MarketLine Blog

Posts written in October 2013

Fashion in supermarkets not supermarket fashion

MarketLine

The UK apparel retail industry has experienced fluctuating levels of low growth in recent years which may potentially make it less attractive to new entrants. During a time of financial crisis and low disposable income, consumers are less likely to buy expensive designer wear. According to British national newspaper, the Telegraph, two-thirds of people reported living on less disposable income than last year (2012), and are trying to stretch out a low monthly expenditure budget of £192 ($304). Supermarkets have been able to establish themselves during the economic downturn by… Read more

IMAX revenues and profits fall in Q3 2013 but future opportunities remain

MarketLine

IMAX Corporation (IMAX) has announced its Q3 2013 results and, on the surface, it does not look good: Q3 2013 revenues are down by 35.9% over the same quarter of last year, and net income is down by a substantial 89.2%. This will be of great concern for IMAX and its shareholders, but it would be wrong to write the company off at this stage. On a year-to-date basis, the company’s slide in revenue and profit is not as severe. Revenues for the first three quarters of 2013 are down… Read more

Apple’s new iPads to offer greater profit opportunities?

MarketLine

Apple Inc’s (Apple) latest additions to its iPad tablet range show that it continues to focus on the high-end of the market. The addition of a Retina display to the iPad mini, in conjunction with a price increase, demonstrates that the company continues to value premium, profitable products. The replacement of last year’s flagship iPad with the new iPad Air also marks an attempt to continue premium profitability, as the company continues to offer its iPad 2 at $399. Further premiuzation of the iPad mini This time last year, I… Read more

Primary aluminum industry falls prey to energy price hikes

MarketLine

The 2008 financial crisis had a serious impact on the aluminum industry, with global revenues declining over 40% in 2009. Despite two consecutive years of growth in 2010 and 2011, a decline in 2012 ensured industry sales have once again dipped below pre-recession levels. Analysis shows that the global aluminum industry declined by 11.8% in 2012 to reach a value of $84.5 billion, representing a compound annual rate of change (CARC) of -2.4% for the period spanning 2008-2012. This was despite growth in the Asia-Pacific region (fuelled by China’s relatively… Read more

Luxottica fares well despite uncertain global economy

MarketLine

Despite the cooling of the overall global luxury market, the outlook for sunglasses and eyewear, especially in emerging and developing markets, including South America and Asia, looks bright. Growth opportunities in emerging markets are based on the greater purchasing power of the upper-middle class, the proliferation of luxury stores and the increased availability and rising consumer recognition of premium and luxury brands. The concentration of global wealth in emerging markets has created increased demand for luxury items and accessories, driving consumption in the premium segment. This is great news for… Read more

Banking regulator for 28-nation EU by November 2014?

MarketLine

Back in September 2012, the European Commission (EC) proposed a European Union (EU) banking regulator, which has come to be known as the Single Supervisory Mechanism (SSM), to oversee the 28-nation bloc’s banking sector. This week, the establishment of such a body moved a step closer. Lithuania’s Finance Minister (Lithuania currently holds the EU’s rotating presidency) Rimantas Sadzius announced yesterday that he was “very glad to note the adoption of this very important single supervisory mechanism package.” Michel Barnier, Commissioner responsible for internal market and services,  was even more enthused… Read more

Savory snacks market comfort eats its way to growth despite difficult economic conditions

MarketLine

Despite the residual effects of the 2008 financial crisis still being felt in many nations around the world, particularly in Europe, consumer demand for savory snacks has continued to show growth, not only in developing countries but also developed nations. The global savory snacks market grew by 5.3% in 2012, to reach a value of $89.6 4illion, representing a compound annual growth rate of 5.0% for the period spanning 2008-2012. The Americas proved to have the largest share of the market, with 44.7% of the total value in 2012, Asia-Pacific… Read more

The US craft beer industry is booming

MarketLine

Craft brewers are small, independent, and traditional. Craft brewers have an annual production of less than 6 million barrels of beer or fewer, have less than 25% owned by a non-craft brewer, and use adjuncts to enhance rather than lighten flavor, or at least 50% of their products brewed by volume are malt beers. The US craft beer industry has surged since the late noughties. Worth an estimated $10.2bn in 2012, the craft beer industry far outgrew the overall beer industry. While craft beer sales grew by 15% by volume… Read more

giffgaff: Replacing traditional telecoms business model with co-created products and services approach

MarketLine

Despite declining revenues and increasing saturation of the overall UK telecoms market, mobile retail operations revenue increased in 2012, according to the independent regulator and competition authority – Ofcom. Although the rate of growth of the number of mobile subscribers decelerated significantly, there are still business opportunities to take advantage of, especially for mobile virtual network operators, who incur much lower costs and enjoy higher profit margins than traditional operators. giffgaff is a Telefonica-owned, SIM-only, pay-as-you-go mobile virtual network operator active in the UK. The company rents its mobile network… Read more

With Dread Pirate Roberts arrested, and Silk Road shut down, what next for Bitcoin?

MarketLine

With recent major news events covering the FBI’s arrest of Dread Pirate Roberts (Ross Ulbricht), the accused owner and mastermind behind the dark web’s primary illegal online marketplace Silk Road, Bitcoin has once again found itself in the spotlight. With the FBI seizing approximately $3.2m in Bitcoins, and the subsequent drop in value on the digital currency’s exchanges, Bitcoin once again finds itself in a difficult situation. First of all what is Bitcoin? Bitcoin is a form of crypto-currency with its origins dating back to 2008. It utilizes cryptography, a… Read more

Oil & Gas Industry Analysis: 2013 is expected to be a hard year for oil & gas segment due to lower consumption.

MarketLine

While the oil segment is operated on a global scale, the natural gas segment tends to be more localized, due to high transport costs and the need to ensure adequate transport infrastructure. In its January report, the Organization of the Petroleum Exporting Countries (OPEC) reports that in 2012, the increase in production in OPEC countries was just 0.54 million barrels per day, as a result of record deceleration in the Middle East and Africa. However, in North America, the increase stood at more than one million barrels per day. The… Read more

US government shutdown could cost as much as $300m a day

MarketLine

At midnight on the night of September 30th/October 1st, the US government entered a partial shutdown following a disagreement between rival parties over how it should be funded over the next year. Early estimates indicate the shutdown could cost as much as $300m a day. The first shutdown in 17 years came as the Republican-led House of Representatives insisted on delaying President Barack Obama’s healthcare reform, known colloquially as Obamacare, as a condition for passing the budgetary bill. It means that several government departments have had to shut down completely,… Read more