Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited
Article Type: Competitive horizon From: Strategic Direction, Volume 24, Issue 8.
Global market for industrial valves to enjoy strong growth
Annual worldwide growth of 4.4 percent through to 2011 is predicted for the industrial valves market. The $77.6 billion in expected revenues will be driven mainly by investment in key markets like China, Germany and the USA, and a generally favorable economic climate. Investment in North America and Western Europe will stimulate growth, as will demand for valves in the key energy production sector within mature markets and also in rapidly emerging markets such as Latin America. Expansion is predicted to be greatest within the world’s developing nations with India, China and Malaysia leading the way. In contrast, Western Europe, Japan and the US will enjoy less spectacular growth during this period with figures expected to fall below the global average despite an increasing clamor for the more expensive automated valves and actuators. A report published by Marketwire (www.marketwire.com) claims that demand will be greater for high-tech automated valves than for their conventional counterparts.
Worldwide confectionary sales are set to rise to $159.6 billion by 2010, a report by Global Industry Analysts (GIA) claims. The report, as published by Food Navigator (www.foodnavigator.com), claims that healthy eating trends and strong economic performance in both developed and emerging markets will drive compound annual growth of 3.95 percent. Concern over obesity is persuading consumers to purchase healthier or sugar-free alternatives to traditional confectionary products. GIA points out the potential for growth in developing markets, where confectionary is now becoming regarded as part of a staple diet. The fastest growing markets worldwide are Asia Pacific and Latin America, where compound growth is respectively predicted to be 5.5 percent and 5.7 percent each year. Strong sales are also expected in China, Indonesia, Mexico and Eastern Europe. But Western countries will continue to provide the largest confectionary market and the report predicts that Europe alone will account for 47 percent of total sales by the end of the decade. GIA claims that a growth in the number of supermarkets and other retail outlets together with an ongoing emphasis on the health benefits of the products will help boost sales.
Chinese online shopping boom set to accelerate further
According to a report published by News 24 (www.news24.com), huge potential exists for further growth in China’s e-commerce sector. The now country boasts 220 million Internet users, more than even the USA. Online purchases in 2007 totaled $8.25 billion, up from the $4.3 billion recorded in the previous year. In 2006, there were 43 million online shoppers and the number increased to 55 million last year. However, online shopping remains modest in China and accounts for only 0.64 percent of overall retail spending. Internet security concerns have impacted on e-commerce growth to date but improved technology is helping to allay consumer fears. But slow consumer take up of credit cards remains a concern for online retailers as does shopper worries over counterfeit goods. Despite these challenges, Beijing-based China Internet Research Centre predicts that the number of online shoppers will continue to increase and that sales will reach 406 billion yuan by 2011.
A passage to India
Research conducted by the World Travel and Tourism Council (WTTC) predicts ongoing expansion in the travel and tourism industry in India. Revenues of around $100 billion are expected for 2008 with the figure reaching $275.5 billion a decade later. The research has indicated a 7.3 percent growth in demand for 2008, with annual growth averaging 9.4 per cent from 2009 through to 2018. Travel and tourism will continue to provide 6.1 percent of India’s GDP throughout this time. A report published by the Statesman (www.thestatesman.net) points out that growth will create 30.5 million jobs and that this will rise to 40 million jobs by 2018 when the figure will account for 7.2 percent of total employment. The WTTC acknowledges that the slowing global economy will have some impact on the sector but believes that India will benefit from growing interest in new destinations. However, the organization urges the Indian government to develop measures that will help manage the anticipated growth in the number of both regional and international visitors. For instance, a focus on employee training and retention is recommended.