International Real Estate
The UK had its first budget under its new coalition government on June 22. The chancellor balanced cuts with tax rises; he has also focused on making the UK more competitive in the business arena. He has reduced corporation tax by 1% per year through the term of the Parliament whilst introducing incentives to start new businesses and add employees. The public sector has, in line with other EU economies, frozen public sector pay for two years for those paid over £21,000 per year and cuts will be introduced to budgets across the sector. After January 4, VAT will increase to 20%.
Spain has also introduced new measures to promote youth employment and cut the cost of firing workers. Spending cuts were introduced last month in a bid to cut the large budget deficit. More >
In the 1990s retail industry players lived in the mortal fear that online shopping and marketing portals would decimate them. Many internet experts predicted that website-based transactions will see the end of people moving out of their house to buy from shops. The 3D technology, secure transaction gateways and home delivery were slated to be a killer concept that would change the way people buy everything. But today we are older and wiser. Today, Indian players in organised retail business think that 100% foreign direct investment (FDI) in multi-brand malls will kill their prospects as well as their business. The fear is misplaced for many reasons. No foreign player has been able to replace an Indian market leader if the latter has been competitive in his offerings. But conversely, foreign players have also usurped the market leader position from Indian monoliths, which tend to carry a lot of luggage. The commerce ministry’s proposal to allow 100% FDI in multi-brand retail will open the doors for the likes of Wal-Mart and Tesco. Nonetheless, the ministry has suggested stiff local sourcing requirements and mandatory investments in backward linkages for all such foreign entrants. More >
You may have already read the Foreign Direct Investment figures that came out earlier this year, however, I got around to reviewing them over the weekend – FDI to Latin America decreased in 2009 compared to the previous year 2008. No big surprise, right? But, what caught my attention initially is that the drop was just a bit less than half of the amount in 2008 – an almost 50% decline! However, upon further reflection of the depth of the economic crisis and seeing what countries are the top investors in the region, it was not such a revelation. First, let’s take a look at the numbers. More >
The Chancellor of the new UK government, George Osborne, produced his much heralded ‘emergency budget’ yesterday. The task was to prevent a loss of confidence by reducing the deficit in the public finances and to rebalance the British economy away from its dependence on the public sector by stimulating the private sector. With the exception of Ireland, the UK has the largest budget deficit in Europe. The Chancellor elected to redress the balance, which amounts to £113 billion in cuts and tax rises, by 2014 – 2015, using an 80:20 ratio – 80% by reduction in spending and 20% by increased taxation. More >
Retailers looking to grow follow one of two distinct forms of market expansion. Large, well-established companies typically look to expand their market share on an international scale. Smaller retailers, usually franchised, look to expand into new markets across North America.
Tapping into a market analysis can assist these retailers in identifying which markets are ripe for expansion, how to select a location, and how to decide how large/small a presence to create in the market. More >