Latest report
11 Sep 2014
Home / Capital Intensive / Autos
Our research in 16 towns nationwide suggests that China’s drive to develop its smaller towns and cities may be more difficult than it foresees.
We expect leading coffee-shop chains to maintain double-digit sales growth in China, but rising competition from cafés, supermarkets and online retailers is proving bad news for bakery chains.
Gourmet Master’s on-going strategic overhaul – enlarging both its dining areas and its menu – should allow it to broaden its appeal into the café and fast-food breakfast markets, supporting growth and reinforcing its lead in the bakery market.
Whitbread is banking on Costa delivering strong revenue and profit growth in Asia to offset weakening growth in Europe. However, building brand awareness in the shadow of Starbucks presents a real challenge.
Wide popularity and strong brand status continue to support rapid expansion in China. Robust same-store sales growth will likely be sufficient to maintain profitability in the face of rising rent and labour costs.
A multi-brand strategy should help to augment the Singapore-headquartered chain’s popularity in first-tier cities, but its high prices may constrain expansion in lower-tier markets.
Our latest analysis of official and industry data highlights the slowdown in shadow financing seen since the middle of 2013, a trend that is raising default risks across a number of key sectors of the economy.
A selection of key financial data over the past fortnight.
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time. Find out more about our cookie policy.