handbags are still performing well.

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April 2, 2014

Using Rash Outbreak as an Opportunity for Nappies/Diapers Manufacturers

Ian_Bell With Ian Bell - Head of Home Care, Tissue and Hygiene

The global market for nappies/diapers is on the upswing, with the category as a whole seeing 5.5 percent growth since 2008. However, when an economic crises emerges in less economically stable countries, nappies/diapers use per child decreases as consumers either look to conserve the amount of diapers per baby or switch to cloth diapers all together. Euromonitor data shows that along with the declining use of diapers there is an increase in the sales of nappy rash treatment.  Manufacturers of diapers in these economically unstable countries should look to promote themselves by educating consumers against diaper rash.

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March 30, 2014

Consumption Tax Hike in Japan Leads to Last Minute Shopping

EURO_NT_Mariko.Takemura_LThumbWith Mariko Takemura, Senior Research Analyst

In an attempt to curb Japan’s overwhelming debt level, consumption tax in the country will be raised from 5 percent to 8 percent in April 2014, with most companies passing the burden of the tax onto consumers and some companies raising prices of their products. For example, the price of Coca-Cola from a vending machine will be raised by 10 yen and other companies are charging the same amount for a product but are shrinking packaging size. As a result, many consumers in Japan did last-minute shopping in March to buy products before the tax hike takes effect, and many retailers offered special sales during this rush. The amount of money spent by consumers in March is expected to cover any potential losses by retailers over the next few months, but it remains to be seen how the tax will impact Japan’s economy in the long-term.

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March 27, 2014

La Russia offre nuove opportunità per vitamine ed integratori alimentari

EURO_NT_Filippo.Battaini_LThumbCon Filippo Battaini, analista presso Euromonitor International

Il mercato delle vitamine e degli integratori alimentari vale 64 miliardi di euro ed è in continua crescita. Tuttavia, l’Europa occidentale comincia a mostrare segni di maturità. Al contrario, l’Europa dell’Est ha visto una crescita del 5% negli ultimi quattro anni, al di sopra della media mondiale. La Russia, in particolare ha registrato una crescita media dell’ 8% tra il 2009 e il 2013 e costituisce un mercato di grande interesse per le aziende del settore, come spiegato nella presentazione di Euromonitor per il  convegno Federsalus.

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Vitamin and Dietary Supplements Companies Should Look To Eastern Europe to Grow Sales

EURO_NT_Filippo.Battaini_LThumbWith Filippo Battaini, Research Analyst

The vitamins and dietary supplements market in Western Europe is stagnating due to market maturity and economic turmoil. Eastern Europe is an option to companies looking to expand sales given its proximity to Western Europe and higher-than-average sales in the vitamins and dietary supplements market. Russia is the largest market in Eastern Europe with the vitamins and dietary supplements category valued at 2 billion euros, making it an obvious choice for companies looking to enter the region.  

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More Consumers Buying Luxury Items for Less

image from http://aviary.blob.core.windows.net/k-mr6i2hifk4wxt1dp-14032714/8872e3b6-85ee-4990-8f48-6c44f5782ccf.pngWith Daphne Kasriel - Consumers Editor

The borders of luxury spending are being redrawn with middle class consumers joining high end consumers in living a luxurious lifestyle.  Affordable luxury is becoming commonplace as consumers buy luxury items at discount outlets or second hand stores. Consumers demand luxury in their travel as well, and more budget hotels are upgrading services and design esthetic to cater to these needs. There is a downside to this trend however.  According to a Korean Chamber of Commerce survey of adults aged 20 years or older who recently made luxury purchases, almost 30% of respondents were experiencing difficulties paying off their credit card debt.

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March 26, 2014

Interest in Running Leads to Footwear Market Growth in Russia

Marija.Milasevic_LThumbWith Marija Milasevic, Research Analyst

The sportswear market  in Russia increased by 12 percent in 2013 with growth driven mainly by footwear sales. The popularity of running as a hobby and as exercise is contributing to this growth, as companies such as Nike, Adidas and Mizuno sponsor marathons and other races in the country. Beyond organization and sponsorship, footwear companies are expected to take an active role in starting running clubs and training events, which will pair footwear brands and the act of running in many Russian consumers’ minds.

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Российский рынок спортивной одежды и обуви показывает двузначный рост

Marija.Milasevic_LThumb

Мария Милашевич, аналитик

Рынок спортивной одежды и обуви в России продолжает показывать двузначный рост. В 2013 году в стоимостном выражение рынок вырос на 12%. По словам аналитика Марии Милашевич, одна из основных причин –  растущий интерес к бегу и к марафонам, а также активная маркетинговая политика игроков рынка, которые активны в организации марафонов и продвижении бега в России.  

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March 25, 2014

Industry Impact of Revised Excise Tax on Alcoholic Drinks in Lithuania

Eurolithuania_Roberta.Kniuipyte_LThumbWith Roberta Kniuipyte, Senior Research Analyst

A revised excise tax for alcoholic drinks in Lithuania is set to begin on April 1, 2014, increasing taxes on wine by 14 percent, beer by 10 percent and spirits by 1 percent. This is good news for the spirits industry, as taxes on spirits will be raised the least, therefore making spirits more affordable to consumers. However, the flow of illicitly traded alcoholic drinks may increase in the country due to the new taxes, which are set to be revised and most likely increased again in 2015.

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Naujų akcizinių mokesčių įtaka alkoholinių gėrimų vartojimui Lietuvoje

Eurolithuania_Roberta.Kniuipyte_LThumb

Roberta KniuipytėVyresnioji rinkos analitikė

Nuo šių metų balandžio 1 d. Lietuvoje įsigalios alkoholinių gėrimų akcizų pakeitimai. Didindama akcizinius mokesčius, Vyriausybė siekia išlyginti apmokestinimo skirtumus tarp skirtingų alkoholinių gėrimų kategorijų. Vyresniosios rinkos analitikės Robertos Kniuipytės teigimu, naujieji akcizai paskatins pirkėjus persiorientuoti nuo silpnųjų alkoholinių gėrimų prie stipriųjų ir turės įtakos dar didesniam nelegalios alkoholio rinkos augimui šalyje.

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