EGS Biweekly Global Business Newsletter Issue 18, Monday, November 30, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“I think if you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next.”, Steve Jobs
“Great leaders don’t see themselves as great; they see themselves as human.”, Simon Sinek
“Perpetual optimism is a force multiplier.”, Colin Powell, American politician, diplomat and retired four-star general
Introduction
This biweekly newsletter focuses on what is happening around the world that impacts new trends, health, consumer spending, business investment and travel. A few highlights in issue #18:
- United (Airlines) begins flying Pfizer’s Covid-19 vaccine to the USA and the UK is set to approve Pfizer-BioNTech Covid vaccine within days
- Shanghai Replaces London As World’s Largest Travel Hub
- In our Doing Business in the times of COVID section are links to several articles on how businesses are learning to do succeed in these times
- Australia state reopens border after Covid cases plummet
- Mexico Confirms Its Economy Rebounded in Third Quarter
- More Than Half of Restaurant Sales Will be Digital by 2025
We monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our GlobalTeam™ on the ground covers 43 countries and provides us with updates about what is happening in their specific countries. Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
First, a few Personal Comments
Much of what we have to report from around the world in this issue has to do with how countries and companies are finding ways to keep businesses and schools open as we approach the time when COVID-19 vaccines will be available. Multinational government approvals for the first two vaccines could occur before Christmas. Distribution then becomes the global challenge. United Airlines over the past weekend started charter flights to bring Pfizer’s vaccine to the USA from Brussels. Distribution of the Pfizer-BioNTech Covid vaccine could start in the United Kingdom as early as December 7th. There is hope.
Interesting Data To Start
The latest McKinsey report: “When will vaccines be available? And is the end of COVID-19 nearer? While the situation looks somewhat better in parts of the Southern Hemisphere, much of Europe and North America is in the midst of a “fall wave,” with the prospect of a difficult winter ahead. Yet the past two weeks have brought renewed hope, headlined by final data from the Pfizer/BioNTech1 vaccine trial and interim data from the Moderna trial, both showing efficacy of approximately 95 percent2 ; and progress on therapeutics. Is an earlier end to the pandemic now more likely?”
“Industries in 2021: Key forecasts for the year ahead”, an Economist Intelligence Unit webinar, November 4, 2020
“In the pandemic, capitalism’s adherents are reconsidering its recent history and its future direction.”, McKinsey report, November 18, 2020
A bit lighter content: “How holiday spending compares around the world” – Visual Capitalist
The Top Exports in each country: “Today, exports make up roughly 25% of total global production. One of the common influences on these exports, unsurprisingly, is oil. In fact, petroleum is the top export across over 50 nations, and along with many other resource-driven materials makes up a sizable share of the global export market. Since 2000, the total value of all exported global trade of goods and services has tripled to $19.5 trillion.
This infographic from HowMuch.net shows the top export in every country by value, according to the most recent global data from 2018.”, Visual Capitalist
Wilson Perumal & Co., in conjunction with the Wall Street Journal, publish the annual GLOBAL MARKETS COMPLEXITY INDEX, which they call, “A Guide for Multinationals Navigating Geographic Expansion and Contraction”. “The world has become vastly more complex in the last decade, with the emergence of new technologies, greater customer variety, global operations, and shifting regulations.”
International Travel Updates
” Airlines Face ‘Mission of the Century’ in Shipping Vaccines: Lufthansa, one of the world’s biggest cargo carriers, began planning in April in anticipation of the shots that Pfizer Inc. to Moderna Inc. and AstraZeneca Plc are developing in record time. A 20-member task force is at work devising how to fit more of the crucial payload onto the airline’s 15 Boeing Co. 777 and MD-11 freighters, along with hold space in a vast passenger fleet now flying at just 25% of capacity. Carriers must balance delicate storage requirements with speed. Airlines from Asia to Europe working frantically behind scenes”, Bloomberg, November 29, 2020
“Shanghai Replaces London As World’s Largest Travel Hub: The International Air Transport Association (IATA) released data revealing how the COVID-19 crisis has affected international connectivity, shaking up the rankings of the world’s most connected cities. London, the world’s number one most connected city in September 2019, has seen a 67% decline in connectivity. By September 2020, it had fallen to number eight. Shanghai is now the top ranked city for connectivity with the top four most connected cities all in China—Shanghai, Beijing, Guangzhou and Chengdu.”, Airways, November 28, 2020
“Overseas quarantine for England to be slashed to five days: Travellers will be allowed to take a self-paid test and end their self-isolation if the result is negative. The government is poised to slash the quarantine time for overseas travellers arriving in England from 14 days to five under a new “test and release” scheme to be announced on Tuesday, according to Whitehall and industry figures.”, The Financial Times, November 23, 2020
“Aerolíneas Argentinas To Resume Regular International Flights: Aerolíneas Argentinas (AR) has announced its international flights scheduled for the Summer 2021 season with a considerable increase in flights and frequencies offered per destination.”, Airways, November 19, 2020
“14 Reasons We Can’t Wait to Travel in 2021: This year has changed so much about travel: the where, the how, and perhaps most importantly, the why. We’ve sketched out the myriad reasons for getting out there again next year—and the best and most meaningful ways to do it.”, CNN Traveler, November 17, 2020
https://www.cntraveler.com/story/reasons-to-travel-in-2021
“El Al Launches Tel Aviv-Dubai Direct Link: El Al (LY), launches a direct passenger service between Tel Aviv Ben Gurion Airport (TLV) and Dubai (DXB) on December 13, 2020. The route is a first after Israel–United Arab Emirates normalization agreement was signed back in September. Following the flight roster reported by LY, the flight will take place 14 times per week with its Boeing 737-900 and Boeing 787 Dreamliner aircraft.”, Airways, November 23, 2020
Asia Pacific Countries
“Asia Sourcing Update: Cambodia, Indonesia, the Philippines, Thailand and Vietnam”, FUNG Business Intelligence, November 25, 2020
Australia
“Australia state reopens border after Covid cases plummet: The Australian state of New South Wales (NSW) has reopened its border with neighbouring Victoria for the first time since July after coronavirus cases there fell to zero. Victoria, which imposed a tough lockdown after a surge in cases, has reported no new infections since the beginning of November.”, BBC News, November 23, 2020
“Australia’s most populous state eases COVID-19 curbs, urges people return to offices: Australia’s New South Wales (NSW) state will ease social distancing restrictions and remove requirements for companies to allow employees work from home after recording nearly three weeks without any local transmission of COVID-19, Premier Gladys Berejiklian said on Wednesday.”, Reuters, November 24, 2020
“McDonald’s (Australia) to hire 17,400 people nationwide by the end of 2020: McDonald’s is set to hire 17,400 people nationwide by the end of 2020.”, News.com.au, November 18, 2020. Compliments of Jason Gehrke, Founder & Director, Franchise Advisory Centre, Brisbane
Mainland China
“Measures of Chinese Economic Activity Signal Widening Recovery: Manufacturing and nonmanufacturing reach highest levels in three and eight years, respectively. The official manufacturing purchasing managers index, a key measure of factory activity, rose to 52.1 in November from 51.4 in October, according to data released Monday by the National Bureau of Statistics. Meanwhile, China’s nonmanufacturing PMI, which includes services and construction activity, rose in November to 56.4, its highest level since June 2012…”, The Wall Street Journal, November 30, 2020
“Forget decoupling. China’s economy is wedded to globalization: By opting to show China’s preference for large, regional free trade agreements, even those led by the US or Japan, China is sending two powerful signals. It wants Chinese state-owned enterprises to prevail in an expanding market overseas, not just within China. More importantly, the Asia-Pacific Economic Cooperation – which has set out a vision for liberalisation of more business sectors by 2040 – is vital. It should now be clear that globalisation is indeed a staple of Chinese policy. Thus, any talk of the decoupling of the Chinese economy from the rest of the multilateral trading world is unrealistic, to say the least.”, South China Morning Post, November 29, 2020
The China Chain Store and Franchise Association (CCFA) held its annual meeting between November 11-17 in Wuhan. Business is back to normal in Wuhan and most of mainland China. This link and update is compliments of Paul Jones, Paul Jones & Co., Toronto
http://www.ccfa.org.cn/portal/cn/xiangxi.jsp?id=442313&type=1&sharetype=1
France
“French lockdown to ease after second peak passes: France will begin to ease its strict coronavirus restrictions this weekend, allowing non-essential shops to reopen, President Emmanuel Macron has said. People will also be able to share ‘moments with the family’ over the Christmas period, Mr. Macron announced. But he said bars and restaurants would have to remain closed until 20 January.”, BBC News, November 25, 2020
“Air France to Increase Domestic Holiday Capacity: Air France (AF) is set to increase its domestic holiday capacity, reaching up to 55% of the capacity for the same period in 2019. Frequencies will increase on routes both between Paris departures as well as inter-regional routes and routes to the French Overseas Territories.”, Airways, November 28, 2020
Japan
“With Tokyo posing a challenge to Hong Kong’s financial hub crown, are companies likely to head for Japan? The Japanese government has swiftly implemented measures to bolster Tokyo’s chances, sensing weakness in rival Hong Kong amid political turmoil.”, South China Morning Post, November 17, 2020
Mexico
“Mexico Confirms Its Economy Rebounded in Third Quarter: GDP expanded a seasonally adjusted 12.1% in the third period following a record 17% contraction in the previous quarter. Mexico’s economy bounced back in the third quarter, led by increases in industrial output as business reopened from shutdowns to slow the spread of the coronavirus, but activity remained well below its year-earlier level, revised data show.”, The Wall Street Journal, November 26, 2020
The Philippines
“Philippine Airlines to Launch Manila COVID-19 Testing Center: Philippine Airlines (PR) is set to launch a COVID-19 testing center in Manila beginning on December 1, offering RT-PCR tests for passengers leaving the Philippines. With test results released between 12 and 24 hours, PR ticketholders are eligible for a discount on the tests.”, Airways, November 28, 2020
South Korea
“South Korea mulls stricter social distancing as COVID-19 spike continues: South Korean authorities will consider tighter social distancing restrictions on Sunday to clamp down on economic activities after last week saw the fastest spread of infections since the early days of the COVID-19 pandemic. South Korea bans year-end parties, some music lessons, as virus spikes again.”, Reuters, November 28, 2020
New Zealand
“Good news, but lower unemployment and immigration a challenge for franchise recruitment: Starting with the good news: New Zealand’s economy has shown its resilience in fine style, says Dominick Stephens, Westpac’s Chief Economist. ‘It’s now clear that the economy will be damaged, but not as severely as originally feared. We predict a peak unemployment rate of 6.2%, which is about the same as the 2009 recession.’”, Franchise New Zealand, November 26, 2020
Turkey
“Turkey’s GDP grew by 6.7% in the three months through September, according to data released earlier today, after contracting by 9.9% in the previous quarter. Turkey not only exceeded most forecasts but outperformed all major economies in the third quarter. But the country is hardly out of the woods.”, The London Economist, November 29, 2020
United Kingdom
“UK set to approve Pfizer-BioNTech Covid vaccine within days: Rollout of two-shot jab could begin as soon as December 7. The UK is poised to become the first western country to approve a Covid-19 vaccine, with the independent regulator set to grant approval within days. Deliveries of the vaccine developed by BioNTech and Pfizer would begin within hours of the authorisation, according to government officials.”, The Financial Times, November 28, 2020
“COVID-19 cases fell by a third in England during second lockdown, study suggests: The findings suggest the tiered system and lockdown have worked to bring cases down, the study’s director says. Falling infections in the North East and North West – where cases decreased by more than half – have helped to fuel the change, according to the latest findings from Imperial College London’s React study.”, Sky News, November 30, 2020
United States
“United (Airlines) Begins Flying Pfizer’s Covid-19 Vaccine: Carriers are positioning doses for quick distribution if vaccines are approved by regulators. United Airlines Holdings Inc. on Friday began operating charter flights to position doses of Pfizer Inc.’s Covid-19 vaccine for quick distribution if the shots are approved by regulators, according to people familiar with the matter. The initial flights are one link in a global supply chain being assembled to tackle the logistical challenge of distributing Covid-19 vaccines.”, The Wall Street Journal, November 27, 2020
“Delta Air Lines To Block Middle Seats Until March 2021: Delta Air Lines (DL) will continue delivering on its commitment to providing more space for customers as the only US airline blocking middle seats. The measure continues for flights departing now through March 30, 2021.”, Airways, November 19, 2020
“New York City to reopen nation’s largest schools system: Remote learning had angered parents and prompted claims Mayor de Blasio was prioritising businesses. New York City will reopen its schools for younger children, overturning an earlier policy that frustrated parents and which critics said prioritised businesses over education. Mayor Bill de Blasio announced the change on Sunday, stating that schools would reopen their doors for children in elementary school beginning December 7. In-person classes for special education students will resume three days later.”, The Financial Times, November 29, 2020
“Chicago adding COVID-19 testing facilities at O’Hare and Midway airports next month: The Chicago Department of Aviation is planning to add COVID-19 testing facilities at O’Hare and Midway airports by next month for travelers and employees. The city announced a request for proposals Friday for drive-up and walk-up facilities, with both the rapid and PCR tests offered. The tests are not free but should be covered by insurance.”, The Chicago Tribune, November 20, 2020
“Mail-in COVID tests available to United travelers flying out of Houston’s Bush Airport: United Airlines said Monday that it’s launching mail-in COVID-19 testing for people traveling from Houston to Latin American and Caribbean destinations. Starting on Dec. 7, customers flying out of George Bush Intercontinental Airport (IAH) will have the option to take a self-collected, mail-in test that meets local entry requirements for select destinations.”, Houston Chronicle, November 23, 2020
Brand News
“Sola Salon Studios signs 17 franchise development agreements: Sola Salon Studios, a salon studios franchise brand with more than 540 locations open across the U.S., Canada, and Brazil, has announced the signing of 17 new franchise development agreements that will expand the brand’s presence in 14 key U.S. states, including Illinois, Arizona, Texas, New York, California, and Florida. The new signings will total 44 new Sola locations over the next several years, and come after eight more franchise agreements were announced in August. This year, Sola has opened 54 new locations across North America, and has signed more than 25 franchise development agreements with both new and existing Sola franchisees.”, Global Franchise, November 20, 2020
“At InXpress, Covid Has Shortened the Time from Signing to Opening: Covid-19 has influenced, ohh… everything, including franchise development. We asked Christina Chambers, Executive Vice President for Franchise Development at InXpress, how Covid-19 has affected the brand’s timeline from time of signing to actual opening. We are not a brick-and-mortar franchise, so from signed agreement to opening simply includes the time to attend training and launch the business. No difference in timing this year, but we did adjust to all-virtual training classes instead of in-person. Since March, we’ve seen faster time from candidate application submission to signing, at an average of just over 60 days. In 2019, this timing was 100 days, so it has been significantly faster during Covid-19….’I believe this uptick is a direct result of the resilient, essential nature of our business in shipping and logistics, combined with the safe work-from-home atmosphere for franchisees.’”, Franchising. Com, November 20. 2020
“Respublika (Moscow) gives stores to good hands: Franchisees will be engaged in the development of offline sales. The Respublika book chain will transfer all the stores to franchisees, and itself will manage only the online store to cut costs. If the company cannot pay off creditors and the owner of the franchise changes, the licensees’ working conditions may change, lawyers warn. The chain of stores of books and gifts “Respublika” will give up its own stores in favor of a network operating under a license agreement, a company representative told Kommersant. The new model of work assumes that the licensees will manage all points, and the “Respublika” – only the online store.”, Komersant, November 19, 2020. Compliments of Paul Jones, Paul Jones & Co., Toronto
https://www.kommersant.ru/doc/4576722?from=main_1
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
“How Small Businesses Can Survive The Growing Pandemic: While the pandemic continues to take its grim toll throughout the United States, there has been recent good news of late regarding vaccines and therapeutics. However, let’s get real, this tough business climate is not going away soon.”, Henry DeVries, noted author and publisher, provides sage advice for small businesses in this Forbes article dated November 29, 2020.
“In Times Of Crisis, Innovating Your Business Model Can Be A Lifeline. Here Is How To Do It Right. The global health crisis is upending businesses across the world. As many countries have entered into a second lockdown, companies whose business models relied on global supply chains or frictionless travel are having to radically rethink their strategies from the ground up, or be faced with potentially permanent damage. However daunting the external context might be, in a crisis stasis is not an option. Redesigning your company’s business model may even be necessary to stave off a liquidity crisis.”, Forbes, November 26, 2020
“What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. Hybrid models of remote work are likely to persist in the wake of the pandemic, mostly for a highly educated, well-paid minority of the workforce.”, McKinsey report, November 23, 2020
“More Than Half of Restaurant Sales Will be Digital by 2025: Digital sales will make up more than half, or 54 percent, of all quick-service and limited-service restaurant sales by 2025, according to new survey numbers from market research firm Incisiv. That’s 70 percent higher than pre-COVID estimates, the firm notes.”, The Spoon, November 24, 2020
“The restaurant of the future: Engaging the next-generation consumer. Consumer demands for convenience and seamless digital experiences are on the rise, further accelerated by the COVID-19 pandemic. How can food establishments elevate customer experiences with the help of new convenience practices and digital ecosystems to be successful with the next-generation guest? We serve up insights into three trends that are shaping consumption patterns among restaurant guests and examine actions restaurants of the future can take to thrive.”, Deloitte report
“Are plant-based meats now a vital part of the QSR menu? So we recently learned that McDonald’s shall soon go full-bore into the plant game with not just one product but an entire platform of menu items called, perhaps unsurprisingly, “McPlant.”, Jonathan Maze, Restaurant Business, November 20, 2020
Who We Are And What We Do For Companies ‘Going Global’
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets, providing in-country operations support and problem solving. around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
Download our latest quarterly GlobalVue™ 40 country ranking chart at this link:
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
For market research, operations and development support on taking your business global, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
EGS Biweekly Global Business Newsletter Issue 17, Monday, November 16, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
‘Surround yourself with people that push you to do and be better. No drama, no negativity. Just higher goals and higher motivation. Good times and positive energy. No jealously or hate. Simply bringing out the absolute best in each other.”, Warren Buffet, from a LinkedIn posting by The Female Lead
“A true leader is one who is humble enough to admit their mistakes.”, from a LinkedIn posting by Leadership First
“We may encounter many defeats but we must not be defeated.” – Maya Angelou
Introduction
This biweekly newsletter focuses on what is happening around the world that impacts new trends, health, consumer spending, business investment and travel. A few highlights in issue #17:
- Amid the surge in COVID-19 cases in parts of the world comes the announcement that two vaccines are close to multi-government approval.
- The COVID-19 virus is seeing surges in Europe and the USA, but declines in Latin America, most of the Middle East and much of Asia.
- Leaders from 15 Asia-Pacific nations on Sunday sealed one of the biggest trade deals in history, seeking to reduce barriers in an area covering a third of the world’s population and economic output.
- The COVID-19 crisis is changing the way consumers spend and companies do business.
We monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries. Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
First, a few Personal Comments
Since our last newsletter on November 2nd, the world continues to change. From an election here in the USA to a major new trade treaty in the Asia Pacific region to COVID-19 lockdowns in Europe to the announcement that two vaccines against the disease will be ready soon, it is more important than ever to keep up to date on what is happening around the world. We have expanded the number of information sources we monitor to better keep our ~500 readers up to date on health, business and travel matters worldwide.
The COVID-19 Vaccine Announcement
“Covid vaccine: First ‘milestone’ vaccine offers 90% protection: The first effective coronavirus vaccine can prevent more than 90% of people from getting Covid-19, a preliminary analysis shows. The developers – Pfizer and BioNTech – described it as a “great day for science and humanity”. Their vaccine has been tested on 43,500 people in six countries and no safety concerns have been raised. The companies plan to apply for emergency approval to use the vaccine by the end of the month. No vaccine has gone from the drawing board to being proven highly effective in such a short period of time. There are still huge challenges ahead, but the announcement has been warmly welcomed with scientists describing themselves smiling “ear to ear” and some suggesting life could be back to normal by spring.”, BBC , November 9, 2020
“Moderna’s Covid jab shows 94.5% efficacy in clinical trials: US biotech Moderna said its Covid-19 vaccine had shown 94.5 per cent efficacy in clinical trials, in the second positive set of results for a potential coronavirus shot in the past eight days….Moderna added that it expected the vaccine could be shipped and stored for up to six months at minus 20C, and then remain stable once thawed for 30 days if refrigerated at between 2C and 8C.”, The Financial Times, November 16, 2020
Interesting Data To Start
The COVID-19 crisis has had immense impact on global supply chains. Impact from this crisis is likely to drive supply chain location changes for multi-national companies. This chart from the recent Economist Intelligence Unit webinar entitled, “What next for the global economy?’, shows that the source of imports for the USA has dramatically shifted from China for a number of business sectors.
One of the trends that accelerated during the COVIS-19 crisis and which is likely to stay is online grocery shopping with store pick up or home delivery.
The Growth of 5G Worldwide: For those of us who have just acquired an Apple iPhone with 5G capability, this chart shows where this game-changing technology is and will be in the coming year when we can, hopefully, start international travel again.
“The unexpected rise and pivot of LinkedIn in 2020 — and how business owners should respond: As a social platform, LinkedIn is a bit of a hybrid. For a lot of individuals, it is seen as a career mover. It’s a place to explain your professional background and look for job opportunities. For others, it is seen as a business development tool to find and engage with decision-makers in particular industries. But over the last eight months, LinkedIn has completely shifted and cemented its place as the social networking platform for people when they are at work. Throughout lockdown and with the increase in flexible working arrangements, LinkedIn has become the only place for people to connect, engage, learn and contribute ideas with other professionals in their communities.”, Smart Company Australia, November 16, 2020
International Travel Updates
“Emirates (Airline) working with Pfizer, others on vaccine transport ‘challenge’: Emirates is working with major pharmaceutical companies, including Pfizer, to transport vaccines to the world when needed. The Pfizer vaccine candidate must be kept at around -100 degrees Fahrenheit (-70 Celsius) in order to maintain optimal efficacy. ‘here is a global imperative to get this done’ Emirates President Tim Clark told CNBC in an exclusive interview on Sunday.”, CNBC, November 15, 2020
“American slashes London flights in December due to weak demand: Weak demand as coronavirus cases rise is prompting American to cut much of its London service next month. Travelers in New York and Chicago can fly nonstop on American’s joint-venture partner British Airways.”, CNBC, November 15, 2020
“Travel news: South Africa reopens to Britons ‘effective immediately’: South Africa has now reopened its international borders to all countries, including the UK, it has been confirmed. President Cyril Ramaphosa announced on Wednesday that the country would be lifting the ban on visitors from its list of ‘high risk’ countries but did not say when the changes would go into effect. The South African Tourism UK board has now stated that the new rules kick in “effective immediately”. Travellers will be required to present a negative Covid-19 test taken with 72 hours of departure but otherwise face no restrictions.”, The London Telegraph, November 14, 2020
The Americas
“The Current State of the Aviation Industry in Central and South America: Aviation in Latin America has been seriously affected by the COVID-19 pandemic. The three main airlines in the region: LATAM, Avianca and Aeroméxico, have declared bankruptcy and filed for the Chapter 11 process in the U.S. Latin American governments have not given enough help to the aviation industry. “The countries of Latin America are reopening step by step, however, there are still too many individual rules and regulations; this places a heavy burden on airlines and does not help stimulate demand’, said the IATA Vice President for Latin America, Peter Cerdá,”, Airline Geeks, November 15, 2020
Asia Pacific Countries
“Asia-Pacific countries sign one of the largest free trade deals in history: Pan-Asia trade pact covers a third of the world’s population and economic output. Leaders from 15 Asia-Pacific nations on Sunday sealed one of the biggest trade deals in history, seeking to reduce barriers in an area covering a third of the world’s population and economic output. Economists said the deal, the first trade agreement bringing together China, Japan and South Korea, could add almost $200bn annually to the global economy by 2030.”, The Financial Times, November 15, 2020
Australia
“How Australia brought the coronavirus pandemic under control: Lockdowns, contact tracing and public adherence to tough rules credited for success. Corporate leaders have criticised the measures as too strict and economically damaging. But the zero tolerance strategy worked: no new locally transmitted cases have been reported in Victoria since the lockdown was lifted two weeks ago.”, The Financial Times, November 12, 2020
“Vic government launches $1,200 grants to help SMEs go digital: Here’s what you need to know: The Victorian government has unveiled the details of its $20 million Small Business Digital Adaptation Program, offering rebates of up to $1,200 for SMEs looking to get a bit more tech-savvy. Part of the state government’s $3 billion Business Resilience Package, released in response to the COVID-19 economic crisis, the new scheme is intended to help small businesses adapt to the online retail ecosystem. Businesses will be able to access a $1,200 rebate for selected digital products, from suppliers that have partnered with the state government.”, Smart Company Australia, November 16, 2020
“World’s Largest Barbecue Franchise Heads Down Under: Dickey’s Barbecue Pit signs letter of intent with Australian restaurant group to bring 50 locations to the Commonwealth of Australia.” Global News Wire, October 30, 2020, compliments of Jason Gehrke, Managing Director, The Franchise Advisory Centre, Brisbane, Australia
“The day the buffet menu DIED: Picture shows long queue of diners waiting for their last Sizzler as chain closes all its remaining restaurants in Australia: Sizzler on Sunday closed all of its remaining nine buffet restaurants in Australia. Many children of the 1980s, 1990s said only nostalgia had brought them back.”, The London Daily Mail, November 16, 2020
Austria
“Austria announces strict lockdown as virus cases soar: Schools to close and social contact barred in one of Europe’s toughest sets of new restrictions. An “around-the-clock” curfew will apply from Tuesday, with people only allowed to leave their homes to buy groceries, travel to essential work or provide urgent care. Austria’s second lockdown will be stricter than others in Europe, such as that recently imposed in France, because schools will also close. Only supermarkets, pharmacies, banks and post offices will be allowed to stay open.”, The Financial Times, November 14, 2020
Mainland China
“China economy continues strong growth trajectory in October, but imbalances remain: China’s industrial production grew by 6.9 per cent in October year on year, retail sales grew by 4.3 per cent and fixed asset investment grew by 1.8 per cent year to date. Retail sales continued to lag industrial output, with consumers remaining cautious in their spending in the world’s most populous nation.”, South China Morning Post, November 16, 2020
“How China’s factories are pivoting from an export-oriented business model to rely more on domestic sales: Deteriorating relations with Western countries has accelerated China’s push to look inward for economic growth, putting its fate in its own hands. Even as orders have been returning to China due to other producing countries still being ravaged by the pandemic, manufacturers say the trend unsustainable.”, South China Morning Post, November 16, 2020
“Alibaba’s Singles’ Day Brings In Record $74 Billion In Pandemic Year: The shopping event, which beats out Black Friday, Amazon Prime Day and Cyber Monday shopping events put together, saw a 26% rise on last year’s event. Some 250,000 brands globally took part in the event from Nov. 1 to Nov. 11, with 2,600 taking part for the first time, in a sign of firms pivoting to online following a devastating year for retailers.”, Forbes, November 12, 2020
“Chinese braised duck takeaway chain Zhou Hei Ya aims to open thousands of new outlets as it eyes global expansion. The company, which started out as a single stall in a wet market and now has 1,300 stores in mainland China, plans to open an outlet in Macau next year. It faces stiff competition at home, where the industry is forecast to grow 36 per cent between 2016 and the end of this year to US$432 billion.”, South China Morning Post, November 15, 2020, compliments of Paul Jones, Jones & Co., Toronto
European Union and Euro Zone
“Europe Appears to Curb Covid-19 Spread: Despite progress, leaders across the continent are wary of easing of restrictions too quickly. Europe’s effort to turn back a resurgent pandemic seems to be starting to pay off. Now, caseloads appear to have peaked across the region as a whole and in some countries are falling back rapidly. Progress is uneven, though, and leaders are wary of letting their guard down too soon.”, The Wall Street Journal, November 13, 2020
Japan
“Japan leads economic ‘Zoom boom’ out of recession: Japan’s economy has bounced back from recession with growth of 5% in the third quarter of this year. It had seen its economy shrink during 2020 as lockdowns hit its manufacturing sector and consumer spending. The world’s third biggest economy is now showing signs of recovery, although some analysts cautioned that further growth is likely to be modest.”, BBC, November 15, 2020
“Japan looks to avert Covid-19 lockdowns and keep economy open: Japan can make it through the winter without lockdowns or mass screening for Covid-19 but the public will have to socialise — and drink — with care, according to the doctor leading the country’s response. Dr Shigeru Omi, chair of the government’s expert committee on the virus, told the Financial Times in an interview that Japan was determined to keep the economy open even as case numbers were rising.”, The Financial Times, November 15, 2020
“Olympics: Bach projects confidence in Tokyo Games as virus cases surge: International Olympic Committee (IOC) chief Thomas Bach expressed confidence on Monday that the Tokyo Games will be held successfully next year, even allowing spectators to attend, as the world grapples with a sharp rise in coronavirus infections. The IOC president spent the day with the Tokyo organisers discussing how to stage the massive sporting event during an unprecedented pandemic and ensure safety for a gathering of more than 11,000 international athletes.”, Reuters, November 15, 2020
Mexico
“Aeroméxico To Operate Around 11,000 Flights in December: In December, Aeromexico will achieve an 84% recovery in the domestic market and 41% in the international market, with an offer of almost 11,000 flights, the airline announced Nov. 11. In a press release, the Mexican airline indicated it will increase frequencies to 31 national and international destinations.”, Airline Geeks, November 12, 2020
The Philippines
“Philippine mall titan accelerates shift to ‘omni-channel’ sales to replicate success in China-style retailing approach: Sales of tenants in SM’s malls will be back to 2019’s level by the third quarter of next year, a top executive predicts. SM has 75 shopping centres in the Philippines and eight in China, and plans to add five more in 2021. SM Investments Corp, the owner of the Philippines’ largest mall operator, is speeding up efforts to develop ‘omni-channel’ options for shoppers as people shift to a mix of online and in-store purchases amid the coronavirus pandemic. The group is tapping personal shoppers, ramping up delivery and pickup services, and boosting its online presence, said Steven Tan, president of SM Prime’s mall unit. Last month, the group started operating a virtual mall for Manila residents, which it plans to roll out nationwide soon, he said.”, South China Morning Post, and Bloomberg, November 15, 2020, compliments of Paul Jones, Jones & Co., Toronto
South Korea
“Korean Air Plans To Take Over Rival Asiana Airlines With $1.6 Billion Injection: C Consolidation was long overdue in South Korea. If the deal goes through, the result will be a single international carrier cushioned against further blows from the pandemic.”, Skift, November 16, 2020
United Kingdom
“COVID-19: Thousands volunteer as third vaccine candidate begins clinical trials in UK: It is the third potential vaccine to enter clinical trials in the UK, alongside Novavax and University of Oxford/AstraZeneca. Global pharmaceutical company Janssen is beginning clinical trials of a potential COVID-19 vaccine in the UK. Around the country, 6,000 volunteers are taking part in phase-three trials of the COVID-19 vaccine at 17 National Institute for Health Research (NIHR) sites, including in Southampton, Bristol, Cardiff, London, Leicester, Sheffield, Manchester, Dundee and Belfast.”, Sky News, November 16, 2020
“Burger King UK sends customers to McDonald’s to support restaurant industry: Burger King has issued a surprising decree by encouraging fans to order from competitors like McDonald’s, in a show of support for the restaurant industry as England enters a second national lockdown to curb the coronavirus. In an apparent gesture of goodwill, the chain’s UK office posted the notice to Twitter over the weekend.”, News.com.au, November 2, 2020, compliments of Jason Gehrke, Managing Director, The Franchise Advisory Centre, Brisbane, Australia
United States
“An index of America’s smallest companies closed at the highest level ever on Friday: An index of America’s smallest companies closed at the highest level ever on Friday. It hasn’t hit a new record in over two years. Driving the news: This week, the index surged on the back of positive developments from a coronavirus vaccine.”, AXIOS, November 13, 2020
Brand News
“Stories from the Covid-19 Front Lines: Frances Allen, President & CEO, Checkers Drive-In Restaurants”, Franchising.com
“Midas Recognized As Major Franchise Opportunity For Veterans: Midas has received recognition from Entrepreneur magazine in its annual ranking of franchise opportunities for Veterans. Midas has a history of assisting veterans. The company waives its $35,000 franchise fee for veterans and individuals serving in the U.S. and Canadian Armed Forces who are looking to join the ranks of its owner-operators.”, After Market News, November 6, 2020
“How I navigated COVID-19 as a small business owner”, The Points Guy, November 13, 2020
“Smoothie King CMO: How Covid Has Changed Our 2021 Marketing Plans”, Franchising.com
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
“How to Accelerate Digital: The pandemic has forced organizations to jump-start their adoption of digital technologies. Now the task is to embed their digital approaches. The pandemic has highlighted the need for digital transformation, but organizations also need to move fast and go deep.”, Boston Consulting Group
“Retail Innovation in 2020: What’s Here To Stay”, Euromonitor Monitor
“Ranked: The 100 Most Spoken Languages Around the World”, Visual Capitalist
“How B2B sales have changed during COVID-19”: New digital behaviors are becoming the next normal. The pivot: Accelerated migration to remote and digital. Amid the COVID-19 pandemic, the way companies buy from and sell to each other now looks very different than it used to—perhaps permanently. To thrive in the next normal, B2B companies will need to continue adapting to the new economic reality.”, McKinsey & Co.
Who We Are And What We Do
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
Download our latest quarterly GlobalVue™ country ranking chart at this link:
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
For market research, operations and development support on taking your business global, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
EGS Biweekly Global Business Newsletter Issue 16, Monday, November 2, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
‘Innovation is the ability to see change as an opportunity – not a threat,’ wisely said Steve Jobs.
“It’s tough to make predictions, especially about the future.”, Yogi Berra
“Life is what happens when you’re busy making other plans”, John Lennon
Introduction
This biweekly newsletter focuses on what is happening around the world that impacts new trends, health, consumer spending, business investment and travel. A few highlights in issue #16:
- The U.S. economy grew at a record pace in the third quarter—increasing 7.4% over the prior quarter and at a 33.1% annual rate—recovering about two-thirds of the ground it lost earlier in the coronavirus pandemic.
- Surge in coronavirus cases spurs new lockdown measures across Europe and the United Kingdom
- International Air Travel Is Closer to Restarting, Thanks to This App: The Common Pass app
- Australia records zero Covid-19 cases for first time in five months
We monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our team on the ground covers 43 countries and provides us with updates about what is happening in their specific countries. Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
First, a few Personal Comments
As this edition of our biweekly newsletter goes out, countries in Europe and the United Kingdom are imposing new restrictions on travel and business. COVID-19 cases are at a high in the USA ahead of the election tomorrow. Latin America, on the other hand, is beginning to see lower cases and the reopening of air travel (see Brazil and Mexico). This issue has several articles on how businesses around the world are adjusting to new consumer trends and lockdowns. Spaniards are having to learn to eat out early to avoid the curfew. Global business sentiment overall remains bullish on 2021.
Interesting Data To Start
McKinsey & Co. COVID-19 Executive Change Survey: “We asked executives how long they expected it would have taken their companies prepandemic to digitize 12 different activities and how long it actually took them once the coronavirus hit. When it came to remote working, companies moved 43 times more quickly than executives thought possible.”, McKinsey & Co., Published October 28, 2020
“Coronavirus (COVID-19) has transformed the economic and consumer landscape. It has changed the way we as consumers live, work and shop. Uncertainty remains high. But what is clear is that economies will not emerge unscathed and the daily routines and lifestyles of consumers will shift to accommodate continued social distancing while treatment and vaccine options are investigated.”, Euromonitor International, Published October 2020
International Travel Updates
“International Air Travel Is Closer to Restarting, Thanks to This App: The Common Pass app, which has now gone through two successful trials, standardizes COVID-19 test results for fliers. International air travel got a hopeful sign for recovery on Wednesday. The first transatlantic trial of Common Pass, an app that creates a standard digital format for COVID-19 test results, was successfully completed.”, Conde Nast Traveler, October 21, 2020
“Delta CEO (Ed Bastian): The return of middle seats and business travel are both inevitable: “It’s going to take some time before customers are confident sitting next to people on a crowded flight, and at Delta we want to give them a little bit more time––certainly into the new year––to evaluate that for themselves,” Bastian said. The company has stated it will block middle seats through at least Jan. 6. ‘Unfortunately, there are a lot of people that haven’t been traveling by air for an extended period of time,’ Bastian said. ‘And it’s going to take them a while before those old behaviors become the new patterns that we can anticipate.’ Still, Bastian is confident that neither business nor international travel is gone for good. Eventually, he believes, companies will realize that true human connection cannot be replicated over a computer screen.“ Fortune Global Forum, October 27, 2020
“Americans can now visit 60+ countries and territories: a complete list: the welcome mat had been rolled up for Americans for much of 2020, but there’s now dozens of countries that are reopening to U.S. tourists. More than 60 countries and territories are open for business.”, The Points Guy, October 27, 2020
“China Southern Airlines Becomes World’s Largest Airline Again: According to data supplied by OAG, China Southern Airlines (CZ) is currently the largest airline in the world. This data comes following the airline wanting to increase its capacity during the COVID-19 pandemic, with CZ increasing seat capacity to nearly 2.6 million seats….10% down compared to the start of the year. American Airlines (AA), therefore, has been moved down to second place. Delta Air Lines (DL) slipped into third place, having been the largest carrier last week.”, Airways, October 26, 2020
“The World’s Longest Flights Are Operating Again: In the latest sign of air travel’s recovery, these ultra-long flights are bookable again. Most recently, Singapore Airlines announced plans to relaunch its longest flight, which is the current record holder for longest flight in the world: a route from New York City to Singapore’s Changi Airport. The 9,357-mile route will ferry passengers three times per week out of New York’s JFK Airport when it resumes on November 9. , Conde Nast Traveler, October 22, 2020
“India’s International Flight Suspension Continues through November: The Directorate General of Indian Civil Aviation (DGCA) said today it would continue to suspend international flights through November 30. The suspension is due to the coronavirus pandemic.”, Airways, October 28, 2020
Australia
“Australia records zero Covid-19 cases for first time in five months: The state of Victoria – epicentre of Australia’s second wave – recorded zero cases for the second day in a row after a 112-day lockdown….Health officials say more restrictions may be eased in the coming days.”, BBC News, November 1, 2020
“City Locked Down for Three Months Has Bleak Lessons for the World: As countries across the globe grapple with the prospect of renewed lockdowns, the Australian city of Melbourne offers a stark lesson on the costs of bringing the coronavirus under control. The city of 5 million people on Wednesday emerged from one of the world’s strictest and longest lockdowns that shuttered businesses and confined residents to their homes for more than three months. While infections have dropped from a daily peak of about 700 in early August to just two new cases on Wednesday, the economic and social impact of Melbourne’s second lockdown since the crisis began has been enormous.”, Bloomberg, October 27, 2020
Austria
“Austria reimposes coronavirus lockdown amid surge of infections: Chancellor Sebastian Kurz said.….. the measures will take effect from Tuesday until the end of November, and will include a daily curfew from 8 p.m. to 6 a.m. Restaurants, bars and cafes will be allowed to provide a take-away service, and hotels will be closed to all but business travelers. Kurz described the curfew as a “ban on visits” aimed to hinder private parties that have driven infections.”, Axios, October 31, 2020
Brazil
“As Europe plunges into a second wave of COVID-19, putting even more pressure in the local aviation industry, Brazil — at least in that aspect — seems to be in a better situation. The sector expects to register a relatively positive month of November, with a boost provided by two long weekends. The upbeat forecast was bolstered by the country’s Ministry of Tourism earlier this week. The government branch said the next feriadão, as extended weekends are called in Brazil, on Nov. 2, should move “more than a million travelers” across the entire country. This, according to the Ministry, represents 40% more than traveled over the October 12 holiday.”, Airline Geeks, November 2, 2020
Mainland China
“PMI points to strong recovery of industrial production and economic activity in 3Q20: The recovery of small enterprises lags behind that of large and medium enterprises but shows marked improvement in September. Output expands at a relatively fast pace as overall demand picks up fast. New export orders increase amid improvement in external demand. Prices of production inputs jump, adding cost pressures on Chinese manufacturers. Manufacturers raise ex-factory prices of their products amid increasing cost pressures and improving sales environment. Manufacturing employment remains steady.”, FUNG Intelligence Group, October 2020
“With the continuous upgrading of retail formats in the Chinese market, new retail has gradually become the mainstream of the market. Recently, McDonald’s China’s Alibaba cross-terminal official member store was officially launched, marking the start of global cooperation between McDonald’s China and Alibaba. This is not the first time that Alibaba has cooperated with an international retail giant across platforms. Prior to this, Alibaba had invested in Parkson China, and later worked with Starbucks to create AI+ new retail insights into consumer trends.”, First Finance, compliments of Paul Jones. Paul Jones & Co., Toronto
“Coca-Cola Expects Growth in China Even as Global Sales Slide: Coca-Cola Co. said it expects to see growth this year in China, even as its global sales continue to decline because of the closures of restaurants, bars, movie theaters and sports stadiums elsewhere around the world. In China, where the coronavirus originated, consumers are ‘more or less back to where they were’ before the pandemic started, though away-from-home sales aren’t quite back to where they were, Coke’s finance chief, John Murphy, said in an interview.”, The Wall Street Journal, October 22, 2020
“Fresh China ban on international tour groups weighs on sector stocks, to push firms further towards domestic market. Beijing has tighten restrictions ahead of the winter months after Qingdao, Guangzhou and Ruili record cases of Covid-19, most of them imported. China’s domestic tourism market has recorded a strong rebound in recent months after curbs were eased in July.”, The South Morning Post, October 22, 2020
“China’s largest restaurant group and KFC parent company plans to further increase the density of stores. On October 29, Yum China announced the third quarterly report for 2020. The same-store sales, the core indicator of chain catering, fell 6% year-on-year in the quarter, while KFC and Pizza Hut fell 6% and 7% respectively. Yum China continues to promote the digitalization of restaurants. In the third quarter, takeaway revenue accounted for 28% of the total revenue of KFC and Pizza Hut restaurants, which was 20% in the same period last year; digital orders (including takeaway orders, mobile phone orders and self-service ordering machine orders) accounted for KFC and Pizza Hut restaurants 78% of total revenue, which was 56% in the same period last year.”, Caixin, October 30, 2020. English translation compliments of Paul Jones, Jones & Co., Toronto
Costa Rica
“Costa Rica: All Americans Welcomed And Covid Tests No Longer Needed: Costa Rica is no longer requiring travelers to provide proof of a negative Covid test (as of October 26) and all U.S. travelers—as well as travelers from all other countries—are welcome as of November 1.”, Forbes, October 23, 2020
European Union and Euro Zone
“Eurozone economic rebound leaves output below pre-pandemic levels: Fresh social restrictions are likely to undermine recovery in the rest of the year. The bloc’s output grew by 12.7 per cent in the third quarter of the year compared with the previous three months, better than the 9.4 per cent expected by economists polled by Reuters and the fastest rate of expansion since records began in 1995. But gross domestic product remained 4.3 per cent smaller than its pre-pandemic level at the end of last year, and economists have warned that the fresh round of restrictions imposed in recent weeks to contain the virus could plunge the bloc back into contraction again in the final quarter of this year.”, The Financial Times, October 30, 2020
“Surge in coronavirus cases spurs new lockdown measures across Europe: The latest measures to address the second wave of Covid-19 infections in Europe could lead to higher unemployment, the permanent closure of many businesses and even more national debt. The French statistics office said before news of the latest lockdown that it expects economic activity to settle at “5 percent below its pre-crisis level” during the third quarter. Data from the German statistics office showed that the restaurant industry experienced a more-than 40 percent drop in turnover between March and August compared with the same period a year earlier.”, CNBC, October 30, 2020
“Europe’s Airlines Cut Flights as Virus Cases Rise, Governments Lock Down: Europe’s major carriers are cutting capacity plans for the end of the year as they grapple with a surge in coronavirus cases and new restrictions to limit the spread of the viral disease.”, The Wall Street Journal, October 30, 2020
France
“Disneyland Paris Is Closing Again Due To A Second Wave Of Coronavirus: Disneyland Paris is set to temporarily close at the end of business Thursday, October 29 due to a second set of coronavirus lockdowns in France. The nationwide lockdowns are in place to help curb the surge in Covid-19 infections. France’s President Emmanuel Macron said the new nationwide lockdown will last until at least December 1. All non-essential businesses, restaurants and bars will be closed starting Monday.”, Forbes, October 29, 2020
Germany
“Germany Aims to Start Coronavirus Vaccination This Year. Germany could be one of the first Western countries to start immunizing people against Covid-19 under a plan being rolled out by the government and a German company that is testing a vaccine, according to people with knowledge of the strategy.”, The Wall Street Journal, October 29, 2020
“Germany Cancels World-famous Nuremberg Christmas Market for the First Time Since World War II: One of Germany’s oldest and most famous Christmas markets will not return this holiday season.”, Travel & Leisure magazine, October 28, 2020
Greece
“Greece tightens coronavirus restrictions as Europe cases spike: Greek Prime Minister Kyriakos Mitsotakis on Saturday announced that most of the country will resume a coronavirus lockdown starting Tuesday, including closing restaurants, bars, cafes, movie theaters and gyms, AP reports.”, Axios, October 31, 2020
India
“India Resumes 56% of Domestic Flights: Yesterday, the Directorate of Civil Aviation (DGCA) of India increased the number of domestic flights to 56% of levels prior to COVID-19. The regulator said the winter schedule for domestic flights running until March 21, 2021 permits a total of 12,983 flights from 95 airports. It is widely believed, according to the Minister for Civil Aviation Hardeep Singh Puri, that domestic flights should be a pre-requisite, almost like a test before really ramping up international service as they connect smaller cities to major hubs.”, Airways, October 26, 2020
South Korea
“South Korea virus response underpins sharp GDP jump: Economy grows 1.9% in third quarter, buoyed by Covid suppression and tech exports. South Korea has reported its sharpest quarterly gross domestic product rise in a decade as Seoul reaps the rewards from its swift response to the coronavirus pandemic and robust tech exports.”, The Financial Times, October 26, 2020
Mexico
“Mexico’s economy picked up sharply in the third quarter, led by a rebound in industrial production as businesses reopened from shutdowns to slow the spread of the coronavirus. Gross domestic product, a measure of the country’s output in goods and services, expanded 12% in seasonally adjusted terms from the second quarter, the National Statistics Institute said Friday. Industrial production was up 22%, outpacing services, which increased 8.6%. The rebound from the 17.1% contraction in the previous quarter left economic activity in the July-September period 8.6% below its year-earlier level.”, The Wall Street Journal, October 30, 2020
“Aeroméxico to Increase Operations in November: The airline ‘will operate around 4,000 domestic flights, with which it will achieve an 83% recovery in its domestic operations compared to the same month in 2019.’ AM also plans to increase international services to Guatemala City (GUA); São Paulo, Brazil (GRU); Buenos Aires, Argentina (EZE); San Jose, Costa Rica (SJO); Santo Domingo, Dominican Republic (SDQ) and Medellín, Colombia (MDE), plus resumption of service to Lima, Peru (LIM)..”, Airways, October 31, 2020
New Zealand
“NZ small businesses feel the love, global survey reveals NZ small businesses and consumers had the most positive outlook during Covid-19. A new study investigating how small businesses in key markets around the world have responded to Covid-19 suggests that New Zealand small businesses are in a unique position thanks to the support Kiwi consumers have shown them.”, Franchise New Zealand, October 25, 2020
“Burger King New Zealand operator gets new ownership: The operator of Burger King in New Zealand now has a new owner, after retail and hospitality investment company Tahua Partners signed a binding agreement to acquire Antares Restaurant Group. Burger King is the third largest quick service restaurant chain in New Zealand, with 78 restaurants nationwide employing 1,800 staff. The chain also serves as the second global brand Tahua is expected to add to its portfolio after acquiring the local licence to operate Starbucks in 2018.”, QSR Media, October 20, 2020. Compliments of Jason Gehrke, , The Franchise Advisory Centre, Brisbane
Peru
“Machu Picchu Will Open to Tourists in November. Peru also plans to restart flights from cities in the U.S., Mexico, Central, and South America. The iconic archaeological site is scheduled to reopen at 30% capacity on Nov. 1. A maximum of 675 people will be allowed in per day, in groups of eight (seven visitors plus a guide). Temperatures will be checked prior to entering, and anyone showing 100.4 degrees Fahrenheit or more will not be permitted. Additionally, groups must stay 66 feet apart. According to Forbes, trains and buses to the entrance will operate at 50% capacity, and passengers will be required to wear a mask.”, Travel & Leisure magazine, October 28, 2020
Singapore
“Singapore to permit live performances with 100-person audiences from November: The Multi-Ministry Taskforce announced the news in a press conference last night (Oct 20), detailing how the country will continue to curb the spread of COVID-19 while preparing to relax certain safety measures, such as allowing larger groups to gather. Live shows will only permit two zones of up to 50 people each, and the number of unmasked production crew and performers will be limited. Safe distancing will be practised across the venue, from the audience area to the stage.”, NME, October 21, 2020
Spain
“Spanish restaurant owners come up with a revolutionary idea to save their industry – get locals to eat earlier: Spaniards view sitting down for dinner before 8pm as distinctly strange, but it may be the only way to save some of the country’s restaurants, reports Graham Keeley in Madrid….faced with a second wave of Covid-19 infections which is spiralling out of control, the Spanish government this week imposed a six month state of emergency and decreed a curfew between 11pm and 6am. Desperate to save their industry, restaurateurs have launched a counter attack in the hope they can carry off nothing short of a social revolution. Their solution is a radical one – get Spaniards to eat earlier.”, The Independent, October 31, 2020
United Kingdom
“Coronavirus: England to enter month-long lockdown from Thursday, PM announces. Boris Johnson urges the country to return to his spring message of “stay at home, protect the NHS and save lives”. Until 2 December, people in England will only be allowed to leave their homes for specific reasons, such as education, work or food shopping.”, Sky News, November 1, 2020
“Rishi Sunak extends furlough as Bank of England readies £100bn rescue: Treasury and BoE race to prop up businesses amid lockdown chaos. Rishi Sunak said the decision was necessary because of the return of ‘stay at home’ restrictions to contain Covid-19. News of the new lockdown, first reported by The Times, had sparked fury from bosses. ‘We will do whatever it takes as the situation evolves,’ Sunak said.”, The Times of London, October 31, 2020
“Scientists hope for coronavirus vaccine by Christmas: UK has bought 20m doses of German Covid drug. The government believes that a German vaccine backed by Pfizer could be ready to distribute before Christmas, with the first doses earmarked for the elderly and vulnerable. Albert Bourla, the chief executive of Pfizer, said that the vaccine was in the ‘last mile’ and that the pharmaceutical company expected results within a matter of weeks.”, The Times of London, October 29, 2020
“Fast food chain KFC to add 5,400 new jobs in UK, Ireland: Fast food chain KFC said it will add 5,400 jobs across its 965 restaurants in the UK and Ireland by the end of 2020, in a rare piece of good news for Britain’s pandemic-hit jobs market.”, Reuters, October 22, 2020
“Sales at UK’s Domino’s Pizza surge on online demand, lower tax rate: Domino’s Pizza Group (DOM.L) said on Thursday it expects to meet market expectations for 2020 profit as a lower value-added tax rate and higher online orders helped it post a 19% jump in third-quarter sales. The company, a franchise of U.S.-based Domino’s Pizza Inc DPZ.N, has also benefited from the reopening of contact-free collections and the return of sporting events. A reduction in the UK’s value-added tax rate to 5% from 20% in July helped Domino’s in controlling costs, which had weighed on the company’s first-half profit as it spent more on cooking and delivering its pizzas safely during the pandemic. Online sales now account for around 95% of delivery sales in Britain, the United Kingdom’s largest pizza delivery chain said.”, Reuters, October 28, 2020
“Number of new companies set up this year is likely to break record: Almost 85,000 additional companies are likely be created this year compared with 2019 as the Covid-19 pandemic coincides with a spike in incorporation, according to research. An analysis of data from the past decade suggests that this year could set a record for growth in company registrations. SHL, the recruitment and training business that conducted the research, said that its findings suggested there were ‘tens of thousands of new entrepreneurs’.”, The Sunday Times of London. October 28, 2020
“Pizza Express cuts 1,300 jobs amid crisis in sector: Pizza Express is to cut about 1,300 jobs in a further sign of the deepening crisis in the hospitality sector. The restaurant chain blamed the cuts on renewed lockdown restrictions that have led to a decline in customers since September. Its city centre branches have been hit the hardest. The losses come weeks after the company announced that it would close 73 restaurants, shedding as many as 1,100 positions as part of a restructuring deal agreed with its creditors.”, The Sunday Times of London, October 30, 2020
United States
“U.S. Economy Recovered Significant Ground in Record Third-Quarter GDP Rebound: Jump in output follows steep drop earlier in pandemic; still, analysts project the economy will end 2020 smaller than a year earlier. The economy grew at a record pace in the third quarter—increasing 7.4% over the prior quarter and at a 33.1% annual rate—recovering about two-thirds of the ground it lost earlier in the coronavirus pandemic.”, The Wall Street Journal, October 29, 2020
“Adobe Predicts Record Holiday Season For Online Sales, Expects 33% Growth: Online sales in the United States are expected to grow by a whopping 33% this holiday, to $189 billion, with 42% of those sales, or $79.3 billion, being made on smartphones, according to the Adobe Analytics holiday forecast released today. Adobe’s data shows that the surge in online shopping triggered by the pandemic will continue through the holiday season. It is more evidence that new shopping habits formed during stay-at-home orders and shutdowns are here to stay.”, Forbes, October 28, 2020
“With No Commute, Americans Simply Worked More During Coronavirus: Employees spent over 22 million extra hours on their primary job each workday. From mid-March to mid-September, Americans spent 60 million fewer hours commuting to and from work each day, according to one estimate, as lockdown orders to curb the spread of Covid-19 forced many employees to clock in from home.”, The Wall Street Journal, October 30, 2020
“76% of American CEOs say they may shrink office space: Among CEOs, 76% told Fortune their company will need less office space in the future. And 28% say they’ll need a lot less office space. That’s the finding from a Fortune survey of 171 CEOs in collaboration with Deloitte between September 23 to 30.”, Fortune, October 22, 2020
“Business leaders and small business owners alike agree that 2021 is full of promise. Optimism was everywhere at this week’s SMBTech Summit, a virtual event from GGV Capital that gathered entrepreneurs and investors to discuss the platforms that power our modern economy…..The only thing missing was the doom and gloom we’ve all grown so accustomed to in 2020. ‘We’re in month seven of a global pandemic,’ Richards told participants, ‘but if you look at the tools to start a company, there’s never been more available to the small business owner.’”, INC magazine, November 1, 2020
“New Study Documents Pandemic’s Effects On Online Ordering and Delivery: Restaurant capacity restrictions and customer concerns about visiting restaurants led to a 72% increase in enhanced delivery and digital ordering capabilities in restaurants, according to the 2020 Restaurant Franchise Pulse survey by TD Bank. Online ordering and delivery nearly doubled as a percentage of total restaurant sales during the pandemic. While 86% of respondents reported having delivery and online ordering prior to the pandemic, these offerings now account for a larger percentage of their sales, climbing from 20% in 2019 to 39% in 2020.”, Franchising.com, October 29, 2020
Brand News
“How the Covid Crisis Will Determine Brand Winners: Every crisis creates brand winners and losers. This one is no different. Eventual brand winners will be those that best understood the long-term implications during the crisis and reimagined their businesses from the ground up.”, Franchising.com, October 22, 2020
How Denny’s® Innovated: “How This Problem-Solving CEO Is Keeping Her Restaurants’ Doors Open. Dawn Lafreeda breaks down the incredible struggles (and opportunities) of operating 85 Denny’s locations during the pandemic. Dawn Lafreeda is President, CEO and founder of Den-Tex Central, Inc. dba Denny’s Restaurants. In 1984, she opened her first Denny’s and since then, has built an incredible 85-location operation. Lafreeda, like so many business owners in the restaurant space, has been massively impacted by the pandemic but has found a way to manage her way through this incredibly destructive crisis.”, Entrepreneur magazine, October 21, 2020
“Starbucks earnings top estimates as sales rebound quicker than expected in U.S., China: Starbucks topped analysts’ earnings and revenue estimates for its fiscal fourth quarter. The chain reported that its two largest markets, the U.S. and China, are rebounding from the pandemic more quickly than expected. Starbucks also released an outlook for fiscal 2021, predicting stronger growth than analysts’ forecasts.”, CNBC, October 29, 2020
“Here’s what you’ll find at the biggest Wendy’s in the world: The biggest Wendy’s outlet currently is located in Tbilisi, Georgia. According to Dispatch, this is one impressive place to be: it has three floors and is spread across 15,000 square feet. Gulp. It was inaugurated in 2015 and offers the usual suspects such as the brand’s delicious hamburgers along with 15 kinds of coffee….The restaurant doesn’t just have a dining area. It also features a Game Zone in case you’re looking for ways to entertain yourself while eating at Wendy’s.”, Mashed, October 31, 2020
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
“Strategic Planning Is The Compass For Your Business: We define strategic planning simply as, ‘know where you want to go and how to get there to end up in the right place’……. In short, it builds value in your organization, as well as a foundation to weather any scenario or storm.”, Franchising.com, October 26, 2020
COVID-19 causes consumer spending changes: “Fears over transmission of Coronavirus (COVID-19) has led to government-mandated travel restrictions and non-essential business closures. As a result of these pandemic-driven changes, consumer spending underwent unprecedented levels of channel shifts, with the digital channel becoming the default for many consumers, giving way to what will likely be a permanent e-commerce boost. Comparing results of two consumer surveys Euromonitor International fielded in 2020 about path to purchase habits provides insights into these drastic shifts and subsequent surge in e-commerce. Nearly every category showed a double-digit increase in the percentage of consumers making digital purchases between the two fielding timeframes. Beauty, health and personal care purchases were exceptions to this increase, and jumped only eight points.”, Euromonitor International, October 2020
The Coronavirus Effect on Global Economic Sentiment: “Since September, executives have maintained more positive than negative outlooks for the world economy, national economies, and their own companies.”, McKinsey & Co., October 2020
Who We Are And What We Do
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets and providing operational support around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes U.S. businesses global and currently has activity in 25 countries. Our Clients are all consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence
Find out more about the services we provide U.S. companies Going Global at: www.edwardsglobal.com
Download our latest quarterly GlobalVue™ country ranking chart at this link:
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
For advice on taking your business global, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
