Browse by

COVERED TERRITORY

AFRICA / MIDDLE EAST

Sub-Saharan Africa

Middle East

AMERICAS

Brazil

Canada

USA

ASIA / PACIFIC

Australia & New Zealand

China

India

Japan

South East Asia

South Korea

Taiwan

EUROPE

Central & Eastern Europe

France

Germany

Italy

Netherlands / Benelux

United Kingdom

Mining Equipment Exporters Look to East Africa

Israel: Food Export Destination

Brazil: Third Pet Market in the World

Opportunities for Environmental Technologies in Canada

Children’s Clothing Stores in the United States

The Role of Technology in the Australian Health Sector

China: Ceramics Market Opening to Foreign Suppliers

India’s Rapidly Growing Warehousing and Logistics Sector Attracts FDI

Can Robotics Solve Japan’s Aging and Decreasing Population

Problem?

Philippines: Top Destination for Business Process Outsourcing

Pet Market in South Korea

Offshore Wind Power Opportunity in Taiwan

CEE to Upgrade Coal-Fired Power Plants, Eying Coal Phase-Out

Food Trends in France

Digitalization Creating a Need for Improved Cyber Security

Solutions in Germany

Italian Food Sector

The Netherlands Best Prepared For Autonomous Vehicles

UK Maritime Sector Forges Ahead

IBG GLOBAL NEWSLETTER ISSUE NO 6 DECEMBER 2018

FEATURED NEWS:

Opportunities globally

IBG QUARTERLY

IBG GLOBAL NESWLETTER 4/2018 Page 2

SUB-SAHARAN AFRICA:

Mining Equipment Exporters Look to East Africa INTERESTING PROJECT

Tanzania presents many opportunities for firms in the mining sector. Mining

accounts for 50% of the country’s exports. A large share of exports comes from gold

with reserves of 45 million ounces generating annual revenue of over US$1 billion. At

50 tons a year, Tanzania is the fourth-largest in Africa behind South Africa, Mali, and

Ghana. Coal reserves are estimated at 1.9 billion metric tons, 25% of which are

proven. Diamonds are also found in significant amounts. Nickel, copper, uranium,

kaolin, titanium, cobalt and platinum are also mined. Tanzania produces a variety of

gemstones and has seen a steady GDP growth of about 7% over the past decade,

buoyed particularly by the strong mining sector.

IBG Global Africa has recently

had a number of qualifying

processed food companies

entering South Africa

successfully. Companies from

the USA, Brazil and Italy visited

in November 2018 with positive

results in sales and enquiries.

Products included sauces,

canned and jarred vegetables as

well as fruits and pasta. The

market is price and quality

sensitive.

by Richard Zurba IBG Sub-Saharan Africa /

Zurcom International

MIDDLE EAST:

Israel: Food Export Destination INTERESTING PROJECT

While Israel is a technologically advanced, market-oriented economy, its consumers

are sophisticated and enjoy cosmopolitan food tastes. Currently, 16.7% of

household expenditures are dedicated to food products. But Israel is not self-

sufficient in this area and is significantly dependent on imports. In 2017, imports

of agricultural products reached US$6.1 billion. With limited land and resources, as

well as a growing population, food ingredients as well as gourmet-processed food

sought by the Israeli food-processing sector represent an excellent opportunity for

exporters of both. In 2016, Israel imported US$2.3 billion in raw food products

for the food processing industry. Israeli FMCG (fast moving consumer goods),

sales reached US$11.89 billion in 2017. Of which, US$8.9 billion were from

food products.

EDI arranged for four Illinois

companies involved in water

management to participate in

the WETEX 2018 water

conference and exhibition held

in Dubai at the end of October.

EDI handled the setup of the

booth space, set more than 50

pre-scheduled B2B meetings

as well as administered the

event on site.

by Sherwin Pomerantz IBG Middle East / Atid EDI Ltd.

BRAZIL: Third Pet Market in the World INTERESTING PROJECT

In Brazil, the trend of pet humanization or pet parenting is on the rise as pets are

considered family members and build a love relationship with their owners. There

are more than 132 million pets in the country (52 million dogs, 38 million birds, 22

million cats, 18 million fish and ca. 2 million small animals). Brazil’s pet population

is the fourth largest in the world, after China (289 million animals), the United

States (226 million) and the United Kingdom (146 million).

The domestic pet market is stable and aims for constant improvement, to meet the

expectations of a highly demanding public. Pet industry sales in Brazil amounted

to approximately US$7 billion in 2017, the third largest in the world, with a

compound growth rate of 8% over the past 5 years. The pet industry in Brazil

offers the best opportunities for innovative and / or specialized products.

IBG Brazil is working on a

market research report for a

company interested in selling

nutritional supplements for cats

and dogs, as this industry has

grown at a pace of 10% per year

since 2012.

by Fabio Yukio Yamada IBG Brazil / Tradebrz

International Consultants

IBG GLOBAL NESWLETTER 4/2018 Page 3

Opportunities for Environmental Technologies in CANADA INTERESTING PROJECT

The Canadian Environmental Technologies sector represented an import market of

US$2.9 billion in 2016.

Canadian governments estimate US$10 billion is required for modernization over

future years as more than 800 wastewater treatment plants require upgrades.

Leading Import Sub-Sectors: include Chlorine Tanks; Filtering or purifying

machinery (US$1.35 billion); New tertiary membrane treatment plants; Parts for

filtering or purifying; machinery (US$386 million); Upgrades to secondary and tertiary

treatment Facilities and UV disinfection systems

IBG Canada can identify and

reach contacts at engineering

firms which often win contracts

to build or upgrade Canadian

public sector environmental

infrastructure. Typically such

firms partner with a variety of

equipment providers to deliver

complete systems.

by Ron A. Straatsma IBG Canada / CDA Market

Services

Children‘s Clothing Stores in the UNITED STATES INTERESTING PROJECT

In the five years through 2018, while macroeconomic growth has encouraged shoppers

to splurge on high-end children’s clothing, many apparel purchases have been captured

by industries that directly compete for consumer dollars. For example, an increase in the

number of fixed broadband connections has made online shopping increasingly

accessible, which has siphoned demand from the brick-and-mortar establishments that

operate in the industry. Furthermore, limited consumer leisure time has encouraged

shoppers to visit department stores or other one-stop-shop establishments in lieu of the

specialty retailers that operate in this industry. These factors have caused industry

revenue to decline at an annualized rate of 1.5% over the five years to 2018,

totaling US$9.7 billion. This includes a 1.9% contraction in 2018 alone. While

macroeconomic and competitive factors are strong indicators of industry success,

demand for children’s and infants’ clothing is also heavily influenced by demographic

trends. In the five years ending 2018, the number of children aged nine and

younger decreased at an annualized rate of 0.1%, which slightly contracted the pool of

young children for whom parents bought clothing in the United States.

IBG USA has been engaged by

a France-based manufacturer

of foldable bicycle helmets with

expanding sales to the US

market. Our role has included

setting up a US warehouse,

establishing relationships with

resellers, directly prospecting

specialty bikes shops in key

markets like New York City and

participating in trade shows.

Year 1 was spent structuring

the business and developing

the brand. Feedbacks have

been very positive and early

sales figures are very

encouraging. Our team will

continue its efforts to further

expand sales in 2019.

by Bruno Tateossian IBG USA / Ouino Consulting

AUSTRALIA & NEW ZEALAND:

The Role of Technology in the Australian Health Sector INTERESTING PROJECT

Digital and mobile technologies are providing the foundation for many emerging

healthcare innovations that are disrupting the Australian healthcare market.

Two of Australia’s largest telecommunications providers have committed to

commercializing 5G services in metropolitan cities across Australia by the end of

2019. 5G has the potential to bridge the digital divide in Australia between the quality

of healthcare in regional areas compared to metropolitan cities by enabling doctors to

access real-time patient data and provide consultation via remote connection.

Nanotechnology is having a significant impact on product design and functionality,

with an estimated three to four nanotech products released to the market each

week, e.g. tiny robots are now being used to release radiation in cancer patients.

Top Australian Healthcare Tech trends to watch in 2018 are Artificial Intelligence

and Machine Learning; Blockchain technology; Internet of Medical Things (IoMT);

Smart Hospitals; and Robotics.

IBG Australia hosted a

successful Trade Mission from

Wisconsin, U.S. (12-16

November). The delegation of 6

multisector companies visited

Sydney and Melbourne. As part

of their in-country support, the

office faciliated individual high

level face-to-face meetings

with key industry players from

the private sector and state

governments.

By Angela Foley IBG Australia & New Zealand /

Foley & Associates Pty Ltd

IBG GLOBAL NESWLETTER 4/2018 Page 4

CHINA: Ceramics Market Opening to Foreign Suppliers INTERESTING PROJECT

China has been gradually opening to foreign suppliers

including for traditionally strong sectors such as ceramics.

China invented porcelain and is a world-wide supplier of

ceramic products and technologies. In 2017, China

exported 23.6 billion kilograms of various types of

ceramics worth US$20.6 billion. However, over the last 10

years, imports have increased steadily to 242 million

kilograms in 2017 which were worth US$1.02 billion.

The main production areas of Chinese ceramic products are

Jingdezhen (Jiangxi), Gao'an (Jiangxi), Fengcheng (Jiangxi),

Pingxiang (Jiangxi), Foshan (Guangdong), Chaozhou

(Guangdong), Dehua (Fujian), Fuling (Hunan) and Zibo

(Shandong).

The first China International

Import Expo was held

successfully in Shanghai from

November 5th to 10th and

resulted in contracts valued at

US$57.8 billion. This is the

largest import fair for global

exporters targeting the Chinese

market. President Xi Jinpin

joined the opening ceremony

personally to show that China

welcomes international

products/services. With policy

support, international exporters

will gradually find it is easier to

get into China market.

by Annabel Rong IBG China / Alglory Investment

Limited

INDIA:

Rapidly Growing Warehousing and Logistics Sector Attracts FDI INTERESTING PROJECT

India’s warehousing and logistics sector is witnessing a huge interest from foreign

investors and attracted investments of more than US$1 billion in 2017. Growth in e-

commerce, increasing internet and smartphone penetration, growing acceptance of

online payments and favorable demographics are driving demand for modern logistics

facilities. This has led to an increase in the use of IT technologies, automation,

robotics and Internet of Things (IOT) and demand for devices such as wearables,

sensors and radio frequency identification tags to locate products, track delivery

and increase accuracy.

IBG India assisted an American

educational technology start-

up with market research, entry

strategy and in-country

assistance to introduce them

to potential partners during

their India visit in September

2018. Their online Learning

Management System (LMS) is

designed to increase

collaboration among faculties

and students.

by Supriya Kanetkar IBG India / SRK and Associates

JAPAN: Can Robotics Solve Japan’s Aging and Decreasing

Population Problem? INTERESTING PROJECT

Japan's population started to decline in 2008 with average age now at 45.9 years, the

oldest in the world. Recently, the government initiated discussion to admit up to

345,000 foreign workers by 2023 in order to solve the ever-increasing labor force

problem. Most, however, do not believe this solution will be sufficient to offset the

decrease. Thus robotics is expected to step up and increase productivity. The

research “Japan Robotics: Commercial Robots” conducted by IDC in 2018 states that

the size of the market totaled approx. US$8.1 billion in 2016 and is predicted to

rise to US$18.8 billion by 2021. The growth will be mainly supported by industrial

robotics but also by services solutions and enterprise drone solutions potentially

opening up opportunities for high-tech companies in this field.

IBG in Japan in 2018found

business opportunities in high-

tech sectors. IBG Japan started

working for a German

company, AEMtec, involved in

semiconductor and

optoelectronics assemblies, , on

business development such as

medical devices, industry

automation, automotive, etc.

by Yasushi Hasegawa IBG Japan / Fenetre Partners

IBG GLOBAL NESWLETTER 4/2018 Page 5

SOUTH EAST ASIA

Philippines: Top Destination for Business Process Outsourcing INTERESTING PROJECT

The Philippines has emerged as one of the key players in the global Business

Process Outsourcing (BPO) industry with an annual growth rate of 10%. BPO is the

largest source of private employment in the country and the industry’s total income

is projected to reach US$40-$55 billion by 2020. There are more than 800

registered BPO establishments in the country ranging from startups to large global

companies that want to become more cost-effective without sacrificing the quality of

their products and services. Foreign businesses have found many advantages in

choosing the Philippines as the ideal location to hire remote staff. These include high

English proficiency, compatibility with western culture, a steady pool of young and

educated workforce, as well as the country’s natural disposition for hard work,

perseverance, and hospitality.

Delivered a customized

research report for a US-based

graphic design company

seeking to outsource work to

the Philippines. The report

discussed different business

models for outsourcing graphic

design to the Philippines and

recommended the best model

for the US company.

by Sarath Menon IBG South East Asia / Orissa

International

Pet Market in SOUTH KOREA INTERESTING PROJECT

Due to the increasing number of single-person households, low birth rate, and aging

population, the market for pets in South Korea has been growing rapidly. According

to industry sources, the size of the Korean pet and pet care industry was valued at

US$1.9 billion in 2017 and is expected to surpass US$5.3 billion by 2020. The pet food

market has been also increasing. Approximately 70% of the Korean pet food market

was represented by foreign brands last year. As more and more pet owners treat their

pets as family members, the demand for premium pet food such as organic, non-GMO,

preservative-free, handmade and other functional pet food will keep increasing. Pet

fashion and beauty products and related services are expected to grow as well. This could

be a good opportunity for international companies providing value-added and quality

pet care products to engage the South Korean market.

An agribusiness trade mission

consisting of 80 businesses

and farm organizations visited

South Korea in early

November 2018. IBG Korea’s

Team arranged over 700 B2B

meetings with local buyers &

distributors. Accordingly,

US$33 million sales are

projected within the next 12

months. South Korea’s total

imports of agriculture and

food products reached

US$33.7 billion in 2017.

by Ken Yang IBG South Korea / Korea

Business Services, Inc.

TAIWAN: Offshore Wind Power Opportunity in Taiwan INTERESTING PROJECT

In order to meet ambitious renewable energy targets by 2025, the Taiwanese

government set out an attractive framework to lure foreign investors and

developers to bid for new offshore wind projects. The government is aiming to

have installed wind power capacity of 4.2GW by 2025. There are 24 sites in the

Taiwan Strait for which interested companies can apply and invest into installation

of offshore wind power generation facilities. Firms which have shown the most

interest were attracted by Taiwan’s good conditions for offshore power

generation – strong winds, water depth and geology as well as a stable

government. Although European companies are getting a head start in signing

cooperative MoU, new bidding and auctions are coming up for interested firms.

Through participating in the

annual Food Taipei show, IBG

Taiwan successfully generated

business leads for two

Pennsylvania food companies

to reach Taiwanese consumers

and sales agents looking for

gluten free snacks and dip

sauces. We address the

specific needs of our

customers to suggest the best

trading platform for them to

reach the best result with less

effort.

by Irene Tsai IBG Taiwan / AIM

Development Corporation

IBG GLOBAL NESWLETTER 4/2018 Page 6

CENTRAL & EASTERN EUROPE to Upgrade Coal-Fired

Power Plants, Eying Coal Phase-Out INTERESTING PROJECT

In 2017, the European Commission adopted new, “Best Available Technique (BAT),”

standards for Large Combustion Plants, which includes coal plants. By 2021, all EU coal-

fired power plants need to meet these new standards which are currently exceeded by

82% of EU installations. The EU is also strongly fostering phasing out coal completely.

CEE has been staunchly opposed to tougher climate change measures, but has started to

look into diversifying their energy mixes and investing into the existing power

infrastructure to meet the new requirements. Poland’s energy mix is dominated by coal -

80% of power generation - and aims to cut that to half by 2040, with renewables and

nuclear providing much of the rest and gas-fired generation providing back-up. The

Polish state-run utility Tauron will spend around US$268.40 million to upgrade its

power plants to reduce toxic pollutants in line with European Union (EU) targets by 2021.

In the Czech Republic, coal’s share in the energy mix is now two times lower due to the

rising role of nuclear energy. By 2040, nuclear power plants should produce at least

46% and up to 58% of electricity needs. Hungary is eying an end to coal-fired

power generation by 2030 as, perhaps, the first coal phase out in the region. In

Romania, coal covers about a third of domestic energy demand and while the country’s

current energy strategy envisages a slowly diminishing role for coal, to be eventually

replaced with gas and nuclear, a coal phase-out looks far from imminent.

IBG CEE recently hosted a trade

mission of 6 Virginia based

companies to the Czech

Republic and Romania

(November 2018). IBG CEE

consultants in the respective

countries organized a full

schedule for the trade mission

participants, including high

profile meetings with the

Ministries of Defense and

leading car producers.

by Filip Korinek IBG CEE / EasyLink Business

Services

Food trends in FRANCE

Even if the French are the only Europeans to eat at fixed hours and snack less between mealtimes than elsewhere,

eating habits are changing radically.

The trend moves indeed towards healthy food – at an affordable price – vegetarian food in particular.

Flexitarism (reducing one’s meat consumption) is growing (up to 28% of the population), while only 1% of French

people have adopted vegan lifestyle. Nevertheless, food is still a crucial part the French culture, and one in three French

people is part of the Foodies community. These include notably tempted foodies (27%) who like to discover new

products; exploratory foodies (17%), creative foodies (10%) and trendy foodies (7%).

In conclusion, more than half of French food lovers are curious to discover innovative products from all over the world!

by Brigitte Le Borgne IBG France / Lily-Perf

GERMANY: Digitalization Creating a Need for Improved

Cyber Security Solutions INTERESTING PROJECT

Business opportunities arise from growing digitalization, transformation and digital

infrastructure in Germany, especially for SMEs. While most SMEs are hidden champions,

located in remote areas with less developed digital network infrastructure, their

engineering, production technology or automotive technology is increasingly turning

towards the so called Industry 4.0 and digitalization. German companies as well as the

government are expected to invest at least 6 to 6.5% of GDP in digital infrastructure.

German companies face a growing demand for ICT and cyber security solutions.

According to the Bitkom association, almost 80% of German companies are investing in

innovative cyber security solutions. Investments into ICT and cyber security has grown

by 9% from 2017 to 2018. In 2019, investments are expected to grow to US$5 billion.

IBG Germany and IBG Brazil are

helping a German market

leader of a niche product to

expand their global sales

network and find a distribution

partner in Brazil.

by Dr. Linda von Delhaes-Guenther IBG Germany / AHP

International GmbH & Co. KG

IBG GLOBAL NESWLETTER 4/2018 Page 7

ITALIAN Food Industry INTERESTING PROJECT

The food industry has always been a strength for the Italian economy and the agro-food

industry. This includes the authentic ‘Made in Italy’ products which are becoming

increasingly sought-after. Wine, cheese, pasta, ham, and extra virgin olive oil are only

some of Italian products known worldwide.

Italian lifestyle has changed significantly: people are busier, more conscious about healthy

food, families have fewer members, all of which are aspects that have strongly affected

food consumption. Ready-made meals, single portion packages, Free From food,

organic products are becoming more and more popular in Italy and improvements

in recipes and packaging are required.

Italian importers are mostly SMEs; food products enter the Italian market through

brokers or specialized traders; the market is price sensitive, although high quality and

novelty help push some imported products. Processed food is primarily distributed

through retail chains, convenience and discount stores with some regional differences

between Northern and Southern Italy. There is potential for specialty food, snack

food, sauces, organic products as well as ethnic food.

IBG Italy has assisted many

Italian SMEs operating in the

food industry to penetrate

foreign markets: a producer of

couscous has been supported in

finding key F&B Distributors in

South Africa and UAE. Another

Italian SME producing extra-

virgin olive oil is entering the

UAE market and a food

ingredients producer is

approaching the German and

Austrian markets. .

by Rita Malavasi IBG Italy / Warrant Group SRL

NETHERLANDS / BENELUX: The Netherlands Best

Prepared For Autonomous Vehicles INTERESTING PROJECT

A few years ago, the concept of a driverless car was science-fiction, today it becomes a

reality. In China, Daimler has been granted a license to test its self-driving cars on Beijing's

public roads while in the US, about 50 companies are testing autonomous vehicles in

California. The question is, which countries are best prepared to harness it? A recently

published KPMG study found that the Netherlands is the most autonomous driving-

ready country. The Netherlands provides an AV readiness model for other countries to

follow with excellent infrastructure, a highly supportive government along with

enthusiastic adoption of electric vehicles. The study rated countries on 26 variables

within 4 categories: policy & legislation, technology & innovation, infrastructure and

consumer acceptance.

In June, IBG Benelux organized

a governmental 2-day trade

mission for 10 certified fruit

growers and traders from

Egypt. A social media

campaign and targeted

telephone marketing resulted

in ca. 100 meetings with top

Dutch wholesale buyers.

Orders were placed and

expectations were far

exceeded.

by Peter E. Sanders IBG Benelux / psps

consultants

UNITED KINGDOM: UK Maritime Sector Forges Ahead INTERESTING PROJECT

A truly national sector with significant contributions to the UK’s GDP (nearly US$48

billion) and employment (nearly 960,000 jobs), the maritime sector covers the whole

coastline of the UK.

The UK boasts many of the world’s cutting edge maritime industry R&D and training

institutions, manufacturers and service providers. These organizations and brands have

global recognition and are at the forefront of developments in technical innovation,

design and production.

Maritime sector R&D is extensive and boosted by the world-class capabilities of UK

universities and research institutes. The landscape is enriched further due to the

proliferation of SMEs at the sharp end innovation. Top trends in the sector include

industrial IoT, robotics/autonomous, logistics incorporating block chain, AR &

VR, drones and artificial intelligence.

Following our successful

identification of a UK distributor,

IBG UK was engaged by a North

American food safety

equipment manufacturer to

conduct a market selection

exercise for the rest of the EU.

We helped identify and prioritize

the top four EU markets for their

specific sector based on the

potential size of the market.

Phase 2 will focus on market

entry strategy and identifying

potential customers.

by Tony Aggarwal IBG UK / Kinetic Cubed

www.ibgglobal.com

IBG GLOBAL The International Business Group (IBG Global), founded in 2000, is a

Partnership of private commercial consulting firms with offices and staff

in 53 countries, covering a total of over 150 country markets in

the Americas, Europe, Asia-Pacific, Africa, and the Middle East.

Trade and Investment promotion in new markets

More than 40,000 projects completed

Global presence

GETTING YOU CLOSER TO YOUR MARKETS

.

IBG Global carries out high quality agent/distributor, end-buyer searches, research and in-country

support specific to your company or organization, industry and target market requirements.

IBG Sub Offices and major territories: Austria, Belgium, Bulgaria, Cambodia, Chile, Colombia, Croatia, East Africa Community, ECOWAS, Egypt, Estonia,

Hungary, Indonesia, Jordan, Kenya, Latvia, Liechtenstein, Lithuania, Luxembourg, Mauritius, Myanmar, New Zealand, Oman, Paraguay, Peru, Philippines,

Poland, Qatar, Romania, Russia, Serbia, Slovakia, Slovenia, Southern Africa Development Community, Switzerland, Tanzania, Turkey, UAE, Ukraine, Vietnam

IBG Partners: Australia, Brazil, Canada, China, Czech Republic, Germany, France, India, Israel, Italy, Japan, Mexico, Netherlands, Saudi Arabia, Singapore,

South Africa, South Korea, Spain, Sweden, Taiwan, United Kingdom, USA