Large Manufacturers More Likely to Move From China to US

According to surveys, large manufacturing companies are more likely to move production facilities to the United States than to China. The labor costs and the quality of production are factors for companies to "re-shore". Surveys found that 37% of large manufacturing companies are planning or actively considering moving their production facilities to the United States. Labor costs are expected to increase in China, and the costs of sourcing from China are greater than what appears on paper because of the proximity of customers and the cost of doing business. It is expected that the increasing competitiveness of the American job market will create over 3 million jobs by the end of the decade.

Link: http://www.cnbc.com/id/47097720

Dove Hair Therapy Campaign in Latin America and Asia

Dove Hair Therapy Campaign in Latin America

Dove Hair Therapy Campaign in Asia

From these two videos we can conclude several observations. In Asia, for the TV commercials, Dove uses pretty, young Asian women with black, silky and straight hair. All brands have an image they want to be associated with, and this is Dove's. Additionally, studies have found that looking fresh and clean are very important for the Asian culture. As you can see all Dove advertisements emphasize on hair, face and skin care treatments, resulting in a real natural beauty. On the other hand Latin America's TV commerical is the same, the only difference is the language and the use of an Argentinean model. Dove’s printed ads for Latin America use real- looking Hispanic women to emphasize on the real beauty of Latinas, rather than on a stereotyped model. Both printed ad examples shown in the presentation are an example of how Latin American advertisements are family oriented rather than vain. The brand wants to be in tuned with customer experience. Overall, you can see how Dove transfers its core values of beauty, but adapts them to each specific market depending on its consumer behavior.

China Overtakes US as the World's Top Grocery Market

China has overtaken the United States as the world's largest market for grocery retail. Currently, the Chinese market is measured at US$964.5 Billion, and the market is expected to grow at a steady rate for the next 4 years at an average annual rate of 10.9%. Despite the slowdown in the Chinese GDP, grocery sales continue to grow at a steady pace and are expected to exceed US$1.46 Trillion. This growth creates a large potential market for multinational grocers. However, grocers should not treat this market as a homogenous one, and must consider the local tastes and customs of each region.

Link: http://www.2point6billion.com/news/2012/04/05/report-china-overtakes-u-s-as-the-worlds-top-grocery-market-10944.html#more-10944

AirAsia Eyes Indian and Chinese Markets

The following article discusses the plan for low cost airfare provider AirAsia to focus its efforts on entering Indian and Chinese markets. As the middle class continues to grow in these markets, demand has increased for low cost airlines to provide affordable travel within the region. Middle class tourists and businessmen are fueling this demand as a result of their increased discretionary spending. Increased demand for connectivity within the region is an indicator of the business taking place in the region. As the region becomes more connected with flights, businessman can travel with ease across the region allowing for more business to take place.

Link: http://www.2point6billion.com/news/2011/06/28/airasia-eyes-the-indian-and-chinese-markets-9632.html#more-9632

Environmental Issues in Regional Markets

There are several explanations to why Curibita was chosen as the leading green city of Latin America. First and foremost, the city has a designated environmental department, which monitors the city’s environmental impact and drafts strategic plans on environmental policy. In 2010, the city allocated about US $106 million to the environmental department. Moreover, the city has been working to move people from informal settlements and slums to low-income housing where sanitation infrastructure like water and waste collection is easier to supply. In addition, Curibita’s outstanding performance is a long history of taking a holistic approach to the environment. For example, in 1960s when the city was experiencing rapid population growth, city officials implemented proposals to reduce urban sprawl, create pedestrian areas, and provide effective low cost rapid transit. The urban plan created in 1980, which involved creating space for green areas, waste recycling and management and sanitation. Furthermore, concern about environmental issues became as much as part of citizen’s identities as it is in the city. Curibita also has the most influential bus network in the world. It is a network centerpiece with a six line service called “bus rapid transit” (BRT) which are long and articulated buses that run 72 km roads extending from the city centre.

This report is based to assess the environmental performance of Latin America’s major cities. The Latin American Green Index measures the sustainability of the following 17 key Latin American cities: Belo Horizonte, Bogota, Brasilia, Buenos Aires, Guadalajara, Lima, Curitiba, Medellin, Mexico City, Moterrey, Montevideo, Porto Alegre, Puebla, Quito, Rio de Janeiro, Santiago and Sao Paolo. According to the United Nations, Latin America is the most urbanized area of the world, 81% of the population lives in urban areas. The Brazilian city of Curibita came out as the leading green city in Latin America. Curibita which has the fourth biggest economy in Brazil, achieved its ranking as the top city for air quality and waste.

Link: http://www.siemens.com/press/en/events/corporate/2010-11-lam.php

Curitiba

Cultural and Managerial Styles in Latin America

This article talks about the cultural differences of Latin America and what investors should know about the region. Latin America is a vast and diverse cultural space, which has become an exciting destination for individual investors and companies due to the region’s solid growth and good prospects. Doing business in Latin America is not an easy task due to its bureaucratic burdens and political instability but also because of the region’s distinct behavior rules and customs. There are several aspects of why Latin America has diverse business etiquette, behavior rules, and customs. One of the many aspects is relationship. Latin Americans like to do business with people they know and they tend to establish and maintain an informal network of close partners. From Argentina to Venezuela, it is customary to ask friends and partners for assistances and Latin Americans do show respect to those in authority. The second aspect is communication. Latin Americans are seen as more passionate than Americans or Europeans. They prefer the face-to-face contact to formal correspondence or communication by phone. They are willing to interact directly and include body language or gestures. In addition in a business setting, if you are speaking Spanish, use the formal “Usted” and not the casual “tu”. Businessmen should also use the terms Sr. or Sra. and last names. However, Latin Americans are sensitive to double meaning so investors should double check if they understood the key ideas correctly to avoid misunderstanding. In terms of attire, the appearance is varied throughout the region but you are expected to wear a formal and stylish look. For example, Argentina has a reputation for high fashion sense while in Brazil it seems to be most laid-back in this respect. The third aspect is meetings. Punctuality is not a standard in the region (although in Chile and Bolivia it is considered a priority). Waiting longer for people with authority is normal and engaging a small talk at the start of the meeting is welcome.