GlobalVue™ September 2020 – Projecting 2021 Recovery
Since 2001, William Edwards has published the EGS GlobalVue™ country ranking analysis quarterly based on recent activities in countries, feedback from the in-country EGS GlobalTeam™ covering 43 countries and a continuous review of 40+ international information sources.
The September 2020 GlobalVue™ chart projects how countries will come out of the COVID-91 crisis in 2021.
A downloadable full version PDF covering 40 countries in the Americas, Asia, Europe, the Middle and Near East can be found at this link:
https://edwardsglobal.com/globalvue/
Key to 2021 economic recovery are the projected 2021 Gross Domestic Product growth, political and economic stability or lack thereof and the projected recovery from the pandemic. Of course, there is a high degree of uncertainty today especially as to the timing of a vaccine and political challenges in key countries.
Here are a few countries that are key to obtaining the OECD 5% GDP growth projection for the world in 2021.
| Australia | Mixed pandemic outcome, moderate 2021 growth |
| Brazil | Challenging pandemic outcome, improving economy |
| Chile | Mixed pandemic status, economy will grow in 2021 |
| China | Swift virus recovery, dual economy will have different 2021s |
| Germany | Controlling pandemic, may see 2021 government change |
| India | Huge pandemic impact, chaotic government response |
| Italy | Controlling pandemic, steps being taken on economy |
| Mexico | Poor pandemic response, anti-business government |
| Peru | Poor pandemic response, elections due soon |
| Taiwan | Positive virus control, expanding economy, China (?) |
| Philippines | Negative government pandemic management |
| South Africa | High unemployment, low new investment, corruption |
| Spain | Mixed pandemic response, but strong basic economy |
| Thailand | Pandemic tourism hit limits 2021 economic growth |
| Turkey | Democracy iffy, economy limping along |
| United Kingdom | Mixed pandemic management results and BREXIT |
| Vietnam | Tight virus control, offshoring from China impact |
EGS Biweekly Global Business Newsletter Issue 13, Monday, September 21, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“There are two kinds of companies in this pandemic: those doing clever things to deal with the new world….and those who are not”, Pilita Clark
“Every major difficulty you face in life is a fork in the road. You choose which track you will head down, toward breakdown or breakthrough.”, John C. Maxwell
“The only way to make sense out of change is to plunge into it, move with it, and join the dance.”, Alan Watts, compliments of Sylvia Adler
“I asked a wise man, ‘tell me sir, in which field could I make a great career?’ He said with a smile, ‘be a good human being. There is a lot of opportunity in this area and very little competition”., Compliments of Brad Weinstein from a LinkedIn post
Introduction
This biweekly newsletter focuses on what is happening in more than 20 countries that impacts new trends, health, consumer spending, business investment and travel. A few highlights:
- This issue we start off by thanking the people around the world who help us curate for our newsletter readers.
- The US$88 trillion world economy by country in one chart
- What happens every minute on the Internet, Articles and Charts section
- Global Trade Returns Faster Than Expected
- U.S. to Lift COVID-19 Designated Airport Restriction
- U.S. Small-business owners gained confidence in the U.S. economy last month, outpacing expectations, according to data from a survey compiled by the National Federation of Independent Business (NFIB).
- We have added a new section that highlights what well-known brands are doing to survive and thrive in these times
We constantly 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.
Many thanks to the people around the world who help us curate our global business newsletter for our 500 global readers:
Ursula Alexio, Brasil, Craig Allen, U.S.-China Business Council, Rym Bedoui, Tunisia, Paul Cairnie, Middle East, Enver Celikbas, Istanbul, Franz-Josef Ebel, Germany, Lauren Ellermeyer, California, Manal El Masry, United Arab Emirates and Egypt, Ferenz Feher, Mexico, Ichiro (Roy) Fujita, Japan, Jason Gehrke, Brisbane, Stewart German, Auckland, Paul Jones, Toronto and China, Robert Jones, Miami and Spanish speaking countries, Gabor Kaczmarczyk, Budapest, Ned Levitt, Toronto, James Liu, Greater China, Simon Lord, Auckland, Iain Martin, United Kingdom and Ireland, Tarsicio Merin, Madrid, Rajeev Manchanda, India, Sean Ngo, SE Asia, Sethaphong (Seth) Phadungpisuth, Bangkok, Gordon Schaeffer, UCLA, Don Southerton, South Korea, Andrew Stearns, Milan, Enrique Tellez, Panama, Norcia Ward-Marin, Colombia, Chris Wingo, Shanghai, Steven Wolfson, Israel, James Young, Melbourne, Rod Young, Sydney and our highly valued U.S. Commercial Service Trade Specialists in 24 countries.
This issue’s chart is the US$88 Trillion World Economy on One Chart
Global Economic Recovery Projections – GeoPolitical Futures, September 18, 2020
Sharp recovery in GDP per country in 2021
International Travel Updates
“U.S. to Lift COVID-19 Designated Airport Restriction: For nearly six months, travelers from certain COVID-19 restricted countries have only been able to enter the United States by passing through one of 15 designated airports and undergoing enhanced health screening. The restriction currently applies to those arriving from, or with recent presence in, China (excluding the Special Administrative Regions of Hong Kong and Macau), Iran, the Schengen region of Europe, the United Kingdom (excluding overseas territories outside of Europe), Ireland, and Brazil. The 15 designated airports are Boston Logan International, Chicago O’Hare International, Dallas/Fort Worth International, Daniel K. Inouye International Airport in Honolulu, Hawaii, Fort Lauderdale Hollywood International, George Bush Intercontinental Airport in Houston, Texas, Hartsfield-Jackson Atlanta International, John F. Kennedy International, Los Angeles International, Miami International, Newark Liberty International, San Francisco International, Seattle-Tacoma International, and Washington-Dulles International. The Center for Disease Control (CDC) has announced that starting on September 14, 2020, this restriction will be lifted.”, Airline Geeks, September 11, 2020
“Vigilance and trust essential if travel bans are to be lifted: If economies are to get moving again, governments will have to strike deals to allow people to cross borders without having to undergo extended periods of quarantine. Travel bans to protect populations from imported Covid-19 infections are preventing the resumption of international commerce and tourism, and cannot remain in place indefinitely. If economies are to get moving again, governments have to explore so-called travel bubbles by striking deals to allow people to cross borders without having to undergo extended periods of quarantine.
The challenge is ensuring that restrictions make communities feel safe, but are not so cumbersome that travellers are deterred.”, South China Morning Post, September 9, 2020
“These are the 40+ countries Americans can visit: Albania, Antigua and Barbuda, Aruba, Barbados Belarus, Belize, Bermuda, Brazil, Bosnia and Herzegovina, Costa Rica (some states), Croatia, The Dominican Republic, Egypt, El Salvador, French Polynesia, Honduras, Ireland (sort of), Jamaica, Kenya, Kosovo, The Maldives, Mexico, Moldova, Montenegro, Namibia, Nicaragua, North Macedonia, Panama, Rwanda, St. Barths, St. Lucia, Saint Maarten, St. Vincent and the Grenadines, Serbia, Seychelles, Slovenia (maybe), South Korea (sort of), Tanzania, Turkey, Turks and Caicos, Ukraine, United Arab Emirates (Dubai only), United Kingdom (sort of).”, The Points Guy, September 13, 2020 See this link for the ‘details’.
“Around the World, Flights to Nowhere Grow in Popularity: How much do you miss flying? Not, mind you, flying to a specific destination — just the act of boarding a flight and spending several hours in the air? With many countries restricting travel due to the pandemic, a new phenomenon has taken root in a few spots around the globe: the flight to nowhere.”, InsideHook, September 19, 2020
“Cathay Pacific and Prenetics to launch London-Hong Kong digital health passport in October in bid to ease travel: Cathay Pacific and Hong Kong start-up Prenetics are set to launch a digital health passport that allows travellers to show their negative Covid-19 test results on a mobile app before boarding, potentially easing international travel and establishing a new model to help airlines and airports ride out the health crisis. The pilot will kick-off on the Hong Kong-London route from October, Prenetics told the South China Morning Post. The partners are working in collaboration with Swiss-based non-profit The Commons Project, which is backed by the Rockefeller Foundation.”, South China Morning Post, September 18, 2020
“United Airlines Is Launching 3 New Nonstop Routes to Africa: Plus new flights to Bangalore and New Delhi in India and Kona and Maui in Hawaii. “We’re really focused on rethinking the network,” says Patrick Quayle, United Airlines’ vice president of international network and alliances. ‘We’re not just looking at adding everything back the way it was prior to the coronavirus, and so what we’re looking at trying to do is come up with more convenient travel.’ Part of that strategy includes launching new nonstop routes to Accra, Ghana, and Lagos, Nigeria, from Dulles International Airport in Washington, D.C. The routes will operate three times a week on Boeing Dreamliner 787-8s starting in spring 2021. The airline is also launching a year-round, daily nonstop from Newark Liberty International Airport to Johannesburg. When the route launches next spring, it will be the only roundtrip nonstop to the South African city operated by a U.S. airline. Typically, U.S. fliers heading to countries in Africa have to connect in Europe or the Middle East.”, Conde Nast Traveler, September 9, 2020
“Second Carnival Corporation Ship Returns To Cruising in Europe: The second Carnival Corporation cruise ship, Costa Diadema, is returning to service on Saturday, another sign that slowly but sure, the industry is getting back on track. Costa Diadema is among the first of Carnival Corporation’s ships to return to service. This is the second Costa Cruises’ ship to return to the sea with passengers.”, Cruise Radio, September 19, 2020
Global Trade Update
“Global trade is rebounding much more quickly this year than it did after the 2008 financial crisis, lifting parts of the world economy and defying predictions the pandemic could send globalization into permanent retreat. When the new coronavirus hit earlier this year, international trade in goods suffered the biggest year-over-year drop since the Great Depression. Economists warned of rising protectionism, and some companies said they would reassess overseas supply chains that were vulnerable to unexpected shocks. Trade remains below pre-pandemic levels. Still, it has snapped back robustly—and had recovered about half of this year’s historic loss by June, according to calculations by the Kiel Institute for the World Economy, a German think tank.”, The Wall Street Journal, September 21, 2020
Australia
“Victorian Government announces unprecedented $3 billion support for businesses: An extra $3 billion in cash grants, tax relief and cashflow support will be made available to Victorian businesses in a bid to keep them afloat during the extended coronavirus shutdown. In what Premier Daniel Andrews described as “the biggest package of business support in the history of this state”, more than $1 billion of that funding will support small and medium sized businesses that are most affected by the restrictions.”, News.com.au, September 13, 2020
“Australia’s COVID-19 hotspot on track for easing curbs, faces three lawsuits: Australia’s Victoria state on Wednesday said the daily rise in infections in its coronavirus hot spot of Melbourne has eased further, putting it on course to relax an extended hard lockdown in the city by the end of the month. Construction sites, manufacturing plants, warehouses and childcare facilities can reopen, allowing more than 100,000 workers to return to their jobs, if the 14-day rolling average is under 50 cases as of Sept. 28. The state has set a much tougher target of a 14-day average of five cases for lifting a nightly curfew, allowing people out of home for more than two hours a day, and reopening more businesses in Melbourne from Oct 26.”, Reuters, September 15, 2020
Canada
“Air Canada to Offer Travelers Free COVID-19 Insurance: Air Canada (AC) will offer complimentary COVID-19 insurance in partnership with Manulife, a Canadian insurance company, to travelers with new international trip bookings made in Canada between September 17 and October 31, 2020, with the coverage applying to travel completed by April 12, 2021.”, Airways magazine, September 20, 2020
Canada
“Ottawa extending its widely criticized pandemic rent-relief program: Ottawa will extend its widely criticized pandemic rent-relief program for small businesses for a final month as officials weigh options to overhaul it. Finance Minister Chrystia Freeland confirmed the news in a press release Tuesday. The Globe and Mail first reported on Saturday that the program would be extended through September while Ottawa considered changing its structure. Many small businesses saw revenue collapse immediately as jurisdictions entered pandemic lockdowns in March. Main Streets all over the country are now dotted with for-lease signs as entrepreneurs spent the past six months struggling to keep up with fixed costs – the biggest of which is usually rent. Ottawa announced the Canada Emergency Commercial Rent Assistance (CECRA) program in late April to help with these costs by offering landlords forgivable loans worth half their tenants’ rent if they absorbed a quarter of the rent and the tenants paid the final quarter. But the program required that landlords make the application – and very few did.”, The Globe and Mail, September 8, 2020
Mainland China
“China economy’s broad recovery from coronavirus continues, as retail sales grow for first time in 2020: Industry, retail and investment all showed marked improvements in August, as the Chinese economy continued its broad-based recovery from the ravages of the coronavirus earlier this year, according to new data released by the National Bureau of Statistics…”, South China Morning Post, September 14, 2020
“Chinese Car Sales Rise at Fastest Rate in More Than Two Years: Heavy discounts and new-model debuts propel a second-half recovery in the world’s largest auto market. Retail passenger-car sales in the country increased by 8.9% last month from a year earlier to 1.7 million vehicles, the China Passenger Car Association said Tuesday, marking the strongest rate of growth since May 2018. It represented the second straight month in which sales outpaced those of the same month last year. Car sales to individual customers had declined by 3.4% in the April-to-June period compared with a year earlier before bouncing back in July with a year-on-year increase of 7.7%.”, The Wall Street Journal, September 8, 2020
“Occupancy Rates for China’s Hotels Show First Year-Over-Year Growth Since Pandemic’s Start: Even if recent occupancy gains are tied to a blip in the holiday calendar, Chinese hotels continue to see a coronavirus economic recovery pattern that is the envy of the world.”, Skift, September 18, 2020
“China’s retiring ‘baby boomers’ a shot in the arm for tourism, fitness and insurance sectors: Credit Suisse: China’s “baby boomers” are nearing retirement and will spend more on travel, health foods and commercial insurance than earlier generations, according to Credit Suisse. The upcoming retirement of about 245 million people – about a fifth of China’s population – will lead to business opportunities for a host of industries, the Swiss investment bank’s China Quantitative Insight (CQi) team said in a report recently. Much like the United States after the second world war, China witnessed a spike in birth rates in the 1960s following the end of the Great Famine. This was a lucky generation, entering adulthood when China began its great reform and opening up in 1978 that would eventually led to the economy ballooning 90 times in the following four decades.”, South China Morning Post, September 14, 2020
“AmCham China Charter Flight Arrives in Beijing: History was made on Sunday as AmCham China’s Back to Work Charter Flight became the first such flight from the US to fly directly into Beijing since the pandemic began, as well as the first multi-company charter flight from any country to fly directly into the capital, as 87 passengers made the trip from San Francisco. The charter flight – a Boeing 787-9 aircraft – has been months in the making since China first effectively closed its borders to foreign nationals at the end of March. Since that moment, the Chamber has led extensive efforts to bring member executives and their families back to China, first through surveying the wider membership to find out where the most members were located, and then through lengthy negotiations with key stakeholders, most notably the Beijing government, who gave the green light for this charter flight at the end of August.”, AmCham China, September 14, 2020
Colombia
“Spirit Airlines Becomes First International Carrier to Resume Operations to Colombia
From Sept. 19, Spirit Airlines will restart direct flights from Fort Lauderdale-Hollywood International Airport (FLL), to Cartagena, Colombia. Spirit will be the first international airline to resume operations to Colombia. This flight will arrive to Cartagena at 12:36 (UTC-5) and would leave again to Fort Lauderdale at 13:36 (UTC-5). Additionally, Spirit will restart flights from Bogotá, Medellín and Cali to Fort Lauderdale from Sept. 21.”, Airline Geeks, September 20, 2020
El Salvador
“Avianca To Resume Its International Operations From El Salvador: After more than six months without operations due to the COVID-19 pandemic, Avianca has announced it is ready to gradually resume its flights from its hub in El Salvador on September 19, once the authorities allow the arrival and departure of international flights to the country.”, Airline Geeks, September 14, 2020
France
“France tries to salvage failed StopCovid tracing app as cases surge: When the pandemic was raging across Europe last spring, many politicians and health experts were optimistic that a new generation of tracing apps could eventually help keep COVID-19 at bay. France was one of the many countries to seize on this idea, but its controversial approach has failed to have an impact and is instead becoming a cautionary tale. In a report issued this week, a national committee charged with reviewing the nation’s COVID-19 response called for the government to reinvest in promoting the app, which has so far generated few notifications. In theory, someone who has the app installed on their smartphone will receive a notification if they have recently crossed paths with someone who reported a positive diagnosis via the same app.”, Venture Beat, September 18, 2020
Israel
“Emirates to Begin Flights Between UAE and Israel: As relations between the United Arab Emirates and Israel continue to improve, Emirates has received approval to launch flights from Dubai to Tel Aviv.”, Airlines Geeks, September 18, 2020
“Israel marks Jewish New Year with second lockdown: Israel is entering a second nationwide lockdown to curb surging coronavirus cases, just as people begin to mark the start of Jewish New Year. Rosh Hashanah is traditionally a time for big, family get-togethers. But under the new three-week lockdown, Israelis must stay within 1km (0.6 miles) of their homes, with exceptions, and the number of people allowed in synagogues has been greatly reduced.”, BBC News, September 18, 2020
Italy
“Rome Fiumicino Airport Awarded 5-Star SkyTrax COVID-19 Airport Rating: The COVID-19 pandemic that has wreaked havoc on commercial aviation over the past months has caused the traveling public to modify the parameters used to evaluate the service they receive when they board an aircraft or they transit through an airport. Therefore, SkyTrax Ratings — the World Airline and Airport Star Rating program that has been providing their ratings since 1999 — has launched a new airport ranking aiming to evaluate airport based on its COVID-19 procedures and facilities.”, Airlines Geeks, September 21, 2020
Japan
“Tokyo lowers alert level as coronavirus fears ease: Tokyo’s government on Thursday dropped its coronavirus alert by one notch from the highest level as cases continue to trend down, opening the path for a loosening of restrictions on night-time activity. ‘Regarding the infection situation, we have lowered one level down to orange from the highest level of red. But, we need to be cautious about increases again,’ Tokyo Governor Yuriko Koike said at a coronavirus response meeting.”, Reuters, September 10, 2020
New Zealand
“New Zealand ends all pandemic restrictions outside main city of Auckland: New Zealand Prime Minister Jacinda Ardern on Monday lifted all coronavirus restrictions across the country, except in second-wave hotspot Auckland, as the number of new infections slowed to a trickle. Some restrictions were also eased in Auckland to allow gatherings of up to 100 people, but the country’s biggest city needed more time before all curbs could be lifted, Ardern said.”, Reuters, September 20, 2020
Peru
“Peruvian Government Announces Oct. 1 Restart of International Flights: Peruvian Minister of Transport and Communications Carlos Estremaydoro indicated that the country’s sanitation protocols necessary to begin international service will be defined this month in concordance with the Ministry of Foreign Trade and Tourism, the Ministry of Foreign Affairs, the Ministry of Economy and Finance, and airlines representatives. As a result, airlines should be able to begin international flying on Oct. 1.”, Airline Geeks, September 8, 2020
Singapore
“Singapore August exports rise 7.7% year/year, higher than forecasts: Singapore’s August non-oil domestic exports (NODX) rose 7.7% from a year earlier, beating forecasts, official data showed on Thursday, helped by items such as non-monetary gold and specialised machinery.”, Reuters, September 17, 2020
“Singapore rolls out Covid tracing tokens: Singapore is distributing thousands of devices that can track where a person has been and who they have interacted with. The small bluetooth device is meant for those who do not own smartphones and cannot use a contact tracing app that was previously rolled out by the Singapore government. While there are some concerns over about data protection, authorities say the token helps vulnerable groups to feel safer when out and about. For instance, the token helps elderly people keep a precise record of their whereabouts.”, BBC News, September 19, 2020
Sweden
“Sweden beating coronavirus with herd immunity, expert claims: Evidence is mounting that Sweden has beaten the coronavirus epidemic with herd immunity rather than lockdowns, according to a renowned expert on the spread of disease. Sweden’s infection rate has remained low and stable at a time when other European countries are facing a strong resurgence. In Britain there are 69 cases per 100,000 people compared to just 28 for every 100,000 in Sweden which did not implement stringent lockdown measures this spring. The infection rate in France is almost seven times higher than in Sweden and the virus is ten times more prevalent in Spain, both countries that implemented strict lockdowns.”, The Sunday Times of London, September 21, 2020
Thailand
“Thailand Woos Tourists With A New Long Stay Visa: The popular Asian destination has seen a reduction of Covid-19 cases and wants to welcome back foreigners. On 15th September 2020 the Thai Cabinet, as proposed by the Ministry of Tourism and Sports, created a new “special tourist visa” for long-stay visitors. One precondition, which is certainly achievable by most, is to agree to a 14 day state quarantine on arrival in Thailand. To qualify for the visa, long-stay visitors are required to show evidence of accommodation beyond the quarantine period. This can be in the form of hotels or other licensed lodging, so long as they comply with the health stipulations as mandated by the Ministry of Public Health.”, Forbes, September 17, 2020
United Kingdom
“The economy recorded its third consecutive month of growth in July, growing 6.6 per cent month-on-month, according to data released this morning by the Office for National Statistics. City economists had forecast a 6.7 per cent month-on-month rise in gross domestic product (GDP), following 8.7 per cent month-on-month growth in June. More than two thirds of the growth came from service industries — including pubs, restaurants and hotels — as lockdown restrictions eased, the ONS reported. Despite the growth, however, the ONS calculates that the UK economy is still 11.7 per cent smaller than in February, before the full impact of the coronavirus hit.”, The Times of London, September 10, 2020
“UK’s Johnson to levy 10,000 pound fine on COVID-19 rule-breakers: People in England who break new rules requiring them to self-isolate if they have been in contact with someone infected with COVID-19 will face a fine of up to 10,000 pounds ($12,914), Prime Minister Boris Johnson said on Saturday.”, Reuters, September 19, 2020
“Downing Street threatens to shut bars that let in too many people: Chief Medical Officer Chris Whitty will warn this morning that the nation is at ‘a critical point in the pandemic’. Last night Downing Street warned the UK is ‘in the last chance saloon’ as coronavirus cases continue to rise. Boris Johnson expected to set out plans for new restrictions this week which could last for up to six months. Health Secretary Matt Hancock was today unable to guarantee that pubs will still be open at the weekend.”, The Daily Mail, September 21, 2020
United States
“U.S. Small Business Optimism Up In August: Small-business owners gained confidence in the U.S. economy last month, outpacing expectations, according to data from a survey compiled by the National Federation of Independent Business (NFIB). The NFIB Optimism Index rose 1.4 points in August to 100.2, slightly above the historical 46-year average. Seven of the 10 Index components improved, two declined, and one was unchanged. The NFIB Uncertainty Index increased two points in August to 90, the second-highest reading since 2017. “Small businesses are working hard to recover from the state shutdowns and effects of Covid-19,” said NFIB Chief Economist Bill Dunkelberg. “We are seeing areas of improvement in the small business economy, as job openings and plans to hire are increasing, but many small businesses are still struggling and are uncertain about what the future will hold.’”, Franchising. Com, September 17, 2020
“Study Finds Consumers Returning To Stores, But Shopping Habits Have Changed: As Covid-19 lockdown measures continue to be scaled back around the world, almost three-quarters of global consumers (71%) now report feeling comfortable returning to physical stores, according to research by Mood Media entitled ‘Shopper Sentiments: A September 2020 Global Mood Survey.’ But their shopping habits have changed and they see a “return to normal” as still being a ways off.”, Franchising.com, September 9, 2020
“Planning to fly for the holidays? 6 things to know before you book: Airfares may be much lower, but passengers who book for Thanksgiving or Christmas should make backup plans, too…. For those willing to buy a ticket, the flying future is shifting in more dramatic ways, too—for this season and beyond.”, Fortune, September 19, 2020
Brand News – a new section highlighting what major brands are doing to survive and grow in these times
“Burger King unveils ‘touchless’ store concept with suspended kitchens, conveyor belts and canopies: Burger King has unveiled a new ‘touchless’ concept store, designed to meet the challenges of doing business during a pandemic, and adapt to the ‘new normal’. The new stores will feature physically contactless experiences, such as mobile ordering and curbside pick-up areas, as well as drive-in and walk-up order areas. ‘In March our in-house design and tech team accelerated new restaurant design plans and pushed the limits of what a Burger King restaurant could be,’ said Josh Kobza, COO at Restaurant Brands International. ‘We took into consideration how consumer behaviours are changing and how our guests will want to interact with our restaurants. The result is a new design concept that is attractive to guests and will allow our franchisees to maximise their return.’ The ‘touchless’ store is expected to provide multiple ordering and delivery modes, and boast a physical footprint 60% smaller than a traditional Burger King restaurant.”, Smartcompany.com.au, September 8, 2020
“Chili’s parent company CEO says new virtual delivery-only restaurant first of other, similar concepts: Brinker International, parent company of Chili’s and Maggiano’s, discussed the concept behind It’s Just Wings during calls with investors and the media, Restaurant Business Online reports. According to him, the delivery-only restaurant is just the first of a developing portfolio of similar concepts that the company is developing. It’s Just Wings is reportedly already generating revenue at an annual rate that will exceed $150 million. The delivery-only restaurant uses kitchens across various Chili’s and Maggiano’s restaurants and makes deliveries through DoorDash, MarketWatch reports.”, Fox Business, August 16, 2020
“Chipotle’s Chief Says the Online Boom Will Outlast the Pandemic: CEO Brian Niccol wants to protect employees, but won’t require them to get vaccinated. As the pandemic made people hesitant or unable to eat inside its restaurants, Chipotle Mexican Grill Inc. saw its online orders and delivery business take off. CEO Niccol thinks much of that digital business is here to stay.”, Bloomberg, Businessweek, September 16, 2020
“Starbucks continues on the road to recovery as sales performance is almost completely back to normal in China; with flat sales in August representing a major improvement from negative 10% sales in July, according to chief financial officer Patrick Grismer who gave an update on the company at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum. Starbucks’ U.S. performance, however, has a longer road ahead, and Grismer predicted that it will take six more months to completely recover. Sales incrementally improved from negative 14% in July to negative 11% in August as the company continues to reopen cafes and dining rooms. At this point, about 3% of their stores remain closed, and about half of the stores have seating available. Grismer noted that at cafes that have opened, drive-thrus — which represent about 60% of the company’s portfolio — have boosted sales significantly at a time when food traffic is still low. ‘We’ve seen that as we’ve progressively opened our ordering and sales channels, from drive-thru to entry way pick-up to in-store ordering and seating, sales have improved and they’re continuing on that path,’ Grismer said. ‘Looking ahead, we expect three key initiatives will fuel our future recovery in the US: first, the deployment of handheld POS at the drive-thru; second, the roll-out of curbside pick-up where we have convenient parking; and third, today, the launch of Stars for Everyone.’”, National Restaurant News, September 16, 2020, compliments of Paul Jones, Jones & Co., Toronto and China
“This week Texas Chicken™ (Church’s Chicken™) had a virtual conference success story. While everything seems to be online nowadays, being online isn’t always negative! Texas Chicken hosted a multi-day International Virtual Summit that spanned 16 time zones while promoting a “Stronger Together” theme to unite teams worldwide. The event brought franchisees, corporate brand leadership, and field team members together to celebrate their alignment on strategic goals accompanied by an energetic display of faces on a single platform. Through this event, Texas Chicken honored their people worldwide through various awards. ‘We respect and recognize our international franchisees in the 26 countries in which we operate. Their commitment and ability to face the challenges of 2020 is worthy of applause and recognition,’ said Joe Christina, Chief Executive Officer.”, Franchising.com, September 14, 2020, compliments of Brianne Barbakoff, Ink Link Marketing
Articles And Charts About Doing Business in The Times Of COVID-19 and Beyond
“Here’s What Happens Every Minute on the Internet in 2020: Data never sleeps”, Visual Capitalist, September 15, 2020
“The Shape of Economic Recovery, According to CEOs: Is the glass half full, or half empty? Whenever the economy is put through the ringer, levels of optimism and pessimism about its potential recovery can vary greatly. The current state mid-pandemic is no exception. This graphic first details the various shapes that economic recovery can take, and what they mean. We then dive into which of the four scenarios are perceived the most likely to occur, based on predictions made by CEOs from around the world.
“It’s Go Time for Digital Transformation: If people had doubts about the new capabilities that companies everywhere are implementing as part of digital transformations, the response to the COVID-19 crisis appears to have put them to rest. The vast majority of both managers and employees believe that these capabilities helped counter the effects of the pandemic and will aid businesses in getting back on their feet once the crisis is over, according to a new survey commissioned by Boston Consulting Group.”, August 4, 2020
“What 12,000 Employees Have to Say About the Future of Remote Work: Although the COVID-19 pandemic has led to economic, health, and social devastation, it has also created an unprecedented opportunity: to run the world’s biggest-ever workplace experiment. This experience is yielding fascinating insights that have significant implications for the way we should organize work. To assess employee sentiment on these changes, from the end of May through mid-June we surveyed more than 12,000 professionals employed before and during COVID-19 in the US, Germany, and India.”, Boston Consulting Group, August 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
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 global cross business sectoral updates and advice, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
EGS Biweekly Global Business Newsletter
Issue #3, Monday, May 4, 2020
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“It is not the strongest or the most intelligent who will survive but those who can best manage change”. Darwin
“Keep calm and carry on”
“When one door closes, another door opens”, Alexander Graham Bell
Introduction
The goal of this newsletter is to keep the reader up to date on the economic and business situation in key trading countries. We constantly monitor 30 countries, 25 daily 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 do not hesitate to send us your input and perspectives so that we can publish a balanced view about the world every other week. Our contact information is at the bottom of this newsletter. You may opt out from receiving this biweekly global business update email at the bottom of this email.
William Edwards is an executive with 46 years of international operations, development, executive and entrepreneurial experience. He has lived in China, the Czech Republic, Hong Kong, Indonesia, Iran, and Turkey. 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.
Founded in 2001, Edwards Global Services, Inc. takes U.S. businesses global and currently has activity in over 25 countries. Our U.S. Clients are all consumer-faced brands.
The Focus of This Issue
This newsletter issue focuses on what is happening in 29 countries that impact consumer spending. The theme of this issue can best be summed up by the following quote form the Financial Times on May 1, 2020: “Governments in Europe, the US, Australia and New Zealand have begun to ease the extraordinary stay-at-home orders that have helped contain the spread of Covid-19. But in most places, it will be anything but business-as-usual. Instead, the next few months are going to feel like an empty-chair economy, with new shift patterns at factories, half-full buses and trains, staggered opening hours and unusually roomy restaurants.”
Contact Tracing Apps Are Being Used in More than Two Dozen Countries
“At least 27 countries are using data from cellphone companies to track the movements of citizens, according to Eden Manovich, the advocacy director for Privacy International, which is keeping a record of surveillance programs. In South Korea, millions of people have signed up to use websites or apps that show how the virus is spreading. More than 2 million Australians quickly downloaded a coronavirus contact-tracing app that was released last Sunday.” The Washington Post, May 2, 2020
“Italy is preparing to join Germany in launching a Coved 19 contact-tracing mobile application that will avoid location tracking and a centralized database, opting for a standard created by technology companies Apple and Google that they regard as more privacy friendly. Switzerland and Austria also opted last week to use the US tech giants’ standards for their apps. However, France, the UK and Norway – one of the first European countries to launch its app – are all using a technology in which a central server holds data on who came into contact with an infected person.” Financial Times, April 30, 2020
“Singapore will from May 12th require all businesses to adopt a system that logs visitors to their premises using their smartphones, in the name of tracking COVID-19 cases.… Called “SafeEntry”, the service requires visitors to either scan a QR code or allow their phones to be scanned to record a barcode in the national e-services app. That scans are taken when visitors enter and exit premises.” A Register, May 4, 2020
International Travel Update
Delta recently announced that this month it will resume “certain international flights”. Most of these flights will be between North and South America and the company will reinstate flights to Canada.
“United will resume seven routes in June, with more to follow later in the summer assuming all goes to plan. The routes coming back in June are: Newark to Paris, Shanghai and Tokyo; and San Francisco to Beijing, Chengdu, Shanghai and Frankfurt.” Forbes, May 4, 2020
“Cathay Pacific looks to increase passenger flights in late June if coronavirus travel restrictions are eased. Carrier targets return of daily services to major Asian cities and more frequent long-haul services.” South China Morning Post, April 28, 2020
“South Korea says it has agreed with China to start facilitating some business travel between the two Asian neighbors, As China signaled initial success in containing its domestic coronavirus contagion, its officials have proposed efforts to facilitate essential travel with foreign counterparts from more than a dozen countries across the Asia-Pacific region and elsewhere.” Wall Street Journal, April 29, 2020.
“”If there is any country in the world with whom we can reconnect with first, undoubtedly that’s New Zealand,” Australian Prime Minister Scott Morrison said in a statement, according to CNN. “Our number one focus at the moment is making sure that both our countries are in the position where we’re domestically managing Covid-19 to a point where we can with confidence open borders,” New Zealand Prime Minister Jacinda Ardern said in a press conference last week.” Travel & Leisure, May 4, 2020
Argentina
“A national lockdown, originally imposed March 20, was extended to May 10 over the weekend. Now, the country says it will enact a complete ban on all flight sales to, from, or within Argentina until September 1.” CNN Traveler, April 28, 2020
“All frontiers with foreign countries will not open until September. Everybody is teleworking except for “essentials” – healthcare, security and food (supermarkets and small shops selling food). Banks opened only to pay retired people. Slowly opening 2nd tier of essentials including take-aways and messaging companies; private medical attention if emergency (dentists, labs, etc. Children, teen-agers and over 60 years are NOT allowed out. All Tourism and Attractions are out of the question i.e. Restaurants, Theatres, Football. Restaurants are trying to keep alive with take away services.” Diana Brandon, U.S. Commercial Services, Buenos Aires.
Australia
“With no definitive answer as to when restrictions will be further lifted, the federal government has urged pubs, gyms and retailers to prepare for reopening. The good news comes as Employment Minister Michaelia Cash called on businesses and retailers to create ‘COVID-safe workplaces,’ so they’re able to safely welcome customers when they’re give the ‘green light’.” News.com.au, May 2, 2020, courtesy of Jason Gehrke, Managing Director, The Franchise Advisory Centre, Brisbane.
“Australia is in lockdown but this will be loosened in next weeks and kids will be going back to school on day per week. All retail foodservice, fast food and restaurants and non-essential retail is closed. Several States have offered small business grants and low interest deferred payment loans ranging from $10,000 to $250,000. The federal government has provided a JobKeeper program to all businesses with turnover less than $1B that have lost more than 30% of turnover (50% for businesses with turnover over $1B) compared with normal historic trading. The program pays the business $1500 per fortnight per employee backdated from 1 March to 31 September.” Rod Young, Managing Director, DC Strategy Group, Sydney
Austria
“Austria will become the first country in the European Union to reopen shops of all sizes today, as well as hairdressers, nail salons and other services. In two weeks Austria will also reopen restaurants and its famed cafés—albeit with restrictions on customer numbers and opening hours, and strict rules on hygiene—and allow religious services to resume.” The Economist Expresso, April 30, 2020
Brazil
“Brazilian banks have so far postponed 22.2 billion reais ($3.91 billion) in debt installments due in the coming months, in a move to help consumers and companies amid the coronavirus outbreak, the country’s bank industry group said. In terms of new loan disbursements, large companies have taken out 101.5 billion reais while consumers took 36 billion reais, Febraban said.” Reuters, April 27, 2020
Canada
“The Canadian economy has contracted dramatically. Being a cooperative and polite country, social distancing is having a significant impact in “flattening the curve” of new infections and deaths. Canada is starting to reopen is businesses, schools and recreation areas. However, such openings are within the jurisdiction of the provinces and they have not all been affected the same. As a result, there is no uniformity in the timing and extent of the re-openings. Most franchise systems are either closed or operating on a very restrictive basis.” Ned Levitt, Partner, Dickinson Wright LLP
Mainland China: Beginning to get back to ‘normal’?
“China tourism numbers bounce back during Labour Day holiday: There were more than 50m tourism trips within the country on Friday and Saturday, according to figures cited by state media. That meant that two days into the five-day break, which ends on Tuesday, the number of journeys has overtaken the total over the three-day Qing Ming festival in early April. In Beijing, the Forbidden City was partially open for the first time since January 25. Last week, the Chinese capital announced that people arriving from most other parts of the country would no longer have to spend two weeks in quarantine. Beijing was still restricting access to cinemas and theatres, state media said on Sunday. Shanghai’s main tourist attractions received more than 1m visitors on Friday and Saturday combined, Xinhua said.” Financial Ties, May 4, 2020
“China signals coronavirus under control with resumption of parliament on May 22. Beijing announced the date for its long-delayed annual legislative session on Wednesday after the first disruption of China’s most important political event for decades, in a display of confidence that the new coronavirus outbreak is under control. As road traffic returns to normal across the country, the transport ministry on Tuesday said a nationwide waiver of highway tolls would end from next Wednesday. But restrictions on overseas arrivals at border checkpoints will remain in place.”, South China Morning Post, April 29, 2020
Costa Rica
“Costa Rica’s government said on Monday it will start reopening its economy and lifting some coronavirus-related social distancing measures from May 1st, as the number of active infections has declined for 11 consecutive days. Movie theaters, gyms and hair salons will be able to open again for business on Friday, but under reduced hours and strict rules on the number of clients allowed at any one time, said President Carlos Alvarado.” Reuters, April 27, 2020
Czech Republic
“The Czech government will allow cultural and sport events with up to 100 people to go ahead from May 11 as part of a next phase of relaxing restrictions imposed to combat the spread of the new coronavirus, officials said on Thursday. This will include cinema screenings, theatres performances and religious services, and comes sooner than the government had originally planned after it said the spread of the virus was now contained. Stores of up to 2,500 square metres reopened on Monday. From May 11, shopping malls and larger shops are also set to reopen, along with outdoor restaurants and pubs, hairdressers, and museums. The last phase is due on May 25 with restaurants, pubs and hotels returning to action.” Reuters, April 30, 2020
Dominican Republic
“The Dominican Republic Senate has passed an extension of the State of Emergency until May 17th, still limiting movement and retail business operations until that date. All resorts are closed due to the lack of flights from Europe and the U.S. All businesses are shut down except for those in the medical sector (clinicas y hospitales, drugstores), food service (supermarkets and colmados are open, but some restaurants and fast foods are only offering services via delivery). Retail stores and schools are closed.” Maria Elena Portorreal De Alonso, Trade Specialist, U.S. Commercial Service, Santo Domingo
France
“France announced an array of measures to begin easing a strict lockdown and reignite an economy battered by the coronavirus, with plans to reopen shops starting May 11 one of the first steps toward normalization. Philippe said French restaurants and cafes may be allowed to reopen from June 2, and pupils can start returning to school from May 11 but with strict rules. Public events of more than 5,000 people are outlawed until September and working from home is encouraged for at least three more weeks, he said. Beaches won’t reopen until at least June 1. Fortune, April 28, 2020
“This is expected to include a gradual reopening of schools, starting with primary classes, based on voluntary attendance and with reduced class sizes. The government is also expected to allow shops to reopen, encourage businesses to get back to work and lift restrictions on movement within the country. Restaurants, bars, hotels and sports centres, however, will stay shut for the time being.” The Economist Expresso, April 27, 2020
Germany
“Germany’s success in battling the coronavirus pandemic has drawn international attention. The main lessons: Fight the virus locally, and keep politics out of it. Germany’s campaign against the virus has largely been fought by regional authorities that created and policed social-distancing rules, worked with businesses to manage shutdowns and safety measures, and prepared the already-robust health-care infrastructure for the illness’s onslaught.” Wall Street Journal, May 1, 2020
“Stores of up to 800 square metres (8,600 square feet) were allowed to open again last week, along with car and bicycle dealers and bookstores, provided they adhere to strict social distancing and hygiene rules. Reuters, April 28, 2020
Greece
“The government was swift in reacting to the crisis early and as a result the situation has not been anything like Italy or Spain or countries with similar populations like Belgium and Netherlands. In fact Greece has been written up in the international press as a great success story. Yesterday there were no deaths for the first time in weeks and only 7 new confirmed cases. We have been teleworking since March 16 and on lockdown since March 23.” Keith Silver, Senior Commercial Officer, U.S. Commercial Service, Athens
Guatemala
“Guatemala closed borders and went under a strict curfew early in March. Curfew was much stricter early, now it is from 6pm to 6am. Only primary companies can open (banks, supermarkets) but with strict social distancing and every citizen must wear a mask or will get fined. Restaurants can only offer delivery. Some factories are open. Schools, universities, malls, shopping centers etc. are shutdown. Citizens cannot move from city to city. Congress approved three fiscal packages, totaling around 3.4 percent of the GDP.” Antonio Prieto, Senior Trade Specialist, Embassy of the United States of America, Guatemala City
India Totally Shut Down???
“On March 25, Prime Minister Narendra Modi imposed the world’s toughest lockdown—at the time it scored a perfect 100 on the University of Oxford’s lockdown stringency index—in an attempt to thwart the virus by essentially freezing 1.3 billion people in place. India’s shutdown includes transportation, manufacturing plants and almost all e-commerce. In many places, residents require passes to travel, or must show proof that they’re outside for an essential activity like buying groceries. Hundreds of thousands of migrant workers have sought shelter in temporary camps. On April 14, the federal government extended the lockdown to May 3.” Wall Street Journal, April 30, 2020
Ireland
”Allied Irish Banks has processed “well over” 40,000 payment breaks for its loan customers as it helps homeowners and businesses cope with the impact of the coronavirus, its chief executive said on Wednesday. Ireland’s retail banks agreed last month to implement loan repayment breaks of up to three months for those affected. The breaks agreed by AIB include 16,000 mortgages, 12,000 business loans and 12,000 for personal customers, CEO Colin Hunt said.” Reuters, April 29, 2020
Italy
“The country is relaxing its lockdown from Monday (May 4), when Italians will be able to exercise as long as they respect rules on maintaining physical distance. They will also be able to visit relatives – but not friends – within their region. However schools, cinemas and most shops will stay shut. Bars and restaurants are due to start allowing customers to sit at tables in June.” BBC, May 3, 2020
“Parks, factories and building sites will reopen, but schools will not restart classes until September. People will be allowed to move around their own regions – but not between different regions. Bars and restaurants will reopen for takeaway service from 4 May – not just delivery as now. Hairdressers, beauty salons, bars and restaurants are expected to reopen for dine-in service from 1 June. More retail shops will reopen on 18 May along with museums and libraries. Sports teams will also be able to hold group training from 18 May.” BBC.com, April 27, 2020
Kuwait
“Since March 11, non-Kuwaiti citizens were barred from entering Kuwait through the airport. Since March 14, the Kuwait International Airport has been closed until further notice to all inbound commercial flights except for arriving Kuwaiti citizens and their immediate relatives who are traveling with them. Cargo air traffic will continue to be permitted. A nationwide curfew from 4:00pm until 8:00am remains in effect. During Ramadan, food delivery services will be permitted to operate after curfew between 5:30pm and 11:30pm.” Talal Al Muhanna, General Manager & Co-Founder, Shiraa International for Projects Management, Kuwait
Malaysia
“Malaysia to reopen economy on May 4. Nearly all economic sectors to reopen, subject to conditions, says Prime Minister Muhyiddin Yassin, but controls to remain on social gatherings. Move is sign of focus switching to rescuing business and saving jobs. Social gatherings, however, would still be controlled, schools would remain shut and interstate travel remained banned.” South China Morning Post. May 1, 2020
New Zealand
“Some non-essential businesses, including food takeaways, health and education services will be allowed to reopen. But people are still expected to stay at home unless they are undertaking essential activities, such as buying groceries, working or exercising.” Financial times, April 27, 2020
Poland
Hotels will be reopened along with some cultural institutions (libraries, museums and art galleries), beginning on May 4. 1 person per 15 square meters, 6 feet between people, and face coverings are required. Shopping malls, hotels, building supply stores will reopen at the same time. Museums and libraries will reopen. On May 6, nurseries/preschools are permitted to reopen, but local government/owners will make the decision. Restaurants will remain open for takeaway. Alicja Drolet, Trade Specialist, U.S. Commercial Service, Warsaw
Singapore
“Singapore will let selected businesses reopen from May 12 in a cautious rollback of a two-month partial lockdown despite rising coronavirus infections among foreign workers. Businesses including food manufacturing, food retail outlets, laundry services, barbers and pet supplies will be permitted to reopen on May 12. Home-based businesses can also reopen. Small groups of students will be allowed back to school on May 19. ABC News, May 2, 2020
South Korea
“South Koreans were out in droves in the balmy spring weather on Thursday (April 30). Seoul’s Gimpo airport was crowded with happy passengers flying to the southern resort island of Jeju, public parks buzzed with picnicking families and shopping centres were alive with customers. It was the start of a long weekend, but that wasn’t all. Television footage shows the grounds of Seoul’s Chogye Temple full of believers wearing masks and praying under rows of lanterns to celebrate Buddha’s Birthday.” South China Morning Post, April 30, 2020
“Domestic air travel has had not been closed. People are travelling more within the country. However international is still pretty much shut down stage. Still requires a 2-week isolation for those coming from outside of the country.” Joe Joon, BrandMasters Korea
Spain
“On Saturday adults were able to exercise outdoors on Saturday for the first time in seven weeks. The lockdown was eased for children under 14 a week ago. On Monday masks will become compulsory on public transport and some small businesses such as hairdressers will open for individual customer appointments.” BBC May 4, 2020
According to various sources, the first phase of lifting the lockdown on business activity in Spain officially began today, May 4. It will allow restaurants to reopen for takeaway and gyms for individual training sessions, and also allow training for professional athletes.
Russia
Miratorg Agro-Industrial Holding is looking for premises in the center of Moscow for its fast-food chain restaurants, known as “Burgers & Fries” in English. Essentially it is going around making offers on good locations that are closed due to the COVID-19 pandemic. This is contrary to an agreement reached among many operators not to raid each other’s locations.” Paul Jones, Barrister, Solicitor and Trade Mark Agent, Jones & Co., Toronto.
“President Vladimir Putin extended the country’s lockdown measures for another two weeks, warning that the worst of the outbreak is still to come. The Russian president announced that he would be extending the country’s national lockdown, which had been set to expire Thursday, until May 11; He also directed his government to begin preparing guidelines for a “phased exit” and eventual reopening.” Forbes, April 28, 2020
Switzerland
“Swiss grandparents are told it’s SAFE to hug grandchildren if they are under ten because they don’t spread coronavirus. Public health officials in Switzerland have said that it is now safe for children under the age of ten to hug their grandparents. The relaxation of restrictions in the country comes after Swiss scientists concluded that grandparents are not at risk of catching Covid-19 from their young grandchildren as they do not have the ‘receptors’ targeted by the virus.” Daily Mail UK, April 28, 2020
“The Swiss government is pressing ahead with re-opening measures including for sporting events, shops, restaurants and museums, it said on Wednesday, even as it bans events with more than 1,000 people through. Border restrictions will also begin being eased from May 11 to allow families to reunite, officials said, while a “careful reopening” of restaurants will be permitted under strict conditions aimed at ensuring health and safety for guests and employees. Primary and secondary schools will be allowed to resume classes from May 11. Moreover, professional sports teams can resume play on June 8, although without spectators in attendance.” Reuters, April 29, 2020
Thailand
“The country is partially reducing the lockdown by reopening restaurants, cafes and markets from May 3. While the national ban on international travellers remains in place until May 30, Thailand is looking at how to resume tourism. Thailand is still under nationwide curfew between 10pm and 4am will remain until the state of emergency ends on May 31.” The Sun UK, April 30, 2020
“The IMF expects (Thailand) GDP to fall by 6.7% this year. The country’s two economic mainstays, tourism and trade, are suffering. Although a fiscal stimulus equivalent to 3% of GDP is under way, domestic demand is in a funk. Some 20m people have applied for state aid and a third of the workforce faces unemployment….the government has extended the state of emergency and lockdown measures until the end of May.” The Economist Expresso, April 28, 2020
United Arab Emirates
“Dubai announced a partial reduction in the restrictions on movement in the Emirate. The move, which coincided with the start of Ramadan, allows people to move freely for the first time since April 4 and also saw the reopening of malls, cafes and restaurants, under strict conditions.” Arabian Business, April 27, 2020
“With fever checks and masks, Dubai’s mega-mall reopens. For weeks, only the mall’s grocery stores and pharmacies carried on working, but the UAE has now allowed malls, restaurants and even hair salons to reopen under social distancing rules. Thermal cameras fixed to the ceiling around Dubai Mall record temperatures of passers-by. Children aged between three and 12, and people of over 60 or in higher risk groups for the respiratory disease are not allowed in. Protective masks are compulsory — with staff sporting them both in ready-to-wear stores as well as high-end European designer boutiques. The mall’s cinema, skating rink and large fountains, which in normal times attract thousands of tourists packed in for evening shows, remain closed.” Yahoo News, April 29, 2020
United Kingdom
“Many businesses are going through the process of thinking about what life post-Covid-19 could look like; this is especially true in the F&B sector where ambience, close physical presence, ‘buzz’ are all part of the dining out experience – and if people have to be socially distanced, wear masks etc., much of this is lost. In addition, of course, reducing restaurant capacity to meet social distancing requirements, could wreck the unit economic model. The impact runs all up the supply chain – some dairy farmers are having to pour their milk down the drain as a result of business lost because no-one is buying lattes currently!” Iain Martin, QFP, International Franchise Consultant, The Franchising Centre
“Costa Coffee is re-opening another 29 stores across the UK for deliveries and drive-throughs as all staff are given protective equipment (PPE).” Daily Mail, May 2, 2020
“McDonald’s To Reopen Some UK Stores in May. Fifteen stores will initially open from 13 May – for deliveries only – and will be operating a reduced menu, much like many of the company’s major rivals.” LAD Bible. May 1, 2020
“Huge Queue At First Burger King Drive-Thru To Reopen For Takeaways: The restaurant, in Havant, Hampshire, was the first to reopen in the UK after all fast food outlets closed in the wake of the UK’s lockdown restrictions, in response to the coronavirus pandemic. When it opened at midday, cars could be seen blocking the town’s roads, with people gagging to get at the stores meals.” LAD Bible, April 30, 2020
Vietnam
“The Asia Development Bank anticipates that if the pandemic is contained successfully within the next two or three months, Vietnam’s economic growth should rebound to 6.8% in 2020 and remain strong in the years thereafter. Every industry has been affected and the virus has significantly damaged industries in hospitality and tourism, transportation, food and beverages (F&B), retail, cinemas, and other entertainment. According to the Vietnam Tourism Advisory Council, the pandemic will result in an estimated loss of between $5.9 and $7 billion for the country’s tourism sector in the next three months.” Sean Ngo, CEO and Co-Founder of VF Franchise Consulting, Ho Chi Minh City
In Summary
We keep our thumb on pulse of the global business market, monitoring daily changes and trends, and have insight on how you can protect and grow your brand in this critical market. We will continue to update this global business blog every other Monday.
About US
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 living experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries. EGS is also known for our extensive country, cultural and sector research and publications, including the quarterly GlobalVue™ country ranking chart.
Find out more at: www.edwardsglobal.com
William Edwards, CFE, is CEO and Global Advisor to Chief Executives, of Edwards Global Services (EGS) which offers a complete international market research, operations and development solution for U.S. businesses. Contact Bill at bedwards@edwardsglobal.com or +1 949 224 3896.
“The EGS GlobalTeam™ 4/29/2020
Our U.S. based Team has living experience in 18 countries and working business experience in 60+ countries. Our GlobalTeam™ on the ground covering 40 countries provides international expertise, market research, management consulting and in-country operations support.
The EGS GlobalTeam™ provides:
In-country Compliance Audits & Controls – Regular visits to a U.S. company’s in-country units performing on-site inspections, with detailed reporting.
In-country Mystery Shopper – Personal visits to the brand’s local units, with a detailed report covering all aspects of the shopping experience.
In-country Emergency Solutions – An in-depth review of the local partner’s business operation with recommendations of options to restore profitability.
Country Market Research – Competitor analysis, political, regulatory and economic analysis
Feel free to reach out to Bill Edwards, CEO of Edwards Global Services, Inc., (EGS) to ask questions or share best practices at +1 949 375 1896 or bedwards@edwardsglobal.com.
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