By Benedict Lynn and Nishant Maddineni
In part two of this series of articles examining the fast food industry throughout the Asia-Pacific region, Asia Briefing takes a look at some potentially lucrative but more risky markets. Last week in part one, we focused on countries where the fast food business is booming.
China’s strong economic growth since the 1980s has coincided with the growth of its fast food market, which now stands at close to US$200 billion and rising. In 2012, the largest market share went to Yum! Brands at 6.5 percent, with KFC and Pizza Hut seeing the most success out of its licensed brands in China. The second largest market share is for McDonald’s at 2.3 percent. However, most of the rest of the top franchises in China are run by local Chinese companies.
By Benedict Lynn and Nishant Maddineni
The Asia-Pacific is evolving, and with it so are the tastes and spending habits of its peoples. Economies are growing rapidly and an entirely new demographic has emerged throughout the region: the middle class, who demand a higher quality of product and have the means to buy it.
In recent years, this burgeoning consumer group with its busier lifestyle, higher income, and demand for a greater variety and standard of food safety has been driving the spread of what was once a quintessentially western phenomenon: the fast food industry.
Op-Ed Commentary: Benedict Lynn
September was an important month for the environment, with worldwide rallies demanding urgent action on climate change and a UN Climate Summit. It was against this backdrop that researchers at the Global Carbon Project released new data showing that China’s per capita carbon emissions have overtaken those of the EU. In 2019, India is expected to follow suit.
This puts renewed pressure on the two Asian superpowers to curb their notoriously high levels of pollution and seek out other, cleaner sources of energy. In this article, Asia Briefing examines the as-yet largely untapped market for energy efficient vehicles in these two still rapidly growing economies.
Op-Ed Commentary: Kangkyu Lee
Australian commodity prices have recently fallen to a five-year low, largely due to the unpredictability of China’s economic growth. On September 23rd, Australia was forced to slash important export and employment prospects from key resource sectors. Although the island continent is part of the fastest developing region in the world, these cuts will inevitably inflict painful drawbacks on its mineral industries.
China’s declining growth dampened Australia’s expectations for Chinese imports and consumption. Furthermore, the strength of the American dollar bulwarked the value ratio of Australian resources, such as gold. This has in turn deterred foreign investors interested in purchasing or sending in money.
These results come in the aftermath of a relatively smooth recovery of the Australian resource market, which had initially been pilloried by fund withdrawals in 2013. Investors will be unwilling to acclimate to the torrid commodities because of the ailing demand environment. Agriculture and oil have been heavily hit because of declining Chinese demand and an American surge in exports; soy beans and corn prices have fallen from 30 to 22 percent; and the crude oil marker declined to AUS $96.64 a barrel.
SINGAPORE – A panel discussion on Sports Business in Asia was organised by the Singapore Tourism Board (STB) earlier this week, during which the small island country was urged not to miss out on the opportunities available in the region’s burgeoning sports industry.
The overall view of the panel, which included members of the Economic Development Board and World Sport Group, was that Singapore is perfectly positioned to be a key player in Asia’s emerging sports industry, and should waste no time in taking advantage of the huge growth the sector has recently been experiencing.
Cloud computing is the future of business in Asia, and companies around the region are beginning to jump on board the train, although infrastructural and regulatory challenges remain, according to the Economist Corporate Network’s recent report.
Given the immense cost-saving, convenience and efficiency benefits brought about by cloud-based services, Asian firms have been eager to invest in internet technology for their business. Almost a fifth of Asian-based enterprises are actively converting most of their IT capabilities into cloud, “on-demand” or other utility models, indicative of a technologically forward-looking culture, according to the study.
In this Issue of Asia Briefing Magazine:
- E-Commerce Trends and Developments in Asia-Pacific
- Regulatory Status of FDI into India E-Commerce
- E-Commerce Markets Across ASEAN
- Vietnam Online: Understanding Vietnam’s E-Commerce Market
- Expert Commentary: Investing in an Online Presence
The newest issue of Asia Briefing Magazine, titled “E-Commerce Across Asia: Trends and Developments 2014,” is out now and available as a complimentary download in the Asia Briefing Bookstore from now through the month of June.
For businesses seeking to boost their competitive presence in Asia, exploring options for investment in e-commerce and e-retail can be the key to formulating an effective strategy for sustainable growth and development. With consumers in the Asia-Pacific region set to dominate e-commerce spending this year and lead global e-retail growth through the end of the decade, the potential costs of failing to establish and consolidate an e-commerce presence in Asia have never been higher.
Japan’s decision to re-adopt nuclear power clears uncertainty that has hung over Asia’s LNG market since the Fukushima meltdown. Only a portion of Japan’s nuclear reactors are expected to restart, however, meaning the market will remain tight in the near-term as Japan continues to rely heavily on LNG imports.
Op-Ed Commentary: Mallory LeeWong
On April 11, the Japanese government approved a new energy plan that backs nuclear power and restarts reactors that have been idle since the 2011 Fukushima disaster. Only 14 – less than one-third – of Japan’s 48 idle nuclear reactors are expected to eventually come back online, however, due to tighter safety regulations and political, economic and seismic obstacles. This means that in the near- to mid-term, Japan’s demand will likely remain strong for fossil fuel substitutes, including coal, oil and, in particular, liquefied natural gas (LNG).
By Harun Rauf
SHANGHAI – Following an investigation into China’s trade of rare earth metals, a World Trade Organization (WTO) dispute panel has concluded that the country manipulated its export regulations in an effort to “secure preferential use” for domestic firms and encourage foreign investment.
SINGAPORE – For the second year in a row, Singapore’s Changi Airport has been voted the World’s Best Airport by air travelers.
At the Skytrax 2014 World Airport Awards in Barcelona, Spain last Wednesday, Changi Airport enjoyed double success, also receiving the top award for Best Airport for Leisure Amenities.