49 Marketing Trends found for Economic/Political / Emerging Markets

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Toyota to focus on emerging economies

In a major realignment of its corporate structure, Toyota Motor Corp. will shift 30 percent of its domestic sales force from Japan, where demand for new vehicles is sagging, to emerging economic powers with burgeoning automobile markets. In a major realignment of its corporate structure, Toyota Motor Corp. will shift 30 percent of its domestic sales force from Japan, where demand for new vehicles is sagging, to emerging economic powers with burgeoning automobile markets.

Sources said Toyota will transfer 300 employees from its domestic sales promotion division mainly to Brazil, Russia, India and China, known collectively as BRICs.

Toyota lags behind its rivals in those markets, where automobile demand is growing faster than in Japan.

Toyota's vaunted sales force is considered a major factor behind its 46-percent domestic market share and company executives hope to use its accumulated know-how to make major inroads into the rapidly expanding markets.

Toyota held a meeting Monday involving representatives of its affiliated sales companies. Toyota forecast domestic sales in 2010 of about 2.75 million vehicles, excluding minicars, about the same number as this year.

Toyota's sales companies have built up a corporate base capable of handling domestic sales of 4 million vehicles.
The sales target for next year is 30 percent less than the combined sales capacity of the dealers.

In response to the expected sales decline, Toyota itself apparently acknowledged the need to reduce its domestic sales division by 30 percent and move employees to the BRICs to bolster sales in those promising regions.

Toyota has about 1,000 employees in its domestic sales promotion division, with at most 300 possibly to be transferred.
Recent sales figures show that Toyota is lagging behind its rivals in overseas markets.

For example, in the first 10 months of this year, vehicle sales in China totaled 10.89 million units, an increase of 37.7 percent over the same period in 2008.

However, during the first 10 months of this year, Toyota increased its sales in China by just 16 percent to about 550,000 vehicles--a lower growth figure than Volkswagen and General Motors. Moreover, domestic rival Nissan Motor Co. also outperformed Toyota, recording a 37-percent surge.

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Source: Asahi.com / International Herald Tribune
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4917

IT Group Passes Outsourcing Milestone in India

Passing a controversial milestone, European IT giant Capgemini has revealed that it will soon have more staff in India than it does in its home market of France – in an indication of the growing power of the subcontinent in the global outsourcing industry.

Capgemini is creating a new business information management unit in Bangalore, India’s Silicon Valley, which will help increase its workforce in the country to beyond 21,000 people, more than its headcount in France of about 20,000.

“We are able to access abundant application and technical skills in business information management in India and we can scale up there much more quickly than we could in onshore locations,” said Paul Nannetti, general manager of Capgemini’s global business information service line.

India’s computer services and business process outsourcing industry experienced one of the most difficult periods in its history during the global financial crisis as many of its largest clients, the world’s banking multinationals, fell deeply into the red.

A recent McKinsey study predicted the sector would miss its target of hitting revenues of $60bn by 2010 as it faces pricing pressure and falls in the volume of business.

However, the industry has recently begun clawing back business, as its clients begin work on integrating acquisitions made during the downturn and try to cut costs.

Before the crisis, India’s domestic IT leaders, Tata Consultancy Services, Infosys Technologies and Wipro, were already facing growing competition in the low-cost offshore outsourcing business from global leaders such as Capgemini, IBM and Accenture. The western multinationals began ramping up their workforces in India to enable them to tap low-cost talent in the country.

US-based IBM’s Indian workforce was 74,000 in 2007, the latest figures available, but earlier this year was reported to be shifting more jobs to India. Accenture has been increasing its numbers in India at a similar pace in recent years.

Salil Parekh, Capgemini India executive chairman, said the group’s headcount in the country was expected to show “high single digit” percentage growth this year and would next year register a double digit increase. Capgemini’s Mr Nannetti said the company was establishing a new business information management centre of excellence in Bangalore that would start with a workforce of 1,000, scaling up to 3,000 in about 18 months.

Business information management, a service that helps companies to improve their collection, use and analysis of data, is one of the areas for which India’s large talent pool is particularly attractive.

It can involve the use of multiple sources of information, from the weather to shipping schedules, to build a more complete picture for a client of its business performance.

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Source: FT.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4859

Africa ripe for investment opportunities, say Shanghai experts

Inspired by China's economic growth despite the global financial recession, African countries have reached a consensus to learn and benefit more from the robust economy.

A delegation with representatives from nearly 40 African countries, and two international organizations - the Africa Development Bank and the League of Arab States - attended the Touchroad China-Africa Invest Forum in Shanghai Monday. The forum focused on opportunities and challenges of investing in Africa.

Many people stereotype Africa as a piece of underdeveloped land, plagued by poverty, disease and violence, but He Liehui, founder of the forum, objected to such labelings.

"It is far from being the truth if you know enough of the continent. There are lots of misunderstandings there. Not all countries in Africa are poor, and some nations' GDP per capita is higher than that of China," he said.

Actually, many Chinese companies have noticed the opportunities in the resource-rich continent and invested extensively there. Chen Jian, vice-minister of commerce, said China has invested in 49 African countries.

"Since bilateral trade volume exceeded 10 billion U.S. Dollars in 2000, the annual growth rate averaged 32 percent, and last year reached a record high of 106.8 billion dollars," Chen said.

As one of the most economically active cities in China, Shanghai has apparently sensed its opportunities. Zhao Kangmei, deputy director with Shanghai Municipal Commission of Commerce, said in the first eight months this year, 28 percent of the new overseas projects Shanghai signed came from Africa.

During the forum, several African officials served as spokespeople for their homeland. General Pape Khalilou Fall, ambassador of Senegal, said their country has a healthy and competitive economy.

"Senegal provides good human resources, complete banking service, Internet and telephone service, as well as a good legal framework," he told China Daily.

"We welcome investment in all sectors, telecommunication, infrastructure, fishing and agriculture, etc. But more importantly, as the Chinese saying goes, 'Don't give me a fish, but teach me how to fish,'" he said.

"In addition, Senegal is a gateway to 15 countries in West Africa, so investment there means great opportunities in the other 53 African countries," he added.

The nonprofit forum of Touchroad China-Africa Invest was first held in March 2008 with 18 nations participating. Many delegation groups had reached deals on site, He said.

"Sure we will continue the forum next year and build it into a highly efficient Sino-African trade platform, and through the platform we try to boost the friendship and economic ties of the two sides to a new high," He said.

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Source: People's Daily, China
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4805

FMCG Brands Likely to Triple Online Spending in India Next Year

Fast-moving-consumer-goods brands in India are upping their spending on online advertising -- and how!

According to India's WebChutney Digital Media Outlook Report 2009, the online spending of the FMCG category, which stands at about $3.3 million (Rs 16 crore), is expected to increase to almost $14.8 million (Rs 72 crore) in 2009-10, a whopping 353% jump.

For a long time, FMCG brands have been using TV and print media, and though these media still lead the pack, the use of online advertising is also on the rise. For instance, in August 2009, Coca-Cola India launched its campaign for Sprite on the internet first. Pepsi, ITC Group and Colgate-Palmolive are some other FMCG brands that have begun using online advertising in a big way. In fact, the second half of 2008 saw Pepsi increasingly take to online advertising.

Amardeep Singh, co-founder and VP of Interactive Avenues, explained: "FMCG brands are increasingly spending online. Today you have clients like Colgate-Palmolive, Sony, ITC Group and so on who are getting active online and using the internet as a medium to build reach. With the growing number of internet users, people have started using the internet as a reach-building medium, and thus more advertisers are waking up to the fact that the internet is fast becoming an integral part of their media plan."

On the other hand, Saurabh Bhatia, co-founder and chief business officer of video-ad network Vdopia, said, "FMCG brands in India are increasingly spending online, and this is a growing trend. Nevertheless there is still a long way to go, because FMCG brands are still experimenting with the medium, whereas by now it should have already been a part of their media plan."

Mr. Bhatia added: "One major reason why FMCG brands must market their products online is because their competitors are not yet there; hence, for an audience, there is very little exposure of the FMCG brand, which, in turn, brings in a lot of freshness and curiosity, which the brands can reap benefits from. Since FMCG is majorly about brand and branding, the internet can play a very critical role. ... However, unfortunately the decision makers are mainly from a generation that did not spend their time on the internet, which is another challenge."

Mr. Singh explained further: "Until now, brands were looking at performance of the medium to acquire the customer, but the moment they start looking at the reach and frequency metric of the internet, then automatically FMCG advertisers will come on board.

"The internet as a medium is not a static medium but a very dynamic one. With online video coming on board, FMCG brands will use video advertising in a big way. However, for online-video advertising to take off in the country, there is a need to increase broadband penetration, and once the penetration of wireless broadband devices increases, you will see an increase in video consumption. As a result a lot more FMCG brands will also be seen coming on board."

Said Mr. Bhatia: "At the decision-maker level, there is a lack of understanding amongst the clients about the digital media, hence there is a need to for the internet companies to educate FMCG brands about the value of the internet as a medium, and this is one area where they have not been very successful.

"Broadband penetration must reach the tier-two and -three towns as well. In fact, we are seeing increasing trends of internet consumption beyond metros as well. The presence of online video is a huge, welcome trend for the internet industry per se because it gives an opportunity to the FMCG brands to experience the medium in the most common denominator that they have been using, which is the 30-second commercial, thus making FMCG brands feel that internet advertising is no alien, but can be far more interesting."

While the FMCG brands are no doubt increasing their online spending, online advertising for these brands is more or less on an experimental basis. However, with increased broadband penetration and the growth of online-video advertising in India, FMCG brands are bound to take to online advertising in a big way.

The story was originally published at Exchange4Media.


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=4709

A Google For Rural Africa

Jonathan Gosier, one of the TED Fellows at the conference here, presented his project called QuestionBox that promises to bring answers to the curious in the most remote parts of the developing world. Gosier started by asking the question, how do we know what people want to know? Google knows what we want to know, and builds its search engine around those requests, but that service covers those of us in rich countries with widespread access to PCs and broadband. What about in rural Ghana?

[Estimated timeframe:Q3 2009-onward]

With the help from the Grameen Foundation and a not-for-profit called OpenMind he staffed up a small call-center where mobile phone owners can call up and ask about weather, history, science, whatever they want. For those with no phones, QuestionBox sends men and women in easily identifiable T-shirts and hats into villages to take people's questions. Gosier showed a sweet video in which a farmer in Ghana walked into a town, and asked a volunteer sitting by a hut if the Egyptian pyramids were still standing. The volunteer got on the phone, registered the question with the call center, and gave the man the answer he wanted. Smiles all around. Check it out at questionbox.org.

Design Inspired By Nature

Ross Lovegrove acclaimed product designer (iMac, Muon speakers and, a long time ago, the interiors for Japan Airlines) and wearer of very cool blue pants, spoke of his love for nature as an inspiration for product design. He spent his youth by the sea in Wales, which has the highest and lowest tides in the world. Those tides, yielding up shark´s teeth, shells and mollusks to scrutinize and collect, were all a boy needed for hours of exploration.

Ever since, he has been looking for a way to combine product design with natural design. His new series of projects he calls Genesis do just that, yielding biomorphic designs aided by advanced visualization software. Some examples: a suitcase called the 110 handmade in Japan from carbon and Kevlar fiber, and sold by the British luxury brand Globe-Trotter. It weighs an amazing 3 pounds, or 1.4 kilograms. Lovegrove likes the idea of his luggage doing its part to reduce carbon dioxide emissions by lowering the weight on airplanes.

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Source: Forbes.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4569

Outlook for Outsourcing Spending Brightens

Spending on outsourcing is set to come out of a slump and return to pre-recession levels by the end of the year, bringing a much-needed boon to technology companies in India and elsewhere, says a closely-watched survey of the industry. More than half of companies surveyed that outsource say they expect their spending on technology to come back to levels before they made cutbacks, according to the 2009 edition of the Black Book of Outsourcing.


[Estimated timeframe:Q2 2009-onward]


That could be much-needed news for outsourcers globally. For nearly a year, financial and political fears have kept a damper on companies' tech spending, bringing a halt to the skyrocketing growth outsourcing companies long enjoyed.
The results are from a survey to be published Thursday by Brown & Wilson of Clearwater, Fla., that invited over 300,000 clients to rate outsourcers on their performance and professionalism. The yearly ranking is a bellwether of the state of the industry and ranks its most highly-regarded companies. The survey´s results were provided to WSJ.com in advance of their publication.

India, in particular, fared well. HCL Technologies Ltd., based in Noida outside New Delhi, tops the list this year, among a wave of Indian companies that came out further ahead this year. Nearly 94% of companies surveyed say they would definitely consider India as an outsourcing destination for the right price, second only to the U.S. and significantly higher than other emerging markets like the Philippines and Eastern Europe. A proven track record will be crucial when companies start spending on outsourcing again, the report says.

What makes the pro-India results surprising is that they come in the wake of a massive fraud scandal at the country´s Satyam Computer Services Ltd. The company´s founder B. Ramalinga Raju admitted in January to fudging Satyam´s books to the tune of over $1 billion.

For the first time this year, the survey asked clients to score outsourcers on accountability and trust. Indian companies scored highly, with 81% of clients saying that Indian companies had improved their accountability since the scandal broke.

"Post-Satyam, our expectation was that Indian providers were really going to take it right on the chin," says report co-author Scott Wilson. "But it seems that they used it as an opportunity to go out to their clients and talk to them about their concerns."

Three Indian companies -- HCL, Infosys Technologies Ltd. and Tata Consultancy Services Ltd. -- ranked in the top 10 of outsourcers with the highest accountability, transparency and trust.

India´s edge as an outsourcing destination is pushing out the competition from other developing countries, which have the same low wages as India but don´t have the south Asian country´s reputation. "It´s the fourth year in a row that there´s no Chinese firm," says Doug Brown, the other co-author.

If customers do start putting money back in the pockets of outsourcers by the end of the year, they won´t be diving right in. Instead, they´ll be looking for short-term projects -- less than six months -- and will stay away from the complex pricing deals that were popular before the downturn, according to the report.

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Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4119

US Urges Emerging Powers to Open Markets

US Trade Representative Ron Kirk, who took up his job in March, was speaking after two days of intense talks with U.S. trade partners at the World Trade Organization (WTO), and said his reception could not have been better. Kirk said both he and President Barack Obama were committed to reaching a deal in the WTO's long-running Doha round.

[Estimated timeframe:Q3 2009-onward]

"We see it not only as a critical component of what the president believes should be an overall worldwide response to the current economic crisis, but it´s also critical to the sustenance of many of our least developed countries," he said.

But he told a news conference -- in a clear message to the big emerging powers -- that a deal required more than participation by the United States.

In his talks, Kirk met representatives of more than half the WTO´s 153 members, including African and Latin American countries and the European Union -- the biggest U.S. trading partner -- as well as with WTO Director-General Pascal Lamy.

Kirk said the economic crisis was hurting nations like China and the United States but causing unbearable pain to the poorest countries, who Washington believes should not be asked to make further sacrifices to reach a deal on Doha.

With the U.S. market already fully open to 98 percent of goods from least developed countries, their next opportunities would come from the big emerging countries, who should open up their markets to create a "win-win-win" deal, he said.

The Doha round was launched in late 2001 to help poor countries prosper through more trade in food, goods like cars and clothing, and services like telecoms and banking.

But to sell a deal back home, U.S. negotiators will need to point to new opportunities for American businesses too, and the former Dallas mayor said a Doha deal would have to bring meaningful gains in market access for all countries.

He said the United States did not want to throw away the work that had gone into the Doha talks over the past seven years, but clearly the process was not working, and Washington is looking for new ways forward.

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Source: WashingtonPost.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4035

Malaysia Seeks to Lure ‘Large Size’ Islamic Banks

Malaysia, which last month unveiled plans to open its Islamic finance industry further, is trying to lure larger overseas banks to provide services that comply with Muslim tenets, the central bank said. “If we want to develop ourselves as an international financial hub, then it is important for us to have international banks,” Governor Zeti Akhtar Aziz said in an interview in Singapore today. “We would like to see our financial landscape have an international Islamic financial institution of a large size that can take international business, whether business in Europe, or South Korea or any part of the world.”

[Estimated timeframe:Q3 2009-onward]

Rising oil wealth and government initiatives have turned Islamic banking and insurance into an industry with $1 trillion in assets globally. Malaysia said last month it plans to issue as many as two Islamic banking licenses to overseas lenders this year and will let in more foreign lenders for the first time in more than a decade.

Malaysia’s central bank also raised foreign ownership limits at local Islamic banks, investment banks and insurance companies to 70 percent on April 27. Asian nations from Singapore to Hong Kong are seeking a larger share of Muslim wealth by giving incentives for more products that comply with the religion’s Shariah law.

The current global conditions provide “excellent conditions” for growth in Islamic finance as risk-sharing should be the first thing on the mind of investors, Saudi Arabia central bank Governor Mohammed al-Jasser said in Singapore May 7.

Seeking Larger Pie

Policies to promote assets that follow Muslim law are spreading as far as Japan and Europe. The U.K. may sell its first-ever Islamic bonds to woo funds from the Middle East. The Monetary Authority of Singapore issued new Islamic finance regulations this week to boost the industry, betting demand will grow as investors seek alternative assets.

There’s still interest in bonds and other products that comply with Muslim Shariah law amid the global financial crisis, the Singapore central bank’s managing director, Heng Swee Keat, said on May 6.

Malaysia’s central bank gives tax breaks for Islamic products and has relaxed rules to allow commercial and investment banks to conduct Islamic business transactions in foreign currencies.

Bank Negara Malaysia has licensed three overseas Islamic banks, including Kuwait Finance House, the Persian Gulf’s largest Islamic investment bank, and Saudi Arabia’s Al-Rajhi Bank. It has 17 Islamic banks, which include the Islamic units of HSBC Holdings Plc, Oversea-Chinese Banking Corp. and Standard Chartered Plc, according to the central bank’s Web site.

Second Sukuk

The new Islamic banks will be required to have paid-up capital of at least $1 billion. Bank Negara “invited” applications for licenses until October, Zeti said.

“They would undertake international business from any part of the world and this is the reason why it would require higher capitalization,” Zeti said. “There has already been interest.”

Malaysia doesn’t rule out selling a second global Islamic bond, said Zeti, who has helmed Bank Negara since May 2000. In order for there to be “sufficient liquidity,” the sale would ideally need to be at least $1 billion, she added.

“We have encouraged the government to enter the market again so we have a benchmark issuance,” Zeti said. “As conditions improve we won’t discount the prospects of an issuance. The decision will be made by the government because they are the borrower.”

Bahrain Sukuk

Islamic bonds typically are secured by real estate and assets that produce income or profits to pay investors. They took off after Malaysia’s government raised $600 million in the first overseas sale of sukuk in 2002.

Bahrain’s sale of $500 million in sovereign Islamic bonds is receiving “strong” interest from investors who have been starved of new issues amid the global credit crisis, Central Bank Governor Rasheed al-Maraj said May 7. The sale would be the second of 2009 after Indonesia raised $650 million in April from its first sale of the securities.

Islamic bond sales fell 21 percent to $3.4 billion this year after plunging 55 percent last year, as the global credit crunch sapped investor appetite for all but the safest debt and an oil-price slump eroded Middle Eastern wealth.

Overseas investors can now own 70 percent of Malaysian insurers, Islamic and investment banks and sellers of Shariah- compliant insurance, up from 49 percent previously, Prime Minister Najib Razak said April 27.

The country will also issue as many as five licenses to foreign banks by 2011, the first since Bank of China received a permit in 2000. More than 60 percent of Malaysia’s 28 million people are Muslim.

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

Source: Bloomberg.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4006

Emerging nations' growth to slow
Emerging nations' growth to slow The World Bank says the economies of developing countries are expected to grow by just 1.2% this year, compared with 5.9% in 2008 and 8.1% in 2007. And if China and India are excluded, gross domestic product in developing countries is projected to fall by 1.6%. Its annual Global Development Finance report warns of possible joblessn......

Emerging nations' growth to slow

The World Bank says the economies of developing countries are expected to grow by just 1.2% this year, compared with 5.9% in 2008 and 8.1% in 2007.

And if China and India are excluded, gross domestic product in developing countries is projected to fall by 1.6%.

Its annual Global Development Finance report warns of possible joblessness and poverty in developing nations.

It also forecast the global economy as a whole would shrink by 2.9% this year, against an earlier prediction of 3%.


The report says that economic policies have to "focus rapidly on financial sector reform and support for the poorest countries".

In addition, the bank warns that the flow of money into the developing world is likely to halve this year.

World Bank figures show developing countries´ net private capital inflows fell from $1.2tn (£728bn) in 2008 to $707bn last year.

And according to the bank the inflow into poorest countries this year may be just $363bn.

´Driving force´

The bank urged rich countries to boost the flow of credit to developing nations to help speed up economic recovery.

Justin Lin, the World Bank´s chief economist, said: "Developing countries can become a key driving force in the recovery, assuming their domestic investments rebound with international support, including a resumption in the flow of international credit."

The weakness in the developing countries after recent years of growth also heightens the risks of social unrest, the 185-nation institution said.

Despite the gloomy picture for this year the bank says that growth in developing countries, led by India and China, could reach 4.4% in 2010 and 5.7% by 2011.

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

MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4273

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