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- Bit by Bit 23rd Dec. || The use fewer cardboard boxes a good or bad sign for economy || Renewable energy sector to boom with likely investments of over USD 25 billion in 2023 & More
Bit by Bit 23rd Dec. || The use fewer cardboard boxes a good or bad sign for economy || Renewable energy sector to boom with likely investments of over USD 25 billion in 2023 & More
Good Afternoon Readers!
Anyways, Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,199.10 (-1.01%)
BSE SENSEX : ₹61,067.24 (-1.03%)
NIFTY BANK : ₹43,617.95 (-1.71%)
USD/INR : ₹82.90 (+0.37%)
BRENTOIL : $81.91 (+2.38%)
MCXGOLD : ₹55,030 (+0.24%)
FII Net Cashflow : - ₹1191 crores
DII Net Cashflow : + ₹1757 crores
(Market Data as of 11:00 PM on 22/12/2022)
Economy
The use fewer cardboard boxes a good or bad sign for economy
Key Facts:
Global demand for packaging paper is showing weakness for the first time since 2020
Biggest exporters, reported 21% lower volumes sent overseas in October versus the previous year
The Story:
"Severe weakness in global box demand is an indication of how weak many parts of the global economy are," said KeyBanc analyst Adam Josephson. "The recent history shows a significant amount of economic stimulus would be necessary to provide meaningful box demand, and we do not see that coming."
Investors are watching closely for any harbingers of what is to come as fears mount that many of the world's biggest economies will tip into recession next year. Paper boxes are present at nearly every step of a good's journey through the supply chain, which makes paper a key indicator of how economies are faring. The signals are not encouraging.
Much of the fall off in demand is attributed to the shrinking effect inflation has on consumer wallets. Companies that produce everything from consumer staples to apparel are bracing for a pullback. Procter & Gamble Co. has raised prices for products from Pampers diapers to Tide laundry detergent several times to offset higher expenses, fueling the company's first quarterly decline in unit sales since 2016 earlier this year.
FMCG
FMCG firms can explore ways to beat inflation by creating demand
The Story:
The fast-moving consumer goods (FMCG) companies are struggling with the impact of high inflation for some months straight now. India’s retail inflation surged to a 17-month high of 6.95 per cent in March 2022, on the back of rallying food and oil prices. In April 2022, it had climbed higher to 7.8 per cent.
Here are some ways in which FMCG firms can explore to beat inflation by creating demand:
Launching low unit packs (LUPs)
When times become uncertain, FMCG firms bet on small packets to evade inflation and drive growth. Under this strategy, companies launch low-unit packs or LUPs to help drive growth while trying to keep their customer base going to other brands. Also, LUPs are usually the best option to increase sales as Indian customers prefer small packs over large ones due to their pocket-friendly price range. LUPs are essentially small packets priced anywhere between Rs 5-20; besides driving sales, they also have the potential to take a brand to remote or rural areas, thereby enhancing the penetration of a product.
Using product scarcity to bolster sales
Scarcity, again, plays on the customer’s fear of missing out, and it can be used to create a massive brand lift as well. You must have come across limited-time offers like daily deals, or one-time-only promotions; these tactics are used by marketers to create a sense of urgency and leverage scarcity to generate huge demand in a short time. For instance, promoting “out of stock” items is an effective approach adopted by companies to develop product scarcity. It creates an impression in front of potential customers that your product was so popular that your inventory is temporarily depleted.
Leveraging user-generated content
Some companies have been able to apply this yet another innovative way of creating demand for a product by letting their customers sell the experience to them. These brands let their customers’ experience do the talking and selling. This can be done by promoting your good reviews and highlighting your best customers. In addition to this, using images and videos of your real customers using your products across your social media platforms can also work wonders!
Address your customers’ or clients’ biggest issues
Successful FMCG firms have always followed this habit of focusing on the biggest problem(s) that their clients or customers face. Once you have identified a major issue that an audience is facing, you can pitch your product as a perfect fit and then take the market by storm through a comprehensive content marketing strategy. Companies need to find out how people are searching for solutions, and they can develop their strategies based on those searches.
Influencer marketing
FMCG and influencer marketing make a power couple as they go hand in hand with each other. According to a report, the FMCG category was the highest spender on influencer marketing in 2021, increasing their spending by more than 62 per cent, compared to an average of 40 per cent across all sectors. With people reprioritizing their spending in the Covid era, traditionally high-spend categories such as fashion, luxury, auto, beauty, and cosmetics performed poorly in comparison to fast-moving consumer goods. With Influencer marketing, you can tap into the wider range of follower audiences of influencers with different interests on social media.
AUTOMOTIVE
Key Facts:
By 2030, India plans to increase the number of electric vehicles sold from the current 1% of the country's 3 million annual automobile sales to 30%.
The Story :
Avon Cycles Ltd. in India has refuted accusations of misconduct in a program that provided subsidies to automakers to increase the sale of electric vehicles (EV), even though the government said the business was among those under investigation for embezzlement.
Under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) initiative, the Indian government is compensating electric car and hybrid vehicle manufacturers for lowering the purchase price of their vehicles.
12 electric vehicle and component makers, including Avon Cycles, were accused of breaking rules related to the 100 billion rupee ($1.21 billion) programme. Avon Cycles stated on Thursday that none of its two-wheeler models fall under the program, and the three-wheelers that do "completely match the qualifying criteria."
TECH
The Story:
Elon Musk stated on Tuesday that he will continue to oversee the software and server teams at Twitter after handing up the CEO position to "someone crazy enough to take." He revealed the information in response to a survey he conducted earlier this week, in which almost 58 percent of participants said he should resign as CEO.
It is obvious that Musk will still have direct influence over the business even though he does not have the formal title of CEO given that the social networking site is primarily composed of software and servers (particularly in light of the significant layoffs). That shouldn't come as a surprise since Musk owns Twitter outright and exercises de facto control over the product at most of his businesses. However, the news will probably disappoint those who had hoped that his resignation as CEO would put a stop to Twitter's exhilarating rollercoaster ride.
Anything Interesting
Key Facts
In the wake of Russia's war in Ukraine, oil and gas prices will rise in 2022.
The emphasis has shifted to renewable energy, with investments totalling more than USD 25 billion, or Rs 2 lakh crore, planned in India to use sunlight, water, and air to produce energy.
The Government of 2022 aggressively pushed for the adoption of electric vehicles, the production of green hydrogen, the manufacturing of solar equipment, and energy storage in pursuit of its ambitious 500 GW renewable capacity target by 2030.
The Story:
To reach its 500 GW goal by 2030, India would have to continuously add at least 25 GW of renewable energy capacity every year for eight years. India currently has about 173 GW of clean energy capacity based on non-fossil fuels, including 62 GW of solar, 42 GW of wind, 10 GW of biomass, 5 GW of small hydro, 47 GW of large hydro, and 7 GW of nuclear power.
R K Singh, the union minister for power, new energy, and renewable energy, told PTI that in 2023, investments in the renewable energy sector could total around USD 25 billion. He continued by stating, "We must reach a 500 GW goal (of clean energy by 2030). We currently have a 173 GW capacity (including large hydro and nuclear power). About 80 GW of capacity is being built. It raises the GW to 250. So, by 2030, we must add another 200 GW."
