It is important for all BRIC countries to learn the power of branding. The importance of value addition and branding is so largely applicable that the value of the company largely lies in its products and brand value. Recently Tata Tea and Beverages has moved out of plantation and started building brands by acquiring Tetley and focussing on productising and branding their own tea and other beverage products.

Arab Times reports

When Starbucks opened in Brazil a year ago, the US giant knew it would be tough selling coffee in the world’s biggest producer of its raw material ‘caffeine beans.’

What it didn’t bank on was how bittersweet its path to success would be — nor how much more its appeal would rely on its perceived snob value than on the quality of its espressos, lattes, Frappuccinos or cakes.

Last month, the Seattle-based chain opened its seventh store in Sao Paulo, Brazil’s biggest city that still features a few of the extravagant mansions of the 19th-century coffee barons who built the foundations of its wealth today.

The high prices of the brews on offer — a basic cup of coffee costs six reals (3.40 dollars), three times more than in normal Brazilian cafes — have done nothing to shorten the long lines at the counters.

Quite the contrary: monied Brazilians flocking to Starbucks see the stores almost as exclusive clubs for the privileged in a country where displays of wealth are usually an invitation to being mugged.

‘The social level of people here is pretty high,’ said one customer, Monica Korosue, a 28-year-old technology consultant sipping out of a cardboard Starbucks cup in the newest outlet in the chic Jardim Paulista neighborhood.

She agreed with her husband, 34-year-old Mauricio Silva, that Starbucks’ recipe for success in Brazil was in creating ‘a refuge for the elite.’

She said the market appeal of the stores in Brazil reflected ‘valuing American culture.’

But Buck Hendrix, Starbucks’ manager for Latin America, attacked the widely held perception of the company as a US icon.

‘It’s not an American thing. It’s a Starbucks thing, that transcends culture,’ he told AFP in a telephone interview from his office in Miami.

He also shrugged off the elitist tag for the Brazil stores, preferring to describe them as commuter stopovers carefully designed to be ‘warm, comforting, welcoming.’

That secure cosiness was Starbucks’ real contribution to Brazil’s already well-served cafe scene, he said.

‘Brazil knows more about coffee than any other country in the world,’ he said. ‘We think we have a lot to learn from Brazilians about coffee.’ Read the rest of this entry »

How do you explain this ? Reliance Money is joining hands with McDonalds to distribute their financial products. While consumers  queue up for ordering their Mac menu, they would be also exposed to various products from Reliance Money. This could happen only in emerging countries where big corporates are trying to reach the masses in their own form of adopting distribution methods. In India financial products are sold through retail sales offices and this could be a perfect experiment for Rmoney to see the behaviour.

Financial Express reports

Anil Ambani-promoted Reliance Money Limited announced a tie-up with McDonald’s for distributing its financial products at retail outlets of the fast food chain in the northern region. Besides, the company also announced the launch of limited free trading account offer for their customers in Haryana, Punjab and Himachal Pradesh.

“Under the tie-up with McDonald’s, Reliance Money would install its financial desk at various outlets, which would explain its offerings, including Free Trading account, gold chain retailing and mobile financial portal to customers,” Reliance Money Limited Director and CEO Sudip Bandyopadhay said.

“Initially, about 18 outlets will be covered, mainly in New Delhi and Punjab under this partnership and after getting feedback, we will evaluate for further extending this service to other outlets,” McDonald’s India Head Marketing, Jyoti Rakheja said.

With increasing economic prowess in BRIC countries and most of world’s contract apparel manufacturing is out of asia mainly India and China. There is a huge opportunity of some of the leading exporters to brand clothing lines for Fitness and Sports. Yoga and Tai-ichi is catching up globally and there is a huge demand for appropriate clothing for them. Similarly the emerging market countries are  taking to sports and jogging and for cultural reasons they may need their own form of fitness clothings.

PRweb reports

Driven by lifestyle changes, increase in sports participation, and the rapidly aging-but-active population, the world sports and fitness clothing market is projected to reach US$126.8 billion by the year 2010. With consumer priorities inclining towards leading active, and healthy lifestyles, there is expected to be a marked rise in the interest in sports and other fitness activities like yoga, and jogging. This, thereby, offers a strong business case for sports and fitness apparel, and is expected to play an instrumental role in driving future growth.

Intersection of sportswear, leisurewear, and fitness clothing is steadily obscuring the difference between sports apparel, fitness clothing, and casual, active wear, thereby leading to changes in target audiences. Changing lifestyles, and attitude towards fitness outerwear, are dictating fashion trends with women exhibiting a proclivity towards fashionable workout wear. Growing emphasis on versatility, convenience, fashion, comfort, style, and performance is creating a strong demand for sports and fitness apparel, which offer both functional performance, and style appeal. Upscale product innovations presently in vogue are low-rise yoga pants, bright colors, and embellished T-shirts. Given the tendency to associate sports and fitness apparel with health, and well being, the spotlight is presently on the type of fabric used in sports and fitness wear. Backed by growing awareness and astute consumer attention to the fabric used, performance fabrics such as, lightweight, breathable micro fibers, and micro fleece fibers, are rising in popularity and demand. New generation fibers with moisture management features are expected to drive demand for contemporary sports and active outdoor wear.

When real growth happens the first ones’ to be very visibly present are McDonalds and Coke. These two are very powerful global brands.

Moscow Times reports a Bloomberg wire :

McDonald’s plans to open 30 locations in the country this year and accelerate the pace of expansion in the next two years, taking advantage of rising sales in the region.

“Russia will be one of the key countries where McDonald’s will see growth,” Ian Borden, chief financial officer for Russia and Eastern Europe, said Tuesday. “It’s a big country, the income levels of people are growing very quickly and the market is not developed yet.” Read the rest of this entry »