Market Intelligence


Overview

 

This chapter provides intelligence on a few markets among advanced, emerging and regional economies.


Australian Market

Information on the Australian market which draws from a study commissioned by Enterprise Mauritius in 2009 as well as from desk research. The study depicts numerous constraints to penetrate the market. This includes stiff competition from China. The report also reveals lack of visibility of Mauritian products in Australia, geographical remoteness as a constraint. In fact, products most of the time, need to go through Singapore when exported to Australia.

Italian Market

Information on the Italian market largely draws from a study commissioned by Enterprise Mauritius in 2009 and desk research. Altogether, the information shows that the market, comprising a wide segment of family-owned retailers and specialised outlets selling branded products, is highly competitive. It will demand sustained efforts on the part of Mauritian enterprises to penetrate the market.

UK Market

The UK market has experienced a slowdown during the financial crisis but is going through a recovery phase. Many Mauritian producers already have a good experience of the market. They can seize opportunities arising from future growth in the market where retail sales stood at about £324bn in 2010(app). Mauritian producers can also take into consideration the increasing number of people in the age bracket of 35-50 demanding classic apparel, increasing demand for ethical products from retailers such as Mark & Spencer, and increasing trade through the internet.


Indian Market

The Indian market is expanding at a rapid pace where the apparel market stands at about $35 billion. However, it is a difficult market with high custom duty of an average of 35% and a number of para-tariffs and strong competition from low-cost producers such as Bangladesh, which also enjoys Tariff Rate Quota (TRQ) preferences.


BRIC countries
  • BRIC countries (Brazil, Russia, India and China) have a combined GDP of about 15 trillion dollars, according to A.T Kearney Survey conducted in 2010.
  • Brazil is a very attractive market for apparel due to a young population (60% are under 40), high growth of sales (about 20% annually over the last years), a rapidly expanding middle class with high purchasing power and fashion conscious consumers.
  • In Russia, growth of apparel sales was 10% in 2010 and is forecast to grow by double-digit numbers up to 2015 (Euromonitor International);
  • In recent years, there has been an average of 9% annual growth in apparel sales in India.
  • China has a key consumer base with increasing demand for higher-end foreign labels among the middle class.

United Arab Emirates (UAE)
  • Dubai is recognised as one of the biggest re-export hub in the region.
  • Compared to Mauritian garments, same quality of garments is available from China and India at a cheaper rate of 15% to 20%, in the UAE market.
Regional Markets
  • Demand by consumers in Africa is set to expand, with a fast increasing population (from a current 900m to about 2bn by 2050) and rising imports.
  • Cross border trade standing at about 15% of overall trade in Africa is set to increase with higher economic growth and a burgeoning middle class in many African countries.
  • South Africa is the economic giant of the African continent, contributing nearly 40% to the total African GDP.
  • The Republic of South Africa (RSA) is the 2nd destination country for Mauritian exports in SADC/COMESA with a share of 30%.
  • Tanzania has a population of 41mn and is the third largest producer of gold in Africa. It offers opportunity for Mauritian exporters who can tap potential in areas such as Garments, ICT services, Agro-processed food, Printed Books and Packaging products.
  • Kenya stands as a promising economy in Eastern Africa. With political stability prevailing, the country offers good opportunities for Mauritian exporters. Products with potential for export are value-added sugar, beverages and spirits, plastics articles, food products (Canned Tuna and Meat) and highly branded textiles garments, among others.