Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Tuesday, 12 April 2016

In Britain, recent marketing strategies of Tesco's have been controversial, and a tripling number of food manufacturer insolvencies over the last five years needs to be added to the casualties the supermarket price wars have claimed. In Asia, the Indian e-commerce market gains yet another player and in the US, an icon goes out of print. Enjoy the read!

Asia & Australia
China invests   Chinese investment in Australia clocked up its second highest level in 2015, growing 60% to AU$ 15 billion, making Australia the second most favoured foreign country for Chinese investors, after the US +++ A US$ 1.5 billion investment will be made by the regional district to upgrade its own 'Silicon Valley', Beijing's Zhongguancun district.  ▪
Rivals for top position   Chinese powerhouse Alibaba claims to have overtaken Walmart as the world’s largest retailer measured by annual gross merchandise volume as of 31 March 2016. The US retailer, however, is growing its physical presence in the Chinese retail market by opening another 60 stores by 2017. ▪
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New paths in logistics   Ekart, the logistics arm of Indian etailer Flipkart, aims to become an independent logistics provider, cooperating with large non-ecommerce retailers +++ Over in Japan, the government trials a first-of-its-kind drone home delivery service in an urban area. ▪
Rakuten enters India  In the wake of the Indian government changing its regulations to allow foreign direct investment in e-commerce, the Japanese etail behemoth is following its Chinese competitor Alibaba with a direct entry into India's aggressively growing e-commerce market.  ▪
Tesco to cast off more non-core assets   Britain's biggest retailer is throwing in more names as it is looking into selling off loss-making businesses. This time, it is Dobbies Garden Centres and coffee chain Harris & Hoole +++ The Tesco Labs team launched a new platform to automate some of your shopping +++ In a move against its rival Sainsbury's, Tesco will accept the former's Brand Match money-back vouchers ▪
Price war takes its toll   The big retailers' aggressive buying tactics have led to the number of insolvencies amongst food manufacturers more than tripling over 5 years +++ Fuelling its competition with the German discounters further, frozen foods specialised supermarket Iceland expands its Food Warehouse format. ▪
It's not in the name   While British retailers have been slammed for their misleading marketing practice of using fictitious own-brand farm names which suggest regional products - amongst them Tesco's recently released private-label budget lines -, online shopping guides reveal the commitment of retailers to British farmed fruit and veg as well as beef and lamb. ▪
Businesses reorganised   Department store chain Sears has obtained a significant US$ 500 million loan in order to fund its restructuring +++ As part of a reorganisation, fashion retailer L Brands will eliminate its iconic Victoria's Secret catalogue. ▪
Branded content on Facebook   The world's largest social network is providing a new marketing tool to retailers by amending its regulations for branded content on its platform. ▪
Africa & Middle East
Israel taxes foreign etailers   New tax regulations will have a dramatic impact on the activity of foreign e-commerce companies, such as Google, Facebook and Amazon, in the country. ▪
A Dubai exit and a Kuwait entry   While Saks Fifth Avenue will shut its Dubai store, another US department store chain, Bloomingdale's, will increase its Middle Eastern presence with the opening of a store in Kuwait. ▪
Bosch enters Nigeria   The Germany-based multinational invests in the Nigerian market by partnering with the kitchen manufacturer Pedini Nigeria. The largest Bosch brand showroom in Africa has opened recently in Lagos. ▪

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