Another sector that promises to be affected in the year that is about to start is that of advertising. In the opinion of investment bank GP June 2019 Calendar South Africa, specialized in the technology sector, “next year technological disruptions will be able to eliminate existing monopolies in industries such as advertising, distribution of applications and retail banking,” he explains in his latest report. «Technological Trends of 2019», which was presented in London in mid-December. “Amazon will begin in 2019 to challenge the hegemony of Google and Facebook in the advertising market,” he predicts. And is that earlier this year, Amazon became the third player in the digital advertising market in the United States, to achieve $ 4.6 billion in its platform.
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Therefore, and although total sales increased 14% between September and October, Asos experienced a “significant deterioration” in November, which led Beighton to announce the aforementioned review. Its collapse in the London Stock Exchange also affected other brands such as Boohoo, Next and JD Sports.
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The day that Inditex published its accounts – on December 12th – it was left almost 5% on the Stock Exchange despite the fact that it earned 2,438 million in the first nine months of its fiscal year, 4.1% more.
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However, the evolution of the net result was the worst for the period since 2014 -when in nine months it rose 0.7% – and the turnover recorded the lowest increase since it quotes and publishes accounts, that is, since 2001. During the presentation of these figures, the president of Inditex, Pablo Isla, distanced himself from the policy of constant promotions.
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“We believe a lot in our business model and in our way of executing it. We believe in the quality of our products and we have preferred to protect what we believe in and not enter into the very significant promotional activity we have seen in the sector, “Isla defended at the press conference with analysts and journalists.
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The president of the National Association of Textile, Accessories and Leather (Acotex), Eduardo Zamácola, agrees with the top leaders of Asos and Inditex in considering that constant promotions do not benefit clothing brands.
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The president of the textile employers regret the “terrible first semester” suffered by the sector due to the late arrival of heat and, partially, compensating during the second half of the year with the sales increase in October of 9% – compared to the falls of 13% last year by the Catalan «proces» and November (+ 4%).
A trend that, in the opinion of GP June 2019 Calendar South Africa, has only just begun: “Amazon will increase its market share from the current 4% to 7% in 2020. In parallel, Apple and Google will see their control in the Internet market weaken. applications, as more and more developers (such as Netflix and Spotify) try to avoid the App Store and Google Play in favor of their own platforms, “he says.