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August 25, 2014

Booming Internet Retailing in India, with Some Expected Challenges

Thidathip TawichaiAnalyst Insight by Thidathip Tawichai - Consumer Appliances Analyst

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The Indian Government recently eased the restriction for foreign e-commerce in India so that global online retailers such as Amazon and E-bay, as well as other foreign manufacturers, are encouraged to sell their own products online as long as the products are sourced and produced within the country.  This will definitely be beneficial to consumer appliance manufacturers in India. Manufacturers such as Samsung Corp, LG Corp and Panasonic Corp have opened e-stores in India to gain further revenue.  However, internet retailing of appliances in India faces some challenges, such as inefficient infrastructures and cannibalising sales between store-based and online retailers.

 

Technology and Societal Trends Drive Growth

According to Euromonitor International, internet users in India increased from 51 million users in 2008 to 176 million users in 2013 – growth of 248%.  Moreover, volume sales of smart phones in India rose by a CAGR of 69% over the same period. The increasing rate of internet and smartphone usage has fuelled internet retailing in India.   Not only that, the so-called “showrooming” trend has become extremely popular. Consumers can visit a store-based retail outlet to see, touch and feel the products they are considering purchasing before returning home to purchase them online at the lowest possible price, according to Euromonitor International’s Category Briefing on Internet Retailing in India.

Internet Users and Smartphones in India: 2008-2018

Smartphoneandinternetretailing_

Source: Euromonitor International

Continue reading "Booming Internet Retailing in India, with Some Expected Challenges" »

August 24, 2014

FMCG and Retailing in Russia: Uncovering Business Opportunities

The 7th annual Euromonitor International seminar FMCG and Retailing in RussiaUncovering Business Opportunities is organised for top-level management from leading companies operating in consumer markets, as well as government, trade and banking institutions. 

Hear more about each session from our expert panel of analysts by watching the video.

Register Now >>

 

August 16, 2014

Discounters in Baltic Countries: Weak Results and Clear Underdevelopment

Roberta KniuipyteAnalyst Insight by Roberta Kniuipyte - Senior Research Analyst

Lidl Set to Make First Steps in Baltic Market in 2015

The discounters channel showed a subdued vague performance in Lithuania, Latvia and Estonia during the last decade, with local and regional retail players lacking experience to utilise this channel. However, the situation could change significantly in the near future. Although discounters have so far failed to make major inroads in the Baltic markets, Lidl is confident that it can change this when it enters Lithuania in 2015.

Sensitivity to prices has long been a key criteria for consumers in Estonia, Latvia and Lithuania. As far as brands are concerned, producers acknowledge the importance of promotions and that any brand accompanied by the dull and unglamorous word "discount" and a slashed price, is often the best-selling brand in the country.

Continue reading "Discounters in Baltic Countries: Weak Results and Clear Underdevelopment" »

August 14, 2014

HBA Global 2014 Recap: First Aid Beauty's Success in South Korea

To successfully enter a new country, beauty companies need to be aware of the retailing and economic conditions as well as the needs of the consumers in that country. US-based skin care company First Aid Beauty (FAB) is a successful example, performing well in the ultra-competitive South Korean beauty market. FAB markets its products as medicated and safe for skin which appeals to South Korean women who purchase dermo-cosmetic brands such as Avene. FAB also promotes their products as hot-selling in the US, providing extra cachet. FAB sells its products in local Korean health and beauty retailer Olive Young, which promotes to young Korean women.

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August 13, 2014

Is Global Grocery Retailing Getting More Concentrated?

Global Grogery Retailing

While the move towards more concentration in grocery retailing is apparent in most markets, either developed or emerging countries, this trend cannot be seen at a global level. This reflects that the largest retailers, notably the top three global players, remain highly dependent on mature, developed markets, so that their sales growth lags behind that of local players in emerging markets. The saturation of large store formats may undermine expansion prospects for some of the largest players.

Continue reading "Is Global Grocery Retailing Getting More Concentrated?" »

August 10, 2014

Pharmacies and Drug Stores Using M-Commerce to Grow Sales

Pharmacies and drug stores are increasingly using the power of m-commerce to grow sales. For instance, Asian pharmacy chain Watsons uses a mobile app to communicate with consumers about health and beauty tips and send coupons. For other pharmacies, m-commerce is a platform to enter new markets, such US-based Vitamin Shoppe. The chain's partnership with Indian internet retailer Healthkart.com is allowing Vitamin Shoppe to expand to the country without an actual physical presence.

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August 9, 2014

Thailand and Philippines: New Hotspots for M-Commerce

M-commerce-header

Southeast Asia is the new prime spot for m-commerce, given the massive online retail market driven by the burgeoning smartphone and internet penetration rates. While developed markets like Singapore have the highest rates of smartphone penetration, developing markets like the Philippines and Thailand are, in fact, leading the region in terms of m-commerce retail value. With a youthful population base that is increasingly digitally connected, along with better payment options, these markets are poised to dominate internet retailing within the region.

Source: Euromonitor International 

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August 8, 2014

Who are the Major Losers of Russian Sanctions?

Sarah-B-Banner

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The Russian government’s announcement of sanctions on some food stuffs imported from the EU, Norway, USA, Canada and Australia will hit some countries harder than others. Yet the impact on the Russian economy may be even more significant.

Who will pay the price?

Of those facing the ban, the EU has the closest trade ties with Russia. Russia was the destination for 2.6% of EU exports in 2013. This ranges from just 0.4% in Portugal, to a hefty 19.1% in Lithuania. Of those facing sanctions, the countries’ most dependent on agricultural exports (in terms of the proportion of their exports which are composed of food and live animals) are Denmark, Lithuania and Cyprus.

Continue reading "Who are the Major Losers of Russian Sanctions?" »

August 7, 2014

HBA Global 2014 Recap: L’Occitane's Success in Brazil

To successfully enter a new country, beauty companies need to be aware of the retailing and economic conditions as well as the needs of the consumers in that country. A successful example of a beauty company entering a new market is L’Occitane’s entrance into Brazil. In order to compete with local beauty players and avoid the high import tax in Brazil, L’Occitane created a new line of locally manufactured products called L’Occitane au Bresil. The products mirror the success of Brazil’s own Natura, which offers products made with local ingredients, by using indigenous plants in the products.

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July 29, 2014

Why Shopper Marketing is Increasingly Important to Soft Drinks

Howard TelfordAnalyst Insight by Howard Telford - Beverages Analyst

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Recently, I attended the Shopper Insights in Action conference in Chicago. The conference centred on strategies for improving data gathering, segmentation and execution inside CPG retailers, with the goal of more effectively understanding and reaching consumers at the point of sale. A short recap of the event is available here.

The improvement of shopper marketing techniques has a particular relevance for the soft drinks industry. High value categories like carbonates and juice have been in a state of decline in the developed markets of North America and Western Europe. Global brands are finding more growth opportunities in emerging economies, but healthier lifestyles are having a global impact on the appeal of major soft drinks brands. Traditional forms of brand building and consumer engagement – TV advertising, billboards, or sponsorship – do not seem to have the same impact when consumers are inundated with many channels of content and unprecedented product choice.

Continue reading "Why Shopper Marketing is Increasingly Important to Soft Drinks" »

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Recent Posts

Booming Internet Retailing in India, with Some Expected Challenges

FMCG and Retailing in Russia: Uncovering Business Opportunities

Discounters in Baltic Countries: Weak Results and Clear Underdevelopment

HBA Global 2014 Recap: First Aid Beauty's Success in South Korea

Is Global Grocery Retailing Getting More Concentrated?

Pharmacies and Drug Stores Using M-Commerce to Grow Sales

Thailand and Philippines: New Hotspots for M-Commerce

Who are the Major Losers of Russian Sanctions?

HBA Global 2014 Recap: L’Occitane's Success in Brazil

Why Shopper Marketing is Increasingly Important to Soft Drinks