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May 27, 2015

Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing

Bernadette-KissaneAnalyst Insight by Bernadette Kissane - Apparel and Footwear Associate

View Bernadette Kissane's profile on LinkedIn

For many fashion brands, South Africa has been the stepping stone into the sub-Saharan region due to the attractive economic growth and affluent market. But has the time now come to start expanding north? According to Euromonitor International, sales through apparel and footwear specialists in Nigeria and Kenya are expected to grow by 93% and 57% in constant 2014 value terms, respectively, from 2014 to 2019, highlighting growth opportunities outside the wealth-hub of the region. This is the first of a 2-part series of articles that sets out to examine growth drivers in the region, as well as the competitive landscape in store-based retailing; the second article will review dynamic growth in e-commerce.

Continue reading "Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing" »

May 24, 2015

Whole Foods to Open Low-Cost Chain

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Whole Foods recently announced that the company would be launching a low-cost variant of its existing brand targeted at millennial consumers.  This move is in line with overall trends in the US grocery market, where discount grocers have seen rapid growth over the last few years.  This podcast goes in-depth into the competitive landscape and potential strengths for this new brand.  Listen for complete insights.

Continue reading "Whole Foods to Open Low-Cost Chain" »

May 13, 2015

A Brighter Future for RadioShack in Mexico

Amanda BoulierAnalyst Insight by Amanda Boulier - Research Analyst

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On March 27, Grupo Gigante announced it would be purchasing the approximately 250 outlets of RadioShack México for a total of US$32 million dollars from RadioShack Corp. the owner of the electronics specialist chain in the United States and elsewhere.  Grupo Gigante previously had partial ownership of the retailer in Mexico but sold its stake in the joint venture in 2008 in the context of a challenging macroeconomic outlook.

RadioShack’s struggles, ultimately leading to bankruptcy and the closing of thousands of outlets in the US, are well-known.  In recent years the retailer found itself with an overburdened geographic footprint and an underdeveloped internet retailing presence.  RadioShack México, however, operates a smaller network of stores in a retailing environment in which internet sales are still nascent.  This gives the chain a chance to learn from its US mistakes and develop a proactive strategy of e-commerce investment and controlled outlet expansion before the market dynamics in Mexico evolve, in contrast to the reactionary position the brand adopted in the US.

Continue reading "A Brighter Future for RadioShack in Mexico" »

May 12, 2015

Brazil's Business Environment: Consumption in Economic Slowdown

250_brazilBusiness-v1.0On the surface, Brazil looks like an attractive market. It is the seventh largest global economy and has a population of 200 million, with high consumer expenditure and high demand for commodities.
But Brazilians are spending less, industrial confidence is deteriorating, and inflation is rising, meaning a future of slow growth and economic recovery.

Consumer goods companies operating in Brazil need to adapt their strategy to integrate the global market place. What are the reasons behind this slowdown and how can organisations work it to their advantage? 

Download our white paper today to learn:

› How Brazil’s rapid currency depreciation has affected its economy and consumers 

› Which consumer industries are slowing down and which have new opportunities

› Why the middle class is changing Brazil’s economic landscape

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April 25, 2015

The Retailing Environment in Latin America

This video discusses the key retailing trends in Latin America including discounters in Chile, cash and carry in Argentina, co-branded finance cards in Mexico, and Internet retailing in the whole region.  Watch the video for full insights into these trends and more.

April 22, 2015

Euromonitor to Speak at 3rd Global DIY-Summit 2015

3rd-Global-DIY-Summit

Date: June 11 – 12 2015

Location: London, Park Plaza Westminster

Event Description: The 3rd Global DIY Summit, which is being jointly hosted by the leading professional organisations EDRA (European DIY Retail Asssociation), fediyma (European Federation of DIY Manufacturers) and ghin (Global Home Improvement Network), is the world's major event for the home improvement industry where manufacturers and retailers have the opportunity for an exchange of views of current and future developments within the global market. This congress was described lately by their attendees as "the best networking event of the DIY industry".

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April 21, 2015

Sampling in Beauty: How Sampling Became Profitable

Nicole_TyrimouAnalyst Insight by Nicole Tyrimou - Beauty and Personal Care Analyst

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While once simply a way to entice consumers, beauty product samples are now a beauty offering of their own, thanks to innovative start-ups, travel restrictions on beauty packaging  sizes and consumer desire to continually try new products. The biggest driver to this change has been innovative start-ups in the form of subscription sites. Websites like US-based Birchbox, launched in 2010, and Glossybox, its key competitor in Europe, have turned product sampling into a profitable business. The rise of online shopping and the rise of beauty advent calendars at Christmas have also capitalised on samples, turning them from freebies to commercially-viable products.

Sampling products - a key purchase influencer for consumers

Despite efforts by marketers to convince consumers to buy without trying, product sampling remains an important part of the path to purchase equation. In Euromonitor International’s Annual Survey on Personal Appearances, free samples was the fourth biggest influencer for purchasing beauty products across all four biggest beauty categories. Past experience, friends and family’s recommendations and price preceded sampling.

Continue reading "Sampling in Beauty: How Sampling Became Profitable" »

April 19, 2015

Turning Clicks Into Sales: Fashion’s Future in Monetising Hashtags

Bernadette-KissaneAnalyst Insight by Bernadette Kissane - Apparel and Footwear Research Associate

View Bernadette Kissane's profile on LinkedIn

Social media plays an imperative role in all consumer goods industries, but can be considered even more relevant in the fashion world. As the global social media base passes the 2.0 billion user milestone and internet retailing continues to grow, at a constant 2014 value CAGR of 14% globally over 2014-2019, brands are eager to expand beyond trending hashtags and create a lucrative sales channel.

Developing countries have been making strides in s-commerce, while advanced economies are struggling to capitalise on the opportunities social media presents. According to the latest Euromonitor International survey data, in China and India, 43% of consumers make purchases through social media, while only 11% and 15% of consumers use s-commerce in the US and UK, respectively. Growth in emerging markets is being driven by the dominating e-commerce behemoths Flipkart, Alibaba and TaoBao. These local players have monopolised the s-commerce cycle,  controlling the online marketplace, social media platforms and marketing channels.

Continue reading "Turning Clicks Into Sales: Fashion’s Future in Monetising Hashtags" »

April 13, 2015

Etsy Risks Diluting its “Indie” Cachet as IPO Beckons

Rob WalkerAnalyst Insight by Rob Walker - Contributing Analyst

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Etsy, the New York-based Internet retailer that specialises in handmade and vintage products (everything from old-school manual typewriters to trendy hand printed t-shirts), has filed plans to list on the stock market. It’s a big deal. The IPO could value Etsy as high as US$2 billion, and turn it into a major global e-commerce player. Currently, it still ranks outside the top 25 Internet retailers in the US, according to data from Euromonitor.

There are risks in turning a quirky ‘indie’ brand into a fully-fledged corporate one, though. Etsy is made up mostly of small-scale producers with staunchly artisanal principles. The business is not even profitable (see chart below). There is an argument that once Etsy becomes answerable to shareholders, it will need to distance itself from some of its core arts and crafts heritage. That, in turn, could jeopardise a key point of competitive differentiation from bigger e-commerce rivals, not least eBay and Amazon.

Continue reading "Etsy Risks Diluting its “Indie” Cachet as IPO Beckons" »

April 11, 2015

Morinaga’s Flagship Dars Store, in the Footsteps of Nestlé’s KitKat

Raphael_MoreauAnalyst Insight by Raphael Moreau - Food Analyst

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The chocolate brand Dars’ pop-up store on the prestigious Omotesando Avenue, where brands such as Chanel and Louis Vuitton battle for the attention of shoppers and tourists, closed its doors on 15 March after a three-month tenure. This initiative represented part of a wider strategy from Morinaga to build a more premium and exclusive image for Dars, positioning it closer to Nestlé’s KitKat, with this company accelerating expansion of its KitKat Chocolatory store-in-store network.

We visited the Dars store during its last week of opening, days before White Day. Celebrated on 14 March a month after Valentine’s Day, White Day traditionally gives men the opportunity to offer presents to women from whom they received a gift a month earlier, with the occasion likely to have boosted footfall at the Dars outlet.

Continue reading "Morinaga’s Flagship Dars Store, in the Footsteps of Nestlé’s KitKat" »

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Recent Posts

Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing

Whole Foods to Open Low-Cost Chain

A Brighter Future for RadioShack in Mexico

Brazil's Business Environment: Consumption in Economic Slowdown

The Retailing Environment in Latin America

Euromonitor to Speak at 3rd Global DIY-Summit 2015

Sampling in Beauty: How Sampling Became Profitable

Turning Clicks Into Sales: Fashion’s Future in Monetising Hashtags

Etsy Risks Diluting its “Indie” Cachet as IPO Beckons

Morinaga’s Flagship Dars Store, in the Footsteps of Nestlé’s KitKat