MarketLine Blog

Posts written in December 2012

Showrooming on the rise as Christmas approaches


Savvy shoppers looking to save money on expensive Christmas gifts are increasingly using smartphones in stores to read product barcodes and instantly find the best price online. This trend, whereby consumers effectively use bricks-and-mortar stores purely as a display stand with little intent of buying is on the rise in the UK as Christmas approaches. The trend, known as ‘showrooming’ is particularly impacting stores that sell items such as consumer electronics, DVDs and music as cheaper places to buy online are often not hard to find. Figures publicized by ITV… Read more

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


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


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


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

Unorganized retail in India currently dwarfs the organized retail channel


Indian apparel retail is divided between two sectors: organized and unorganized. Organized retail involves the sale of merchandise by licensed retailers. The unorganized retail sector in India refers to the traditional retailing formats of pavement vendors, mobile vendors, and traditional local kirana shops. Unorganized retail generally involves the sale of unbranded merchandise. Sales through the unorganized retail sector are predominant in India with the organized retail sector being a lot smaller. It is estimated that over 95% of retail in India is done through the unorganized channel. However, as the… Read more