MarketLine Blog

Posts written in January 2013

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


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

Sony fights back


Sony has transformed entire categories of electronics with products such as the Walkman, the first transistorized television and the PlayStation game console among many others. However, the company has posted losses for four consecutive years and recorded eight years of loss within its TV division. The rise and success of rival brands such as Samsung and LG has been damaging to Sony. Sony’s name has faded with consumers. In addition to this, Japan has also been subjected to many natural disasters and in recent times, the appreciation of the yen… Read more

HBO’s investment in high-quality, original programming pays dividends


Time Warner subsidiary Home Box Office (HBO) is a premium pay television service available through cable. Over the years, HBO has become synonymous with high-quality, original programming and signs suggest that the company’s recent offerings, such as Boardwalk Empire and Game of Thrones, are helping to cement a reputation established by shows such as Oz, The Sopranos and The Wire. HBO invests large sums of money to create such programming. For example, the first episode of hit gangster series Boardwalk Empire cost $20m according to HBO and the network also… Read more

Head & Shoulders enter emerging market: India


The hair care industry in India is continuing to grow rapidly. The compound annual growth rate (CAGR) of the market in the period spanning 2006-2010 was 15.4%. As a result of this, many companies are entering this market. Head and Shoulders entered the Indian market in 1997, followed by the success of its rival product Clear by Unilever. Both products have gone head to head to dominate the Indian anti-dandruff hair care industry. This included harsh marketing, price wars and the introduction of a Social Responsibility program by P&G to… Read more

The emerging world of the electronic cigarette market


An electronic cigarette (e-cig) is a new product which replicates the sensation of smoking and delivers to the user a small dose of nicotine that can satiate cravings. This market makes some bold claims as to the health benefits and cost savings to smokers of e-cigs over normal tobacco. The electronic cigarette (e-cig) market has been slowly developing and is starting to gain some traction in some regional markets, with the UK expected to top 1 million users in 2012 By comparison, the UK’s population is estimated to hold around… Read more

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


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