49 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: http://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: http://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: http://marketingtrendtracker.com/article.aspx?id=5706

OECD Warns of Slowdown in World Economic Activity

Bottom Line: The latest report from the OECD is, to say the least, downbeat, projecting a slowdown in economic activity in most OECD countries and major non-member economies.

Composite leading indicators [CLIs] for August 2011, designed to anticipate turning points in economic activity relative to trend, continue to point to a decleration in economic activity in most OECD countries and major non-member economies. The CLI for the OECD area fell 0.5 point in August, the fifth consecutive monthly decline. Moreover, the forecast does little to dispell the current climate of gloom, pointing to ... 

[Estimated timeframe: Q4 2011 onward]

... a faster rate of slowdown than in last month’s assessment. The CLIs for the United States, Germany and Russia, however, remain above 100, indicating that current world economic activity remains above its long-term trend.

For all other major economies, except Japan, the CLIs are now below 100 pointing strongly to a slowdown in economic activity below long term trend.

The CLI for Japan continues to indicate a potential turning-point in economic activity, but there are no strong signs of a slowdown.

The OECD Development Centre's Asian Business Cycle Indicators show signs of moderation in ASEAN [Association of Southeast Asian Nations] economies, comprising Brunei, Burma (Myanmar),  Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Laos and Vietnam.

The full ORECD report can be accessed here.

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

Source: OECD.org
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5688

Emerging Nations Will Account for 80% of Global Growth by 2050

Bottom Line: The US dollar will cease to dominate the global currency system.

Michel Camdessus, French economist and managing director of the International Monetary Fund between 1987 and 2000, told a conference in Buenos Aires yesterday that an estimated 80% of world economic growth over the next forty years will accrue from emerging market countries. Moreover, "in the next few years" the US dollar will cease to dominate the global monetary system -- a decline Camdessus believes will help to promote ... 

[Estimated timeframe: Q3 2011-2050]

... a multi-currency system worldwide. Emerging countries "are narrowing the gap with developed nations by developing their middle-class and improving their life quality," Camdessus said at the 14th Annual Meeting of the Christian Association for Company Directors in Argentina.

"By 2050 we can expect that close to 80 percent of the global economic growth will be a result of emerging countries,"he told delegates.

The monetary and finance system will in the future "be renewed so that emerging countries are recognized, changing from a dollar-dominated system to a multi-currency one," Camdessus opined.

[Editor's Note: Whether M. Candussus' prediction is to be taken seriously is open to question. The East Asian financial crisis, which occurred during his tenure at the helm of the IMF, triggered widespread criticism for failing to take into account the unique circumstances of the East Asian nations. This led to the imposition of a draconian fiscal regime that provoked turmoil and rioting in countries such as Indonesia.]

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

Source: Xinhua.net
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5603

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: http://marketingtrendtracker.com/article.aspx?id=5547

Boeing, Airbus Alert! China's C919 Passenger Jet to take-Off in 2016

The Commercial Aircraft Corporation of China (COMAC) has served notice on aeronautics' dominant duo - Boeing and Airbus - that their duopoly will for the first time face serious competition in the global passenger jet market. A life-size model of China's first homegrown large passenger jet, the C919, will be on display at the Beijing Scientific Achievements Expo over the period March 7-14. The display model's vital statistics are impressive ...

[Estimated timeframe: Q1 2011 - 2016]

... comprising the jet's cockpit and front part of the passenger cabin - the same size as an actual C919: 23 meters long, 10 meters wide and 5.6 meters high, according to COMAC's vice general manager Wu Guanghui.

The jet, which can seat up to 168 passengers, will have its first test flight in 2014. Deliveries are expected to commence in 2016, after the jet receives its airworthiness certification from the General Administration of Civil Aviation.

The C919 doesn't lack avid avian-watchers, having already taken its first 100 orders from six airlines, among them Air China, China Eastern Airlines, China Southern Airlines and General Electric's leasing arm.

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

Source: XinhuaNet.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5513

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: http://marketingtrendtracker.com/article.aspx?id=5508

Publicis Eyes Emerging Market Acquisitions to Lift Revenues by 2014

Publicis Groupe, the world's third largest agency holding company (after WPP and Omnicom), aims to grow its revenue from emerging markets to 30%, compared with 22.7% at the end of 2010. The marketing services conglomerate expects to achieve this via more acquisitions rather than organic growth. Says chairman/ceo Maurice Lévy [pictured]: "We can still do better in emerging markets; the group now must increase its presence in emerging markets more rapidly."  To this end, Publicis aims to ...

[Estimated timeframe: Q1 2011- 2014]

... double its business in communist China within the next three years, the key to which, Lévy believes, will be the extension of Publicis' presence into new regions of the giant nation and winning more local client budgets.

Says Lévy: "We need to make acquisitions in all areas ... If we find a larger target, we will go for it."

With regard to the group's fiscal future, Lévy currently prefers to maintain an ample cash position and not opt for a massive shareholder dividend - a policy that will enable Publicis  to be ready for potential share buy-back opportunities - a situation that could arise in 2012.

The Publicis maestro needs no crystal ball to anticpate such an opportunity. It might well arise following the lapsing of a shareholder agreement with Japanese ad conglomerate Dentsu, which currently holds an approximate 11% in stake in the French company.

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: http://marketingtrendtracker.com/article.aspx?id=5495

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: http://marketingtrendtracker.com/article.aspx?id=5470

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