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Hello,
This is truly a high-flying
week to Marketspeek. The reason is quite simple. It is on our nation’s
airline sector. The ups and downs (should we say, take-offs and
landings!) have only come to stay. So, no more placid periods these
days! Our airline companies are soaring that extra mile to secure
a share in the minds of travelers. The rules of the airline success
have seen a sea change!
This week, we
have assessed the dynamics of this sector threadbare. But, as usual,
our economy peek takes precedence.
Chain Store Sales
Last minute holiday shopping aided chain stores push December sales
to the highest level since 1999. Except luxury stores, all large
retailers, were hurt by deep discounts, despite higher sales. Luxury
stores outperformed the stores that extended discounts. This is
an optimistic trend, reflecting improved consumer confidence. Overall,
the store sales were up 4.2% for December.
Industrial Production
The industrial production index (PPI) rose by 0.9% in November.
It rose at a faster rate than the October reading of 0.4%. The output
in automotive products declined 0.1% in November. A rise of 2.5%
in the output of industrial and other equipment and a rise of 1.1%
in the output of information processing equipment were primarily
responsible for the gains in this category. The PPI posted a year-over-year
gain of 1.6%.
Happy Peeking!
Editor
Marketspeek
Executive
Editor - Dr. Sharon Livingston
Editor - Vijay |
| Week's
Peek |
|
Aviation
- Over
last two decades, global passenger traffic has averaged
a growth of 6 % per annum
- Within
the domestic scheduled passenger airlines sector, the revenue
passenger miles (number of passengers multiplied by the
number of miles they flew) during the last year hovered
around 480 billions.
- The
available seat miles in the sector are estimated to be 680
billions. This measure is the product of seats provided
by airlines multiplied by the number of miles flown.
- The
passenger load factor for the sector was found to be 70
% during the previous fiscal. (The load factor is arrived
at by dividing revenue-passenger-miles by available-seat-miles)
- The
profit margin for the sector per Available Seat Mile was
barely sufficient to make profits. The margin of the sector
had dropped to – 4.5 % during the post-9/11 timeframe.
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Vital Statistics
- The
leading airline companies in the U.S are Delta, American,
Southwest and United. In the post-9/11 scenario, these shares
have witnessed substantial changes.
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| Analysis
- The low cost,
no-frill airline companies are cruising further. This trend indicates
the need for simple travel schemes among flyers. Airline companies
can be better off reviewing their offerings and bring tangible
benefits to the fore.
- As modes
of transacting business are changing due to factors like emergence
of off-shore manufacturing bases and back offices, airline companies
can reap better dividends if the travel plans are in line with
current developments.
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| Wish
I Were |
Sol
Mate Socks
Marianne Wakerlin
worked as a financial planner in New York. The stress levels at
work were high, so she would unwind by knitting.Glorious designs
and vibrant colors poured out into sweaters, hats and scarves of
every hue. Indeed the designs were unique and intricate. Marianne
wondered whether this could help her generate a modest home-based
business which could take her away from her high pressure job.
She sat down and though hard. The most popular of her creations
were her handmade socks warm, cosy and distinctly designed. They
had made great gifts for friends and relatives who had expressed
a desire to buy more, if she produced them. She explored the ways
to manufacture them for sale and market them via stores and clothing
wholesalers.
Since Marianne had no history to draw on for production costs, distribution,
or whether the textile technology existed to accurately reproduce
the designs, she faced many hard questions before she could start
her business.
Marianne identified a wide range of start-up issues such as developing
a business plan, preparing financials, and identifying potential
accounts with the help of a consultancy and started Sole Mate Socks
in March 2000.
Marianne identified some manufacturers and wool supply sources,
modified the sock designs, and fine-tuned the production process—a
task that many textile industry experts deemed impossible. Marianne's
patience and persistence paid off, resulting in a cost-efficient
production process which can be read like a travelogue.
Fueled by the socks' popularity as Christmas gifts, Marianne saw
sales jump from $8,000 in the first year to $110,000 in 2001. She's
taking a measured approach to expand her business, as the socks
can be produced only in limited quantities.
An amazing example of how a hobby was turned into a successful business.
Isn’t it?
For further reading:
http://www.score.org
http://www.socklady.com
http://www.healingbaskets.com/prod_2000.htm
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| BrandFact |
Calloway
golf is the brand of sports goods which was once endorsed by Bill
Gates. |
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| This
Week that Age |
| 1863
Jan 15: 1st US newspaper printed on wood-pulp paper, Boston
Morning Journal |
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