Russia’s economy is heading for a deep recession this year. Brazil is stagnating and China’s dynamism is dissipating, helping to depress the prices of commodities that many developing countries produce. But in spite of such afflictions, analysts caution against thinking that a multi-year consumer bonanza in emerging markets (EM) is running out of steam.
The “biggest growth opportunity in the history of capitalism”, as McKinsey called EM consumer spending in a 2012 report, may suffer setbacks in some key markets this year, but overall the narrative is set to flourish as disinflation triggers interest rate cuts and low oil prices put more money into EM consumers’ pockets, analysts said. Read more
The 1980′s gave us the Yuppies – Young Upwardly Mobile Professionals – who would wear bright v-neck sweaters with stiff shirt collars (on rare days off). They dreamed of climbing the corporate ladder and had a habit of calling the things they bought – cars, electronic gadgets and luxuries – “toys”.
Now, according to HSBC, we are in the grip of a new social phenomenon – the rise of the Yummy. Yummy stands for “Young Urban Male” and denotes a new “metro-sexual shift” in men’s shopping habits that is set to drive spending on luxury goods for years to come. Read more
Learning about make-up
Pub quiz question: which country leads the world in male skincare? Answer: South Korea.
At $565m South Korea was last year the world’s largest market for men’s skin creams and lotions, according to a Euromonitor report. China will take first place this year, but, for the foreseeable future, South Korean guys will still stay far ahead of the rest of the world in terms of per capita expenditure.
This may seem strange in a country where men pride themselves on their hard-working culture. But male cosmetics don’t have the ‘soft’ connotations they do in the west. They’re part of mainstream male life. Read more
More signs that Big Pharma is determined to further expand its footprint in emerging markets, with GlaxoSmithKline on Monday inking two new deals worth more than £650m ($1bn) in India and Nigeria.
The transactions – which will see the UK-based pharmaceuticals group increase its stake over two of its leading subsidiaries – are noteworthy. Whereas most of the industry’s past M&A efforts in EMs have been focused on securing new drugs and generics, GSK’s latest move is aimed at strengthening its presence in the consumer healthcare product space. Read more