MarketLine Blog

Posts written by Goska Kafel

Russian agriculture: Sanctions to create an agricultural superpower?

MarketLine

Following the Western penalties imposed on Russian companies in 2014, the Russian government responded with countersanctions, banning imports of many western food products. This encouraged import substitution and made Russian exports more competitive, thus showing that despite the poor state of east-west relations, there are plenty opportunities to be found in the Russian market. The Russian government, with an already set goal to diversify its economy which is heavily dependent on energy exports, has provided RUB215bn ($3.2bn) for the development of the agricultural sector, resulting in sudden and significant growth…. Read more

East meets West. The battle for supremacy in India’s e-commerce market

MarketLine

While China and the US currently dominate in terms of e-commerce spending, India is one of the world’s fastest growing internet markets. It is also the fastest growing country in the Asia Pacific region in the retail e-commerce space. The rapid pace of growth of e-commerce in India creates a huge potential opportunity and attracts not only local players but foreign e-commerce giants, like Amazon and Alibaba. The largest local players, Flipcart and Snapdeal, initially seen as the dark horses in this race and attracting serious investment, are now losing… Read more

LiDAR self-driving technology. A case of calculated theft?

MarketLine

Google and Uber started off as friends with Google parent Alphabet investing $258m in Uber in 2013. They then became competitors, as Uber started experimenting with its fleet of self-driving cars in 2016. Finally, in 2017, both companies ended as adversaries in court, engaging in a bitter legal fight to control the future of transportation. The suit details the lengths Waymo goes to in order to protect its trade secrets, including purchasing LiDAR components from numerous vendors and completing assembly in-house to prevent any single vendor from knowing everything about… Read more

Big retail takes control of Russian food market

MarketLine

The Russian food market is amongst the largest and most populated globally. As the population of 146 million people continues to grow, they are also buying more food. There are a lot of opportunities for further development, especially in the convenience segment, as the grocery retail market is significantly less saturated than in Western Europe. Changes in tastes and technology have opened up the sector to new suppliers and new ideas. However, after almost a decade of double digit growth, this over $300bn market has seen a significant deceleration recently… Read more

Pet business of the future: A whole different breed

MarketLine

The pet industry in the US is booming, approaching $60bn in revenue. Growth in the market is derived both from increasing pet ownership as well as from increased spending per pet. If people have been willing to buy something for themselves, they are likely to now buy it for pets. There are plenty of opportunities across various segments of the industry, especially in the pet-related services segment which is growing at nearly twice the rate of the overall pet market. People increasingly view their pets as part of the family… Read more

Self-driving to the future

MarketLine

The line between the auto and tech industries is rapidly blurring, with the pursuit of autonomous driving and a shift from car ownership towards car sharing and ride sharing. China is widely viewed as the next frontier for growth and many market players are looking to establish a foothold in this country, which requires significant investment. To keep up with changing market trends, most major auto makers are investing in their own driverless-car technology, which is less costly if done in cooperation with high-tech companies, like Google or Apple. The… Read more

Global Haircare Market – Data Infographic

MarketLine

An infographic with summary information on the global haircare market

Halal: The new organic

MarketLine

The global halal market, which includes products and services complying with Islamic laws and regulations, was valued at $1.7tn in 2012, growing faster than other consumer markets despite the recent global recession. At a time when many Western markets are reaching their saturation point, Muslim consumers are becoming a target audience, and the halal market is emerging as one of the fastest growing consumer segments in the world. Despite the common belief that the term “halal” is limited to meat and poultry, opportunities in the halal market go way beyond… Read more

Russian e-commerce market presents significant business opportunities for those able to overcome its challenges

MarketLine

With 84.4 million internet users and 27 million online shoppers Russia is already the largest online community in Europe and growing rapidly. With a skyrocketing number of Internet users, but a still underdeveloped commercial environment, the opportunity to build a successful online selling business in Russia is huge. The biggest growth areas are mostly in the remote regions, where growth is 50% higher than in central cities. Even amid a slowing economy, the country’s online shopping kept increasing at a double digit rate in 2013, making it the fastest expanding… Read more

Whole Foods: A victim of its own success?

MarketLine

Whole Foods, the US-based organic food retailer, is not now nor will it ever be a cheap shopping experience. Despite its high prices, the company has seen its revenues rise in recent years, as demand for healthy, natural foods has constantly increased. However, despite a whole paycheck being needed to shop at this organic food giant, recently only a fraction of one has been needed to buy the company’s stock. The company has seen its shares fall almost 35% in 2014. The main reason for the stock’s poor performance is… Read more

Semiconductor industry back on track

MarketLine

The global semiconductor industry recovered in 2013, growing by 5.4%, after a contraction recorded the year before. Regionally, the Americas showed the largest increase (11.4%), while Asia Pacific grew by 4.3% and Europe recorded a 3 % growth. At the same time sales fell sharply in Japan, contracting by -15%, mostly due to the devaluation of the Japanese Yen. The United States has rebounded to once again become one of the largest and fastest growing regions for semiconductor manufacturing globally. The US semiconductor industry grew nearly three times faster than… Read more

Inglot refuses to play by the rules and wins a share of global make-up market

MarketLine

Founded over 30 years ago, in the small Polish town of Przemysl, Inglot Cosmetics started as a chemical manufacturer, producing cleaning fluid for cassette players and cheap eye shadows. Within only a few years, taking advantage of the changing political situation in the country, the company became a large cosmetics manufacturer with a presence at all major beauty gatherings and events around the globe, from the runways of Fashion Week to the stages and sets of TV and Broadway musicals. As examined in the MarketLine Case Study ‘Inglot Cosmetics –… Read more

Luxottica to make nerdy Google Glass look cool

MarketLine

Luxottica Group S.p.A. (Luxottica or ‘the group’), the world’s largest producer of eyewear, which offers a range of premium, luxury, sport and performance glasses, has signed a strategic partnership with Google over its Glass eyewear. According to the agreement, the two groups will work together to create innovative wearable devices for the Glass brand. Luxottica will put Google’s geeky device through the designer’s laboratory in an attempt to make it cool. The eyewear giant is expected to take care of the design, development and distribution of Google Glass. The company’s… Read more

Sudden End To Kingfisher’s Reign

MarketLine

Kingfisher – popularly known as King of good times – was established in 2003 by the liquor baron Dr. Vijay Mallya, who named the company after his favorite beer. After a modest start in 2003, Kingfisher managed to quickly build a strong brand and high visibility, by becoming the first ever player in the Indian airlines industry to operate in the lucrative niche of premium domestic flights and rapidly growing its base of happy customers. The company made all efforts to make the flight and the whole travel experience as… Read more

Motorcycles sales stuck in neutral

MarketLine

After a brief recovery in 2011, the global motorcycles market contracted again in 2012-13, with the European region showing the steepest decline. According to the Motorcycle Industry European Association (ACEM), the European market has now hit rock bottom and 2014 should see a slightly more positive sales performance. In addition to general weak economic conditions, motorcycle distributors blamed poor climate, especially the long lasting winter in 2013, for negatively impacting on sales. In the UK, the market for motorcycles is taking longer to recover than the car market, as the… Read more

Car sharing industry – beginning of the end?

MarketLine

Zipcar, Inc. operates a car sharing network, providing self-service vehicles, conveniently located in reserved parking spaces, by the hour or by the day. The company offers its solutions to individuals, universities, businesses, and government agencies. It is present in North America and Europe. Zipcar’s way of doing business is particularly appealing to young city dwellers, who do not own their own cars, but walk, bike and use public transportation instead, most of the time. They usually like the cool cars  that Zipcar provides, such as Mini Coopers, or Toyota Prius,… 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

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

McDonald’s is going to pumpkin battle with Starbucks

MarketLine

To maintain profitability in the face of higher labor, occupancy and operating costs, McDonald’s is responding by adding more premium and also expensive, items to its menu. After introducing wraps and smoothies, the company is now looking to take a sip of the coffee market and win some of the Starbucks crowd. Pumpkin spice-flavored latte is the new battlefield. According to Starbucks spokeswoman Alisa Martinez, Starbucks has sold more than 200 million pumpkin spice-flavored lattes within the ten years since they were introduced in 2003. A 16-ounce pumpkin-spice latte sells… Read more

Global air passenger numbers to double in 20 years

MarketLine

Airbus, the European plane manufacturer, predicts that air passenger numbers will more than double globally over the next 20 years from 2.9 billion to 6.7 billion in 2032. The France-based manufacturer attributes this growth to a bigger global middle class, urbanization, migration and tourism. Airbus also predicts that 29,220 new aircraft will be needed over the next 20 years, in order to meet this increased traffic. About 10,400 planes of the total number will be necessary just to renew existing fleets. Overall, new orders for aircraft would amount to $4.4tn…. Read more

Ukraine reduces reliance on the Russian gas and imports more from Europe

MarketLine

Ukrainian state energy company, Naftogaz, has reduced gas imports from Russia by 30% so far in 2013 and will cut them further in 2014. At the same time imports from Europe will double, according to Ukraine’s Energy Minister Eduard Stavytsky. Imports from Europe are expected to reach 2-2.5 billion cubic meters this year, and no less than 5 billion cubic meters in 2014. The reason behind this move is the high price of Russian gas. While the sample average price of gas supplied from Europe by German firm RWE (RWEG.DE)… Read more

America and Europe remain the largest control systems markets but Asia-Pacific is growing at the fastest rate

MarketLine

Control systems, including programmable logistic controllers (PLC) and distributed control systems (DCS) are widely applicable and once installed, contribute towards better energy efficiency, increased productivity and safety. They can help companies achieve a competitive edge in a global scale. Currently, America and Europe are the largest markets for industrial control and factory automation; however, the emerging economies, mainly in Asia-Pacific and the Middle East, are growing at the fastest rate. These markets are expected to generate the largest revenue stream in the nearest future, as they pursue expansion and improvement… Read more

How much are Superman’s glasses?

MarketLine

If bought online, they can come as cheap as $95 with a portion of the proceeds going to charity. Warby Parker, the eyewear company that sells prescription glasses and sunglasses almost exclusively online and at a relatively low cost, has created a new collection of plastic frames inspired by the upcoming superhero movie – Superman Man of Steel. The company, founded in 2010, has seen some impressive growth in the last couple of years. It has increased its headcount from four to 113 employees, beat its own yearly sales projections… Read more

Play.com to leave the UK market

MarketLine

Play.com, the online retailer owned by Rakuten, is closing its UK direct retail store business and became an online marketplace. From March 2013, the company will no longer sell directly to customers and will instead, employ a business model similar to Amazon and eBay, allowing its users to list their own items (e.g. DVDs, video games, and electronics), on its website for sale. The closure is a result of the closing of a tax loophole, which exempted items under £15 (around $24) in value being imported to the UK from… Read more

Revenue growth despite the volatile nature of the fashion industry and sluggish economy

MarketLine

The global luxury goods retail market, worth $226.6bn in 2012, continues to create growth opportunities. It is expected to grow at a compound annual growth rate (CAGR) of 7.8% towards 2014. Asia was the fastest growing luxury market in 2012, with the growth seen in mature markets was considerably slower. Michael Kors is one of the market’s leading players, enjoying rapid, double digit revenue growth and a marked increase in brand awareness in recent years. The company was founded in 1981, starting as an American luxury sportswear house, and in… Read more

Premiumization and emerging wines and spirits markets prove lucrative despite tough economic conditions

MarketLine

Despite tough economic conditions, there is still demand for pricy, luxurious brands and sophisticated packaging in the wines and spirits market. When disposable incomes are shrinking, consumers in spirits sector, in mature markets, rather buy less of pricier brands, than more of cheaper labels. Demand for upmarket spirits is also created by growing of middle-classes in emerging and developing markets. Pernod Ricard, once a local alcoholic beverages producer, has rapidly expanded over the past decade, through organic growth, strategic acquisitions and powerful marketing, to become one of the world leaders… Read more

Organic food sales on the rise, while the food industry shows a contraction in value

MarketLine

While the overall US food industry contracted by -1.4% in 2011 to reach $664.1bn, after a period of unexciting growth, the organic foods market increased by 9.5%, reaching $29.2bn. As organic products sales are becoming a more and more lucrative business in North America, due to rising health awareness, strong growth rates are expected in the coming years and the market should see increased competition. Traditional grocery stores and supermarkets (i.e. Kroger, Walmart, Safeway) are still pulling in the lion’s share of organic profits, over smaller natural food stores (i.e…. Read more

Oasis: How to succeed in omni-channel retailing

MarketLine

Multi-channel retailing, enabled by fast technological development, may soon simply not be enough. Instead of being present in two or three channels, there is a trend to integrate digital commerce, with physical stores, engaging all possible communication channels, to sell a completely new, comprehensive, consistent customer experience. This new approach is called omni-channel retailing. In 2011, Oasis, a retail brand of Aurora Fashion, introduced a £7m ($11.2m), 18-month investment program, to revamp its brand image and gain market share through the integration of all its retail channels. The adoption of… Read more

Natura Cosmeticos – Latin American cosmetics giant

MarketLine

Natura Cosmeticos, a Brazilian company, that develops, produces, and sells cosmetics, fragrances, and hygiene products, is emerging as the Latin American cosmetics giant. Established in 1969, by 2009, the company had overtaken global incumbents like Unilever and Avon in the Brazilian market and is growing its presence in Argentina, Chile, Mexico and Peru. Natura’s products are also marketed in Bolivia and Uruguay through local distributors. Natura operates a door-to-door sales model and through a network of 1,418,400 consultants reaches a potential client base of 100 million consumers. The company’s operations… Read more