Friday, August 1, 2014

Thailand targets being top auto parts manufacturer in Southeast Asia.

BANGKOK, April 17 – Auto parts manufacturing, declining 20-30 per cent since mid-last year, is possibly on the downward trend this year, according to the Thai Subcontracting Promotion Association (Thai Subcon).
Thai Subcon President Somkiat Chupukcharoen said the negative prospect was due to the termination of the government’s policy which granted tax rebates to first-car buyers.
He said auto parts manufacturers were advised to adopt new technology to cut production cost and improve quality, indicating that Thailand’s manufacturing technology is 10 years behind Japan.
The massive 2011 floods and prolonged political crisis have impacted the auto parts manufacturing industry which needs to speed up and develop in light of the launch of ASEAN Economic Community (AEC) next year.
After the AEC is in force, the auto parts market will expand tenfold, he said, boosting the domestic subcontracting industry given close cooperation between the public and private sectors, he said.
In addition to higher demand in the AEC market, the subcontracting industry will be further fuelled by the second-phase eco-car project which involves 10 leading manufacturers with a total investment of at least Bt139 billion, said Mr Somkiat.
By that time, he said, Thailand’s auto manufacturing capability will be increased by 1,581,000 units from the present production at 2.4-2.5 million units each year.
He said the Thai Subcon looks forward to Thailand becoming the top auto parts manufacturer in Southeast Asia.
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More than 80% of Facebook users in India access the social networking site from their mobile devices

"Today, we have more than 100 million people who access Facebook actively in India each month," Facebook India Head of Growth & Mobile Partnerships Kevin D'Souza said.
    
Facebook's mission is to give people the power to share and to make the world more open and connected, he said.
On the outlook, D'Souza said, "We recently announced Internet.org, a global partnership with the goal of connecting the next 5 billion people around the world, to make the same access and opportunity available to everyone."
    
"It is with this in mind that we look towards like-minded partners who want to innovate and share the same vision as us to understand better how Internet access can be increased to reach millions more people across India," he added.
    
Powered by burgeoning smartphone adoption and increasing Internet penetration in the country, Facebook has seen a meteoric rise in its user base since setting up its first office in India in 2010 in Hyderabad. Back then, it had about 8 million users in the country.
    
According to Facebook, 84 million of its 100 million users in India access the social networking site from their mobile devices.
    
The California-headquartered firm has already projected that future growth will come from mobile, as more users in emerging markets, especially India, log on to the site through handheld devices.
    
Set up in 2004 from a college dorm, Facebook had 1.23 billion users across the world as of December 31. Facebook saw its global daily active users (DAUs) rise by 22 percent to 757 million during December from 618 million in the year-ago period, helped by growth in major markets, including Brazil, India and US.
    
Worldwide mobile DAUs rose 49 percent to 556 million on average during December from 374 million during December 2012.
    
Monthly active users (MAUs) in India stood at 93 million at the end of December, of which 75 million logged in through their mobile phones.
    
DAUs from India stood at 41 million in the December quarter of 2013, while mobile DAUs stood at 31 million.

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China downloads the second most IOS apps in the world after the US.

China downloads the second most iOS apps in the world after the US, but it still spends less money on them than the much less-populated Japan, according to App Annie. The app analytics company’s new Q1 2014 report says China could be catching up to its island neighbor, however, showing exceptional gains in both downloads and revenue. iOS App Store revenue in China grew around 70 percent last quarter.


 In Q1 2014, China’s revenue growth was stronger than download growth for the first time. Games accounted for the majority of that rise, followed by travel and social networking apps. App Annie notes much of the revenue growth in games came from WeChat’s gaming platform. 

"On the last day of the quarter, four of the top five grossing games for iPhone in China were published by Tencent for the WeChat platform."

 In Q3 2013,

 China rose to the third ranking country in terms of revenue on iOS, and it’s been gaining on Japan for several consecutive quarters. App Annie attributes the country’s latest growth spurt to the deal struck between Apple (NASDAQ:AAPL) and China Mobile (NYSE:CHL; HKG:0941), the world’s largest mobile carrier with 700 million subscribers, to sell a compatible version of the iPhone. In February alone, the deal resulted in one million new iPhone users.

         Per capita, the Chinese still have a long way to go before they’re paying as much for apps and mobile content as the Japanese. But as a whole the Chinese market could soon usurp Japan to be second biggest spender worldwide.

           Update: It’s also worth mentioning that iOS accounts for 68.7 percent of the smartphone market in Japan, whereas in China it’s only about 19 percent, according to TNW. See: Japan and South Korea spend the most money per capita on apps In addition to the report, you can compare the top free, paid, and grossing iOS apps from different countries on App Annie’s interactive app matrix.

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Shop till you drop: India's e-shoppers spent $16 billion in 2013.


We know that India’s e-commerce industry is booming and lots of investment is flooding in, but how much are ordinary people actually spending online? According to new figures from the Indian commerce group ASSOCHAM, the nation’s e-shoppers spent $16 billion in 2013. That’s a rise of 88 percent from the $8.5 billion figure in 2012.

That’s strong growth, the group says in its new white paper, from the estimated $2.5 billion spent by Indian e-shoppers in 2009. It’s claimed that the expenditure could hit $56 billion by 2023. Here are the annual stats we have in chart form:

Hot in Mumbai 

While the $16 billion figure seems small for a nation of over 1.2 billion, the e-shopping stat should be weighed up against its realistic, addressable market – the 150 million or more internet users that there are now in India. 

There’s a lot more room for growth in India as more people come online and as the middle class grows. For example, China’s e-commerce expenditure will top an estimated $265 billion in 2013 thanks to the country’s half-billion-plus netizens. 

Here are more factoids from the ASSOCHAM paper:

 Top cities for e-shopping 

This is based on the number of e-commerce users:


  •  Mumbai 
  • Delhi 
  • Kolkata
 Young shoppers 

  • 35 percent of regular shoppers are in 18 to 25 age group
  •  55 percent are 26 to 35
  •  8 percent are 36 to 45
  •  2 percent are 45 to 50 
Top e-stores 

The paper also revealed the top 10 online stores in the country, which are a mix of conventional e-commerce, food, and online coupons. But ASSOCHAM doesn’t specify if this is judged by user-base or revenue, so it’s best taken with a pinch of salt for now.

  1.  Flipkart
  2.  eBay India
  3.  Snapdeal 
  4. Amazon India
  5.  Myntra 
  6. Shopclues
  7.  Dominos
  8.  Freecharge
  9.  Jabong 
  10. Tradus

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India set to become top automotive R&D hub

We remain generally optimistic towards Malaysia's commitment to provide better quality and access to healthcare , as the government plans to expand and upgrade its hospital network. However, we have downgraded Malaysia's pharmaceutical sales forecast due to a slowdown in pharmaceutical trade in 2013. The country's slower economic growth in 2014, coupled with the fact that investment in the pharmaceuticals sector will take longer than expected to bring returns, are downside risks to our outlook.

Headline Expenditure Projections 
  • Pharmaceuticals: MYR6.60bn (USD2.10bn) in 2013 to MYR7.17bn (USD2.24bn) in 2014; +8.6% in local currency and +6.9% in US dollar terms. Forecast lowered due to the release of reduced 2013 trade figures .
  • Healthcare: MYR40.27bn (USD12.78bn) in 2013 to MYR43.79bn (USD13.68bn) in 2014; +8.8% in local currency and +7.1% in US dollar terms. Forecast raised from Q4 20 13 due to the release of 2014 budget.
Risk/Reward Rating: In Q3 2014, Malaysia's Pharmaceutical Risk/Reward Rating (RRR) stood at 60, marking no change since Q1 2014. It posts above-average scores for every indicator in the Asia Pacific region, and ranks eighth out of the 19 key markets.

Key Trends And Developments 

May 
The Malaysian health ministry is in the process of formulating regulations on traditional and complementary drugs to finalise the Traditional and Complementary Medicine Act 2013. According to Health Minister Datuk Seri S Subramaniam, the ministry will continue to take the views of interested parties into account in order to improve the Act, which was first announced at Dewan Rakyat in February 2012 following a public campaign. Subramaniam said: 'Besides ensuring the quality, safety and efficacy of such medical services, continuous improvement of the law will also raise the professionalism of such medical practitioners,' reports the Borneo Post.

DKSH Holdings Malaysia is opening a new 130,000 square feet healthcare distribution centre on the...

The Malaysia Pharmaceuticals & Healthcare Report features Business Monitor International (BMI)'s forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.

BMI's Malaysia Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Malaysian pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's independent pharmaceutical and healthcare industry forecasts for Malaysia to test other views - a key input for successful budgeting and strategic business planning in the Malaysian pharmaceutical and healthcare market.
  • Target business opportunities and risks in the Malaysian pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Malaysia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.
Coverage

BMI Industry View & Industry SWOT

An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect BMI's forecast analysis, and taken together with BMI's political, economic and business environment SWOTS, it gives a complete overview of market climate.

Market Summary

Snapshot of key market characteristics, including total size of pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape.

Regulatory Regime

Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as an analysis of the overall regulatory burden.

Industry Developments

Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

BMI Industry Forecasts

Forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

Healthcare: Total healthcare expenditure (US$bn), healthcare expenditure (% of GDP), healthcare expenditure per capita (US$), hospital beds (per `000 population), doctors (per `000 population), birth and mortality rate (per `000 population)

Pharmaceutical market: Drug expenditure (US$bn), drug expenditure (% of GDP), drug expenditure per capita (US$)

Patented drug market: Prescription drug sales (US$bn), prescription sales (% of total sales), sales broken down by 14 therapeutic areas (cardiovascular, anti-infectives etc.)

Generic drug market: Generic product sales (US$bn), generic sales (% of total sales)

OTC drug market: OTC sales (US$bn), OTC sales (% of total sales), sales broken down by product types (analgesics, skin treatments, vitamins and minerals etc.)

Medical Devices: Medical device sales (US$bn), medical device sales (% of total healthcare market)

Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt.

Competitive Landscape

The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

India set to become top automotive R&D hub

According to Zinnov, the country’s Deccan Triangle has strong growth potential
India has become an R&D hotbed and in keeping with the global R&D trend of last year, the country is now a preferred destination for automotive R&D, according to a study on the Global Top 500 R&D spenders done by Zinnov, a globalisation advisory and market expansion firm.
“With strong potential for growth in areas such as engineering analytics and significant talent located in the ‘Deccan Triangle’ region – encompassing Pune, Bangalore and Hyderabad – India is poised to become an auto R&D hub,” the study observed.
Increasing headcount
In particular, the automotive sector with its focus on creating differentiated offerings for global markets and appetite for investment, is an attractive industry. However, while cost arbitrage continues to be a key driver for R&D globalisation, there is a pressing need for Indian MNC R&D companies to take on big technology bets to drive innovation from here, according to Zinnov.
The study says that close to 50 per cent of the G500 companies present have over 10 per cent of the global R&D headcount in India. Zinnov announced the results of the study on the Global Top 500 R&D spenders, showing the Automotive industry’s leadership across sectors in R&D spend in 2013. It said that the Auto industry spent $110 billion globally last year, the highest among the Top 500 R&D spenders in the world.
Further, the automotive industry was also among the top three spenders in each region, across North America, Europe, APAC and Japan, with the total spend in the sector rising by 5 per cent over the previous year.
Who’s in, who’s out
India's position is highlighted by the fact that 874 MNCs have set up 1,031 centres and 45 per cent of the top 500 global R&D spenders have a presence here. Of the auto R&D centres located in India, the highest – 26 – are headquartered in the EU. In fact, BMW is the only automotive company among the Top 50 R&D spenders that hasn’t yet entered India for R&D. And, out of the 26 companies whose global R&D spend has increased by over 20 per cent during the last year, only two in the auto sector - Porsche and Rolls-Royce – do not have an India presence. In fact, in the last five years, the automotive companies have shown growth leading to R&D intensity of almost of 6-7 per cent.
Tracking growth nations
The released Zinnov study brings to light that within the automotive sector, Japan contributed to 40 per cent, followed by 37 per cent from Europe, 13 per cent from North America and 12 per cent from the Asia Pacific region. Volkswagen was the highest R&D spender demonstrating a 32 per cent increase over last year. Bosch increased its spend by 14 per cent.
Interestingly, China has the highest number of auto R&D centres, with 55. In comparison, India has 30 and the Bay Area in the US has 20. According to the report, the Top 500 R&D spenders contribute over USD 577 billion with the Top 100 R&D spenders alone contributing almost 66 per cent to the global R&D spend. 40 per cent of the overall R&D spend is from organisations headquartered in North America, followed by 34 per cent from Europe, 18 per cent from Japan, and 7 per cent from Asia-Pacific.

Return of The Indian Macho: More men buying grooming and cosmetic products

"We are the original mard of FMCG sector as we were the first ones in India to launch fairness cream exclusively for men in 2004," says Mohan Goenka, director of Emami. It's a remark that sets the tone for India's bizarre tryst with men's grooming products.Journalist Mark Simpson coined the term metrosexual way back in 1994, only to see it pick up steam and get flogged across presentations and conference rooms through the early 2000s. It referred to men who cared deeply about personal appearances and were not averse to a skin or beauty regimen.

In India, this market existed for decades if FMCG majors are to be believed. "The bane of the FMCG sector is that men were always forced to use women's products," says Anil Kulkarni, business director of JK Helen Curtis. A popular urban legend around HUL's Fair & Lovely, the leading fairness cream in the market was that the majority of its users were men. Which brings us to the launch of Emami's Fair & Handsome at a time when the metrosexual movement had caught the world's fancy
Ever since, FMCG brands of various stripes have been eagerly hopping on the bandwagon, hoping to cash in on male vanity and push sales in a subdued market bogged down by slowdown, rising inflation and a cut in discretionary spend by consumers over the last few quarters. The male grooming market in India is expected to grow by a CAGR of 11% to reach Rs 5,300 crore by 2016, says a Euromonitor study. Little wonder then that brands are jostling to enter the space.
Traditionally female targeted brands like Nivea have created an entire range for men and Vaseline which used to be known for its petroleum jelly has emerged with a complete skin treatment range for men.
While the ads previously focused on more metrosexual friendly themes like confidence and looking good, in India and to a lesser extent in other markets, there has been a conscious attempt at moving these products into a more macho space. Last year, a global commercial for Dove Men's Care Shampoo drew a lot of viral traction. It featured a man with the kind of wavy hair that no one other than Chris Hemsworth in his Thor avatar could pull off and ended with the rebuke "Women's shampoo is not for you."
It's a trick the "mard" of the FMCG sector has been pulling off for several years now; prominently through a memorable commercial featuring Shahrukh Khan mocking a wrestler for wearing ladkiyon waali fairness cream. Even if its more recent commercial moved into a slightly more dignified space, the category code appears to have been carved in stone. Preceding the launch of its Head & Shoulders For Men variant, P&G has inundated the brand's Facebook page with messages like 'Guys, stop using up your lady's flowery smelling shampoo.'
And then the communication moves on to target the opposite sex. 'Ladies! We bet you don't enjoy it when your man smells like a meadow of flowers' — says one of the posts on the page. And there's another one: 'Ladies, don't you just hate that moment when you step in the shower and the shampoo bottle is wiped clean by your guy.'
It's not just advertising but entire products in the male grooming segment that are being built around macho themes. For instance the Raymond's Park Avenue Beer Shampoo with its tagline 'Cheers to Man Hair.'Says Kulkarni, "Men are from Mars and women are from Venus. And when we came up with beer shampoo last year, we celebrated this fact."
Of course, advertising is not creating trends here but merely piggybacking on a strong existing sentiment. The dominant trends in Bollywood over the last few years point towards a huge return of the macho hero. Some of the biggest hits over the last few years have been about square jawed iron willed men punching their way through life's big problems: films like Dabangg and its sequel and Rowdy Rathod.
Sure, Indian men do want a more metrosexual lifestyle, but they balk at being identified or branded as such. And so, the layer of macho posturing to give the entire exercise an air of guilt free indulgence. Marketing consultant Suvodeep Das argues "The 'mard' was always there. He just didn't have products across categories." Goenka believes the machoisiation is well underway, "In next 10-15 years, you won't be able to find men using women's products.
However, there are some who don't think that too much should be read into the move by men to lap up personal care products made exclusively for them. "I don't see any change in men's psyche," confesses Piyush Pandey, executive chairman and chief creative officer, South Asia Ogilvy & Mather. "It's the marketers who are exploring and tweaking products for new segments."
However such a segmentation, feel marketers, does have a flip side as well. "The brand could appeal to a very niche target audience and hence restrict its potential," says Das. Shripad Nadkarni founder of MarketGate Consulting too sounds a word of caution. There may be a gap in the market but there needs to be a market in the gap, he says. "Targeting a new segment for the sake of being different could be counter-productive."

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