This blog has proudly been moved to http://blog.sisinternational.com ...<< MORE >>

As part of its investigation into the changing US consumer, SIS International sought to examine the potential future of consumerism and shopping behavior in the United States.   The speech from which this blog article comes can be found in its entirety information at www.sisinternational.com and www.sisinternationalresearch.com. Given the trends, SIS International noticed the following:

The Aging Baby Boomers:

    * Post World War II births 1946-1964
          o Approximately 77 million people
    * High level of income [$64,700 Median Household Income]
    * High level of education [46% are college educated
    * High percentage of home ownership [57% home ownership]
    * Most do not want to retire in their 50’s and 60’s
          o Over 80% intend to keep working, and 56% of them hope to do so in a new profession. For many, the new job would be in community service
    * Many are currently being downsized from companies
          o 16.4% or 5.6 million of Baby Boomer workers aged 50+, were self-employed.


Implications of the Aging Baby Boomers

    * Increased mobility to warmer climates in the southeast and southwest
    * Simplification of lifestyles; “Less is More”
    * Not as loyal to brands as same age group in decades past
    * Baby Boomers are seeking:
          o Streamlined financial services
          o Smaller homes – yet multiple homes
          o Alternative healthcare methods – reduction in medical benefits
          o Part time jobs to supplement their income for retirement


Babyboomer Demographics

    * Immigrants make up 12% of “early boomers” (born 1946-55) and 15% of “late boomers” (1956-64)
    * Control 70% of the total net worth of American households - $7 trillion of wealth
    * Own 80% of all money in savings and loan associations
    * Spend more money disproportionately to their numbers than any other age group
    * Watch television more than any other age group
    * Read newspapers more than any other age group
    * Account for a dramatic 40% of total consumer demand



What Happened to Generation X?

    * Generation X is defined at those children born from 1963-1978 and is currently age 28-42, the primary earning years.
    * This segment is now turning “30” and “40”
    * Sons and daughters of the women's liberation movement in the 1970s and grew up in day care centers and child care surrogate parents
    * Are more conservative and more serious vs. the upcoming Generation Y market segment
    * Yet – will ultimately inherit the baby boomers’ lifetime savings and investments


Implications for the Generation X Market Segment in the US

    * More “diagnostic” research is needed to determine their values, product preferences, psychographics, etc.
    * The “mobility index” of this generation needs to be determined and tracked
    * Brand preferences can be “polarized” as they are “sandwiched in” between the Baby Boomers and Generation Y in the US
    * It is important to segment this age group rather than merge them in with the Generation Y or Baby Boomers generation
    * In 1970, 47% of Boomers between 18 and 24 lived with their parents
    * ...<< MORE >>

The Beijing Olympics have not approached unnoticed. China’s grand spectacle which began with multi-billion dollar construction projects including the “Bird’s Nest” stadium has seen worldwide protests and controversy of late, enhanced by the situation in Myanmar (Burma). One story that we have not heard much about is the Olympic sponsor, Lenovo. Besides being a Chinese firm, Lenovo is the first Olympic sponsor to also design the Olympic torch.

Having acquired IBM’s personal computer division, Lenovo is seeking to become the worldwide leader in computer technology. It is headquartered in Beijing, China and Raleigh, North Carolina, USA. In many ways, this firm symbolizes the coming together of two superpowers, and the Olympic sponsorship serves as the ultimate marketing tool for this global enterprise to showcase its “New World, New Thinking” trademark. The venue, however, has both costs and risks.

Last summer, Lenovo quietly opted out of its contract for the 2012 Olympics. While the price-tag for Olympic sponsorship is unknown, experts estimate that it has risen about 10% every four years, and Lenovo is paying between $80-100 million each year. Meanwhile, new media advertising, particularly via internet, has become much more cost-effective. Lenovo is supplying approximately 20,000 computers and 500 technicians for the 2008 games.

More interesting is what happens if controversy overwhelms China in the spotlight. How will the athletes respond to China’s rampant pollution? How many political leaders will decide not to attend the event? How then, does Lenovo’s sponsorship pay off? Until these questions can be answered, the Chinese population, filled with nationalism and pride, watch the hours countdown on special monitors around the country.

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Ethanol is a clean burning, high-octave motor fuel that is produced from renewable sources. Normally ethanol is used as a blend with gasoline eg: E 10 - 10% ethanol & 90 % gasoline which are commonly used in the US. However there are higher blends eg: E85- 85% ethanol & 15% gasoline which is used in flexible Fuel Vehicles (FFV) which has also been introduced in the US by automakers.

This could make a big difference to Ethanol business. American Coalition for Ethanol (ACE) is leading efforts to using higher ethanol blends - 20%, 30%, 40%, etc in standard automobiles which could mean dramatically higher amount of renewable fuel.

Ethanol production in the US has grown from about 3.4 billion gallons in 2004 to 4.89 billion gallons in 2006. This current annual capacity is reckoned at around 8 billion gallons from about 142 operating plants. Another 67 plants are reportedly under construction

Ethanol is currently blended into 46% of America’s gasoline as E10 (10% ethanol blend). E85 also has started making in roads with about 50 millions gallons of E85.

The Energy Policy Act of 2005, established the first-ever Renewable Fuels Standard (RFS) in federal law, requiring increasing volumes of ethanol and biodiesel to be blended with the U.S. fuel supply between 2006 and 2012 .The volume of renewable fuel required to be blended into gasoline was 7.5 billion gallons by 2012. The Energy Independence and Security Act of 2007 amended and increased the RFS, requiring 9 billion gallons of renewable fuel use in 2008, stepping up to 36 billion gallons by 2022.

Many states have chosen to enact ethanol-related legislation. Seven states have enacted Renewable Fuels Standards that require the use of ethanol-blended fuel. Ten states have some type of retail pump incentives for ethanol. Twenty-two states have some type of incentive for ethanol producers. There are various tax credits offered to encourage the production and blend of ethanol such as VEETC, Small Ethanol Producer Tax Credit, Tax Credit for E85 Infrastructure etc.

Ethanol production is from renewable source materials including grains, sugar rich plants, and wood waste materials. Corn is the primary feed stock for U.S ethanol production & some grains sorghum is also used in the drier areas on the periphery of the corn belt.

Ethanol can be made either by the dry- mill or the wet-mill method. Wet-mill facilities were more common in the industry’s early days, but today dry-mill ethanol plants far out number them and present the method used by all new ethanol producers. .A wet-mill makes a variety of products from corn including ethanol, corn sweeteners and gluten feed. Dry-mill facilities are dedicated to the production of ethanol and its co-products.



Copyright (C) 2008.  All rights reserved.  See privacy statement and limitation on liability. ...<< MORE >>

Yet 2.com is a site that lists and leverages intellgectual property and technologies for other parties.  It works by connecting buyers and sellers of technology and intellectual property.  Specifically companies gain the tools to license, acquire, sell and license intellectual property.

One of the most substantial obstacle in today's business world is the lack of knowledge on how to find a relevant solution for a specific need. Essentially the site circumvents this obstacle by offering solutions based on a search query. 

Yet 2 can enhance innovation and help limit the time necessary for development, a major expense for companies in today's fast-paced market.  An example of the site in action is Procter & Gamble's listing its need for Metal Protection Technologies for use in Home or Commercial Automatic Dishwashing detergents. 

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Rail transport in the US can be subdivided into passenger-rail and freight shipment segments.  At present, the majority of rail transport in the United States is based in freight train shipments.  Freight railroads are crucial to the nation’s economy – they move 40 percent of manufactured goods and raw supplies. 
Freight Shipment

At the end of 2005 (latest data) 562 common carrier freight railroads were operating in the US.  They are divided into the following categories:

• Class I Railroads – typically operate in many different states and concentrate largely on long-haul, high-density intercity traffic lanes


• Regional Railroads – line haul railroads with at least 350 route-miles and/or revenue of between USD 40 million and Class I threshold.


• Local line haul carriers – operate less than 350 miles and earn less than $40 million USD.


• Switching and Terminal Carriers (S&T) – railroads, regardless of revenue, that primarily provide switching and/or terminal services. 


• In addition, there are two major Canadian freight railroads – Canadian National Railway and Canadian Pacific Railway, both of which have extensive US operations.

 
The US Railroad System
US freight railroads are overwhelmingly privately owned – over 90 percent.  Compared to passenger rail and freight railroads in other countries, they receive very little government funding.  Most of the tracks where US freight railroads operate are owned by the railroads themselves. 

Passenger Rail
Prior to Amtrak’s creation by the Rail Passenger Service Act of 1970, intercity passenger rail service in the United States was provided by the same companies that provided freight service.  When Amtrak was formed, in return for government permission to exit the passenger rail business, freight railroads donated passenger equipment to Amtrak and helped it get started with capital infusion of some $200 million USD.  Today, Amtrak is the only intercity passenger railroad in the continental United States. 
 
 
Key Issues Facing the Industry
A.  Legal issues
 
Freight Rail   
One of the critical policies on transportation in the US concerns shortage of rail capacity that hinders the timely and reliable delivery of coal and ethanol to consumers.  Without adequate rail capacity, the county could be awash in ethanol and coal but unable to use it.   US rail operators concede that they have capacity problems and say they are pouring money and other resources into efforts to resolve them.  The Association of American Railroads notes that from 1996-2005, railroad capital investments were 17% of revenue.  However, rail operators are still asking for federal legislation for tax incentives to enable still more capital investment that would increase their efficiency and capacity. 
 
The "Freight Rail Infrastructure Capacity Expansion Act of 2007” has been introduced to the Senate.  It is intended to address the need for expanding the nation's freight rail capacity by allowing up to a 25 percent tax credit for the expansions. 
 
Passenger Rail
The Passenger Rail Investment Reform Act makes key reforms to transition Amtrak purely into an operating company, creating a federal-state partnership to support passenger rail, introducing market-based competition to the system, and setting up an ...<< MORE >>

Global Trends by SIS International Research

 

Ø        More demand of anti-ageing, skin Care, moisturizing, and whitening creams in emerging markets

Ø        Convergence of the pharmaceutical and beauty markets

Ø        Cost efficiencies through global sourcing

Ø        Divestiture of non-core brands and the focus on core brands by major FMCG companies

Ø        Strong growth of personal care and household care products driven by emerging markets

Ø        Extension of brand portfolios of existing brands into new areas or new brands (introduced organically or inorganically)

Ø        Global flat sales for cosmetics; growth being driven by organic products and emerging markets

Ø        FMCG companies’ focus on share re-purchases

Ø        Focus on channel management

Ø        Geographic expansion of key brands

Ø        Global supply chain management

Ø        Growth in male personal care products, convenience products, and disinfectants

Ø        Growth of maastige products in personal care

Ø        Increase in cost of raw materials

Ø        Strong registered growth of luxury and mass brands

Ø        Outsourcing of IT, back office, and other shared services

Ø        Price competition increasing commoditization

Ø        Faster growth of price conscious customers than value-conscious customers

Ø        Private label competition from other suppliers as well as retailers’ own brands

Ø        Impact of rising food and gasoline prices on spending

Ø        Rising incomes in Asian economies boosting consumer spending

Ø        Maturation of supplier-retailer partnership and joint value creation focus

Ø        Trend towards greener organic products, pushed by Wal-Mart


Trends tracked by SIS International Research.

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Driven by increasing youth expenditures, better distribution networks and strong economic growth, Vietnam’s FMCG industry, which grew 20% in 2006, is expected to grow more in 2007.  China’s growth rate was 11%, while the Thai market grew 4% and the Taiwan market grew 3%.  57% of Vietnam’s population is under 25 years old.  Vietnam has a higher family density than other countries in Southeast Asia.  The country’s monthly expenditure  is around $40 USD.  The most widely used cosmetic category in the country is facial moisturizers.
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Canada's National Ground Water Trade Show (CANWELL) is set for May 14th-17th, bringing professionals from North America and around the world.

Event Format:

• Trade show exhibition
• Demonstrations
• Outdoor equipment showcase
• Entertainment & golf tournament
  

Target audience:

• Hydrologists
• Manufacturers
• Contractors
• Engineers
• Suppliers

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The consumer Goods sector is being driven to cost efficiencies by Wal-Mart through the company’s recent greener moves.  Wal-Mart will be soon forcing all its suppliers to monitor and manage carbon emissions.  The company will sell only concentrated laundry detergents in all its stores by May 2008, thus saving 400 million gallons of water, 95 million pounds of plastic resin and 125 million pounds of cardboard.   Wal-Mart had experimented this with Unilever first.  Unilever has been estimated to save about 5 million pounds of plastic, 26.3 million square feet of cardboard and 25,000 gallons of diesel fuel through the introduction of Small & Mighty in the past 2 years.  Developing markets are showing greater preference for anti-ageing, moisturizing, and whitening creams.
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India is an attractive market with high growth rates in the past years. Enzyme use is still in its infancy with growing awareness of enzyme potential and benefits providing attractive growth perspectives. The industrial enzymes segment, has an estimated worth of $75 million, and is a quickly growing market in India. In 2006–2007, the bio-industrial sector made an impressive turnover of $130 million, with a growth rate of 5.33 per cent. India imports about 70 per cent of the total enzyme consumption. Pharmaceutical enzymes are the represents most of the industrial enzyme demands in India and cover almost 50 percent of the total enzyme demand, followed by detergent enzymes (20 percent) and textile enzymes (20 percent).

There are about 17-20 players in this market. Most of these companies are either into marketing or into formulations. But India has companies that also manufacture enzymes used in different industries such as pharmaceutical, food processing, leather, detergents, paper and pulp and textile. These companies produce various enzymes and several other eco-friendly biological products. The product range and services are growing rapidly as the use of enzymes is gaining widespread acceptance. The Indian manufacturers are not only supplying to local market but are also exporting to number of countries.

Food expenditure is increasing on average in India as the country experiences economic growth, sparking western companies to step up investment. Food consumption is set to increase 9.4 per cent by 2012. However, this is a modest rate when considering the pace of the country's economic expansion, relating to just 4.3 per cent in per capita terms. The Dairy segment is becoming an attractive segment for new entrants. As the economy grows, we believe more people will buy dairy products from supermarkets rather than make them at home. Because of the increase in production costs related to raw materials, customers may reduce dairy milk solids using methods such as increasing the amount of water or air without compromising on taste.

• Novozymes in 2007 had acquired the enzyme activities of Biocon Limited which till then was the market leader in India for industrial enzymes.


• Danisco is opening up two new separate manufacturing units for functional systems and for enzymes to serve South-Asian customers. The plant will primarily produce enzyme blends to service the markets of animal nutrition, food and beverages, fuel ethanol, grain processing, laundry detergents and textiles.


• Other Players are: Enzyme Development Corp., Dyadic International, Excel Industries and Concord Biotech, CHR-Hansen and Quest International

Copyright (C) 2008.  All Rights Reserved.  See Privacy statement and limitations on liability.

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Information Technology contributes a small but still significant share to global energy consumption as well as global warming, accountable for roughly 2% of global carbon emissions.  Green IT is a movement to minimize carbon emissions that result from the usage or manufacture of IT.  Beyond this, companies can take part in Green IT by increasing their computer productivity by getting rid of many old computers and replacing them with fewer efficient computers that contribute to lower energy and overhead costs in the longrun.
 
Computer manufacturers can learn from this concept and can attract potential customers in both emerging markets and developed markets with the prospect of longterm gains from Green IT.


Copyright (C) 2008.  All Rights Reserved.  See privacy statement and limitations on liability. ...<< MORE >>

Male personal care products are the fastest growing segment in skin care. Proctor & Gamble's grooming segment which includes male products like blades, razors, and shave preparation products, generated revenue of $2 billion in Q307. Estee Lauder recently launched Aveda Men pure-Formance products in US Market. Henkel's "taft elastic gel" styling products for male have been increasing its market share of overall cosmetics segment in Europe.  The Male Cosmetic industry in Latin America registered $3 billion in sales in 2006 and is gradually rising, driven by strong demand in Brazil which accounts for 47% of regional consumption.

Info Americas has estimated that the male cosmetics market in Latin America will reach annual sales of $6.7 billion in 2015, taking into account the current annual growth rate of 9%. Market Research Firm Kline has reported that Canada, France and Italy experienced a growth rate of 41.5%, 21.5% and 19.3% in sales of male skin care products in 2006. Kline also noted that the Global Male cosmetic segment reported 8.7% growth in 2006.
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Globally, the cosmetics sector is witnessing a flat growth scenario.  The growth is coming from geographic expansion into emerging markets and domain expansion through the introduction of a new variety of products, such as the shift to organic products.  While luxury brands have not witnessed a great drop in sales in emerging markets during the ongoing credit crisis, in developed countries, consumers have put off large purchases in view of the tightened credit market.  Also, higher mortgage payments are forcing consumers to purchase more at discount stores rather than at luxury retailers.  In Asia, Eastern Europe and Latin America, rising incomes have resulted in the increasing adoption of higher end personal care products.
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Overview
The aeronautics industry is a main contributor to national security, commerce, and transportation. It is considered as a technology driver that leads to spin-offs of advanced technology products and comprised of three major sectors: air frame, engine, and equipments. 

The market is composed of civil aeronautics of air crafts used for domestic commerce and air civilian air transport and military aeronautics includes air arms for the military aviation of countries.
United States

Since World War II, U.S. aircrafts, engines, and parts has dominated domestic and the foreign markets for subsonic transports, general aviation, commuter, and military aircraft. US technology and products is also the driver for the development of global transportation infrastructure like airports and air traffic management systems.

Currently, the aeronautics industry is the largest positive industrial contributor to the US balance of trade, plays a vital role in maintaining the safety and convenience of air travel throughout the world, and provides important contributions to the defense of U.S. interests, having flown the most isolated parts of the world.
Europe

The region is presently struggling to keep pace with the strong increase in mobility and demand. However the region is the main competitor of US in terms of air travel over medium and long-haul routes. EU states are now increasing their funds to support and fund research initiatives to meet market demands and grab potential opportunities in the industry.
 
Key Players

The Boeing Company

The Boeing Company is one of the  largest manufacturer of commercial jetliners and military aircrafts It designs and manufacture rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems, and operates Space Shuttle and International Space Station for NASA, and military and commercial airline support services. It operates in more than 90 countries around the world and is one of the largest U.S. exporters in terms of sales.

Boeing is headquartered in Chicago and employs more than 160,000 people across the United States and in 70 countries. Currently it is expanding product lines and services developing more commercial airplanes, military platforms, defense systems and the war fighter through network-centric operations; creating advanced technology solutions that reach across business units; e-enabling airplanes and providing connectivity on moving platforms; and arranging financing solutions for our customers.

Airbus S.A.S
Airbus is a leading aircraft manufacturer providing product lines such as the from the 100-seat single-aisle A318 jetliner to the 525-seat A380, the largest civil airliner in service.
Airbus has expanded into the military transport aircraft sector with the A400M multi-role military air lifter produced under management of the Airbus Military company replacing ageing fleets of C-130 Hercules and C-160 Transalls beginning in 2009. In addition, aerial tankers for in-flight refueling and transport missions are available in aircraft variants derived from the A310 and A330.
 
Emerging Technologies
Recent research focus areas in aeronautics include nanotechnology, developmental test and evaluation, network-centric warfare, intelligent systems, and environmental air transport.

Energy Optimized Aircraft and Equipment Systems
Air craft technologies are related to the design and integration of energy consuming Aircraft Equipment Systems (AES). These systems are located under ...<< MORE >>

FMCG Companies are increasingly facing a greater threat from retailers’ private labels.  To counter the trend, FMCG companies are looking into channel expansion, the promotion of more masstige products, and the introduction of tiered variants of their top brands.  In developing countries such as India, FMCG companies are providing the same discounts to small retail stores that they offer to large retailers.  In India, FMCG companies currently derive the maximum portion of their revenues through small retail stores in the unorganized market. The organized market accounts for only 4% of the total retail market.
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A 2007 Credit Suisse survey indicates that by 2015, China will overtake developed countries to become the world's second biggest consumer goods market, accounting for 14.1% of global consumption (currently 5.4%).  The US is expected to account for 37.7% (currently 42%) in 2015.  The Credit Suisse survey also stated that China’s market share will grow to 21.8% by 2020.  The 84 domestic FMCG enterprises have realized $46.9 billion in sales. Currently, China is estimated to have approximately $1 trillion in domestic savings.  The country’s household consumer sector has been projected to grow to $3.7 trillion by 2015.

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STEEL

U.S. steel mills produced 14.66 million tons of steel as of January 2008, up from 13.64 million tons during the comparable 2007 period.  According to the American Iron and Steel Institute, the Northwest Indiana/Chicago area, considered as the country’s second-largest steel producing region has turned out about 523,000 tons of steel during the week of February 16.  The said figure is higher by 8,000 tons as compared to the production during the previous week.  On the other hand, steel production in the country’s largest steel producing region, the Southern District, was at 681,000 tons for the same period.
 
Statistics for national steel production of domestic mills reveal that production during the first half of February 2008 is at 2.14 million tons, up by 0.8 percent from figures of last year.  In addition, the country’s steel mills operated at 89.9 percent capacity during the week of February 16. 
 
On the other hand, according to Census Bureau data, the US imported a total of 2,280,000 net tons (NT) of steel in November 2007, which includes a total of 1,922,000 NT of finished steel.  Data show that the country’s overall imports year-to-date (YTD) decreased compared to figures from 2006.  Total and finished steel imports YTD, however, remained up by six and eight percent, respectively, on an annualized basis against 2005 figures.  Therefore, the country’s import levels of steel remained high.
 
The following are the finished steel products that increased in November 2007 as compared to previous month’s figure:

• oil country goods, up by 46 percent


• bars-light shapes finished, up by 40 percent


• hot rolled sheets, up by 38 percent

China is the main importer of pipe and tube products from January to December 2007, accounting for 33 percent of total imports.
 
ALUMINUM 
 
Accounting for 16 percent of the global supply, the US aluminum industry in 2008, is expected to benefit from the strong growth of the consumer electronics market.  Recycling, making lightweight and durable metals are expected to push the growth of the aluminum industry.  
    
Global demand for aluminum this year is projected to increase by 9.6 percent to 41.7 million tons, with China topping the consumption at 14.9 million tons, and the US coming next at 6.8 million tons.
    
The US aluminum industry, however, will face challenges due to cost structure, especially in the sectors of energy and industries.
    
Price forecasts of industry experts reveal aluminum prices will average at USD 1.22/lb this year and USD 1.25/lb in 2009 due to increasing power costs and higher productions expenses in China.  In addition, the weakening US dollar and strengthening Chinese Yuan is expected to greatly contribute to the price curves of the metal.  In addition, because of the strong economic growth in China, fueled by its domestic growth, recession in the US will not have any significant impact in the Chinese market’s demand for aluminum and other metals. 

Demand coming from China will continue to be strong even with the end of Olympics-related construction, with the country preparing for the Shanghai expo that is expected to keep demand on the ...<< MORE >>

Shanghai is setting up a cosmetics safety registry where consumers can complain about unqualified products.  The National Cosmetics Quality Management Work Commission and Shanghai Municipal Beauty and Hairdressing Association will have to compensate for the use of unqualified brands.  The Chinese cosmetics and personal care markets have contributed to strong retail sales in the country.  Government statistics show strong growth in FMCG goods.  TNS suggests that the Chinese market might become the world's largest cosmetics sector by 2009. 

China recorded imports $110.8 billion in 2006 versus $73.3 billion in 2005 due to the huge demand of cosmetics goods in the country.
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According to a recent Kline report, India’s personal care market grew 12.6% in 2006 and consumers are showing a marked preference for upmarket cosmetics.  Anti-ageing and skin-whitening products are the biggest sellers in India, according to Kline.  Per capita spending on personal care is $3.4 0USD according to Kline.  The luxury market in India is expected to grow 25% by 2010. 


 A recent study by ASSOCHAM (Associated Chambers of Commerce and Industry of India) states that the rural and semi-urban FMCG markets (currently accounting for 71% of the total FMCG market in India) will grow at a faster pace in the next three years, while urban areas may witness declining growth.   By 2010, the rural market share is projected to grow to 57%, and the semi-urban market share to 21%, while the urban market share is projected to decline to 22%.  ASSOCHAM’s study states that consumers are becoming more conscious in rural markets, where the youth population numbers 180 million, showing marked preference for organic products.  ASSOCHAM estimates that currently the Indian FMCG segment size is $15 billion, of which $7.9 billion is contributed by rural areas, $2.85 billion by semi-urban markets, $4.2 billion by urban areas.  The Indian government’s decision to permit 100% foreign direct investment (FDI) in FMCG will increase growth in rural and semi-urban India per Assocham estimates.

The study also says that over 70% of FMCG sales are driven by middle class households, and over 50% by the middle class in rural India.  Crisil (a leading research firm) estimates that by 2015, 88% of the demand will be driven by middle class households.  The projected growth should occur despite the hike in excise duty in the FY08 budget.  The Bombay Stock Exchange (BSE) FMCG Index has not yet fallen despite the whole Sensex falling in response to the US subprime crisis.   Major FMCG companies are increasing their rural market distribution channels to cater to the growing demand.  Crisil estimates that the FMCG sector in India will grow to $33 billion by 2015.
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Higher bank interest rates in many European countries, rising energy prices, the rise of the Euro against the dollar (affecting exports), rising commodity prices, and a tightened credit market have affected consumer spending

The S&P has maintained that inflation is hurting profitability at European consumer goods companies.  It says that rated companies have offset cost inflation through efficient process management as well the induction of higher pricing.  The S&P says that brand manufacturers may opt for further price increases and that cheaper input costs for the European consumer goods companies due to the weak dollar are being offset by reduced sales in the US. 
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 The European Commission is planning to act on a new anti-counterfeiting trade agreement (ACTA) bypassing both the WIPO and the WTO.  The European Union (EU)’s goal is to protect IPR rights of European companies beyond what is currently offered by WIPO and WTO.  EU, the US, Japan, Mexico, and New Zealand are currently in this new trade agreement block.

Carbon Footprint:  Retailers and brand manufacturers, faced with EU regulations, are putting in efforts to measure the amount of carbon-dioxide in their products.  Netherlands has passed a carbon tax on packaging, which will be effective beginning in January 2008.

The EU has set up a new database under the European ecolabel certification program to certify companies supplying raw materials per the EU standards of green manufacturing.  Initially, the scheme covers shampoos, soaps, and packaging, but will eventually be spread to all sectors of the industry.

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80% of the UAE’s population is aware of private labels. The UAE estimates a 15% market share for private labels by 2011, driven by the increasing penetration of organized retail and growth in consumers demanding higher quality at lower prices, leading to private label growth.  Facing a 9.3% inflation rate, consumers are demanding more value for their money.  Retailers are also increasing their share of private labels to boost margins and meet consumer demand for low prices everyday.  Current penetration of private labels is estimated to be at 57% in the UAE.
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Welcome to Industry Synthesis Blog.  A part of SIS International Research—a worldwide leader in market
intelligence and dynamic research services, this blog tracks market
developments and allows worldwide contributors to offer their views on
key issues.

This blog discusses developments in the Global Industrial Sector and what they mean for the industry.  These developments alter competitive pressures, impacting the way millions of people work on a daily basis all over the world.  So reply to posts and stir up controversy on IndustrySynthesis.com!  Contribute to and gain from www.industrysynthesis.com.
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