Brics will lead economic recovery
The days of the American consumer leading the global economy are over, and the BRICs will lead the way going forward, and will lead the way out of the global recession.
Because of the growing middle classes in Brazil, Russia, India and China, they will lead the global consumption for many years into the future, and add the continuing strengthening in their currencies against the U.S. dollar and you can see how they'll account for close to half of the overall consumption in the world in 2010.
And with the foolishness of American regulators and the Federal Reserve refusing to stop their extraordinary and massive bailouts of banks and other industries, the U.S. dollar will continue to fall in strength for a long time to come.
When inflation comes about from the terrible policies of Ben Bernanke and his ilk, we'll see another uprising by the American people who don't quite understand the impact of what printing that much money will do to the greenback.
BRIC countries will be the beneficiaries of these policies, and will continue to strengthen their economies in comparison to the U.S. economy.
Brics will lead economic recovery
Showing posts with label BRIC Markets. Show all posts
Showing posts with label BRIC Markets. Show all posts
Tuesday, September 15, 2009
Tuesday, August 25, 2009
BRIC Middle Classes Driving Economy
BRIC Middle Class
No matter how long it takes to emerge from the economic recession the world is now in, there's no doubt after things get better, that over the next couple of decades BRIC middle classes will drive the global economics and prosperity for the next several decades.
The American consumer has been the chief mover of the global economy for a long time, but that is about to change, and the recession and the emerging and growing middle classes in Brazil, Russia, India and China will lead the way going forward; especially China and India.
Once things turn around we'll see these middle class people desire and buy up many products and services, and there'll be unprecedented growth for some time; although there will always be temporary slowdowns in general, but the overall curve should go up for the most part in these nations.
According to McKinsey & Co., the urban Chinese middel class will spend close to $2.3 trillion a year by 2025, while India's middle class should grow from 5 percent today to over 40 percent of the nation over the next 20 years. Brazil and Russia will also contribute significantly to this growth, marking an unprecedented opportunity at prosperity and growth.
The majority of emerging markets avoided the worst of the economic crisis, which originated in the mortgage-backed bonds that the U.S. sold to the developed world. Their economies have declined far less dramatically, and contrary to the U.S. or Europe, many are projected to grow this year. So it’s no surprise that consumers in emerging-market countries want more of the products those in the West take for granted.
Those companies and individuals investing in the BRICs should enjoy success when they focus on sectors like banking, finance, real estate, retail, consumer goods, commodities and entertainment.
This isn't a short-term strategy to employ when engaging the BRICs, but rather those with an long-term outlook should do very well by investing in BRIC nations and economies.
BRIC Middle Class
No matter how long it takes to emerge from the economic recession the world is now in, there's no doubt after things get better, that over the next couple of decades BRIC middle classes will drive the global economics and prosperity for the next several decades.
The American consumer has been the chief mover of the global economy for a long time, but that is about to change, and the recession and the emerging and growing middle classes in Brazil, Russia, India and China will lead the way going forward; especially China and India.
Once things turn around we'll see these middle class people desire and buy up many products and services, and there'll be unprecedented growth for some time; although there will always be temporary slowdowns in general, but the overall curve should go up for the most part in these nations.
According to McKinsey & Co., the urban Chinese middel class will spend close to $2.3 trillion a year by 2025, while India's middle class should grow from 5 percent today to over 40 percent of the nation over the next 20 years. Brazil and Russia will also contribute significantly to this growth, marking an unprecedented opportunity at prosperity and growth.
The majority of emerging markets avoided the worst of the economic crisis, which originated in the mortgage-backed bonds that the U.S. sold to the developed world. Their economies have declined far less dramatically, and contrary to the U.S. or Europe, many are projected to grow this year. So it’s no surprise that consumers in emerging-market countries want more of the products those in the West take for granted.
Those companies and individuals investing in the BRICs should enjoy success when they focus on sectors like banking, finance, real estate, retail, consumer goods, commodities and entertainment.
This isn't a short-term strategy to employ when engaging the BRICs, but rather those with an long-term outlook should do very well by investing in BRIC nations and economies.
BRIC Middle Class
Wednesday, August 5, 2009
Are BRIC Really Leading Recovery?
BRIC Markets Business
How a little time changes everything, as potential investment in China and Asia has swung from extremely negative sentiment to a huge emotional uplift as the Shanghai stock market index has exploded by over 90 percent so far in 2009. The influx of capital from brokerage firms into the market makes the rally unsustainable based on economics, as eventually the rally will correct, but in the meantime the rally has made people a lot of money.
For several years Beijing has been struggling to keep deflate and inflate its stock market, and unfortunately has been using the same misguided printing of money to cause inflation in the asset markets, but which inevitably inflate energy and consumer goods to the detriment of consumers.
Unbelievably, China's M2 money supply has been increasing by 28.5 a year, which could come back and haunt them before it's all over. Government-controlled banks have infused loans worth $1.2 tillion into the economy in attempts to stimulate growth. That's an extraordinary 25 percent of the overall Chinese economy.
All that could and eventually will burst from the artificially created market boom.
China has been buying up a huge amount of gold and the Shanghai gold market has benefited from it. China is now on track to overtake India as the leading consumer of gold in the world as it builds up its stockpiles. Rumors are the gold the IMF is ready to unload will be acquired by China over the years going forward.
China is also poised to increase gold output by 3 percent this year, bringing the total to about 290 tons. Even so, that's far below the 400 tons they consumed in 2008.
With that in mind, China could import even more gold over the next several months, of balance off the eventual gold correction to come.
Investors in the Shanghai market are counting on Beijing to inflate even more in the asset markets to balance things off with the gold.
The question is whether Beijing will continue to loan at the levels it did in the early part of 2009, as it could generate even more inflation that could harm consumers and make it difficult to live.
Much of the existing monetary policy from Beijing has been to shore up their regions which were hit hard by the drop in global trade and exports, as their stimulous plan focused primarily on infrastructure projects.
Growth for Chinese corporate earnings are of majore importance, with the Shanghai stock index soaring higher in bubble territory. Massive industrial companies in 22 Chinese provinces saw their profits plunge -21.2% in the first half to 894.14 billion yuan, but the fall was less from the first quarter’s 32% slide, and now, “less bad,” means signs of a recovery.
Best case scenarios are growth rates in the Chinese industrial sector to reach 30 percent for the fourth quarter because of the government insertion of cash.
That's probably going to be far from the reality though as China’s Bank of Communications a more healthy, but significant growth rate of over 9 percent for the third quarter and close to 10 percent for the fourth quarter.
Surging markets in China are helping hold up the BRIC nations, including Brazil, India, and Russia, which have the four best performing stock markets this year. Brazil’s Bovespa Index has grown by 79%, India’s Sensex Index is up 63%, and Russia’s RTS Index has surged by 62-percent. The S&P-500 Index by comparison, is up 9.4% this year, while Japan’s Nikkei-225 index is up 7.5-percent.
The ongoing strength of China’s economy has brought back the de-coupling debate, which hinges on the theory that the emerging economies in Brazil, Russia, India, China, (BRIC) can continue to grow in regardless of the declining G-7 economies. The so-called BRIC countries accounted for half of global growth in 2008 - China alone accounted for a quarter, and Brazil, India, and Russia combined equaled another quarter. BRIC has accounted for over 90% of the rise in consumption of energy products and metals, and 80% of grains since 2002.
The cycle of events are now swinging back in Russia’s favor, as global speculators flock back into hard-hit resource shares trading in Moscow. Russia’s central bank slashed its main interest rates for the fourth time in less than three-months, after Moscow said the local economy contracted an annual 10.2% in the January-May period.
The Russian rouble has rebounded 16% against the US-dollar, since the first quarter, as Urals blend crude oil has gained close to $70 a barrel, and base metals inceased much higher, boosting demand for Russia’s currency, a world leader in commodity exports. Russia is the world’s second-largest oil exporter behind Saudi Arabia, and supplies a quarter of Europe’s natural gas needs. Russia is also the world’s largest nickel and palladium miner, the second largest platinum miner, and the fourth-largest iron ore miner, behind Brazil, Australia, and India.
After reaching a record high of $597-billion last August, Moscow’s foreign currency reserves were depleted in a major way during the second-half of 2008, as the central bank spent more than $200-billion shoring up the Russian rouble and strengthing the capital position of domestic banks. This year’s uptick in Urals blend crude oil has improved the Kremlin’s coffers, to the tune of $404-billion today. China, the world’s second-largest oil guzzler, imported 3.83-million barrels per day in July, or 25% more than a year earlier, the fastest pace in close to two years.
The BRIC nations are having second thoughts on how their US-dollar currency reserves are managed, underscoring a power shift from the United States, which sparked the global financial crisis. Russian chief Dmitry Medvedev has repeatedly questioned the US-dollar’s future as a global reserve currency. China is allowing companies in its southern provinces of Yunnan and Guangxi to use yuan to settle cross-border trade with Hong Kong and Southeast Asia to reduce exposure to the US-dollar.
Reserve Bank of India chief Duvvuri Subbarao says India’s modest dependence on exports will help Asia’s third largest economy, to weather the “Great Recession” and even stage a modest recovery later this year. Even during the depths of the October massacre in the Bombay Sensex Index, India managed to retain a 5.3% growth rate in the fourth quarter, and India’s banking system had virtually no exposure to any kind of dangerous asset generated in the United States.
India’s factory output fell by 0.25% in January, the first decline this decade, and export earnings have dropped for six straight months. In January exports were 16% down from a year earlier falling to $12.3-billion. So the Reserve Bank of India battled to rescue the Bombay stock market, by cutting its lending rates six times from September thru April, by a total of 425-basis points.
The Indian Sensex index began to decouple from Wall Street and Tokyo in early May, after it rallied 14% for its biggest weekly gain since 1992, when Indian Prime Minister Manmohan Singh won a second term. Bombay stocks surged at the idea that Singh’s new government, shorn of Communists, would privatize up to $20-billion of state-owned assets, increase foreign investment in highly profitable crown jewel companies, begin deregulation of banking and financial services, and get rid of restrictions on the closing of factories.
India’s manufacturing sector, measured by the Purchasing Mgr’s Index, remained at a strong reading of 55.3 in July, or 2-points above China’s, implying a strong industrial recovery in the second half of this year. If the decoupling of China, India, Russia, and Brazil becomes a reality, it could be good for the developed G-7 nations, as growing wealth in BRIC nations could, in theory, increase demand for goods made in weakend nations like Japan, Germany, and the United States.
A decoupling between the emerging BRICK nations and the more developed G-7 economies would mean a huge shift in the global financial markets, away from the traditional pattern of emerging markets dancing to the tune of G-7 economies, which still account for 60% of global GDP. Instead, increasing independence could lead to a greater sphere of influence of the emerging giants, led by Beijing.
In the United States, Fed chief Bernanke is pumping a “bailout bubble” for Wall Street, similar to the policies of his mentor “Easy” Al Greenspan, who inflated the housing bubble, the sub-prime debt bubble, and the high-tech bubble. It’s a never ending cycle of boom-and-busts of bubbles, engineered by central banks. The revival of the “Commodity Super Cycle,” might already be already in motion, and if a global economic recovery gains traction, soaring input costs, would begin to crimp the profit margins of the giant Asian industrialists.
All the liquidity that’s been unleashed into the global banking system would play havoc with accelerating inflation. History shows that central banks won’t pre-empt inflation by withdrawing liquidity early. Instead, the money printers tend to inflate bubbles to dangerous proportions. Add to the mix, the vast leverage of the US-dollar and Japanese yen carry trades, it’s going to be a wild ride for the US Treasury bond market, which is increasingly dependent upon the whims of BRIC.
The many assertions about a turn around because of government interference and intervention around the world is a dangerous assumption to make, and it's far from certain that we're in a recovery of any sort at all.
But when a real recovery does come, the BRIC nations should be at the forefront of it.
BRIC Markets Business
How a little time changes everything, as potential investment in China and Asia has swung from extremely negative sentiment to a huge emotional uplift as the Shanghai stock market index has exploded by over 90 percent so far in 2009. The influx of capital from brokerage firms into the market makes the rally unsustainable based on economics, as eventually the rally will correct, but in the meantime the rally has made people a lot of money.
For several years Beijing has been struggling to keep deflate and inflate its stock market, and unfortunately has been using the same misguided printing of money to cause inflation in the asset markets, but which inevitably inflate energy and consumer goods to the detriment of consumers.
Unbelievably, China's M2 money supply has been increasing by 28.5 a year, which could come back and haunt them before it's all over. Government-controlled banks have infused loans worth $1.2 tillion into the economy in attempts to stimulate growth. That's an extraordinary 25 percent of the overall Chinese economy.
All that could and eventually will burst from the artificially created market boom.
China has been buying up a huge amount of gold and the Shanghai gold market has benefited from it. China is now on track to overtake India as the leading consumer of gold in the world as it builds up its stockpiles. Rumors are the gold the IMF is ready to unload will be acquired by China over the years going forward.
China is also poised to increase gold output by 3 percent this year, bringing the total to about 290 tons. Even so, that's far below the 400 tons they consumed in 2008.
With that in mind, China could import even more gold over the next several months, of balance off the eventual gold correction to come.
Investors in the Shanghai market are counting on Beijing to inflate even more in the asset markets to balance things off with the gold.
The question is whether Beijing will continue to loan at the levels it did in the early part of 2009, as it could generate even more inflation that could harm consumers and make it difficult to live.
Much of the existing monetary policy from Beijing has been to shore up their regions which were hit hard by the drop in global trade and exports, as their stimulous plan focused primarily on infrastructure projects.
Growth for Chinese corporate earnings are of majore importance, with the Shanghai stock index soaring higher in bubble territory. Massive industrial companies in 22 Chinese provinces saw their profits plunge -21.2% in the first half to 894.14 billion yuan, but the fall was less from the first quarter’s 32% slide, and now, “less bad,” means signs of a recovery.
Best case scenarios are growth rates in the Chinese industrial sector to reach 30 percent for the fourth quarter because of the government insertion of cash.
That's probably going to be far from the reality though as China’s Bank of Communications a more healthy, but significant growth rate of over 9 percent for the third quarter and close to 10 percent for the fourth quarter.
Surging markets in China are helping hold up the BRIC nations, including Brazil, India, and Russia, which have the four best performing stock markets this year. Brazil’s Bovespa Index has grown by 79%, India’s Sensex Index is up 63%, and Russia’s RTS Index has surged by 62-percent. The S&P-500 Index by comparison, is up 9.4% this year, while Japan’s Nikkei-225 index is up 7.5-percent.
The ongoing strength of China’s economy has brought back the de-coupling debate, which hinges on the theory that the emerging economies in Brazil, Russia, India, China, (BRIC) can continue to grow in regardless of the declining G-7 economies. The so-called BRIC countries accounted for half of global growth in 2008 - China alone accounted for a quarter, and Brazil, India, and Russia combined equaled another quarter. BRIC has accounted for over 90% of the rise in consumption of energy products and metals, and 80% of grains since 2002.
The cycle of events are now swinging back in Russia’s favor, as global speculators flock back into hard-hit resource shares trading in Moscow. Russia’s central bank slashed its main interest rates for the fourth time in less than three-months, after Moscow said the local economy contracted an annual 10.2% in the January-May period.
The Russian rouble has rebounded 16% against the US-dollar, since the first quarter, as Urals blend crude oil has gained close to $70 a barrel, and base metals inceased much higher, boosting demand for Russia’s currency, a world leader in commodity exports. Russia is the world’s second-largest oil exporter behind Saudi Arabia, and supplies a quarter of Europe’s natural gas needs. Russia is also the world’s largest nickel and palladium miner, the second largest platinum miner, and the fourth-largest iron ore miner, behind Brazil, Australia, and India.
After reaching a record high of $597-billion last August, Moscow’s foreign currency reserves were depleted in a major way during the second-half of 2008, as the central bank spent more than $200-billion shoring up the Russian rouble and strengthing the capital position of domestic banks. This year’s uptick in Urals blend crude oil has improved the Kremlin’s coffers, to the tune of $404-billion today. China, the world’s second-largest oil guzzler, imported 3.83-million barrels per day in July, or 25% more than a year earlier, the fastest pace in close to two years.
The BRIC nations are having second thoughts on how their US-dollar currency reserves are managed, underscoring a power shift from the United States, which sparked the global financial crisis. Russian chief Dmitry Medvedev has repeatedly questioned the US-dollar’s future as a global reserve currency. China is allowing companies in its southern provinces of Yunnan and Guangxi to use yuan to settle cross-border trade with Hong Kong and Southeast Asia to reduce exposure to the US-dollar.
Reserve Bank of India chief Duvvuri Subbarao says India’s modest dependence on exports will help Asia’s third largest economy, to weather the “Great Recession” and even stage a modest recovery later this year. Even during the depths of the October massacre in the Bombay Sensex Index, India managed to retain a 5.3% growth rate in the fourth quarter, and India’s banking system had virtually no exposure to any kind of dangerous asset generated in the United States.
India’s factory output fell by 0.25% in January, the first decline this decade, and export earnings have dropped for six straight months. In January exports were 16% down from a year earlier falling to $12.3-billion. So the Reserve Bank of India battled to rescue the Bombay stock market, by cutting its lending rates six times from September thru April, by a total of 425-basis points.
The Indian Sensex index began to decouple from Wall Street and Tokyo in early May, after it rallied 14% for its biggest weekly gain since 1992, when Indian Prime Minister Manmohan Singh won a second term. Bombay stocks surged at the idea that Singh’s new government, shorn of Communists, would privatize up to $20-billion of state-owned assets, increase foreign investment in highly profitable crown jewel companies, begin deregulation of banking and financial services, and get rid of restrictions on the closing of factories.
India’s manufacturing sector, measured by the Purchasing Mgr’s Index, remained at a strong reading of 55.3 in July, or 2-points above China’s, implying a strong industrial recovery in the second half of this year. If the decoupling of China, India, Russia, and Brazil becomes a reality, it could be good for the developed G-7 nations, as growing wealth in BRIC nations could, in theory, increase demand for goods made in weakend nations like Japan, Germany, and the United States.
A decoupling between the emerging BRICK nations and the more developed G-7 economies would mean a huge shift in the global financial markets, away from the traditional pattern of emerging markets dancing to the tune of G-7 economies, which still account for 60% of global GDP. Instead, increasing independence could lead to a greater sphere of influence of the emerging giants, led by Beijing.
In the United States, Fed chief Bernanke is pumping a “bailout bubble” for Wall Street, similar to the policies of his mentor “Easy” Al Greenspan, who inflated the housing bubble, the sub-prime debt bubble, and the high-tech bubble. It’s a never ending cycle of boom-and-busts of bubbles, engineered by central banks. The revival of the “Commodity Super Cycle,” might already be already in motion, and if a global economic recovery gains traction, soaring input costs, would begin to crimp the profit margins of the giant Asian industrialists.
All the liquidity that’s been unleashed into the global banking system would play havoc with accelerating inflation. History shows that central banks won’t pre-empt inflation by withdrawing liquidity early. Instead, the money printers tend to inflate bubbles to dangerous proportions. Add to the mix, the vast leverage of the US-dollar and Japanese yen carry trades, it’s going to be a wild ride for the US Treasury bond market, which is increasingly dependent upon the whims of BRIC.
The many assertions about a turn around because of government interference and intervention around the world is a dangerous assumption to make, and it's far from certain that we're in a recovery of any sort at all.
But when a real recovery does come, the BRIC nations should be at the forefront of it.
BRIC Markets Business
Saturday, August 1, 2009
China, India Still Growing
Brazil and Russia slowing
BRIC is an acronym referring to the fast-growing developing economies of Brazil, Russia, India, and China. The acronym was first named and prominently used by Goldman Sachs in 2001. Goldman Sachs asserted that since they are developing quickly, by 2050 the combined economies of the BRICs could pass the combined economies of the current richest countries of the world. The four countries, combined, currently account for more than a quarter of the world's land area and over 40% of the world's population.
Goldman Sachs did not attempt to say that the BRICs would organize themselves into an economic bloc, or a formal trading association, rather that their combined growth would be substantial.
Even so, there are strong indications that the four BRIC countries have been seeking to form an 'alliance', and thereby converting their growing economic power into greater geopolitical clout because during the 21st century, success in global economy is judged by internal relations within like-minded groups for gains by collective bargaining. This has been easier said than done though.
On June 16, 2009, the leaders of the BRIC countries took part in their first summit in Yekaterinburg, in Russia and issued a declaration calling for the establishment of a multi-polar world order. The Foreign Ministers of the BRIC countries had met previously on May 16, 2008 also in Yekaterinburg. President Luiz Inácio Lula da Silva, President Dmitry Medvedev, Prime Minister Dr. Manmohan Singh, and President Hu Jintao, the respective leaders of Brazil, Russia, India and China, attended the summit.
The key focus of the summit was connected to improving the current global economic situation and discussing how the four countries can better work together in the future, as well as a more general push to reform financial institutions.
Remember that in last April in London, the G-20 leaders met in a summit. One of the decisions was the revamping of IMF and World Bank to ensure other nations are given greater influence and senior positions of IMF and World Bank will be open to candidates from the developing world.
There was also discussion surrounding how developing nations, such as those members of BRIC, could be better involved in global affairs in the future. In the aftermath of the summit the BRIC nations suggested that there was a need for a new global reserve currency that is 'diversified, stable and predictable,' although it would be a huge burden, gamble and risk for any country to do that in the near future.
The statement that was released stopped short of making a direct attack on the perceived 'dominance' of the US dollar, something which the Russians have been critical of. However, it still led to a fall in the value of the dollar against other major currencies.
One week prior to the summit, Brazil offered $10 billion to the International Monetary Fund. It was the first time that the country had ever made such a loan.
Brazil had previously received loans from the IMF and this announcement was treated as a significant demonstration of how Brazil's economic position has changed. China also announced plans to invest a total of $50 billion and Russia planned to invest $10 billion.
BRIC countries are future growth engines of the world. These countries are emerging more quickly than most nations from the global economic crisis.
A criticism is that the BRIC projections are based on the assumptions that resources are limitless and endlessly available when needed. In reality, many important resources currently necessary to sustain economic growth, such as oil, natural gas, coal, other fossil fuels, and uranium might soon experience a peak in production before enough renewable energy can be developed and commercialized, which might result in slower economic growth than anticipated, thus throwing off the projections and their dates.
Though the BRIC countries have their differences, there are some who believe that this new bloc can play a major role in international arena. The importance of this should be perceived because of the reality that the world's largest growing economies got together on the same platform and discussed their respective concerns.
An interesting reality is that the world is neither dominated by a uni-polar power nor multi-polar powers. Currently we live in a non-polar world and the balance of power is going through a time of change.
The fact is the world itself is in transition. The world has changed since 1945, when Big-2 (US and UK) used to decide the fate of the free world. By the end of 20th century, Big -2 became G-7, then-G-8 only to be replaced by G-20 by the 21st century.
Things are going to be a lot different even 10 years from now with the emerging BRIC economies moving forward.
Brazil and Russia slowing
BRIC is an acronym referring to the fast-growing developing economies of Brazil, Russia, India, and China. The acronym was first named and prominently used by Goldman Sachs in 2001. Goldman Sachs asserted that since they are developing quickly, by 2050 the combined economies of the BRICs could pass the combined economies of the current richest countries of the world. The four countries, combined, currently account for more than a quarter of the world's land area and over 40% of the world's population.
Goldman Sachs did not attempt to say that the BRICs would organize themselves into an economic bloc, or a formal trading association, rather that their combined growth would be substantial.
Even so, there are strong indications that the four BRIC countries have been seeking to form an 'alliance', and thereby converting their growing economic power into greater geopolitical clout because during the 21st century, success in global economy is judged by internal relations within like-minded groups for gains by collective bargaining. This has been easier said than done though.
On June 16, 2009, the leaders of the BRIC countries took part in their first summit in Yekaterinburg, in Russia and issued a declaration calling for the establishment of a multi-polar world order. The Foreign Ministers of the BRIC countries had met previously on May 16, 2008 also in Yekaterinburg. President Luiz Inácio Lula da Silva, President Dmitry Medvedev, Prime Minister Dr. Manmohan Singh, and President Hu Jintao, the respective leaders of Brazil, Russia, India and China, attended the summit.
The key focus of the summit was connected to improving the current global economic situation and discussing how the four countries can better work together in the future, as well as a more general push to reform financial institutions.
Remember that in last April in London, the G-20 leaders met in a summit. One of the decisions was the revamping of IMF and World Bank to ensure other nations are given greater influence and senior positions of IMF and World Bank will be open to candidates from the developing world.
There was also discussion surrounding how developing nations, such as those members of BRIC, could be better involved in global affairs in the future. In the aftermath of the summit the BRIC nations suggested that there was a need for a new global reserve currency that is 'diversified, stable and predictable,' although it would be a huge burden, gamble and risk for any country to do that in the near future.
The statement that was released stopped short of making a direct attack on the perceived 'dominance' of the US dollar, something which the Russians have been critical of. However, it still led to a fall in the value of the dollar against other major currencies.
One week prior to the summit, Brazil offered $10 billion to the International Monetary Fund. It was the first time that the country had ever made such a loan.
Brazil had previously received loans from the IMF and this announcement was treated as a significant demonstration of how Brazil's economic position has changed. China also announced plans to invest a total of $50 billion and Russia planned to invest $10 billion.
BRIC countries are future growth engines of the world. These countries are emerging more quickly than most nations from the global economic crisis.
A criticism is that the BRIC projections are based on the assumptions that resources are limitless and endlessly available when needed. In reality, many important resources currently necessary to sustain economic growth, such as oil, natural gas, coal, other fossil fuels, and uranium might soon experience a peak in production before enough renewable energy can be developed and commercialized, which might result in slower economic growth than anticipated, thus throwing off the projections and their dates.
Though the BRIC countries have their differences, there are some who believe that this new bloc can play a major role in international arena. The importance of this should be perceived because of the reality that the world's largest growing economies got together on the same platform and discussed their respective concerns.
An interesting reality is that the world is neither dominated by a uni-polar power nor multi-polar powers. Currently we live in a non-polar world and the balance of power is going through a time of change.
The fact is the world itself is in transition. The world has changed since 1945, when Big-2 (US and UK) used to decide the fate of the free world. By the end of 20th century, Big -2 became G-7, then-G-8 only to be replaced by G-20 by the 21st century.
Things are going to be a lot different even 10 years from now with the emerging BRIC economies moving forward.
Brazil and Russia slowing
Saturday, July 11, 2009
Indonesia Wants to be Included in BRIC Nations
BRIC Business
The economy of Indonesia could double over the next six years as the world’s largest exporter of power- station coal and biggest producer of palm oil taps growing demand from India and China.
China, India and Indonesia will generate close to $10 trillion of wealth for investors by 2015, Nicholas Cashmore, head of Indonesia research at CLSA Asia-Pacific Markets, said in a note titled “Chindonesia: Enter the Komodo,” a reference to the reptile found only in eastern Indonesia. The three economies are Asia’s “next growth triangle,” he said.
Taking care of the growing needs of the world’s two most-populated nations as demand from Western countries slows may aid President Susilo Bambang Yudhoyono meet his goal of increasing growth to 7 percent in his second term. Indonesia wants be included among the BRIC nations of Brazil, Russia, India and China.
India’s industrial production grew at the quickest pace in eight months in May. The South Asian nation, the biggest buyer of Indonesia’s palm oil and cashew, may overtake China next year as the world’s fastest growing major economy.
BRIC Membership
China’s economy will enlarge by 7.2 percent in 2009 from a year earlier. Indonesia’s exports to China grew 16 percent last year, compared with a 10.7 percent expansion in demand from the U.S., the second-largest buyer of Indonesian products.
Indonesia’s economic boost provides a case for its being considered among the BRIC economies.
The $433 billion economy can expand “significantly” more than 7 percent once Yudhoyono fixes the nation’s congested roads, neglected ports and ageing power plants.
Yudhoyono is set to win a second term after presidential elections this week, providing the 59-year-old former general with a mandate to double spending on roads and power to $140 billion by 2014.
Congested Roads
Fixing Indonesia’s congested roads, neglected ports and ageing power plants needs to be among Yudhoyono’s highest priorities for him to reach his goal of increasing growth and reducing povertys.
He also needs to improve transparency in Indonesia’s legal system and reduce corruption to attract global investors, a survey found.
In 2007, Tata Power Co., which is building a 4,000-megawatt plant in western India, acquired a 30 percent stake in two coal mining units owned by Indonesia’s PT Bumi Resources. The $4.14 billion plant will run on coal from the Indonesian mines.
India’s coal imports will more than double to 100 million tons by 2012 from 40 million tons, estimates Kaamil Fareed, a senior trading manager at the Coal & Oil Group, which supplies coal in India and Pakistan. That’s about 40 percent of Indonesia’s estimated coal production for 2009.
BRIC Business
The economy of Indonesia could double over the next six years as the world’s largest exporter of power- station coal and biggest producer of palm oil taps growing demand from India and China.
China, India and Indonesia will generate close to $10 trillion of wealth for investors by 2015, Nicholas Cashmore, head of Indonesia research at CLSA Asia-Pacific Markets, said in a note titled “Chindonesia: Enter the Komodo,” a reference to the reptile found only in eastern Indonesia. The three economies are Asia’s “next growth triangle,” he said.
Taking care of the growing needs of the world’s two most-populated nations as demand from Western countries slows may aid President Susilo Bambang Yudhoyono meet his goal of increasing growth to 7 percent in his second term. Indonesia wants be included among the BRIC nations of Brazil, Russia, India and China.
India’s industrial production grew at the quickest pace in eight months in May. The South Asian nation, the biggest buyer of Indonesia’s palm oil and cashew, may overtake China next year as the world’s fastest growing major economy.
BRIC Membership
China’s economy will enlarge by 7.2 percent in 2009 from a year earlier. Indonesia’s exports to China grew 16 percent last year, compared with a 10.7 percent expansion in demand from the U.S., the second-largest buyer of Indonesian products.
Indonesia’s economic boost provides a case for its being considered among the BRIC economies.
The $433 billion economy can expand “significantly” more than 7 percent once Yudhoyono fixes the nation’s congested roads, neglected ports and ageing power plants.
Yudhoyono is set to win a second term after presidential elections this week, providing the 59-year-old former general with a mandate to double spending on roads and power to $140 billion by 2014.
Congested Roads
Fixing Indonesia’s congested roads, neglected ports and ageing power plants needs to be among Yudhoyono’s highest priorities for him to reach his goal of increasing growth and reducing povertys.
He also needs to improve transparency in Indonesia’s legal system and reduce corruption to attract global investors, a survey found.
In 2007, Tata Power Co., which is building a 4,000-megawatt plant in western India, acquired a 30 percent stake in two coal mining units owned by Indonesia’s PT Bumi Resources. The $4.14 billion plant will run on coal from the Indonesian mines.
India’s coal imports will more than double to 100 million tons by 2012 from 40 million tons, estimates Kaamil Fareed, a senior trading manager at the Coal & Oil Group, which supplies coal in India and Pakistan. That’s about 40 percent of Indonesia’s estimated coal production for 2009.
BRIC Business
Tuesday, July 7, 2009
Panasonic Growth In BRIC Countries
Panasonic Growth in BRIC Nations and Vietnam
Japan's Panasonic Corp announced it is looking for double-digit sales growth this fiscal year in the five major emerging markets it focuses on, including BRIC nations China and India, despite an estimated 10 percent fall in overall revenues.
"In our strategic markets of the BRIC nations and Vietnam, we aim for 13 percent growth by expanding our targets to people in the middle-income bracket," Panasonic President Fumio Ohtsubo told an annual shareholders' meeting on Thursday.
BRIC stands for the high-growth emerging markets of Brazil, Russia, India and China.
Panasonic was able to generate a small 2 percent sales growth to 420 billion yen ($4.4 billion) in the five countries in the fiscal year that ended on March 31, while it suffered a 14 percent fall in overall sales and an 86 percent plunge in operating profit as the global downturn dampened demand.
"It is extremely regrettable that we reported a sharp drop in sales and profit. As a person who is in charge of management, I sincerely apologise," Ohtsubo said.
"We are determined to meet shareholders' expectations by achieving stronger growth than competitors' when the economy recovers in the next business year onwards," he said.
Panasonic, which offers Viera flat TVs and Lumix digital cameras, vies with Sony Corp for the position as the world's largest consumer electronics maker.
Besides the BRIC nations and Vietnam, Panasonic has identified such countries as Mexico, Indonesia, Nigeria and Turkey as markets with strong growth potential and is preparing to increase its presence in those countries, Ohtsubo said.
He said its refrigerators and washing machines made a strong debut in Europe, where they were introduced in March, with unit sales exceeding its own targets by 21 percent in April and May. Shares in Panasonic, the world's largest plasma TV maker ahead of Samsung Electronics Co and LG Electronics were up 1.7 percent at 1,312 yen by late afternoon, underperforming the Nikkei average, which rose 2.7 percent.
Panasonic Growth in BRIC Nations and Vietnam
Japan's Panasonic Corp announced it is looking for double-digit sales growth this fiscal year in the five major emerging markets it focuses on, including BRIC nations China and India, despite an estimated 10 percent fall in overall revenues.
"In our strategic markets of the BRIC nations and Vietnam, we aim for 13 percent growth by expanding our targets to people in the middle-income bracket," Panasonic President Fumio Ohtsubo told an annual shareholders' meeting on Thursday.
BRIC stands for the high-growth emerging markets of Brazil, Russia, India and China.
Panasonic was able to generate a small 2 percent sales growth to 420 billion yen ($4.4 billion) in the five countries in the fiscal year that ended on March 31, while it suffered a 14 percent fall in overall sales and an 86 percent plunge in operating profit as the global downturn dampened demand.
"It is extremely regrettable that we reported a sharp drop in sales and profit. As a person who is in charge of management, I sincerely apologise," Ohtsubo said.
"We are determined to meet shareholders' expectations by achieving stronger growth than competitors' when the economy recovers in the next business year onwards," he said.
Panasonic, which offers Viera flat TVs and Lumix digital cameras, vies with Sony Corp for the position as the world's largest consumer electronics maker.
Besides the BRIC nations and Vietnam, Panasonic has identified such countries as Mexico, Indonesia, Nigeria and Turkey as markets with strong growth potential and is preparing to increase its presence in those countries, Ohtsubo said.
He said its refrigerators and washing machines made a strong debut in Europe, where they were introduced in March, with unit sales exceeding its own targets by 21 percent in April and May. Shares in Panasonic, the world's largest plasma TV maker ahead of Samsung Electronics Co and LG Electronics were up 1.7 percent at 1,312 yen by late afternoon, underperforming the Nikkei average, which rose 2.7 percent.
Panasonic Growth in BRIC Nations and Vietnam
Monday, July 6, 2009
Power Shifting to BRIC Nations
BRIC Business
Economic conditions brought about by clueless and ignorant Western countries has hastened the power shift to BRIC and surrounding countries, as misguided and foolish policies are quickly bringing about the end of their overall affluence and power.
It will take decades to work off the largest increase in debt since World War II. The political costs may be permanent, laid bare at this week’s Group of Eight summit of leading industrial powers.
Bank bailouts and recession-fighting measures will explode the debt of the advanced economies to at least 114 percent of gross domestic product in 2014, more than triple the 35 percent of the main emerging economies including China, the International Monetary Fund forecasts.
The run-up in debt is quickening a power shift that saps the industrial world’s authority to force its economic doctrine, currency arrangements or greenhouse-gas reduction strategies. Even some G-8 officials acknowledge that the group has lost its grip amid the global recession they birthed.
The eight-nation forum that starts tomorrow in L’Aquila, Italy is “a lot less relevant given its makeup and given developments in the world,” French Finance Minister Christine Lagarde said July 5. “Big players, like emerging economies, India, China or Mexico, are invited, but they’re given only a jump seat outside of the main summit.”
The industrial world is beset by the harshest economic conditions in a lifetime: a projected U.S. budget deficit of 13.6 percent of GDP in 2009, unmatched since World War II; an annualized 14.2 percent contraction in Japanese GDP in the first quarter, also the worst since the war; in the first three months of 2009, German exports had their steepest quarterly decline since 1970 when the data were first compiled.
Market Capitalization
Reflecting the relative fortunes of the G-8 and emerging markets, developing nations’ share of worldwide stock-market capitalization has climbed to a record 24 percent from 15 percent at the start of 2007 as investors piled into the fastest-growing economies.
While the surge in borrowing has prompted calls for alternatives to the dollar as a reserve currency, emerging- markets policy makers aren’t near consensus on a plausible option. Chinese Deputy Foreign Minister He Yafei said July 2 the dollar will reign supreme for “many years to come.”
Staunching the recession, combating climate change, promoting trade and dealing with Iran top the agenda of the G-8, a grouping of 880 million people with combined GDP of $32 trillion that includes the U.S., Japan, Germany, Britain, France, Italy, Canada and Russia.
Divisions persist over dialing back stimulus measures -- Germany says now is the time to begin curbing deficits -- and the scope of financial oversight. Britain opposes more intrusive market oversight proposed by the European Union.
‘Global Crisis’
“Different countries are pulling in different directions and that is, I think, quite troubling,” said Niall Ferguson, a history professor at Harvard University in Cambridge, Massachusetts. The uncoordinated response is “one of the classic symptoms of a global crisis.”
While the eight deliberate, leaders of five developing economies -- China, India, Brazil, Mexico and South Africa -- hold a parallel summit nearby before the G-8 meeting.
Led by China, the emerging economies don’t share the “somber fiscal outlook” of the affluent world, the IMF says. The IMF says the debt won’t be repaid as quickly as after World War II, which ended with debt topping 250 percent of GDP in the U.K., 200 percent in Japan and 100 percent in the U.S.
In wartime, governments exercised “comprehensive control” over the economy and citizens felt a “moral duty” to buy war bonds, the IMF said in a June 9 report.
Rich nations’ debt constituted 78 percent of GDP in 2006, the year before the financial crisis took hold, while emerging- markets debt has dipped from 38 percent, the IMF says.
Declining Leverage
The industrial world’s borrowing spree “decreases its ability to maneuver,” said Paul Hofheinz, president of the Lisbon Council, a Brussels research group.
Lesser-developed countries upstaged last year’s G-8 in Japan. Arguing that emissions cuts would stunt the economic growth that is lifting millions out of poverty, they forced through a joint statement entitling countries to tackle global warming according to their “respective capabilities.”
The climate clash will be rerun in L’Aquila, as the countdown starts to a United Nations summit in December to hammer out a replacement to the Kyoto Protocol.
Russia plays a dual role, straddling the G-8 and acting in concert with developing economies. In a sign of the shifting world order, Russia last month hosted the first-ever summit of the BRIC economies -- Brazil, Russia, India, China -- financiers of $1.1 trillion in U.S. Treasury debt as of April.
Medvedev’s Call
How much U.S. debt to keep remains in dispute. Russian President Dmitry Medvedev and Indian economic adviser Suresh Tendulkar have questioned the dollar’s dominance of the world’s $6.5 trillion in currency reserves.
The BRIC meetings failed to endorse a Russian call for diversification from the dollar, showing it is easier to denounce the U.S.-led world order than come up with a viable alternative.
“The credibility of the Anglo-Saxon model is under threat,” Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., said in a Web commentary last month. “Yet there are no ready substitutes that are able and willing to step in.”
There is an increasing call from BRIC nations to supplant the U.S. dollar as the reserve currency, even though no certainty as to what should be the replacement.
BRIC Business
Economic conditions brought about by clueless and ignorant Western countries has hastened the power shift to BRIC and surrounding countries, as misguided and foolish policies are quickly bringing about the end of their overall affluence and power.
It will take decades to work off the largest increase in debt since World War II. The political costs may be permanent, laid bare at this week’s Group of Eight summit of leading industrial powers.
Bank bailouts and recession-fighting measures will explode the debt of the advanced economies to at least 114 percent of gross domestic product in 2014, more than triple the 35 percent of the main emerging economies including China, the International Monetary Fund forecasts.
The run-up in debt is quickening a power shift that saps the industrial world’s authority to force its economic doctrine, currency arrangements or greenhouse-gas reduction strategies. Even some G-8 officials acknowledge that the group has lost its grip amid the global recession they birthed.
The eight-nation forum that starts tomorrow in L’Aquila, Italy is “a lot less relevant given its makeup and given developments in the world,” French Finance Minister Christine Lagarde said July 5. “Big players, like emerging economies, India, China or Mexico, are invited, but they’re given only a jump seat outside of the main summit.”
The industrial world is beset by the harshest economic conditions in a lifetime: a projected U.S. budget deficit of 13.6 percent of GDP in 2009, unmatched since World War II; an annualized 14.2 percent contraction in Japanese GDP in the first quarter, also the worst since the war; in the first three months of 2009, German exports had their steepest quarterly decline since 1970 when the data were first compiled.
Market Capitalization
Reflecting the relative fortunes of the G-8 and emerging markets, developing nations’ share of worldwide stock-market capitalization has climbed to a record 24 percent from 15 percent at the start of 2007 as investors piled into the fastest-growing economies.
While the surge in borrowing has prompted calls for alternatives to the dollar as a reserve currency, emerging- markets policy makers aren’t near consensus on a plausible option. Chinese Deputy Foreign Minister He Yafei said July 2 the dollar will reign supreme for “many years to come.”
Staunching the recession, combating climate change, promoting trade and dealing with Iran top the agenda of the G-8, a grouping of 880 million people with combined GDP of $32 trillion that includes the U.S., Japan, Germany, Britain, France, Italy, Canada and Russia.
Divisions persist over dialing back stimulus measures -- Germany says now is the time to begin curbing deficits -- and the scope of financial oversight. Britain opposes more intrusive market oversight proposed by the European Union.
‘Global Crisis’
“Different countries are pulling in different directions and that is, I think, quite troubling,” said Niall Ferguson, a history professor at Harvard University in Cambridge, Massachusetts. The uncoordinated response is “one of the classic symptoms of a global crisis.”
While the eight deliberate, leaders of five developing economies -- China, India, Brazil, Mexico and South Africa -- hold a parallel summit nearby before the G-8 meeting.
Led by China, the emerging economies don’t share the “somber fiscal outlook” of the affluent world, the IMF says. The IMF says the debt won’t be repaid as quickly as after World War II, which ended with debt topping 250 percent of GDP in the U.K., 200 percent in Japan and 100 percent in the U.S.
In wartime, governments exercised “comprehensive control” over the economy and citizens felt a “moral duty” to buy war bonds, the IMF said in a June 9 report.
Rich nations’ debt constituted 78 percent of GDP in 2006, the year before the financial crisis took hold, while emerging- markets debt has dipped from 38 percent, the IMF says.
Declining Leverage
The industrial world’s borrowing spree “decreases its ability to maneuver,” said Paul Hofheinz, president of the Lisbon Council, a Brussels research group.
Lesser-developed countries upstaged last year’s G-8 in Japan. Arguing that emissions cuts would stunt the economic growth that is lifting millions out of poverty, they forced through a joint statement entitling countries to tackle global warming according to their “respective capabilities.”
The climate clash will be rerun in L’Aquila, as the countdown starts to a United Nations summit in December to hammer out a replacement to the Kyoto Protocol.
Russia plays a dual role, straddling the G-8 and acting in concert with developing economies. In a sign of the shifting world order, Russia last month hosted the first-ever summit of the BRIC economies -- Brazil, Russia, India, China -- financiers of $1.1 trillion in U.S. Treasury debt as of April.
Medvedev’s Call
How much U.S. debt to keep remains in dispute. Russian President Dmitry Medvedev and Indian economic adviser Suresh Tendulkar have questioned the dollar’s dominance of the world’s $6.5 trillion in currency reserves.
The BRIC meetings failed to endorse a Russian call for diversification from the dollar, showing it is easier to denounce the U.S.-led world order than come up with a viable alternative.
“The credibility of the Anglo-Saxon model is under threat,” Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., said in a Web commentary last month. “Yet there are no ready substitutes that are able and willing to step in.”
There is an increasing call from BRIC nations to supplant the U.S. dollar as the reserve currency, even though no certainty as to what should be the replacement.
BRIC Business
Monday, June 15, 2009
Prime Minister Manmohan Singh BRIC Summit
Indian Prime Minister Manmohan Singh leaves for Yekaterinburg for first BRIC Summit
When Prime Minister Manmohan Singh leaves for Yekaterinburg, in Russia, for his first visit abroad in his second term tomorrow afternoon, he will take two significant steps. He will attend the first-ever summit meeting of the BRIC countries — the phrase that caught on after Goldman Sachs portrayed a rosy future for the four developing economies of Brazil, Russia, India and China — as well as the summit of the Shanghai Cooperation Organisation, or SCO.
After joining SCO, the regional security bloc, as an observer in 2005, India chose to participate in its meetings through the external affairs minister, the petroleum minister and the minister of state in the Prime Minister’s Office. Singh once explained that he would not take part in SCO summits because he was unwilling to sip a cup of coffee outside while others deliberated behind closed doors. But he seems to have changed his mind after Russia pushed through a change in the organisation’s rules, allowing fuller participation for observers. It is the first time that observers will participate in full-scale discussions, including restricted meetings.
“It is a measure of how important we think SCO is that the Prime Minister is going himself, also because we think it is particularly important that regional cooperation in Asia should be encouraged at a time when the world economy is under considerable stress and when there are major issues which need to be discussed at the summit level,” Foreign Secretary Shivshankar Menon said on Friday.
The two meetings in the Ural Mountains city on Tuesday are being keenly watched for, other than signs of policy shifts, how the BRIC nations may treat the US dollar in the future.
According to reports, Russian President Dmitry Medvedev may reprise Russia’s call for a new global reserve currency to augment the dollar. Voices have emanated from BRIC leaders in the recent past that the soaring US budget deficit could spur inflation and weaken the dollar.
Russia, China and Brazil recently announced their intention to invest in International Monetary Fund bonds to diversify their dollar-heavy currency reserves. IMF bonds are denominated in Special Drawing Rights, or SDRs, an artificial currency used by IMF. As Menon pointed out, the BRIC nations account for 25.9 per cent of the total land area of the world, 40 per cent of the global population, and about 40 per cent of the world’s GDP as well. China is Washington’s biggest foreign creditor, holding an estimated $1 trillion in US government debt.
However, it should come as no surprise if the BRIC meeting does not result in specific measures because the four are only united by the fact that they are among the fastest growing economies and by their desire to play a greater role on the world stage.
BRIC Business
When Prime Minister Manmohan Singh leaves for Yekaterinburg, in Russia, for his first visit abroad in his second term tomorrow afternoon, he will take two significant steps. He will attend the first-ever summit meeting of the BRIC countries — the phrase that caught on after Goldman Sachs portrayed a rosy future for the four developing economies of Brazil, Russia, India and China — as well as the summit of the Shanghai Cooperation Organisation, or SCO.
After joining SCO, the regional security bloc, as an observer in 2005, India chose to participate in its meetings through the external affairs minister, the petroleum minister and the minister of state in the Prime Minister’s Office. Singh once explained that he would not take part in SCO summits because he was unwilling to sip a cup of coffee outside while others deliberated behind closed doors. But he seems to have changed his mind after Russia pushed through a change in the organisation’s rules, allowing fuller participation for observers. It is the first time that observers will participate in full-scale discussions, including restricted meetings.
“It is a measure of how important we think SCO is that the Prime Minister is going himself, also because we think it is particularly important that regional cooperation in Asia should be encouraged at a time when the world economy is under considerable stress and when there are major issues which need to be discussed at the summit level,” Foreign Secretary Shivshankar Menon said on Friday.
The two meetings in the Ural Mountains city on Tuesday are being keenly watched for, other than signs of policy shifts, how the BRIC nations may treat the US dollar in the future.
According to reports, Russian President Dmitry Medvedev may reprise Russia’s call for a new global reserve currency to augment the dollar. Voices have emanated from BRIC leaders in the recent past that the soaring US budget deficit could spur inflation and weaken the dollar.
Russia, China and Brazil recently announced their intention to invest in International Monetary Fund bonds to diversify their dollar-heavy currency reserves. IMF bonds are denominated in Special Drawing Rights, or SDRs, an artificial currency used by IMF. As Menon pointed out, the BRIC nations account for 25.9 per cent of the total land area of the world, 40 per cent of the global population, and about 40 per cent of the world’s GDP as well. China is Washington’s biggest foreign creditor, holding an estimated $1 trillion in US government debt.
However, it should come as no surprise if the BRIC meeting does not result in specific measures because the four are only united by the fact that they are among the fastest growing economies and by their desire to play a greater role on the world stage.
BRIC Business
Friday, June 5, 2009
BRIC Business News | Proctor & Gamble Looking to BRICs for Growth
BRIC Business
BRIC markets are the future for western retailers and product developers, and that's no different for giant Proctor & Gamble.
Procter & Gamble is seeing flat growth in the developed markets and is counting on Russia and other emerging markets to lead the recovery in consumer demand, its chief operating officer said on Friday.
"What we see is a dampening of demand there (in developed markets), basically flat market growth," COO Robert McDonald told Reuters financial television at Russia's Economic Forum in St Petersburg.
"(Emerging markets) is where the growth is. As we look back to the year 2000, only about 20 percent of our business was in these markets. Now its 30 (percent), more than 30. We're counting on Russia," he said.
He mentioned in particular Brazil, India and China, which together with Russia make up the so-called BRIC economies. "We are counting on Russia, one of our top five countries."
The maker of Gillette razors and Tide laundry detergent, which has seen some of its brands lose market share as recession-hit consumers trade down to cheaper or private-label brands, said last month it planned to accelerate its spending on new plants and new products.
"The demand is slowing. We clearly see that, but that is no reason to pull back on the investments. We are continuing to invest because we know that demand will return," he said.
He's definitely right, and that demand will surge when the global economy turns around, and those in the emerging middle classes in the BRIC countries hunger for quality goods and services.
BRIC Business
BRIC markets are the future for western retailers and product developers, and that's no different for giant Proctor & Gamble.
Procter & Gamble is seeing flat growth in the developed markets and is counting on Russia and other emerging markets to lead the recovery in consumer demand, its chief operating officer said on Friday.
"What we see is a dampening of demand there (in developed markets), basically flat market growth," COO Robert McDonald told Reuters financial television at Russia's Economic Forum in St Petersburg.
"(Emerging markets) is where the growth is. As we look back to the year 2000, only about 20 percent of our business was in these markets. Now its 30 (percent), more than 30. We're counting on Russia," he said.
He mentioned in particular Brazil, India and China, which together with Russia make up the so-called BRIC economies. "We are counting on Russia, one of our top five countries."
The maker of Gillette razors and Tide laundry detergent, which has seen some of its brands lose market share as recession-hit consumers trade down to cheaper or private-label brands, said last month it planned to accelerate its spending on new plants and new products.
"The demand is slowing. We clearly see that, but that is no reason to pull back on the investments. We are continuing to invest because we know that demand will return," he said.
He's definitely right, and that demand will surge when the global economy turns around, and those in the emerging middle classes in the BRIC countries hunger for quality goods and services.
BRIC Business
Thursday, June 4, 2009
BRIC Business | BRIC New World Reserve Currency?
BRIC Business
Will BRICs push for creating new world reserve currency represented by them?
“Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance,” said Ben Bernanke yesterday. The Fed Chairman took a page from our playbook yesterday, warning Congress that “Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth,”
From a man who played an integral role in two of the most easy-money, spendthrift administrations in U.S. history… that’s an interesting recommendation.
So what’s an investor to do? Prepare for higher Fed interest rates? Look for Bernanke to shut down the dollar printing press and for Congress to get its fiscal act together?
For the most part, we suspect Bernanke is just talking up his book. He’s got loads of T-bonds to buy, yields to suppress and mortgage rates to manipulate. The more interference he can run, the longer it will take for the world to wake up to this:
Washington is on track to issue more than $5 trillion in new debt over the next 18 months. Total interest payments on government debt are plotted to exceed $800 billion in the next 10 years, up almost fivefold from 2009. That’s if long bond yields stay under 5%, as the Congressional Budget Office forecasts. Every one percentage point higher, says Harvard economist Kenneth Rogoff, will cost the U.S. government an extra $170 billion annually.
“The Fed can only manipulate interest rates so far,” notes our currency trader Bill Jenkins. “Then the market takes over. Our Treasury bonds are becoming a greater and greater risk to people who buy and hold them. Of course, basic market theory holds that to assume greater risk going forward, one must have a higher rate of return. So no matter what the Fed “dictates” by lowering rates, they are on their way up!”
Perhaps Washington’s only saving grace: The whole Western world has bought into America’s economic school of thought.
“We are witnessing the end of the post-World War II economic construct of the world’s financial system,” opines Byron King. “That construct always had a Western bias. But the 2008 crash of the Western business and financial model has changed everything. It has left a barren worldwide financial landscape for large development projects. Most traditional Western financing is simply not available for large projects. And as French author Francois Rabelais (1494-1553) once noted, ‘Nature abhors a vacuum.’
“Thus has the Western financial crisis handed well-capitalized, government-backed Chinese banks and industrial firms an unmatched competitive advantage. With the traditional credit markets dry, Chinese banks have transformed into key lenders for the resource developments that will fuel the next generation of humanity. Indeed, for now, the Chinese are the world’s ONLY lenders for large resource development projects.
“Exhibit 1, Brazil. Brazil is making a national commitment to develop energy resources located far offshore in the South Atlantic. Indeed, no nation has ever advanced such an ambitious plan for long-term comprehensive offshore development. And it’s being bankrolled by China.”
Could the world’s new reserve currency be “BRIC dollars”? Russian President Dmitry Medvedev will propose a new world currency when he meets with Chinese, Brazilian and Indian leaders this month, his spokeswoman said this week.
“We need some kind of universal means of payment, which could create the basis of a future international financial system,” Medvedev told CNBC. “Naturally, because of the crisis in the American economy, attitude to the dollar has also changed.”
BRIC Business
Will BRICs push for creating new world reserve currency represented by them?
“Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance,” said Ben Bernanke yesterday. The Fed Chairman took a page from our playbook yesterday, warning Congress that “Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth,”
From a man who played an integral role in two of the most easy-money, spendthrift administrations in U.S. history… that’s an interesting recommendation.
So what’s an investor to do? Prepare for higher Fed interest rates? Look for Bernanke to shut down the dollar printing press and for Congress to get its fiscal act together?
For the most part, we suspect Bernanke is just talking up his book. He’s got loads of T-bonds to buy, yields to suppress and mortgage rates to manipulate. The more interference he can run, the longer it will take for the world to wake up to this:
Washington is on track to issue more than $5 trillion in new debt over the next 18 months. Total interest payments on government debt are plotted to exceed $800 billion in the next 10 years, up almost fivefold from 2009. That’s if long bond yields stay under 5%, as the Congressional Budget Office forecasts. Every one percentage point higher, says Harvard economist Kenneth Rogoff, will cost the U.S. government an extra $170 billion annually.
“The Fed can only manipulate interest rates so far,” notes our currency trader Bill Jenkins. “Then the market takes over. Our Treasury bonds are becoming a greater and greater risk to people who buy and hold them. Of course, basic market theory holds that to assume greater risk going forward, one must have a higher rate of return. So no matter what the Fed “dictates” by lowering rates, they are on their way up!”
Perhaps Washington’s only saving grace: The whole Western world has bought into America’s economic school of thought.
“We are witnessing the end of the post-World War II economic construct of the world’s financial system,” opines Byron King. “That construct always had a Western bias. But the 2008 crash of the Western business and financial model has changed everything. It has left a barren worldwide financial landscape for large development projects. Most traditional Western financing is simply not available for large projects. And as French author Francois Rabelais (1494-1553) once noted, ‘Nature abhors a vacuum.’
“Thus has the Western financial crisis handed well-capitalized, government-backed Chinese banks and industrial firms an unmatched competitive advantage. With the traditional credit markets dry, Chinese banks have transformed into key lenders for the resource developments that will fuel the next generation of humanity. Indeed, for now, the Chinese are the world’s ONLY lenders for large resource development projects.
“Exhibit 1, Brazil. Brazil is making a national commitment to develop energy resources located far offshore in the South Atlantic. Indeed, no nation has ever advanced such an ambitious plan for long-term comprehensive offshore development. And it’s being bankrolled by China.”
Could the world’s new reserve currency be “BRIC dollars”? Russian President Dmitry Medvedev will propose a new world currency when he meets with Chinese, Brazilian and Indian leaders this month, his spokeswoman said this week.
“We need some kind of universal means of payment, which could create the basis of a future international financial system,” Medvedev told CNBC. “Naturally, because of the crisis in the American economy, attitude to the dollar has also changed.”
BRIC Business
Saturday, January 3, 2009
Emerging-Market Stocks Sink in 2008, May Rebound on BRICs Rally
Emerging-market stocks fell the most ever last year and investors are looking for Brazil, Russia, India and China to lead a reversal in 2009.
The global economic slowdown and slump in commodity prices sent the MSCI Emerging Markets Index tumbling 54 percent in 2008, compared with a 38 percent drop in the Standard & Poor’s 500 Index and a 42 percent loss in the MSCI World Index. Developing- nation stocks are trading near their cheapest levels in a decade.
Read more on 2009 BRIC rally
The global economic slowdown and slump in commodity prices sent the MSCI Emerging Markets Index tumbling 54 percent in 2008, compared with a 38 percent drop in the Standard & Poor’s 500 Index and a 42 percent loss in the MSCI World Index. Developing- nation stocks are trading near their cheapest levels in a decade.
Read more on 2009 BRIC rally
Tuesday, December 30, 2008
Global Electric Lighting Demand to Exceed $40 Billion in 2012
Global demand for electric lighting is forecast to exceed $40 billion in 2012 on annual gains of more than seven percent. The BRIC economies -- Brazil, Russia, India and China -- are projected to be the fastest growing markets for electric lighting products through 2012. These four nations will account for about 40 percent of the additional demand generated between 2007 and 2012. The greatest gains will come from China, which is expected to be the world’s fastest growing market and largest producer of electric lighting. These and other trends, including market share and product segmentation, are presented in World Electric Lighting, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Several advanced national markets are expected to post respectable gains, among them the Netherlands, South Korea, Taiwan and the US. Demand in these nations will benefit from an improved outlook for construction activity over the forecast period. However, for most other advanced economies, growth of the construction market is projected to decelerate.
Production of electric lighting is expected to continue to shift to the Asia/Pacific region, largely driven by Chinese manufacturing. China is projected to account for one-quarter of global shipments in 2012, with a significant share exported to the US. Eastern Europe is also forecast to account for an increasing share of global production, owing to increased trade with Western Europe.
LED lighting devices are forecast to grow at an above average pace in every regional market, as these products continue to penetrate both the construction and manufactured goods markets. Gains will be particularly fast in the Asia/Pacific region, where demand for LED lighting is expected to double between 2007 and 2012. Fluorescent lamps are expected to benefit from advances in nonresidential construction, as well as increased penetration of compact fluorescent lamps (CFLs) in residential markets. The incandescent lamp segment is expected to be the slowest growing, restrained by slowing motor vehicle production and weaker residential construction (the segment’s principal markets) as well as greater competition from fluorescent lamps spurred by energy-efficiency concerns. Demand for incandescent lamps will be encumbered by government regulations intended to reduce the use of general service incandescent lamps.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
Several advanced national markets are expected to post respectable gains, among them the Netherlands, South Korea, Taiwan and the US. Demand in these nations will benefit from an improved outlook for construction activity over the forecast period. However, for most other advanced economies, growth of the construction market is projected to decelerate.
Production of electric lighting is expected to continue to shift to the Asia/Pacific region, largely driven by Chinese manufacturing. China is projected to account for one-quarter of global shipments in 2012, with a significant share exported to the US. Eastern Europe is also forecast to account for an increasing share of global production, owing to increased trade with Western Europe.
LED lighting devices are forecast to grow at an above average pace in every regional market, as these products continue to penetrate both the construction and manufactured goods markets. Gains will be particularly fast in the Asia/Pacific region, where demand for LED lighting is expected to double between 2007 and 2012. Fluorescent lamps are expected to benefit from advances in nonresidential construction, as well as increased penetration of compact fluorescent lamps (CFLs) in residential markets. The incandescent lamp segment is expected to be the slowest growing, restrained by slowing motor vehicle production and weaker residential construction (the segment’s principal markets) as well as greater competition from fluorescent lamps spurred by energy-efficiency concerns. Demand for incandescent lamps will be encumbered by government regulations intended to reduce the use of general service incandescent lamps.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
Monday, December 22, 2008
Ernst & Young's Says BRIC Economies will Account for 40 Percent of Global Growth from 2009 - 2020
Brazil, Russia, India and China (Bric) will account for 40 percent of worldwide growth from 2009 - 2020, in spite of the difficult economic situation they face, said Ernst & Young's Item Club.
Adrian Cooper, a senior economic advisor to Item Club said, "Whilst it is not inevitable that the global growth dynamics of the past decade will continue indefinitely, the strong domestic momentum in the large emerging economies, the productivity gains from their continued integration into the global economy and benefits from improved macro and micro economic policies will mean that the next decade sees an impressive rate of expansion."
Production categories that will be especially strong in growth the countries will be chemicals, which will account for 38 percent of world production; vehicles, accounting for 30 percent of production; and electronics coming in at 28 percent of global production. China will account for the most growth in those sectors.
Another big factor will be the growth of global cash reserves, which at this time stands at 77 percent being held by the four countries, amounting to $7 trillion.
Sovereign wealth funds alone are projected to grow to $15 trillion by 2013, and that takes into account oil prices of $60 a barrel.
Base metals are also going to be a huge growth area for the BRICs, with predictions coming in at about 65 percent of global production by 2020.
Adrian Cooper, a senior economic advisor to Item Club said, "Whilst it is not inevitable that the global growth dynamics of the past decade will continue indefinitely, the strong domestic momentum in the large emerging economies, the productivity gains from their continued integration into the global economy and benefits from improved macro and micro economic policies will mean that the next decade sees an impressive rate of expansion."
Production categories that will be especially strong in growth the countries will be chemicals, which will account for 38 percent of world production; vehicles, accounting for 30 percent of production; and electronics coming in at 28 percent of global production. China will account for the most growth in those sectors.
Another big factor will be the growth of global cash reserves, which at this time stands at 77 percent being held by the four countries, amounting to $7 trillion.
Sovereign wealth funds alone are projected to grow to $15 trillion by 2013, and that takes into account oil prices of $60 a barrel.
Base metals are also going to be a huge growth area for the BRICs, with predictions coming in at about 65 percent of global production by 2020.
Thursday, December 11, 2008
Learn about the Global Intimate Apparel Market: 2008 Edition
NEW YORK, Dec 11, 2008 (BUSINESS WIRE) -- Reportlinker.com announces that a new market research report related to the Underwear industry is available in its catalogue.
Global Intimate Apparel Market: 2008 Edition
The global lingerie industry supply chain is likely to see falling margins in the near future in the wake of the weakening consumer confidence as a result of looming recession and economic slowdown.
However, the global lingerie industry is not likely to see a major downward growth trend mainly because of the fact that a slowing US and Western European lingerie market is being compensated by the growing Russian and Asian lingerie markets.
The Russian lingerie market is seeing a higher growth rate compared to the overall apparel industry on the back of money spending middle class. Wages and salaries in Russia have grown at an annual average rate of 12.8% over the past years.
The demographic evolution in Asia, particularly in China and India and the increasing urbanization, brand awareness, and rapid retail growth in these two countries are influencing consumers to migrate to branded innerwear, thereby fuelling the growth of organized lingerie market.
Currently the Asian market is playing an important role in the growth of the lingerie industry. While the global lingerie market grew at a rate of approximately 3%, the Asian lingerie market has shown tremendous growth with 8%. So, Asia and to some extent Eastern European countries like Russia have emerged as important markets for Western and Asian lingerie brands.
And the sales channel that has become more pronounced for lingerie manufacturers is the specialist lingerie chains. These chains are taking a major share of the market especially in the European countries. And this is evident with the growing level of consolidation in this sales channel. The recent acquisition of Lejaby (French lingerie and swimwear subsidiary of US group Warnaco) by the Austrian textiles group Palmers Textil, Princess Tam Tam by Japan's Fast Retailing Co. and French lingerie chain Orcanta by Chantelle Group indicates growing popularity of the specialist lingerie chains.
Created in November 2008, the report titled "Global Intimate Apparel Industry: 2008 Edition" gives an updated and analytical view of the global intimate apparel industry. The report assesses the overall industry by region, presents the major trends in different geographies and analyzes sales by channel of distribution in major regions/countries. It also analyzes the market opportunities for lingerie manufacturers, suppliers, distributors and retailers. The report also gives a comprehensive analysis of the leading players in the lingerie market. Further, the level of threat of new entrants, competitive intensity and bargaining power of buyers and suppliers has been presented with the Porter's Five Forces framework.
Finally, market forecast has been done keeping in view the current global economic scenario.
1. Global Intimate Apparel Market
1.1 Market Definition
1.2 Market Size and Growth
1.3 Market Opportunities
2. US Intimate Apparel Market
2.1 Market Overview
2.2 Market Size and Growth
2.3 Sales by Major Categories
2.4 Major Market Trends
3. European Intimate Apparel Market
3.1 UK Intimate Apparel Market
3.1.1 Market Size and Growth
3.1.2 Sales by Channel of Distribution
3.1.3 Major Market Trends
3.2 French Intimate Apparel Market
3.2.1 Market Size and Growth
3.2.2 Sales by Channel of Distribution
3.2.3 Major Market Trends
3.3 Russian Intimate Apparel Market
3.3.1 Market Size and Growth
3.3.2 Market Share by Segment
3.3.3 Sales by Channel of Distribution
3.3.4 Major Market Trends
4. Asian Intimate Apparel Market
4.1 Chinese Intimate Apparel Market
4.1.1 Market Size and Growth
4.1.2 Major Market Trends
4.2 Indian Intimate Apparel Market
4.2.1 Market Size and Growth
4.2.2 Market Share by Segment
4.2.3 Sales by Channel of Distribution
4.2.4 Major Market Trends
5. Porter's Five Forces Analysis: Lingerie Industry
5.1 Bargaining Power of Suppliers
5.2 Bargaining Power of Buyers
5.3 Competitive Rivalry
5.4 Threat of New Entrants
5.5 Threat of Substitutes
6. Competitive Landscape: Global Lingerie Industry
6.1 Victoria's Secret (Limited Brands)
6.1.1 Company Description
6.1.2 Major Brands and distribution channels
6.1.3 Business Strategies
6.2 Maidenform Brands, Inc
6.2.1 Company Description
6.2.2 Major Brands and distribution channels
6.2.3 Business Strategies
6.3 Van de Velde
6.3.1 Company Description
6.3.1 Major Brands and distribution channels
6.3.2 Business Strategies
6.4 CALIDA Holding AG
6.4.1 Company Description
6.4.2 Major Brands and distribution channels
6.4.3 Business Strategies
7. Future Outlook
7.1 Overall Economic Environment
7.2 Market Forecast
List of Figures
Global Intimate Apparel Market Size: 2003- 2007 Global Intimate Apparel Market Share by Region (2007) Global Intimate Apparel Market: Sales by Country (2007) Global Intimate Apparel Market: Segment Contribution (2007) US Apparel Industry by Major Segments: 2007 US Intimate Apparel Market Size (Value): 2002-2007 US Intimate Apparel Sales (Value): Major Categories: 2007 US Intimate Apparel Sales (Value): Major Categories: Q108 versus Q208 Lingerie budget per woman/year in European countries - 2007 UK Intimate Apparel Market Size (Value): 2002-2007 UK Intimate Apparel Market: Sales by Channel (Value): 2007 French Intimate Apparel Market Size (Value): 2002-2007 French Intimate Apparel Market: Sales by Channel (Value): 2007 Russian Intimate Apparel Market Size (Value): 2004-2007 Russian lingerie market: Sales by Segment (Value) - 2007 Russian lingerie market: Sales by Channel (Value) - 2007 Chinese Intimate Apparel Market Size (Value): 2003-2007 Innerwear Market in India (Value): 2003-2007 Value of lingerie market in India: 2003-2007 Share of lingerie market by segment: 2007 Indian Lingerie Channels - Sales Break-up Van de Velde - Percentage sales by brands (2007) Calida - Sales growth by brand/channel - 1H 2008 Global Intimate Apparel Market Forecast: 2008- 2010
List of Tables
US Apparel Categories: Market Size - 2007 versus 2006 Number of lingerie brands by country - Europe Sales of top lingerie brands in Europe Ownership and brands of major lingerie manufacturers Market Share and Distribution Channel of major US Intimate Apparel Makers Victoria's Secret - Fact sheet
To order this report: Global Intimate Apparel Market: 2008 Edition
More market research reports here!
SOURCE: ReportLinker
Reportlinker
Nicolas: nbo@reportlinker.com
US: (805)-652-2626
Intl: +1 805-652-2626
Copyright Business Wire 2008
Global Intimate Apparel Market: 2008 Edition
The global lingerie industry supply chain is likely to see falling margins in the near future in the wake of the weakening consumer confidence as a result of looming recession and economic slowdown.
However, the global lingerie industry is not likely to see a major downward growth trend mainly because of the fact that a slowing US and Western European lingerie market is being compensated by the growing Russian and Asian lingerie markets.
The Russian lingerie market is seeing a higher growth rate compared to the overall apparel industry on the back of money spending middle class. Wages and salaries in Russia have grown at an annual average rate of 12.8% over the past years.
The demographic evolution in Asia, particularly in China and India and the increasing urbanization, brand awareness, and rapid retail growth in these two countries are influencing consumers to migrate to branded innerwear, thereby fuelling the growth of organized lingerie market.
Currently the Asian market is playing an important role in the growth of the lingerie industry. While the global lingerie market grew at a rate of approximately 3%, the Asian lingerie market has shown tremendous growth with 8%. So, Asia and to some extent Eastern European countries like Russia have emerged as important markets for Western and Asian lingerie brands.
And the sales channel that has become more pronounced for lingerie manufacturers is the specialist lingerie chains. These chains are taking a major share of the market especially in the European countries. And this is evident with the growing level of consolidation in this sales channel. The recent acquisition of Lejaby (French lingerie and swimwear subsidiary of US group Warnaco) by the Austrian textiles group Palmers Textil, Princess Tam Tam by Japan's Fast Retailing Co. and French lingerie chain Orcanta by Chantelle Group indicates growing popularity of the specialist lingerie chains.
Created in November 2008, the report titled "Global Intimate Apparel Industry: 2008 Edition" gives an updated and analytical view of the global intimate apparel industry. The report assesses the overall industry by region, presents the major trends in different geographies and analyzes sales by channel of distribution in major regions/countries. It also analyzes the market opportunities for lingerie manufacturers, suppliers, distributors and retailers. The report also gives a comprehensive analysis of the leading players in the lingerie market. Further, the level of threat of new entrants, competitive intensity and bargaining power of buyers and suppliers has been presented with the Porter's Five Forces framework.
Finally, market forecast has been done keeping in view the current global economic scenario.
1. Global Intimate Apparel Market
1.1 Market Definition
1.2 Market Size and Growth
1.3 Market Opportunities
2. US Intimate Apparel Market
2.1 Market Overview
2.2 Market Size and Growth
2.3 Sales by Major Categories
2.4 Major Market Trends
3. European Intimate Apparel Market
3.1 UK Intimate Apparel Market
3.1.1 Market Size and Growth
3.1.2 Sales by Channel of Distribution
3.1.3 Major Market Trends
3.2 French Intimate Apparel Market
3.2.1 Market Size and Growth
3.2.2 Sales by Channel of Distribution
3.2.3 Major Market Trends
3.3 Russian Intimate Apparel Market
3.3.1 Market Size and Growth
3.3.2 Market Share by Segment
3.3.3 Sales by Channel of Distribution
3.3.4 Major Market Trends
4. Asian Intimate Apparel Market
4.1 Chinese Intimate Apparel Market
4.1.1 Market Size and Growth
4.1.2 Major Market Trends
4.2 Indian Intimate Apparel Market
4.2.1 Market Size and Growth
4.2.2 Market Share by Segment
4.2.3 Sales by Channel of Distribution
4.2.4 Major Market Trends
5. Porter's Five Forces Analysis: Lingerie Industry
5.1 Bargaining Power of Suppliers
5.2 Bargaining Power of Buyers
5.3 Competitive Rivalry
5.4 Threat of New Entrants
5.5 Threat of Substitutes
6. Competitive Landscape: Global Lingerie Industry
6.1 Victoria's Secret (Limited Brands)
6.1.1 Company Description
6.1.2 Major Brands and distribution channels
6.1.3 Business Strategies
6.2 Maidenform Brands, Inc
6.2.1 Company Description
6.2.2 Major Brands and distribution channels
6.2.3 Business Strategies
6.3 Van de Velde
6.3.1 Company Description
6.3.1 Major Brands and distribution channels
6.3.2 Business Strategies
6.4 CALIDA Holding AG
6.4.1 Company Description
6.4.2 Major Brands and distribution channels
6.4.3 Business Strategies
7. Future Outlook
7.1 Overall Economic Environment
7.2 Market Forecast
List of Figures
Global Intimate Apparel Market Size: 2003- 2007 Global Intimate Apparel Market Share by Region (2007) Global Intimate Apparel Market: Sales by Country (2007) Global Intimate Apparel Market: Segment Contribution (2007) US Apparel Industry by Major Segments: 2007 US Intimate Apparel Market Size (Value): 2002-2007 US Intimate Apparel Sales (Value): Major Categories: 2007 US Intimate Apparel Sales (Value): Major Categories: Q108 versus Q208 Lingerie budget per woman/year in European countries - 2007 UK Intimate Apparel Market Size (Value): 2002-2007 UK Intimate Apparel Market: Sales by Channel (Value): 2007 French Intimate Apparel Market Size (Value): 2002-2007 French Intimate Apparel Market: Sales by Channel (Value): 2007 Russian Intimate Apparel Market Size (Value): 2004-2007 Russian lingerie market: Sales by Segment (Value) - 2007 Russian lingerie market: Sales by Channel (Value) - 2007 Chinese Intimate Apparel Market Size (Value): 2003-2007 Innerwear Market in India (Value): 2003-2007 Value of lingerie market in India: 2003-2007 Share of lingerie market by segment: 2007 Indian Lingerie Channels - Sales Break-up Van de Velde - Percentage sales by brands (2007) Calida - Sales growth by brand/channel - 1H 2008 Global Intimate Apparel Market Forecast: 2008- 2010
List of Tables
US Apparel Categories: Market Size - 2007 versus 2006 Number of lingerie brands by country - Europe Sales of top lingerie brands in Europe Ownership and brands of major lingerie manufacturers Market Share and Distribution Channel of major US Intimate Apparel Makers Victoria's Secret - Fact sheet
To order this report: Global Intimate Apparel Market: 2008 Edition
More market research reports here!
SOURCE: ReportLinker
Reportlinker
Nicolas: nbo@reportlinker.com
US: (805)-652-2626
Intl: +1 805-652-2626
Copyright Business Wire 2008
Arthur D. Little: The BRIC Battle - Winning the Global Race for the Emerging Middle Segment
A new study identifies what major growth in the four largest emerging economies will mean for mature market multinationals
LONDON, Dec 11, 2008 (BUSINESS WIRE) -- With global policy makers and business leaders predicting the emerging BRIC markets will remain the key source for growth in the crisis, a new study by Arthur D. Little explains that mature market multinationals must re-evaluate their outmoded globalization philosophies or risk losing out to a new generation of ambitious, fast growing emerging market companies. The report, "The BRIC Battle - Winning the Global Race for the Emerging Middle Segment," explores how to capture a significant share of the largest customer segment in these countries.
"Just a few days ago private equity house Actis announced it has raised GBP 2.9bn for investment specifically in the BRIC emerging markets - proof positive that as the developed economies face recession in a post-credit crunch environment, emerging markets will continue to grow, albeit at a slower pace" reflects Kurt Baes, a co-author of the report and principal of Arthur D. Little's Shanghai office. "Multinationals find themselves at a tipping point - they must either begin to re-engineer their engagement with the BRIC markets now, or risk being left behind."
Growing middle segment
According to Arthur D. Little's latest report, over the next 20 years Brazil, Russia, India, and China - the so-called BRIC - will account for 50% of global incremental GDP growth. Based upon project experience and interviews with hundreds of leading companies in the US, Europe and Asia, the report's authors found that mature market multinational companies (MNCs) currently operating in BRIC markets tend only to target the premium segment - leaving local competitors free to serve the lower and emerging middle market segments. The BRIC "middle segment" consist of those products with good basic functionality but without the 'bells and whistles' of excess packaging, branding, and differentiating features to which many mature market consumers and companies have become accustomed. As the emerging markets' middle classes grow, so are the local companies that serve them. Hence the imperative for MNCs to address this market segment now.
"Unless the MNCs begin targeting the growing middle segment in the BRIC economies, they will not exploit the huge growth potential and risk losing ground to increasingly sophisticated local players, who are now taking the success gained in their home markets and translating that into rapidly expanding global offerings," added Wilhelm Lerner, co-author of the report and Head of Arthur D. Little's Central European Strategy & Organisation Practice. "As the economy enters a period of global recession where we are seeing developed nations hit the hardest, multinational brands must re-think their emerging market strategies and develop the product offerings and market knowledge to capture a larger share of the growing BRIC middle segment. That is their only chance to remain successful in the long term."
Entering with caution
Western white goods giant Whirlpool, home furnishings retailer Ikea, detergent brand Unilever, fast food chain KFC, and car manufacturer Toyota are all developed market companies that have made an early and definitive decision to target the BRIC middle segment. The report outlines how each company faced significant cultural, technical, and geographic challenges in successfully capturing these markets' middle segments, and offers businesses a new strategy for entering the emerging markets: BRIC 2.0.
Arthur D. Little's BRIC 2.0 strategy is based on a double-rationale for why mature market companies must act now to drive growth in the emerging markets' middle segments: to exploit the immense local growth opportunity and to protect their position in their home market. To achieve this, the report offers three ingredients to consider in developing a BRIC market entry strategy:
-- Fight - Combine international brand power with proven, local go-to-market approaches
-- Focus - First invest in a single, key region; roll out to subsequent regions once a strong market position is achieved
-- Simplify - Actively leverage the MNCs' technical expertise to design new product and service offerings that address local needs, far beyond simple copying or de-engineering of existing offerings.
"The complexities of entering a new market have been compounded by the continuous growth and changing nature of the BRIC middle segments over the last decade. As local players from each of the emerging markets aggressively pursue growth in both mature and other emerging markets, MNCs must act now to avoid losing ground to these new competitors, who have adapted successful go-to-market approaches specifically tailored for the growing global middle segment," concluded Petter Kilefors, co-author of the report and Global Practice Leader of Arthur D. Little's Strategy & Organisation Practice.
Looking ahead
As part of this study, Arthur D. Little gathered primary data from 60 MNCs in different geographies and industries, in order to develop the first ever publication of combined BRIC revenues disclosed on a per company basis. This data is currently being analysed to identify BRIC market "winners". "The Arthur D. Little BRIC Honorary Award" and accompanying analysis will be revealed in Q1 2009.
So far the research shows significant differences between industries: both construction industry & materials players and engineering & manufacturing firms have understood the message clearly, pushing their BRIC share into 20-40% growth figures annually since 2005. On the other hand, semiconductor and mobile device manufacturers' BRIC shares have stagnated in their portfolio; a sign that they may be missing out.
Industry Ranking Revenue share of BRIC Revenue share increase
(Revenue share of BRIC in total revenue) in total revnue (%) of BRIC '05-'07 (CAGR. %)
1. Semiconductor Manufacturers >20% <13%>13%
5. Engineering & Manufacturing 10% -20% >13%
6. Pharma & Chemicals >13%
7. Construction Industry & Construction materials suppliers >13%
8. Consumer Goods & Retail >13%
Average (across sample) 11.3% 12.9%
The BRIC Battle - Winning the Global Race for the Emerging Middle Segment is now available for download at http://www.adl.com/BRIC
About Arthur D. Little
Arthur D. Little (ADL), founded in 1886, is a leading global management consulting firm that links strategy, innovation and technology to master complex business challenges while delivering sustainable results to our clients. Arthur D. Little has a collaborative client engagement style, exceptional people, and a firm-wide commitment to quality and integrity. ADL is proud to serve many of the Fortune 100 companies globally in addition to many other leading firms and public sector organisations.
Arthur D Little has over 30 offices worldwide, employing over 1,000 people. If you would like additional information on the firm, please visit www.adl.com.
SOURCE: Arthur D. Little
Petter Kilefors
Arthur D. Little
Tel: +46-8-50306542
kilefors.petter@adlittle.com
or
Wilhelm Lerner
Arthur D. Little
Tel: +49 175 5806151
lerner.wilhelm@adlittle.com
or
Kurt Baes
Arthur D. Little
Tel: +86 21 6447 8866
baes.kurt@adlittle.com
or
Sue Glanville/ Maita Soukup
Say Communications
Tel: +44 (0)208 971 6411 / 6423
sglanville@saycomms.co.uk
msoukup@saycomms.co.uk
Copyright Business Wire 2008
LONDON, Dec 11, 2008 (BUSINESS WIRE) -- With global policy makers and business leaders predicting the emerging BRIC markets will remain the key source for growth in the crisis, a new study by Arthur D. Little explains that mature market multinationals must re-evaluate their outmoded globalization philosophies or risk losing out to a new generation of ambitious, fast growing emerging market companies. The report, "The BRIC Battle - Winning the Global Race for the Emerging Middle Segment," explores how to capture a significant share of the largest customer segment in these countries.
"Just a few days ago private equity house Actis announced it has raised GBP 2.9bn for investment specifically in the BRIC emerging markets - proof positive that as the developed economies face recession in a post-credit crunch environment, emerging markets will continue to grow, albeit at a slower pace" reflects Kurt Baes, a co-author of the report and principal of Arthur D. Little's Shanghai office. "Multinationals find themselves at a tipping point - they must either begin to re-engineer their engagement with the BRIC markets now, or risk being left behind."
Growing middle segment
According to Arthur D. Little's latest report, over the next 20 years Brazil, Russia, India, and China - the so-called BRIC - will account for 50% of global incremental GDP growth. Based upon project experience and interviews with hundreds of leading companies in the US, Europe and Asia, the report's authors found that mature market multinational companies (MNCs) currently operating in BRIC markets tend only to target the premium segment - leaving local competitors free to serve the lower and emerging middle market segments. The BRIC "middle segment" consist of those products with good basic functionality but without the 'bells and whistles' of excess packaging, branding, and differentiating features to which many mature market consumers and companies have become accustomed. As the emerging markets' middle classes grow, so are the local companies that serve them. Hence the imperative for MNCs to address this market segment now.
"Unless the MNCs begin targeting the growing middle segment in the BRIC economies, they will not exploit the huge growth potential and risk losing ground to increasingly sophisticated local players, who are now taking the success gained in their home markets and translating that into rapidly expanding global offerings," added Wilhelm Lerner, co-author of the report and Head of Arthur D. Little's Central European Strategy & Organisation Practice. "As the economy enters a period of global recession where we are seeing developed nations hit the hardest, multinational brands must re-think their emerging market strategies and develop the product offerings and market knowledge to capture a larger share of the growing BRIC middle segment. That is their only chance to remain successful in the long term."
Entering with caution
Western white goods giant Whirlpool, home furnishings retailer Ikea, detergent brand Unilever, fast food chain KFC, and car manufacturer Toyota are all developed market companies that have made an early and definitive decision to target the BRIC middle segment. The report outlines how each company faced significant cultural, technical, and geographic challenges in successfully capturing these markets' middle segments, and offers businesses a new strategy for entering the emerging markets: BRIC 2.0.
Arthur D. Little's BRIC 2.0 strategy is based on a double-rationale for why mature market companies must act now to drive growth in the emerging markets' middle segments: to exploit the immense local growth opportunity and to protect their position in their home market. To achieve this, the report offers three ingredients to consider in developing a BRIC market entry strategy:
-- Fight - Combine international brand power with proven, local go-to-market approaches
-- Focus - First invest in a single, key region; roll out to subsequent regions once a strong market position is achieved
-- Simplify - Actively leverage the MNCs' technical expertise to design new product and service offerings that address local needs, far beyond simple copying or de-engineering of existing offerings.
"The complexities of entering a new market have been compounded by the continuous growth and changing nature of the BRIC middle segments over the last decade. As local players from each of the emerging markets aggressively pursue growth in both mature and other emerging markets, MNCs must act now to avoid losing ground to these new competitors, who have adapted successful go-to-market approaches specifically tailored for the growing global middle segment," concluded Petter Kilefors, co-author of the report and Global Practice Leader of Arthur D. Little's Strategy & Organisation Practice.
Looking ahead
As part of this study, Arthur D. Little gathered primary data from 60 MNCs in different geographies and industries, in order to develop the first ever publication of combined BRIC revenues disclosed on a per company basis. This data is currently being analysed to identify BRIC market "winners". "The Arthur D. Little BRIC Honorary Award" and accompanying analysis will be revealed in Q1 2009.
So far the research shows significant differences between industries: both construction industry & materials players and engineering & manufacturing firms have understood the message clearly, pushing their BRIC share into 20-40% growth figures annually since 2005. On the other hand, semiconductor and mobile device manufacturers' BRIC shares have stagnated in their portfolio; a sign that they may be missing out.
Industry Ranking Revenue share of BRIC Revenue share increase
(Revenue share of BRIC in total revenue) in total revnue (%) of BRIC '05-'07 (CAGR. %)
1. Semiconductor Manufacturers >20% <13%>13%
5. Engineering & Manufacturing 10% -20% >13%
6. Pharma & Chemicals >13%
7. Construction Industry & Construction materials suppliers >13%
8. Consumer Goods & Retail >13%
Average (across sample) 11.3% 12.9%
The BRIC Battle - Winning the Global Race for the Emerging Middle Segment is now available for download at http://www.adl.com/BRIC
About Arthur D. Little
Arthur D. Little (ADL), founded in 1886, is a leading global management consulting firm that links strategy, innovation and technology to master complex business challenges while delivering sustainable results to our clients. Arthur D. Little has a collaborative client engagement style, exceptional people, and a firm-wide commitment to quality and integrity. ADL is proud to serve many of the Fortune 100 companies globally in addition to many other leading firms and public sector organisations.
Arthur D Little has over 30 offices worldwide, employing over 1,000 people. If you would like additional information on the firm, please visit www.adl.com.
SOURCE: Arthur D. Little
Petter Kilefors
Arthur D. Little
Tel: +46-8-50306542
kilefors.petter@adlittle.com
or
Wilhelm Lerner
Arthur D. Little
Tel: +49 175 5806151
lerner.wilhelm@adlittle.com
or
Kurt Baes
Arthur D. Little
Tel: +86 21 6447 8866
baes.kurt@adlittle.com
or
Sue Glanville/ Maita Soukup
Say Communications
Tel: +44 (0)208 971 6411 / 6423
sglanville@saycomms.co.uk
msoukup@saycomms.co.uk
Copyright Business Wire 2008
Subscribe to:
Posts (Atom)
![[Most Recent Exchange Rate from www.kitco.com]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_v9YiZCIQirfL1kouY9Dc1Fi1ArypBIbIR7psGt6aVeaM04g5NYcORqsjtt97ev_6wb7X4xG32e2Y9p03bdYm_SX3kgFy7oX3i3LgqovtqinnAc72BJNs0=s0-d)
