Bumpy Ride Ahead for Air Industries

Airlines are consolidating and becoming more efficient. Airfares are going lower. Temporarily stored planes are being dusted off and returned to service. This is good news for airlines, but not good news for Boeing and Airbus, who after decades of bitter competition are facing new market realities about their future. A bruising WTO battle that has drawn blood from both sides, plus renewed competition from Bombardier, are adding to their problems.

Special Report - Aviation - Bumpy Ride Ahead for Air Industries

Bulldozers Meet Historic Quarters in Beijing, to Mixed Reaction

The Gulou neighborhood, just north of the Forbidden City, is one of the few undeveloped areas left in Beijing. It's famous for its brick towers where drums and bells help locals tell the time. All that will change soon, when the government sends in bulldozers to redevelop the area into the "Beijing Time Cultural City." Not everyone is happy with this latest redevelopment plan.

Beijing Journal - Bulldozers Meet Historic Quarters in Beijing, to Mixed Reaction - NYTimes.com

Coke, Pepsi Grab for Pakistani Market Share

It's easy to forget, with news media obsessed with stories involving death and destruction, that Pakistan and India remain important emerging markets poised for growth. Pakistan, with 175 million people, is larger than many Asian countries attracting FDI, so it's only natural that companies are beginning to pay closer attention to it. Coke and Pepsi are always early entrants into emerging markets, but in Pakistan Pepsi had an early-mover advantage, with 80% market share in the late 1990's. Coke has now set its sights on conquering Pepsi. There's tremendous room for growth -- Pakistan's per-capita consumption of Coke is 15 bottles per year, while in Mexico (Coke's top per-capita market), it's a whopping 665 bottles per head.

Coke, Pepsi Grab for Pakistani Market Share - WSJ.com

Retailers Push Apparel Suppliers for Shorter Lead-Time

Most clothes Americans wear are made in China. This means that the folks who design and make the clothes (retailers such as Aeropostale, Gap, Abercrombie, etc) have to place their orders with Chinese factories about nine months ahead of time in order to make manufacturing and shipping deadlines. That model doesn't work, however, in an uncertain economy where the consumer may or may not buy a particular line. Incorrect forecasting means lots of discounted items after a "fashion miss" which is not good for profits or the brand. Retailers are therefore turning to "chasing" where they purposely under-order lines to see how they do on the floor first. If the line is successful, they press suppliers for more product. This has caused some suppliers in turn to respond by pushing up prices and passing on more costs to the retailers.

Retailers Push Apparel Suppliers for Shorter Lead-Time - WSJ.com

FedEx Looks to 777s to Deliver an Edge

In the globalized economy, moving goods quickly between producer and customer is a key ingredient to success. FedEx is hoping to help make that transaction happen by developing and purchasing its own version of Boeing's 777 airliner, outfitted as a cargo plane. FedEx is the only shipper to purchase the 777, allowing it to carry heavy cargo between Asia and the U.S. without a fuel stop in Alaska. The result is that Chinese factories can work three extra hours and still make next day U.S. delivery. FedEx hopes this gives them the competitive edge as the shipper of choice for time critical shipments.

FedEx Looks to 777s to Deliver an Edge - WSJ.com

China Begins Planning for Slower Growth Future

Is China slowing down? All signs indicate the answer is yes. After an extraordinary period of economic expansion, lasting longer and reaching higher than most of human history, the economy is starting to slow down as the supply of cheap and ready labor begins to dry up. A major report on the future of China's economy at the link.


China Begins Planning for Slower Growth Future - WSJ.com

Happy Independence Day

What do you get when you combine the words of the Declaration of Independence with your favorite NPR hosts? Some spine-tingling moments, that's what. Happy Fourth of July everyone!

Chinese Tourists Flock to Japan

Last year, China became Japan's top export market, replacing the United States. Rising wages and an emerging middle class means more and more Chinese can afford to buy Japanese goods, and in the next logical step, visit Japan as tourists. In response, Japan has relaxed visa restrictions for Chinese citizens, which will allow a tenfold increase in the number of Chinese tourists to Japan. No surprise -- on average, Chinese tourists outspend Taiwanese and American tourists combined on trips to Japan.

Chinese Tourists Flock to Japan - WSJ.com

Thailand Targets Financial Backers of Red Shirt Demonstrations

In the wake of Red Shirt riots that tore Bangkok apart earlier this summer and led to multiple deaths, the Thai government has been cracking down on the funding sources for the red shirt protests, including many business owners tied to or sympathetic with former Prime Minister Thaksin Shinawatra, seen as a key catalyst behind the protests.

Thailand Targets Financial Backers of Red Shirt Demonstrations - WSJ.com

Danone Expands Its Pantry to Woo the World's Poor - WSJ.com

Is it possible to make a profit selling a tube of yogurt for 10 cents in Senegal? Or a 15 cent sealed cup of water in Mexico? French dairy giant Danone is experimenting with these products at these price points, both to grow their base of consumers in emerging markets and as part of social responsibility efforts. Only the future will tell whether these efforts will provide a return to the company.


Danone Expands Its Pantry to Woo the World's Poor - WSJ.com

Careful Not to Backstroke Over the Edge of Singapore

The Sands resort in Singapore is open, and it includes a deck that spans across the top of the three towers that make up the resort and hotel complex. The deck includes the world's highest infinity pool and costs $20 for visitors to visit it. That has to be a thrilling swim.

Careful Not to Backstroke Over the Edge of Singapore

Taiwan, China to Sign Trade Pact

Taiwan and China, still formally in a state of war, have agreed to sign a far reaching trade agreement that will lower tariffs on important industrial goods and open sectors such as banking to greater liberalization and competition. In the process, greater stability and perhaps even a peace accord may be in the cards.

Taiwan, China to Sign Trade Pact - WSJ.com

In Muslim Malaysia, 'Young Imam' Is the Show to Watch

Malaysia has always been home to a more tolerant form of Islam than most Americans are familiar with. As evidence, one of the hottest TV shows there now looks like "American Idol" where contestants vie with each other for a grand prize. The prize here is to become an imam at a mosque, and to prove their worth the contestants have to demonstrate their knowledge of Islam and Islamic rites.

In Muslim Malaysia, 'Young Imam' Is the Show to Watch - WSJ.com

Growing Organic in China

As affluence increases in China, more consumers are becoming more aware about the attraction of organic food. This is leading to a dramatic increase in organic farming in China, both for export and domestic consumption.

India’s Clogged Rail Lines Stall Economic Progress

India faces a severe infrastructure problem. For example, a standard container can sail from Singapore to Mumbai in 4-5 days, but that same container will take 2 weeks to travel to New Delhi at a cost three times of its sea voyage from Singapore. The main problem is railways, the backbone of India's transportation infrastructure. The system moved 7 billion passengers and 830 million tons of cargo last year, but slow expansion and modernization are severely crimping India's economy, as
this online video demonstrates.

India’s Clogged Rail Lines Stall Economic Progress - NYTimes.com

P&G Makes Push in India

Cincinnati-based Procter & Gamble is facing slumping sales in the U.S. and Europe, and is therefore targeting developing markets like India. The packaged goods industry is growing at over 12% a year there. Among the brands being pushed are Olay and Pampers. Challenges include razor-thin margins, price competition with bigger competitor Unilever, and convincing small grocery store owners to carry bulky diapers.

P&G Makes Push in India - WSJ.com

Myanmar's Golden Pond

As globalization reaches to far corners of the world, it brings visitors and tourists to remote regions. They bring money and a worldview that locals crave, but they also leave behind accelerating changes that eventually may lead to the destruction of centuries-old lifestyles. Cambodia and Tibet are familiar with this destruction, and now Myanmar's Inle Lake may be next in line. The lake has is shrinking, and tourists are very much to blame, as this report points out.


Myanmar's Golden Pond - WSJ.com

Rising Costs Force Apparel Makers to Look Beyond China

China has the reputation of being the world's factory, where insanely low labor rates make it attractive to make things for consumers. As the economy matured, however, it was only a matter of time before other countries started to look cheaper than China.

This is already happening in the labor-intensive apparel industry. A lot of Coach bags are made in China since labor is cheap there. So are products made for Ann Taylor and Guess. Recent wage increases in China, however, are forcing these manufacturers to look at India, Vietnam, Cambodia and Indonesia as alternatives.

Rising Costs Force Apparel Makers to Look Beyond China - WSJ.com

High-End Tailor Zegna's Marco Polo Moment

The market for luxury goods in China seems insatiable. Most Americans have probably never heard of Ermenegildo Zegna, a high-end Italian menswear maker and retailer. Suits start at $1000, and bespoke garments run from $3800 to $8500. Its biggest market is now China, and Zegna has 60 boutiques on the mainland, where luxury spending is expected to grow another 15 percent this year.

High-End Tailor Zegna's Marco Polo Moment - BusinessWeek

Revealed: Japan’s bribes on whaling

Japan is trying to convince the international community to lift the ban on commercial whaling. In order to gain some smaller countries' votes, officials have been promising aid to the countries. When that fails, they've taken to offering cash and prostitutes for the votes, as this newspaper report reveals.


Revealed: Japan’s bribes on whaling - Times Online