Author: Luz Ruiz

October 10, 2019
Blog_TopReasons_Export_SouthKorea

South Korea is home to some of the world’s biggest conglomerates, including Samsung, Hyundai, LG and SK, and is also a leading global exporter of semiconductors, telecommunications equipment, automobiles, chemicals, ships and consumer electronics. The country leads the world in broadband internet penetration and has one of the world’s highest rates of internet and mobile telephone use. With the EU-South Korea FTA providing a positive backdrop, this is a country which offers business strong opportunities for firms willing to make the commitment needed for export success.

 

South Korea has made many economic efforts in the last four decades. It maintains a very low inflation rate (1.1%), a policy of opening to foreign investments and high national savings.

 

The result is a powerful high-tech industry in sectors such as electronics, car production, chemicals, shipbuilding and steel derivatives, and great international confidence worldwide.

 

According to the Korean Ministry of Commerce, Industry and Energy, the promises of Foreign Direct Investment (FDI) in this country were increased during the first half of 2014, which reinforces this emerging power as a destination for investment capital. The increase is based on strong Chinese investment, although the main conclusion is that companies' confidence to invest in the Korean economy grows.

 

The figures provided by the Korean Ministry of new promises for the first half of the year (USD $10,070 million dollars) represent an increase of 39% over last year, while the total real investment (USD $6770 million dollars) also represents a Record in capital raising, recording an increase of 57% compared to the same period of 2013.

 

This Asian country is growing at a rate of 4%, a weight of the latest downward revisions to the cause of the risk that Korea represents North and the strengthening of its local currency, livestock, which detracts competitiveness from South Korean companies and reduce their profits when they are distributed among shareholders. Despite these negative factors, South Korea had a trade surplus in June of $ 5.290 million, mainly, thanks to the increase in exports of technology products and steel products. With this month there are already 29 followed with surplus.

 

Korean exports grew this month at a rate of 2.5% per month, reaching 47.840 million dollars and imports registered an increase of 4.5% to reach the amounts of 42.550 million dollars. Korean companies dedicated to the sale of semiconductor mobile communication devices, high-end televisions, LCD and steel products were the fastest growing in this period. Sales of petroleum products and automobiles fell.

 

The top export destinations of South Korea are China ($149B), the United States ($69.4B), Vietnam ($47.7B), Hong Kong ($34.8B) and Japan ($26.9B). The top import origins are China ($98.1B), Japan ($54.2B), the United States ($48.7B), Germany ($19.7B) and Other Asia ($18B).

 

SOURCES:

https://www.eaeprogramas.es/internacionalizacion/china-o-corea-del-sur-exportar-o-invertir

https://www.export.gov/article?id=Korea-Market-Overview

https://www.enterprise-ireland.com/en/Export-Assistance/International-Office-Network-Services-and-Contacts/Going-Global-South-Korea.pdf

https://www.google.com/searchq=porque+exportar+a+corea+del+sur&oq=PORQUE+EXPORTAR+A+COREA+D&aqs=chrome.0.0j69i57.5095j0j9&sourceid=chrome&ie=UTF-8

October 3, 2019
Blog_BeautyIndustry

Business Insider “The beauty industry is valued at $532 billion and is on a rapid upward trajectory, according to a new report from retail analytics firm Edited”.

According to Shannon Peters (from I-D) “The beauty industry is driven by novelty. Every week there is a new fashion ingredient that promises to revolutionize our skin care routine, or a new makeup brand backed by the most famous celebrities”.

There are many reasons why today's consumer takes more care of his physical appearance than ten years ago. Numerous studies show growing trends in consumption towards beauty products regardless of gender: men and women alike are driving the industry, seduced by innovative products, while consuming traditional products. Aspects such as weather conditions (cover from the sun or pollution), self-esteem and even work have changed consumer trends, increasingly enhancing the acquisition of these products.

Forbes shares something interesting: “Millennial Culture = immediate results. In 2015, sales of anti-aging products fell for the first time in many years, contravening the trend of the last decade, when products specialized in combating fine lines and first wrinkles had been the most demanded. The reason? The new philosophy of millennial self-acceptance, which threatens to completely change the paradigms of the industry. According to Karen Gran, a global beauty industry analyst for The NPD Group, "it's less about giving up than accepting who you are, what you are and how you look, without feeling that you have to get into some mold." But that's not all: the millennial culture has coined a new philosophy within the world of luxury (See now, buy now) that seeks immediate satisfaction. While the sale of creams with long-term results has declined, makeup sales have increased by 13%. A new front that the beauty industry is about to conquer”.

 

ZERO WASTE

We know that mass consumption is causing irreversible damage to the environment, so more and more people are looking for ways to reduce it. That is why makeup addicts are trying to "rehabilitate" and there are more and more reusable beauty products. But still we will need a more drastic solution. As such, consumer research analyst Mintel has highlighted waste below zero as one of its key trends for 2019. Beauty brands are finding increasingly clever ways to eliminate excess packaging, such as base and concealer without Lush packaging, while other brands are working on truly effective recycling innovations that are trying to eliminate contaminant waste completely.

The demand for solid formats that need minimal packaging will increase, something ideal for organic consumers looking for products that do not generate waste. The shampoo or facial cleansing bars will continue to increase, but the novelty will come from the hand of color cosmetics with makeup bases and blush in a bar format without packaging - like those offered by Lush. Products that limit the use of water will continue to be a key focus for the development of developments in 2019, as concerns about the water crisis around the world grow. Bar makeup and solid water-saving body formats will remain popular.

 

According to Theresa Yee, beauty editor at WGSN, "The focus will be on personalized digital devices that will help users keep track of their skin health, reduce their aging and offer long-term solutions to combat different problems such as acne, dryness, eczema and lack of pigmentation” she says.

 

SOURCES:

https://grupoacir.com.mx/blog/tendencias-en-el-consumo-de-productos-de-belleza/

https://i-d.vice.com/es/article/d3bj4z/tendencias-belleza-2019

https://www.forbes.com.mx/forbes-life/belleza-lujo-necesario/

https://www.magacin.com/belleza/nota/las-10-tendencias-clave-en-la-industria-de-la-belleza-para-el-2019/

https://www.businessinsider.com/beauty-multibillion-industry-trends-future-2019-7

September 26, 2019
Blog_Choose_ExportCountry

Once you have decided that it is time to take your products or services to new markets, it is important that you start planning your entry strategy. But how to start planning if you still don't decide exactly where you are going to take your products?

 

One of the essential points in any export strategy is to choose the right market for your products (globally, consumers may have very different buying patterns from each other).

According to the Trade Africa Promotion Program “Deciding which country to sell your export products to, will be far easier if you start examining only two countries and comparing them. If you choose to look at more potential target countries, you will need a lot of time, because country research is probably the most time-consuming part of exporting. Most experts recommend targeting only one country at a time”.

ANALYZE

The Global Trade and Supply Chain Management suggest “Once you have identified which of a short list of countries that may be suitable for your business to export to, your next step is to perform some due diligence on the risks that exist in each country”.

They suggest answering these questions regarding the country you have in mind to export to:

  1. Security: How safe is the physical environment?
  2. Political Stability: How stable are political institutions?
  3. Government Effectiveness: Does political culture foster strong business environment?
  4. Legal and Regulatory: Will the legal system safeguard investment?
  5. Macroeconomic Risks: Is the economy stable and predictable?
  6. Foreign Trade and Payments: How easy is it to get inputs/money in and out?
  7. Financial Risks: How healthy is the local financial system?
  1. Tax Policy: Are taxes low, predictable and transparent?
  2. Labor Market: Could labor market factors disrupt operations?
  3. Local Infrastructure: Will infrastructure deficiencies negatively affect operations?

MARKET SIZE AND TRENDS

In principle, the larger the target market, the more export opportunities it will provide. However, even more important is the trend of this market. Study the evolution of the penetration of your product and the GDP per capita of the country, and if both indicators are positive you will have found a promising market, since the demand for your product will tend to increase.

 

We are here to help you. Building an exporting strategy isn’t an easy task, but it gets considerably easier once you have all the elements of a high-quality market research. Infinitus can help you with this and all the other steps involved in the exporting process. Contact us to start looking into your personalized strategy!

 

SOURCES:

https://www.allianceexperts.com/en/strategy/

https://coeglobaltrade.com/export-101-choosing-your-export-market/

https://www.theguardian.com/small-business-network/2013/nov/22/exporting-choosing-right-country-small-business

September 20, 2019
Blog_TopReasons_Export_Switzerland

Switzerland is one of the most competitive economies on the planet, thanks to its service sector, with strong added value, its specialized industry, and a motivated and highly qualified workforce of 4.9 million people in a total population of 8.5 million. Agriculture contributes 0.64% of GDP and employs 3.5% of the active population. The main agricultural products are cattle and dairy products, although there are also more than 9 thousand wine cellars.

 

Switzerland is a diverse and mature economy with opportunities in all sectors. Business links between Switzerland and the UK are extremely strong with more than 80 flights per day linking the UK with Switzerland.

 

According to Lawyers Switzerland, Switzerland mainly imports metals, machinery and chemicals. The most imported good in Switzerland is gold that represents 21% of the country’s total imports. The second place is occupied by medicines with almost 6% and cars and car parts with almost 5%. Refined petroleum and jewels are also imported in Switzerland but in smaller quantities that reaches almost 4%.

 

Among other goods imported by Switzerland we can find computers, chemical products, agricultural products and textiles. Swiss imports are based on German products with a 24%, Italian goods with 11% and U.S. goods that supply almost 10%. France supplies almost 7% of the country’s imports, while countries like China and Austria provide almost 4% of Swiss imports. In smaller percentages Switzerland imports from Austria, The United Kingdom, The Netherlands, Ireland, Japan and Russia.

 

According to The Department for International Trade, the Strengths of the Swiss market include:

  • central location in Europe
  • political and financial stability
  • excellent public infrastructure
  • highly educated workforce
  • high productivity
  • innovative country with high spend on research and development (R&D) and technology
  • purchasing power amongst the world’s highest
  • reliable business, legal and regulatory environment
  • low Value Added Tax (VAT) compared to many European Union (EU) countries.

OPPORTUNITIES

Opportunities in Switzerland’s food and drink sector include:

  • ‘free from’ foods / healthier alternatives to existing product lines (no artificial colors and low sugar)
  • ethnic food
  • premium cuts of lamb and beef
  • seafood
  • alcoholic and innovative non-alcoholic beverages

Switzerland is one of the many countries where Infinitus can offer you its experience. We can help position your products in the Swiss market, just contact us and we will start the development of your market entry strategy.

 

SOURCES:

http://www.switzerland.doingbusinessguide.co.uk/the-guide/what-are-the-challenges/

https://www.gov.uk/government/publications/exporting-to-switzerland/doing-business-in-switzerland-switzerland-trade-and-export-guide

https://www.export.gov/article?id=Switzerland-Market-Overview

https://www.lawyersswitzerland.com/imports-and-exports-in-switzerland

https://www.tradefinanceglobal.com/exports/switzerland/

https://es.portal.santandertrade.com/analizar-mercados/suiza/politica-y-economia

September 12, 2019
Blog_TopReasons_Export_Argentina

Argentina, located in South America, has an area of 2,780,400 km2, so it can be considered a large country. Argentina, with a population of 44,494,502 people, is in position 31 of the population table, composed of 196 countries and maintains a very low population density, 16 inhabitants per km2. Its capital is Buenos Aires and its currency is Argentine pesos. Argentina is the 25th economy by volume of GDP.

 

According to The World Bank, “Argentina, one of the largest economies in Latin America with vast natural resources in energy and agriculture, is a leading food producer with large-scale agricultural and livestock industries. The country also has significant opportunities in some manufacturing sub-sectors and innovative services in high-tech industries. In addition, Argentina has taken a very active role on the international stage as it assumed the presidency of the G20 in 2018, expressed intention to join the Organisation for Economic Co-operation and Development, and became an observer in the Pacific Alliance”.

 

These are some of the reasons that The International Trade Administration considers that should motivate potential exporters to take their products to Argentina:

 

RESOURCES

Argentina is a resource-rich country with enormous potential for further development. It has the second largest shale gas reserves and fourth largest shale oil reserves in the world, as well as abundant solar and wind resources. U.S. know-how, technology and equipment are needed to develop sectors such as energy and agriculture.

 

INFRASTRUCTURE

The country is digitally capable, with high internet and smartphone dissemination.

 

CITIZEN INCOME

Income distribution has a smaller gap than in most Latin American countries; Argentina has a relatively large middle class with a significant appetite for U.S. consumer products.

 

PRO-BUSINESS

The current pro-business government under President Mauricio Macri is reforming the economy, attacking corruption, investing in infrastructure and reopening the country to global commerce; according to the Economic Commission for Latin America and the Caribbean (ECLAC), Argentina received 11.5 billion dollars of foreign direct investment during 2017.

 

Are you considering to take your products to Argentina? Let us help you! These are some of the services we can offer you to start building your market entry strategy:

  • Participation in events (trade fairs, conferences, presentations, focus groups and more.)
  • Service in four languages (English, French, Spanish & Portuguese)
  • Translation of your Website main pages, PowerPoint presentations, Pamphlet and some other.
  • A trial period to provide a clear picture of the potential that your company may have in the market to develop.

SOURCES

https://oec.world/en/profile/country/arg/

https://www.tradefinanceglobal.com/exports/argentina/

https://en.portal.santandertrade.com/international-shipments/argentina/exporting-products

https://www.export.gov/article?id=Argentina-import-requirements-and-documentation

https://www.export.gov/article?id=Argentina-market-overview

http://emerging-markets-research.hktdc.com/business-news/article/Latin-America/Argentina-Market-Profile/mp/en/1/1X000000/1X003I3F.htm

https://www.worldbank.org/en/country/argentina/overview

https://www.ey.com/Publication/vwLUAssets/ey-argentina-country-overview-and-investment-opportunities-dec-2017/$FILE/ey-argentina-country-overview-and-investment-opportunities-dec-2017.pdf