24 Marketing Trends found for Economic/Political / Emerging Markets

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Could New Self-Cleaning Cotton Fabric Topple P&G, Unilever Laundry Duopoly?

Bottom Line: Chinese scientists have created a chemical coating that causes cotton materials to self-cleanse stains and remove odours when exposed to sunlight, potentially posing a major threat to the global laundry products duopoly.

According to Isabelle Cavill, a clothing analyst at global retail intelligence provider Planet Retail: "The main retailers to pick up on this latest innovation are likely to be those selling basicware. In the West that could mean WalMart or Marks and Spencer will want to invest in the Chinese technology to take advantage of ...

[Estimated timeframe: Q4 2011 onward]

... functional clothing becoming more popular with shoppers."

The research was carried out by engineers at Shanghai Jiao Tong University and Hubei University for Nationalities, and is published in the latest issue of the Applied Materials and Interfaces journal.

The study focuses on titanium dioxide - a chemical known, say the scientists, to be an "excellent catalyst in the degradation of organic pollutants".

The substance is already used in self-cleaning windows, odour-free socks and stay-clean kitchen and bathroom tiles. Initial efforts to extend its use to cotton fabrics proved limiting because the substance's self-cleaning properties could only be "excited" under ultraviolet lights, making it impractical for everyday use.

The team's breakthrough was to create a nanoparticle alcohol-based compound made up of titanium dioxide and nitrogen.

The mixture was added to triethylamine, an acid neutraliser commonly used in dyes. After being stirred for a 12 hours at room temperature, the liquid was heated at 100C (212F) for a further six hours.

The cotton fabrics were then immersed in the mixture before being squeezed dry, heated and immersed in hot clean water. Finally the coated materials were treated with silver iodide particles, which aid light-based reactions.

To test the effectiveness of their invention, the engineers marked the fabrics with an orange dye stain and exposed them to the sun. After two hours in the light, the team said 71% of the stain had been removed - a "dramatic" improvement over previously trialled techniques.

The process is also long-lasting. The experiment was repeated on the same cloth five times with no loss of activity - suggesting that the enhancement was stable. Washing and drying the material did not reduce its effectiveness.

Clothes industry experts say there should be huge interest in the process if it could be rolled-out on an industrial scale.

[Meantime, there's no truth in the rumour that Unilever chairman Michael Treschow and his opposite number at P&G, Bob McDonald, are jointly seeking to acquire a certain patent. Is there?]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: BBC.co.uk
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5737

US Ad Market Set to Cede Pole Position to BRIC Nations by 2014

Bottom Line: Aggregated ad spending in emerging markets is expected to exceed that of the US come 2014. Moreover, hotspots including the BRIC nations [Brazil, Russia, India, China], are moving up the league table fast.

According to Publicis Groupe's ZenithOptimediaChina, the largest of the four BRIC nations, accelerated past Germany in 2010 to become the world's third-largest ad market in 2010, while by 2015 China's media adspend is poised to overtake Japan, the current runner-up in the world adspend stakes. Meantime, Brazil, Russia and India also continue their upward trajectory ... 

[Estimated timeframe: Q4 2011 - Q4 2014]

... in the world adspend league table. In 2011 Brazil hit number six in the global rankings, Russia came in at No. 11 and India 16th.

In a list of up-and-comers, acronymized as MIST, Mexico ranked No. 15; Indonesia, 17; South Korea, 12; and Turkey, 24. 

Says Zenith's head of forecasting, Jonathan Barnard: "Emerging markets are the main source of ad-expenditure growth. Over the next three years, half of all global growth in ad expenditure will come from just ten markets: the BRICs, the MISTs, South Africa and Argentina."

The twenty-five largest ad markets in 2011 include ten emerging economies:

  • BRIC nations (see above)
  • MIST (see above)
  • South Africa (No. 14)
  • Thailand (No. 22)
  • Argentina (No. 26)

Among the 100 largest global advertisers, thirteen companies allocated more than 10% of 2010 measured-media spending to China, according to AdAge's Global Marketers report.

But don't jump to hasty conclusions, counsels Zenith: "The US remains the powerhouse of advertising, with spending more than three times that of No. 2 Japan.

Nonetheless, the USA's share of major-media global ad spending (TV, print, radio, cinema, outdoor and internet) fell from 44% in 1986 to 33% in 2011.

Analysing ZenithOptimedia's forecast data, AdAge DataCenter notes that spending in emerging markets is reaching a tipping point. Other key points highlighted by AdAge are ...

  • Such outlays will make up 33.2% of worldwide major-media spending in 2014, marginally ahead of the US share at 32.0%.
  • Emerging markets accounted for just 4% of worldwide major-media ad spending in 1986.
  • Per capita spending in emerging markets remains a fraction of that in the United States.
  • Advertisers spent $498 for every man, woman and child in the US in 2011. In China they spent $22 per capita - roughly equating to America's per capita ad expenditure in 1946.
  • But consider how far China has come since 1986 when its per capita ad spending was just 9 cents!

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: AdAge.com
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5726

Global GDP Predicted to be Below Par Until 2025

Bottom Line: A fourteen year 'guesstimate' by a US-based independent global business membership and research association predicts erratic sub-par growth worldwide over the next fourteen years.

When touting long-term economic forecasts a key advantage is the fallibility of human memory - given that when that forecast's predictions reach maturity, few can remember what those predictions were! Be that as it may, the twenty-five year leap into the future undertaken by The Conference Board - a Manhattan-headquartered crystal ball-gazer -will not occasion a song in the hearts of global marketers ...

[Estimated timeframe: Q4 2011 - 2025]

... given that world gross domestic product [GDP] is predicted to grow 3.2% in 2012, accelerating to 3.5% between 2013-2016. Beyond which period, growth is projected to average a meagre 2.7% from 2017-2025. Each period’s projected pace is less than the 3.6% average during the 1996-2005 period that preceded today's ongoing recession.

  • Over time, the emergence of larger middle classes in the developing markets will help global businesses to adjust to declining demand among struggling middle-class consumers in the advanced nations.
  • Much of the medium-term acceleration will come from the advanced economies, including the US, the Eurozone and Japan. The board projects those developed nations’ growth will pick up from 1.3% in 2012, to 2.0% in the following four years, then ease to 1.9% from 2017 to 2025.
  • Emerging nations, led by China and India, are set to slow, with total GDP seen rising 5.1% in 2012, 4.9% from 2013-2016 and 3.4% after that.

When the board’s economists ran the global forecast, the biggest surprise was the throttling back in China’s growth rate, said Bart van Ark, the board’s chief economist.
China is expected to expand 8.7% next year, 6.6% in the following four years and only 3.5% in the 2017-2025 period.

Of course, the 3.5% rate will be based on a much larger GDP level. The board expects China to overtake the US as the globe's largest economy by about 2015 on a purchasing-power-parity basis.

“China must transform itself from an export-driven economy to one more geared toward domestic, consumer-based demand,” said van Ark. That shift, along with slower population growth, will account for most of China’s deceleration.

The global output slowdown will result in smaller gains in per-capita income that bring risks to both the advanced and developing worlds, the report warned.

For the advanced economies, believes van Ark, “slower income growth will leave less money available to finance health-care and pension programs."

The US and the Eurozone have already had to confront unsustainable trends in fiscal entitlements programs. Slower income growth would leave even smaller revenue sources.

For emerging markets, per-capita income growth will likely be unevenly distributed, with some nations seeing per-capita income growth of only 1%, a rate too low to improve living standards.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5706

India's Internet Economy Set to Soar by 2015

For a vast nation so liberally endowed with talented software engineers, India lags other tiger economies in terms of its internal internet market  - an astonishing situation in a nation whose populace (according to US Central Intelligence Agency estimates) is expected to hit 1,189,173,000 by July of this year. The growth potential for internet commerce is, therefore, enormous. Avariciously eyeing the market last year, US investment bank Caris & Co predicted that ...  


[Estimated timeframe: Q2 2011 - 2012 onward]

... India will have 180 million to 200 million internet users by 2015, or 18% national penetration. Online purchases are expected to rise to $5 billion in 2012 from $1.4 billion last year—a minuscule slice of the $350 billion Indian retail sector.

Meantime, reports The Wall Street Journal: "A host of Indian internet companies are emerging to offer their take on services that proved big hits in the US and elsewhere. Already there are Amazon, Groupon or Expedia wannabes, all with the goal of capitalizing on Indians' growing interest in buying things online."

Recent Indian start-ups, include online bookseller Flipkart.com, electronics retailer LetsBuy.com, and discount site SnapDeal.com. All are growing quickly and attracting financing from big-name Silicon Valley venture investors like Sequoia Capital and Accel Partners.

Internet penetration in India is finally showing signs of picking up. The country had 71 million internet users as of 2009, the latest data available, representing just 5% of its population. But current estimates put the figure in a range of 80 million to 100 million, and analysts say usage will get a big boost as cellular operators start to launch third-generation broadband networks.

According to the WSJ, there are at least half a dozen major group-buying and coupon sites inspired by US models such as Groupon.

SnapDeal.com, founded last year by local Wharton School graduate Kunal Bahl, offers discounts in 45 Indian cities on everything from high-end fragrances to spa visits, earning 30% commissions on sales. There are more than enough upper-middle class users to support growth in coming years, Bahl says, even outside the biggest metro areas.

"The amount of wealth in the second-tier and third-tier Indian cities is absolutely mind-boggling," he said.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5547

China to Eclipse US in Global Gaming Market by 2014

US entrepreneurs in all fields of industry are are investing in cervical-braces to ameliorate neck-pains from constant peering in their rear-view mirrors. They're nervously checking the narrowing of the gap between their once dominant businesses and Chinese rivals about to overtake in world markets. Computer gaming is the latest industry awaiting domination by the all-conquering capitalist-commies, according to a new report from boutique UK investment bank Digi-Capital which predicts that ...

[Estimated timeframe: Q1 2011 - 2014]

... revenue from online and mobile games will grow from a third to a half of the industry’s total revenues, at around $44bn, by 2014.

Within that total, China is predicted to account for up to half of global sales, meaning the Chinese games market will have risen from around 12% in 2010 to a quarter of the world’s total by 2014. Over the same period, America's share of the games market will fall from 26% to 22%.

In the interim, traditional console games – the business segment led by Activision-Blizzard and Electronic Arts – will be flat or even negative.

“We expect to see Chinese companies as major games consolidators in 2011,” forecasts Tim Merel, managing director of Digi-Capital. He cites as a taste of things to come the recent acquisition by Chinese giant Tencent of Los Angeles firm Riot Games.

Tencent’s domestic market already delivers huge volumes of online gamers – 20 million simultaneous players at peak time.

Merel predicts 18% compound annual growth rate for online and mobile games until 2014, powered by an influx of venture-capital investment.

Chinese games companies such as Shanda, ChangYou.com and Giant are already achieving billion-dollar stock-market valuations.

Merel paints a doomsday scenario for major US and European games companies. "Tencent’s market cap (around $50bn) is substantially more than Activision Blizzard, Electronic Arts, GamesStop, Take2, THQ, Atari, Game Group and Ubisoft combined,” he warns.

As a consequence of which Merel expects Asian companies to drive more of the international consolidation over the coming years as they expand beyond their home markets.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: FT.com
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5508

World Faces Trade War, Warns Brazil

Brazil's finance minister Guido Mantega has warned that the world is on course for a trade war because of alleged  currency manipulation by China, the US and other nations. Mantega also served notice that BRIC giant Brazil is preparing moves to prevent further appreciation of its currency. His government plans to ...

[Estimated timeframe: Q1 2011 onward]

raise the issue at the World Trade Organization and the G20 group of rich and developing countries.

In his first major interview since Dilma Rousseff took office as Brazil's new president on 1 January, Mantega told the Financial Times: "This is a currency war which is turning into a trade war."

Brazil's trade with the US had abruptly reversed from an annual surplus of around $15bn (£9.6bn) to a deficit of $6bn because of US efforts to revive its economy via a slack monetary policy.

"The exchange rate is one of the main drivers of economic policy, more so even than productivity," said Mantega, adding that China's "undervalued currency" was also distorting world trade.

This is not the first time Mantega has spoken out against currency manipulation by the major powers.

Last September he pointed the finger at certain key trading nations for deliberately devaluing their currencies to boost exports and make their economies more competitive.

In example, he cited the Brazilian real, which over the past two years has increased by 39% against the US dollar. The real's value has risen steadily as nation's economy has grown, making Brazilian exports less competitive.

The International Monetary Fund warned in October that some countries appeared to be trying to use their currencies "as a weapon". The question of currency manipulation was also discussed at the G20 summit last November.


All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: BBC.co.uk
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5470

'Superfast' Satellite Broadband Planned for Africa and Other Developing Markets

O3b Networks has raised $1.2bn (£700m) for a series of satellites to support super-fast broadband connections to Africa and other emerging markets. The satellites will act as 'backhaul', linking the traffic of local telecoms and internet service providers to the global fibre infrastructure. The project, headquartered in Jersey (Channel Islands),  has been hailed as "one of the most amitious commercial space projects of the decade.

[Estimated timeframe:Q4 2010 onward]

The spacecraft will act as backhaul, linking the traffic of local telecoms and internet service providers to the global fibre infrastructure.

The company informed the markets early on Monday that a collection of investors and banks would provide the money it needed to launch the venture's first eight satellites.

These will be constructed by Thales Alenia Space at its manufacturing facility in Cannes, with the first platforms ready to go into orbit in the first half of 2013.

Russian Soyuz rockets will launch the satellites from the new Sinamary spaceport in French Guiana.

O3b's largest debt facility, some $510m, is being provided by HSBC, ING, CA-CIB and Dexia. This is underwritten by the French export credit agency, Coface, which has been extremely active recently in supporting big space projects involving Thales Alenia.

O3b stands for "other three billion", a moniker for the number of people in the world said to have inadequate broadband internet access.

One of the reasons for this inadequacy is the absence in many regions of a backbone of super-fast fibre-optic-cable connections. O3b's vision is to provide a "fibre in the sky" alternative with a constellation of high-throughput satellites.

This constellation will be put in a Medium Earth Orbit (MEO) about 8,000km above the equator, providing coverage around the globe to a latitude of plus and minus 45 Degrees.

Each 700kg satellite will operate in the high-frequency Ka-band of the radio spectrum.

They will sport 12 steerable antennas to link customers to O3b's eight ground stations from where traffic can be fed into the fibre network that underpins the internet in the developed world. O3b's intention is to put 20 satellites in orbit eventually.

Announcing the new equity, Mark Rigolle, the chief executive of O3b Networks, said: "This has allowed us to secure our funding and to achieve our goal of reaching the billions who have so far been poorly served or completely cut off from the internet - the greatest business and information resource of our time."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: http://www.bbc.co.uk/news/uk-politics-11695416
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5411

Britain's Tesco Targets China as Focus for Future Growth

WalMart has a total of 7262 stores worldwide and is the world’s largest retailer by revenue; UK-headquartered Tesco is the fourth largest global retailer with 3262 stores pole-to-pole. Both supermarket chains are nearing saturation in their home markets and both are looking to Asia's booming economies - China especially - as a source of growth. WalMart already has a foothold in the people's paradise, as has Carrefour of France, the world's number two retailer. So entry into this retail Aladdin's Cave is no pushover, even for the ruthlessly deternined Brit retailer. Leading the assault is Tesco ceo-designate, Philip Clarke, currently Asia and Europe director, who plans to ...

[Estimated timeframe:Q4 2010 onward]

... increase the firm's number of Chinese hypermarkets from 82 to more than 200. The burgeoning nation "offers an unrivalled opportunity in a large, rapidly growing market,” he said.

Although Tesco's China operations are still in the red Clarke is not deterred: “The prize is enormous, but the challenge is complex – China is vast, with cities the size of small countries.”

Tesco has devoted six years to learning about the local market, over which period it claims to have developed a strategy that should be profitable. 

In the current fiscal, third quarter like-for-like sales in China rose to 8.3% from a decline of 1.8% in the comparable period last year.

Elsewhere in the region, in South Korea (Tesco’s largest market outside the UK) year-on-year sales growth in the quarter ended October 31 rose to 6.7%, better than doubling its 3.1% rise in the same period last year. Japanese sales, however, continued to dive, slumping 5.7% in the quarter.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: FT.com
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5397

World's New Tiger Economies Opt for Scotch Whisky, Sparking Investment

In an investment boom not seen in Scotland since the North Sea oil bonanza of the 1970s, multinational liquor behemoths such as Pernod Ricard and Diageo are pouring pounds by the million into new distilling facilities - thanks to a surprise taste among the globe's booming tiger economies for Caledonia's uisge beatha: Gaelic for 'the water of life', Scotch whisky. It's a trend likely to continue through the current decade to the delight - not only of the booze barons - but Scotland's struggling economy as a whole - hard hit by the banking collapses of recent years.

[Estimated timeframe:Q3 2010 onward]

On June 4 a kilted Prince Charles formally opened Pernod Ricard's newly expanded Glenlivet single-malt whisky distillery in Scotland - a £10 million ($14.6 million) investment that has upped production capacity by 75%.

Equally eager to exploit the taste of other nations - especially the globe's emerging economies - for premium quality Scotch whisky, Diageo will this fall open its twenty-eighth whisky distillery in Scotland.

it will be the nation's first new, high-volume whisky distillery in thirty years, the company claims. Known as Roseisle, Diageo's investment is said to be £40 million, enabling the new plant to distill up to 10 million liters of single-malt whisky a year.

Although drunk by connoisseurs 'as is', fine malts are more commonly used to produce blended whiskies such as Haig and Robbie Burns.

 According to the Scotch Whisky Association, the past three years have seen alcohol manufacturers spend in the region of £600 million to expand whisky production facilities in Scotland - reversing the neglect of decades. The investments are triggered by rising Scotch whisky exports to the US, its biggest export market by value, as well as by increasing demand in emerging economies.

Despite the recession, Scotch whisky exports from Scotland rose to record levels in 2009, according to the Scotch Whisky Association.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5245

China's Soft Drink Consumption Forecast to Grow 20% Annually

Chinese news agency Xinhua predicts that the nation's soft drinks market is set to grow at an annual rate of 20% over the next several years - a propspect that has beverage behemoths Coca-Cola and PepsiCo salivating into their designer-cans. Vigorous growth is also forecast by Euromonitor - albeit at a less stonking rate: 9.8 percent for the current year.

[Estimated timeframe:2010-2013]

Underpinning this growth is the unsustainable rise and rise of the Chinese economy - a phenomenom that sooner or later is set to replicate the global banking implosion of 2007-8.

In the meantime, however, the nation's burgeoning growth has boosted local workers' incomes while greater employment protection has engendered a desire to spend, spend, spend. And in the interim multinationals such as Coca-Cola and and PepsiCo are determined to milk this happy situation for every dollar they can.

Purchase levels have soared by more than 10% in China in each of the last eight years, and the former firm's key brands - Coke, Sprite and Minute Maid - all lead their categories in terms of sales volumes.

Coke has further extended its reach in the rapidly-developing market over the course of 2009, adding an extra 800 new outlets to its roster.

In the interim, PepsiCo is enjoying "double-digit growth" and has not been sitting idle, having recently received governmental  permission to build fourteen new plants in China, supplementing its existing 22 factories.

Whoops the firm's ceo Indira Nooyi: "It is an important region for us and I must say, especially recently, the Chinese government has been particularly good to us [and] has been supportive of our strategies both on the beverages and on the snack side."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: Warc.com / Business Week / Marketing Interactive
MTT insight URL: https://marketingtrendtracker.com/article.aspx?id=5107

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