The UK-based consumer goods company Unilever, Switzerland-based Nestle, and France-based alcoholic beverages manufacturer Pernod Ricard are progressing at significantly lower rates among the key Asian industries. The sales by the above-mentioned three companies have remained stagnant for the last three months.
Such established firms have been highly dependent on emerging markets to equipoisealteringlifestyles in developed economies, where a considerable number of consumers are drawing more interest towards fresher foods, emerging brands or expenditure slashing.
Two of the three mentioned businesses have revealed slow-growth indications owing to the ongoing trade war between the two globally strongest economies, hitting China’s domestic consumption. Moreover, destructive monsoons have also curbed rural earnings in India.
In the third quarter, the sales growth of Unilever declined a bit, while Nestle’s sales performance remained monotonous in China for nine months. On the other hand, Pernod Ricard felt a significant decline in sales growth in the last quarter in China. The challenging market conditions have prompted sales decline by 6% in the recent quarter, reported by the company.
In Q3, Nestle reported a 3.7% sales growth in its organic product line-up and Unilever reported sales growth by 2.9% during the same period.
On a related note, recenttensions in China-U.S. relations pushed theevolving market currencies to its record lowestduringthe month last week. Besides trade tensions, the announcement of nationwide powercut by South Africa’s state utility further aggravated the losses.
The losses suffered by the emerging market stocks in Turkey and mainland China were counterbalanced by the market shares hike in specific Asian and Russian regions.
Apart from the recently planned power cut, a similar destructive series of power cuts earlier this year tightened the country’s Q1 economic growth that raised its possibility of missing last investment-grade score.
After accomplishing a Degree of MBA in Business Development, Warren worked as a successful Content Editor for 6 years. In addition to this, he engaged himself in writing news reports and articles on diverse topics from the Business field on a freelance basis. At last, his gradually increasing interest in writing pushed him into this profession. Warren is a successful news editor and writer serving this field from the last 4 years. His admirable quality to work with perfection and putting total efforts in all projects he manages has made him the Head of the Business Department at News Ledger 24.