Bulletin Board
PANGAEA.Talk.NEWS(tm)
September 1995 issue
"The Lion King" movie was released in Beijing during the last week of July. It is expected that more and more "western" movies will be shown in China, following the signing of an intellectual property rights agreement. (Source: YOUR LINK HERE) VIRGIN Cola -- This British "pop" hit the supermarket shelves in November 1994 and has already achieved a 10% share of the cola market in the UK. Owner, Richard Branson (founder and chairman of Virgin travel and entertainment) now plans to go head-to-head with giant Coca Cola in Japan. They began selling product in July. Distribution is via Daiei Inc. (Japan's largest supermarket chain). Coca Cola currently has 90% share of the market in Japan. Virgin expects a 20-25% share in Japan within five years. Marketing positioning in Japan -- larger size package (500ml can vs. Coke's 350ml size) and a lower price (88 yen vs. Coke at 110 yen). Next move is to vending machines, capitalizing on the Japanese soft drink purchase style -- one can at a time. See update on Virgin's market share in the UK vs. rivals Coke and Pepsi.
(Source: YOUR LINK HERE)Americana grows stronger in Israel with recent opening of Toys 'R Us. Israel and US economic ties have strengthened in the last five years, coinciding with an economic boom, an increase of US TV (cable and satellite) available in homes, and a closing trade gap between the two nations. Recent figures from the Israeli Industry and Trade Ministry reveal an increase of US imports in Israel from $1.7 billion in 1984 to $4.3 billion last year. First six months of '95 = $2.5 billion so far. Recent US retailers opening/expanding in Israel include: Home Depot, Ace Hardware, Tower Record, McDonald's, KFC, Hard Rock Cafe, Planet Hollywood, Toys 'R Us, Blockbuster, Ben & Jerry's, among others. (Source: YOUR LINK HERE) HAVANA, Cuba -- Cuban economy expected to open up to foreign investment. Cuba now claims 212 joint ventures, totaling $2 billion from companies in 50 countries, mainly from Mexico, Spain and Canada. Common across Cuba today are Japanese cars, British gasoline and Spanish hotels. Many investors have been wary about investing in Cuba because of the political situation and local foreign trade laws. Measures under consideration by Cuba's National Assembly include: ending the 50% foreign ownership limit, guaranteeing businesses the right to freely take capital out of the country, cutting red tape and allowing foreigners to buy real estate (houses, offices, tourist properties such as hotels) -- revolutionary for this socialist state. However, it would continue to retain tight state control over the workforce. These rulings come at a time when Cuba needs to create more jobs (due to plans for cutting hundreds of thousands of state posts in an effort to reduce their budget deficit). GDP fell by about 35% between 1989 and 1990 and has reportedly recovered by only 3% since then. (Source: YOUR LINK HERE) HANOI, Vietnam -- Foreign automakers set up shop in Vietnam. Deal approved by Prime Minister Vo Van Kiet, still awaiting final approval from State Committee for Cooperation and Investment. The companies involved are four auto leaders from the US and Japan. This will raise the number of car assembly joint ventures in Vietnam to 11. All four companies plan sizable investments: Ford Motor Co. $103 million in northern Hai Hung province, Toyota Motor Corp. $150 mil in Vinh Phu province, Chrysler Corp. $100-200 mil in southern Dong Nai province and Isuzu Motors Ltd. $50 mil near Ho Chi Minh City. Investors expect that by 2007, most of the 110,000 cars, trucks and buses assembled locally will sell in the domestic market; some for export. At present, Vietnam's average annual personal income is about $129. Fewer than 5,000 vehicles were purchased new there last year. Ministry of Heavy Industry predicts demand to reach 40,000 vehicles by year 2000. (Source: YOUR LINK HERE)
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