Companies should look to reflect the desire for a better work-life balance Date: July 12, 2010 Source: JoongAng Daily
The value of a slow-paced, leisurely lifestyle has gained greater importance in this fast-changing world, creating a state where "economies of speed" and the value of taking things "slow" coexist in ironic circumstance. Consumers learning to live more slowly are also more satisfied and find better balance between work and life. They indulge in the pleasures of leading a slower life by taking breaks or adopting simpler lifestyles than they did in the past.
People living in urban areas have also become more attracted to life away from the overworked, highly competitive city setting, preferring to live closer to nature. In addition, people are adopting healthier lifestyles with much more enthusiasm.
From a business perspective, this "slow" trend can provide various new opportunities. But it poses a threat at the same time, because it forces businesses to change existing management practices. For this reason, firms should explore opportunities tied to incorporating the trend into conventional business. There are four promising business areas that stand to profit most.
First are businesses that place value in time. For example, Maersk, a leading shipping company, has reduced costs by halving the cruising speed of its container ships. And Louis Vuitton has maintained its lofty reputation by continuing to make its products by hand, despite the greater efficiency tied to massproduction methods.
Moleskine, a company that produces diaries and notebooks, is gaining popularity once again as the manual recording of data makes a comeback in line with the "slow" trend.
Businesses that aim to enrich living spaces also stand to gain from this trend. The recently designated "slow city" of Jeung Island boasts large expanses of mud flats, salt fields and wetlands.
The third promising business area involves the provision of mental relaxation. For instance, U.S.based Umpqua Bank completely revamped its traditional reputation tied to high technology, expediency and trust into a modern image of comfort and friendliness. That translated into an increase in the banks investments and helped it outpace its rivals.
Lastly, businesses that promote a healthier lifestyle seem well positioned to take advantage of the "slow" trend. For instance, Akinori Kimuras "miracle apples" have been a huge success in Japan because they are completely organic and do away with the use of pesticides and fertilizers.
Companies should incorporate this "slow" trend into finding more time-efficient management practices. With an overemphasis on speed come problems in the form of low quality, overused management resources and low levels of innovation.
Slower management addresses the need for companies to improve creativity and employee satisfaction, combining the traditional corporate value of time-efficient management (e.g., high production efficiency and performance-oriented management) with the values of slow management (e.g., low time pressure, greater employee autonomy and work-life balance).
Specifically, companies should boost creativity by acknowledging that innovative ideas take time to develop and require a level of autonomy. Another way of increasing employee creativity is by maximizing employee satisfaction via "rest and recharge" programs.
In addition, more effort should be placed on upgrading product quality through tighter process controls.
Lastly, companies should improve their corporate images by promoting the value of taking things slowly.
Companies should note that the desire to lead a slower lifestyle continues to grow as technology advances and competition rises. They should take into account the "slow" trend when planning new businesses, breaking the old habit of searching only for things that are faster and newer.
CEOs should successfully transplant slower management into their organizations through their corporate philosophies and leadership.
On the government side, slow businesses should be fostered so as to improve quality of life and the competitiveness of the service industry.
By doing this, local areas which remain underdeveloped compared to their urban peers can take advantage of a larger pool of opportunities.
2. Subject: BOK Raises Growth Forecast to 5.9%
Date: July 12, 2010
Source: Chosun Ilbo
The Bank of Korea Monday raised its economic growth forecast for this year by 0.7 percentage points to 5.9 percent on the back of robust exports and improving domestic demand.
The revised forecast is also 0.1 percentage point higher than the finance ministry's projection last month.
The new figure represents the highest annual growth since 2002 when the economy grew 7.2 percent.
Asia's fourth-largest economy posted a 7.4 percent growth in the first half and is expected to expand 4.5 percent in the second, meaning an overall 5.9 percent growth for this year.
"The upward revision came as the economy performed better-than-expected in the first quarter and exports are forecast to remain brisk into the third quarter," Lee Sang-woo, director-general of the BOK's research department, said at a press conference.
"The recovery momentum by the private sector is likely to pick up with exports leading the growth," Lee said.
The BOK forecast that the economy would grow 4.5 percent next year - 3.5 percent in the first half and 5.0 percent in the second. In its most recent report, the BOK raised its inflation forecast to 2.8 percent, up from its earlier estimate of 2.6 percent. After adding 2.7 percent in the first half of this year, consumer prices are predicted to climb 3.0 percent in the latter half of the year.
The revision implies that there will be another rate hike in the coming months.
The central bank raised its key interest rate to 2.25 percent Friday, ending its 16-month-long consistency to a record-low level of 2 percent.
The central bank said that the rate increase would help tame inflationary pressures
More companies provide production dates on packaging to gain an edge Date: July 15, 2010 Source: JoonAng Daily
Since July 2009, there have been two dates on cartons of Seoul Milk. Above the expiration date is the date the milk was put in the package, which the company says is a more accurate gauge to let consumers know how fresh the milk is.
The new labeling increased the popularity of Seoul Milk. Two months after adopting the system, the company said it saw sales soar to 10 million cartons over four days - more than 40 percent of the milk sold in the market in that period.
Organic food manufacturer Pulmuone has also been marking the production date on items such as tofu, noodles and eggs. The company even includes the date its hens laid the eggs on the carton. "We want to provide the most relevant information to guarantee the freshness of our eggs," explained a Pulmuone employee.
As Korean consumers grow more sensitive to the quality of their food, the number of companies offering additional information such as the packaging date has been growing.
Changes to labeling are a cheap way to appeal to freshness-conscious consumers and to improve a corporations image. Response has been overwhelmingly positive so far. Seoul Milk said it has seen an 8 percent jump in its daily sales, enjoying record sales of 1.5 trillion won ($1.2 billion) last year. Other local milk companies such as Pasteur have been following Seoul Milks successful model.
A similar trend is spreading among take-out coffee shops, as consumer interest in the freshness of coffee beans, which affects the taste of the coffee, has increased.
Companies such as Dunkin Donuts, Rotiboy Korea and Hollys Coffee are now starting to display the roasting date of the coffee beans their staff is brewing that day, with Dunkin Donuts branches also showing the production date.
A new labeling strategy has proven a good way for smaller companies to compete with their dominant rivals.
Daesang Well Life found it needed a marketing boost after entering the vegetable extract market last year, so it began to emphasize the freshness of its products by offering the "date of extraction" along with the production date on its line of health products.
Recently, many premium ice cream manufacturers have chosen to print production dates on their labels as well. The Cafe Ti Amo brand offers the date and even the precise time all of its ice cream products were packaged, discarding all products that have been standing for more than 72 hours. Lotte Confectionary has also begun adding the production date to its product packaging.
Many rice distribution companies are now labeling the milling date of their rice, when oxidation begins, which eventually affects the rices flavor and quality.
The liquor industry has joined the craze as well. Kooksoondang, a popular brewery, now provides a "product background control system" on its Web site. Customers can use it to check for information on the beverage they are consuming by entering the volume and product code on the back of the bottle.
Hite Brewery indicates suggested consumption dates, which are 365 days from the manufacturing date for beverages in cans and 180 days for bottles.
In response to the increasing popularity of creative labeling, Professor Kim Nan-do of Seoul National University said, "The number of companies that are indicating the date of manufacture on their products is steadily increasing as consumers nowadays are emphasizing the importance of product credibility.
"Only companies that endorse strict quality control are able to indicate production dates on their products. Companies that lag in technology cannot follow that," he added.
4. Subject: Unchained health industry
Date: July 15, 2010
Source: JoonAng Daily
The Organization for Economic Cooperation and Development last month issued a report calling for health care reforms in Korea. The report advised the government to license for-profit health care companies.
The report received a mixed response from the government. The Strategy and Finance Ministry liked the idea of regarding health care as an industry, while the Health and Welfare Ministry wants to keep it in the realm of social welfare.
The previous administration had wanted to allow investment in hospitals and medial care facilities in order to expand the health care industry. But the policy hit a roadblock due to a dispute between two ministries.
As the OECD pointed out, investment in hospitals and medical companies is a global trend. Singapore, Thailand and India have enlarged their hospitals by drawing on corporate investment and promoting them as a source for economic growth.
Singapore in 2007 attracted 460,000 new patients by promoting medical tourism. Foreigners now spend over 900 billion won per year in Singapore on medical care.
Our doctors are equally competent. But because we dont have the advanced infrastructure that Singapore does, Koreas medical tourism industry brought just 60,000 patients to the country last year.
In the past, foreign nationals mostly traveled for plastic surgery, but these days many of them seek expensive medical treatments for cancer, cardiac disease and neurological problems.
With additional investment, the health care industry, and specifically the medical tourism industry, has the potential to become a lucrative field, yielding value-added businesses and creating highpaying jobs. Foreign patients, accompanied by their families, could stay here for a long period for treatment and care, bringing profits to many peripheral businesses.
Last year, the government included the health care industry as one of 17 sources for new economic growth and launched a "Medical Korea" marketing campaign. But the industry cannot compete when fettered by various restrictions and regulations. And having to cut through so much red tape undermines the welfare aspect of health care. In any case, however, the ministries should stop fighting and instead work together to find the best way to support the nations health care industry. It could benefit the entire country.
5. Subject: Import and Export Prices Continue Rising
Date: July 14, 2010
Source: Mail Business Newpaper
Inflationary pressures are mounting for the second half of this year.
According to Export and Import Price Trend in June, released by the Bank of Korea (BOK) on July 14, import prices increased by 2.0% from the previous month. They are on a consistent rise for five months in a row, increasing by 0.5% in February, 1.2% in March, 1.2% in April and 2.7% in May.
Export prices rose at the same time. They increased for two straight months, rising by 2.8% in May and 3% in June, compared with the previous months. The higher exchange rate in June turned out to have affected the prices.
Import and export prices in foreign currency fell by 2.1% and 1.0%, respectively, in June compared with May.
By sector, import prices of capital goods and consumer goods soared by 3.9% and 2.9%, indicating significant increases. Import prices of commodities remained relatively stable, barely rising by 1.5% in June, compared with the 3.5% increase in March, 3.9% in April and 2.4% in May. Compared with the same months last year, they grew by 8.0% in June, followed by the 5.1% growth in April and 11.3% in May.
By item, import prices of acrylic acid, coffee and lubricant jumped by 14.0%, 15.8% and 6.9%, respectively, while prices of nickel and lead ore dropped by 10.0% and 11.0% in June, compared with the prior month.
Export prices of commercial goods and agricultural and marine goods rose by 3.0% and 3.5% in June month-to-month. They increased by 1.5% from a year earlier, followed by the 0.4% rise in May.
Office of Commercial Affairs, Royal Thai Embassy in Korea
Source : http://www.depthai.go.th