Competitive horizon
A report produced by Datamonitor claims that sustaining current growth levels will improve China’s position in the world’s express and parcels market. The Asia-Pacific region has enjoyed expansion rates of between 15 and 20 percent in recent years, and the market now values at $34 billion. Japan is the biggest and most developed market in the region, though China is expanding more rapidly. The independent market analyst predicts that China will overtake Canada to become the world’s sixth largest express market by 2010. According to Datamonitor, growth has largely been driven by an increase in exports to Europe and the US, though improvement to the country’s transportation infrastructure is another significant factor. The report, as published by Domain B (www.domain-b.com),also points out that Germany claims the biggest share of the European express and parcels market, but notes that faster growth in the UK has closed the gap. However, even stronger growth is occurring in the center and east of the region,which currently accounts for a minor share of the market. Datamonitor anticipates double figure expansion levels in this area for the next five years.
Niche firms in Denmark prepared for global success
The Confederation of Danish Industries (CDI) believes that high-tech companies offering specialized products are better equipped to serve international markets. A report published by the Copenhagen Post (www.cphpost.dk) points out that the customer base of many such companies is often widely dispersed, making organization and efficiency imperative. According to the CDI, more than 70 percent of companies producing niche products in Denmark are optimistic about their future global performance. This includes firms producing allergy vaccines, anti-depressant medicines and wind turbines. In contrast, only 40 percent of organizations responsible for more conventional products reported being as optimistic. The report also claims that specialist companies are more innovative and better investment propositions.
Italian jewelers aim at Russian market
Falling sales in the United States has prompted Italian jewelry makers to increasingly turn their attention to Russia. A few years ago, the US accounted for around a third of Italian gold jewelry exports but competition from low cost labor countries resulted in this figure dropping to 20 percent in 2005. A report published by Reuters (www.reuters.com)claims that economic growth in Russia has increased demand for jewelry and other luxury goods. As a result of higher incomes, jewelry consumption in the country grew from 23.3 tons in 1999 to 64.5 tons by 2005. According to the report, many Russians like to flaunt their increasing wealth by purchasing expensive jewelry,designer clothes and automobiles. It also points out that chunky jewelry with large, colorful stones is popular with Russian consumers, as is rose gold with a hint of copper. Jewelry manufacturers admit that some designs have been influenced by these preferences. The report notes that bureaucracy and high import taxes continue to hamper trade, although jewelers remain confident that Russia’s entry into the World Trade Organization will ease the problems.
Improvement tips for Australian business owners
Research carried out by Swinburne University has revealed that better business planning could benefit many owner-operated Australian businesses. The report suggests that business owners should spend more time working on their venture, as well as acquiring greater knowledge of how to initiate growth. In addition, many owners need to become more aware of their resource requirements and develop effective strategies to boost capital. Since a scarcity of resources and capital are considered as major barriers to success, this is especially significant. The report, as published by www.news.com.au,also urges the typical Australian business owner to adopt a more favorable attitude towards innovation and growth, and to aim to compete within international as well as local markets.
