The Polish retail market maintained an upward y/y path in 2012, though sales slowed down visibly in Q4. The situation varied across segments, but overall the increase of market value was supported by the expansion of the large retail chains, which managed to offset the downward impact of a sluggish demand upon sales per store by the network enlargement (higher volumes).
The prospects for this year remained optimistic, considering the record-high shopping center deliveries planned, even though consumer demand will likely continue to deteriorate, paralleling the projected slowdown of the country’s economy.
Figure 1 Retail sales index in 2007-2013 (monthly, y/y in %)
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Tags: abc, Abra, Avans, Biedronka, Black Red, Carrefour, CCC, clothing, construction materials, cosmetics, DIY, E.Leclerc, electronics, Farmacol, footwear, Forte, GDP, Gino Rossi, Griffin Topco, growth, hypermarkets, Ikea, inflation, Jysk, Komputronik, LPP, Media Expert, Media-Saturn Holding, Monnari, NeoNet, Netto, Neuca, Pelion, pharma, Poland, Poles, Polomarket, Prochnik, Redan, retail, Rossman, sales, Spar, supermarkets, unemployment, Vistula, Wojas, Zabka
The Polish tourism industry benefited from the organisation of Euro 2012 championship last year. The number of foreign tourists visiting Poland in 2012 was the highest in five years, while the spending of foreign tourists reached the highest level since 2000. The total spending of foreign visitors in Poland during the Euro 2012 totaled PLN 1bn (EUR 247.7mn).
However, the effect of the sports event upon revenues in the tourism sector were not limited to boosting sales in June alone, but also rose the foreign visitors’ interest in Poland and extended the tourism season to September and October, thus allowing the sector to record higher revenues even in Q4.
In 2012, the total contribution of the travel and tourism sector to the GDP reached PLN 80.4bn (EUR 19.2bn), or 5% of GDP, up from PLN 75.9bn in 2011, according to estimates of the World Travel & Tourism Council.
Figure 1 Total contribution of travel&tourism to GDP in 2007-2013f (PLN bn)
Much more in the Intelinews report: Polish Tourism, Hotels & Restaurants Report
Tags: Accor, agencies, airports, AmRest, Bachleda Hotel, Capacity, catering, chain, Charley's, condohotels, DeSilva, developer, Domestic, Dominos Pizza, food, forecast, foreign, franchising, Gromada, Hilton, holiday, HoReCa, Hospitality, hotels, Infrastructure., investments, McDonald’s, Motel One, outbound, Poland, Polish, prices, restaurants, rooms, sector, Sfinks, spending, Subway, tourism, tourists, TRIPS
The construction materials market value inched up marginally by approximately 1% y/y to around EUR 3bn in 2012, even though initial projections were more optimistic.
The building materials sector recorded encouraging performance in H1/2012, but in H2 the situation deteriorated. The public spending before the June local elections drove upwards the construction (and construction materials) market, however the Jul-Aug political turmoil virtually froze all investments in the sector. Subsequently, the government’s decision to pay a part of the state arrears to construction companies helped to improve the sector’s liquidity, but at the same time cut financing for infrastructure projects.
The construction materials sales were also negatively impacted by the draughty summer season and poor agricultural output. Traditionally, the sales of construction materials increase in September and October, as rural area inhabitants spend the amounts from selling crops for refurbishing of homes or even for new constructions, but in 2012 the construction material sales did not follow this seasonal pattern.
Figure 1 Construction works index in 2005-2013 (monthly, y/y)
This is just a quick glimpse into the Intellinews Report: Intellinews Romania Construction Materials
Tags: AdePlast, brick, Cemacon, cement, Ceramica, construction material, General Beton, government, growth, Holcim, imports, Lafarge, market, permits, producers, profits, revenue, Romania, Siceram, Sika Romania, Siniat Romania, Teraplast, value, Wienerberger, Xella
The construction and assembly index dropped by 1% y/y in 2012, marking a negative growth after the double-digit annual advance recorded in 2011. After a good performance in H1, the situation in the sector deteriorated abruptly in H2/2012 as infrastructure spending, the main growth driver in the past few years, was expected to fall with the completion of the main road building projects ahead of the Euro 2012 soccer championship.
The construction sector is expected to face challenges in 2013 and the coming years as well, particularly on the public building segment, but the outlook for the sector is not entirely gloomy, as the lowering demand from infrastructure can be replaced by alternatives in sectors such as rail and energy. However, overall the construction sector is expected to see visible recovery only in 2015, when EU co-financed projects for 2014-2020 are launched.
Figure 1 Constructions sector – Selective indicators in 2005-2012 (annual, y/y)
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Tags: bankrupticy, Budimex, building, civil engineering, construction, economy, employment, energy, environment, gas, GDP, homes, Housing, Infrastructure., Insolvent PBG, M&A, office, oil, PBG, permits, Pol –Aqua, Poland, Polimex-Mostostal, Polish, rail, retail, sector, sentiment, Skanska, Strabag, Warbud, warehouse
Indian oil and gas sector is highly regulated by the Ministry of Petroleum and Natural Gas. The ministry influences exploration, production, distribution, and marketing of companies in the sector. It also has a hand in the pricing of oil, natural gas and petroleum products to some extent. Despite the tight regulation, however, the private sector plays a major role, particularly in the downstream business.
India was the fourth largest consumer of oil and petroleum products in 2011, after the United States, China and Japan. To satisfy demand, Indian upstream oil companies have acquired stakes in overseas assets. Existing domestic oil reserves and production is insufficient to meet the demand in India. More than 80% of India’s crude oil demand was met through imports as of FY12.
The sector also acts as a major source of tax revenue generation for India’s central and state governments. Prices of oil namely natural gas and petroleum products are controlled by the central government. This occasionally forces downstream companies to sell finished products at unprofitable prices. Government subsidies partially cover the shortfall, but this puts a strain on central government finances and bloats the fiscal deficit. In FY13, the government instituted a slew of reforms geared toward reducing the subsidies, such as limiting the number of subsidized cylinders and incremental decontrol of diesel prices. These moves are expected to improve the earnings of industry operators in coming quarters.
During FY13, Indian crude oil and natural gas (upstream) production declined. However, refining and other downstream activities registered growth. India’s growing energy requirements and rising per capita consumption combined with the phasing out of subsidies and decreased regulatory uncertainty bode well for the sector.
Key Findings
- During first 10 months of FY13, total crude oil production recorded was 0.4% less than that the same period last year. Production was also 4.7% lower than targeted for the period.
- During first 10 months of FY13, total natural gas production was around 16% less than the same period last year. However, the production was 0.3% higher than projections for the period.
- India’s crude refining throughput grew at a CAGR of 7.5%, reaching 211 MMTPA in FY12. In first 10 months of FY13, total crude throughput grew by 7.3% over the same period last year.
- Crude oil production has a weighting of 5.22% in IIP, while natural gas production and refinery products have a weighting of 1.71% and 5.94% respectively. Both crude oil and natural gas production i.e. upstream business slipped in the second half of FY13. The downstream segment registered a resilient growth during this period.
Y/Y change in index of industrial production sectoral-FY13 (Base 2004-05)
Source: MOSPI
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Tags: Consumption, Crude oil, Exploration, exports, Gross refining margin, imports, IOCL, Ministry of Petroleum and Natural Gas (MOPNG), Natural Gas, Offshore, ONGC, Onshore, prices, private sector, production, public sector, Refining, reserves, RIL, Subsidies, Trade Deficit, Under recoveries
The textile and garment industry is an important contributor to Indonesia’s economy, serving as a large source for jobs and export earnings. Being the largest textiles and apparel producers in the region, it has a long tradition of producing and exporting ready-made garment and home- fashion textiles.
Exports of manufactured goods reached USD 22.63bn in 2012, a decrease of 11.19% year-on-year. The export value of textile yarns, fabrics, and made-up articles reached USD 4.55bn in 2012, down 5.02% from USD 4.79bn a year ago. Meanwhile, the textile, leather products and footwear sectors combined were the fourth largest contributor to the manufacturing industry with a market share of 9.81% for the quarter ending December 2012.
Textile companies across north Asia, especially from South Korea, Taiwan and China, have been making significant investments in Indonesia with the aim of exporting to their home country. These foreign entrants are anticipated to boost total investment in the textile industry to about IDR 6tr (USD 702mn), according to Ade Sudrajat, Chairman of the Indonesian Textile Association.
Salient Points
- The textile, leather products and footwear sectors combined were the fourth largest contributor to the manufacturing industry with a market share of 9.81% for the quarter ending December 2012.
- The export value of textile yarns, fabrics, and made-up articles reached USD 4.55bn in 2012, down 5.02% from USD 4.79bn a year ago.
- Imports of clothing registered a staggering growth of 47.88% year-on-year in 2012. The figures in 2012 were more than doubled the USD268.88mn recorded in 2009.
Souce: CEIC
This is just a quick glimpse into the EMD Report: Indonesia Textile & Garment Industry. Learn more and purchase now>>
Tags: apparel, article of apparel, clothing, CPI, development, economic indicators, employment, Eratex, Ever Shine, export, fabrics, financial highlights, garment, GDP, GNP, gross domestic product, gross national product, growth rate, import, Indonesia, Industrial Production, investment, IPI, machinery, made up articles, manufactured goods, manufacturing, Pan Brothers, performance, restructuring, SWOT, textile, textile articles, value, volume, yarns
In 2012, business revenue for Chinese telecommunications industry recorded the fastest annual growth since 2009. China has the world’s largest base of landline subscribers; however structural changes within the industry and rapid mobile phone adoption have caused a decline in landline voice services.
The number of Chinese internet users reached 564mn in 2012, spending on average 20.5 hours each week to access the internet. Penetration rates were high in well-developed provinces but high growth rates were achieved in less-developed provinces. Almost two-thirds of broadband users had internet access speed of 4Mbps and higher.
Meanwhile, smartphone sales gained momentum in smaller cities. The number of mobile internet users increased by 12.8% y-o-y in 2012, exceeding the milestone of one billion users. As of February 2013, there were 1.13bn mobile users in China, out of which nearly 23% were 3G subscribers. The rising security threats in mobile apps have gradually raised the awareness among Chinese mobile internet users.
China is prepared to launch a new round of fiscal support for the Internet of Things (IOT) industry through a special fund for technical innovation and tax incentives.
Key Findings
- Entry-level smartphones will drive sales and penetration in rural China
- Gross transaction value of third party mobile payment is estimated to surpass RMB400bn by 2015
- Industry output value of Internet of Things (IOT) is expected to reach RMB500bn by 2015
- China aims to commercialize TD-LTE in 2013 by providing network coverage to over 500mn population
Much more in the EMD report: China Telecommunications Industry
Tags: CDMA2000, China Mobile, China Telecom, China Unicom, Fibre-To-The-Home, Global TD-LTE Initiative, hundred-RMB smartphone, information services, Institute of Automation of Chinese Academy of Sciences, Internet of Things, landline, Ministry of Industry and Information Technology, mobile applications, mobile payment, mobile shopping, National Broadband Strategy, Over-The-Top, TD-LTE, TD-SCDMA, thousand-RMB smartphone, WCDMA, WeChat, Wireless City
