Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
Swedish Meatballs in Beijing !
July 12, 2009
Ikea Plans to Open Second Beijing Store on Demand | www.bloomberg.com
Following announcements that red tape and bureaucracy may delay or kill expansion plans in some countries, the world's top furniture retailer clearly sees great opportunities in China. With 21% of its purchases made in China (top sourcing country for the chain), an insignificant part of sales made there (perhaps less than 2%) and exploding consumer demand for housing and related furnishings...how can IKEA possibly miss? In a tough economic environment, IKEA continues expansion and continues sales growth (although there are no same store comparisons easily available...so perhaps growing mostly through new-store openings). Their format makes every visitor a customer on the very first visit because it is impossible not to find something to buy (even if it is only a plate of meatballs or a Coke). The company sells nearly $1.5 billion of food annually!
Wal-Mart’s move to private label is merely a reflection of societal trends.
July 7, 2009
Is Wal-Mart onto something? | www.homechannelnews.com
Private label is a brand unto itself. Wal-Mart’s move to private label is remarkably similar to any other brand initiative. Rather than moving upscale with unique selling propositions, private label products accept commoditization and manufacture the least expensive product possible.
July 6, 2009
Import Duty On Gold Bars Increased | www.gjepc.org
1. Indian Govt. decided to increase duty on Gold bars,gold jewelery and Silver. 2. Duw to which affect can be seen in local market with the increase in Gold Rates. 3. It is expected that sales will going to affect in this time of recessions and low sales.
UAE vs China as a furniture market - factors differentiating the two and outlook for both
June 29, 2009
Furniture - Dubai market has large export appeal | bit.ly
The UAE and China present furniture manufacturers with different opportunities. Furniture products themselves need to be segmented as they require quite different sales channels and marketing to penetrate these sectors.
Appeal of the Western Furniture
June 29, 2009
Furniture - Dubai market has large export appeal | bit.ly
The occupants of the Desert lands have a distinct leaning towards Western furniture brands. Primarily there are 2 kinds of customers.One the expatriate population and the other the local population. The westerners prefer having furniture akin to the kind they have grown up with. As for the locals while they hold on very rigidly to their local culture and religion, furniture is one aspect that cannot be questioned as a movement away from local beliefs or customs . Hence be it holidays abroad or the designer wear under the traditional abhayas they sure do prefer American/European brands. There also is a societal image perspective to the possession of some premium brands of furniture from the West. Additionally the sizes of most homes resemble multiple football fields joined together. This makes it easier to house the large size furniture's that the west is known for.However whatever be the leaning towards western furniture the traditional majlis of every home is necessarily Arabic .
Kitchen Cabinetry – Opportunity China
June 29, 2009
Furniture - Dubai market has large export appeal | bit.ly
An undisputed fact -despite the global economic developments – China will emerge (or still is) the fastest growing economy in the world, especially within the luxury goods sector. Retail sales in China have reached more than 6 trillion RMB and are expected to quintuple in the next 10 years to 30 trillion RMB. Since 1997, the per capita income of the Chinese population has doubled, and with it, the retail economy has slowly shifted in expenditure patterns from “basic needs” towards “personal luxury”. 200 million Chinese have meanwhile entered a new consumption society. China is currently the third largest consumer of luxury brands and is expected to surpass the United States within the next 10 years.
Will American consumers prefer private labels as Europeans do?
June 25, 2009
Is Wal-Mart onto something? | www.homechannelnews.com
People in Europe prefer private labels for different products, as retailers can offer them with their own brands, better deals eliminating several merchandising expenses. Some people think that it is better to buy a product, that a prestigious retailer has approved (and supported with their brands), getting more quality for a lower price, instead of a brand that has been top of the market because of it’s spends in advertising, that finally raises the price, without a perceived benefit for consumers. How can this work in Walmart?
Wal-Mart Great Value Brand Revamp Signals Mainstream Adoption of Private Label Products
June 25, 2009
Is Wal-Mart onto something? | www.homechannelnews.com
Looking back, retail observers and pundits will identify the current recession as a tipping point when private label products emerged from alternative status and into the mainstream. Wal-Mart's "Save Money. Live Better." value proposition has been incredible successful and was a natural extension of their longstanding EDLP pricing strategy. The fact remains that consumers will pay more than their reference price for a product if they perceive a brand to have differential value over a like item. This applies to private label brands as well. If Wal-Mart executes the revamp successfully it could significantly increase traffic, order size and conversion.
Mega Retailer Private Label Can Be Effective
June 25, 2009
Is Wal-Mart onto something? | www.homechannelnews.com
The virtue of private-label for the consumer is a similar product at a better value. The virtue for the retailer is greater profits.
Private Label Marketshare Gains Generates Additional Private Equity Supply Chain Pressure
June 24, 2009
Is Wal-Mart onto something? | www.homechannelnews.com
According to the source article, Wal-mart is in the process of upgrading its private label business. This profit push will bite into branded product marketshare and may cause retail supply chain challenges downstream. How does a P&E firm with branded products position itself?
November 12, 2009
China’s Economy and Construction Boom Creates Huge Floor Covering Potential
November 6, 2009
New Records of Gold and What More?
November 5, 2009
Unilever On the Prowl...Again !
October 1, 2009
The Unilever Purchase - Does buying Sara Lee Soaps signify a new strategy?
September 28, 2009