The dollar is still the world's reserve currency. But since Donald Trump's presidency at the latest, there are doubts as to whether it will remain so for much longer. Who could knock the dollar off its throne?
In order to become a global reserve currency, a currency must fulfill various criteria. It must be internationally accepted as a means of payment, stable in value, and also useful as a unit of account or anchor currency with fixed exchange rates to other currencies. "Most people look at foreign exchange reserves," is the statement of central bank experts. These are stocks of foreign currency that national central banks hoard in order to be able to intervene in the foreign exchange market (e.g. to buy their national currency and thus support it). The US currency dominates here; a good 60 percent of all foreign exchange reserves worldwide are dollars. The euro follows with about 20 per cent. After that comes nothing for a long time, then the British pound and the Japanese yen, and finally the Chinese yuan with about two per cent.
Foreign Exchange means Dollars
Donald Trump had often complained during his term as US president that the US current account deficit was not fair. But with policies of high government spending coupled with tax cuts, he said, that was the inevitable result. The national debt had increased by $3.2 trillion between the fourth quarter of 2016 and the fourth quarter of 2019. The deficit was also financed by foreign investors, who bought a further $838 billion of US government bonds during this period, so that they then held a total of $6.8 trillion of US government bonds at the end of 2019. This development is also due to the status of a reserve currency in which investors have confidence.
Power and Confidence
The fact that the dollar was able to occupy this dominant position is due to the situation after the end of the Second World War. Until then, the British pound was considered the world's means of payment. But the war had severely weakened the economies in Europe. At the conference in the American Bretton Woods, they established a framework of fixed exchange rates to the US dollar, which lasted for thirty years. Since then, there has actually been no official reserve currency, but the dollar has dominated despite all the upheavals. Investments in US government bonds and in the currency itself are considered fail-safe, which is why many investors put their money in US dollars.
Euro as regional Currency
In addition, the capital market is very broad, something the European currency area cannot offer. Within the European Union there are few safe forms of investment such as government bonds. German, Dutch or Austrian government bonds cannot completely satisfy the demand for safe euro investments; harmonisation within the euro area has not yet progressed far enough. However, this could gradually change with the introduction of uniform euro bonds within the framework of the Corona Reconstruction Fund. So far, the euro has been of regional importance at best. Moreover, the currencies of some West African states are linked to Europe for historical reasons. They have pegged their currencies to the European common currency via the French central bank. But there is more of a tendency to want to break away in order to gain more autonomy, to be able to make their own economic and monetary policies, and finally, in some South-Eastern European countries, the D-Mark was strong before the introduction of the euro, and this role has also been taken over by the euro.
And what about China?
China is fighting with the USA for world supremacy. According to the latest forecasts, the People's Republic will replace the USA as the world's largest economy as early as 2028. Nevertheless, many Western experts doubt that the national currency, the yuan (renminbi yuan), could take on a more important role or even become the reserve currency in the next few years. In order to gain international importance, the yuan would have to be freely convertible above all. But there is still a domestic yuan and one that is used in international trade. The Chinese government does not want to lose control over its currency. But that would be the case if it freed up the exchange rate.
In this respect, the US dollar is likely to remain the world's reserve currency for the foreseeable future. However, most currency experts assume that it will weaken somewhat in view of the high level of US debt, which is now rising again due to the Biden administration's economic stimulus package. But as long as the solvency of the USA is not in doubt, the dominance of the "greenback" is likely to continue. / Text Red.
London loses more financial institutions than expected due to Brexit. More than 400 financial institutions relocated to continental Europe, Dublin benefited the most. Amsterdam stock exchange posts further gains, overtaking London.
When the US President Biden presented an economic program for the recovery of the US economy and society, the amount of 1.9 trillion US dollars reached very high attention. When the EU Commission presented the "economic aid package" of around 1 trillion euros, criticism was also voiced about the size of the volume.
Brexit has not even been in effect for six months (transition period endet on 31st Dec. 2020) and the shift of assets from the United Kingdom to the financial hubs of Dublin, Amsterdam, Frankfurt and Paris in the European Union has already exceeded the 1000 trillion pounds mark. (Red.: for better understanding, it's approx. 526 times the US-Support Programme or 1100 times the EU Economy Recovering Program)
According to a study, Brexit is leading to an unexpectedly strong bloodletting for the financial metropolis of London. More than 400 financial firms have moved their business from the British capital to continental Europe since Britain left the European Union (EU), according to a study published on Friday by the think tank New Financial. This is significantly more than expected.
Number even higher than expected
"We expect the actual number to be much higher and that even more firms will relocate in the future," the study said. "We are only at the end of the beginning of Brexit." Financial centers like Dublin are benefiting the most from the relocation, according to the research. 135 companies had relocated their headquarters there, followed by Paris, Luxembourg, Frankfurt and Amsterdam. The latter has already scored with new gains in trading volume compared to London since January 2021 - and this trend is likely to continue.
Not only Brexit hardliners like Jacob Rees Mogg have moved substantial assets to the EU-Country Ireland through their financial firm, but also banks, insurance companies and fund-service providers have shifted assets totaling around one quadrillion pounds (= 1000 Billions Pounds, or 1.15 quadrillion euros means 1150 trillion euros) to the countries of continental Europe. Frankfurt will be the winner in the long run in terms of asset reallocation. Paris, on the other hand, will be the biggest beneficiary in terms of jobs, and Amsterdam will probably continue to benefit in the stock market business. Text/Red.
After the Brexit, Great Britain is putting banking rules that the EU enacted as a consequence of the financial crisis to the test. On behalf of the London Ministry of Finance, an investigation was launched on Tuesday into the requirements for capital market transactions of large financial institutions such as HSBC and Barclays. In the aftermath of the financial crisis, the institutions were required, among other things, to separate their retail banking from the riskier investment banking.
After leaving the EU, Britain is no longer bound by the rules from Brussels. At the same time, the British are trying to strengthen the competitiveness of London as a financial centre. In the past ten years, the business environment of British banks has changed significantly due to Brexit and the Corona pandemic. According to the report, the enquiry team will ask industry representatives how the current regulations have played out in light of the changes in the British financial sector and the economy as a whole. It will look at intended and unintended consequences for financial stability, competition and the competitiveness of institutions.
At the heart of the rules is proprietary trading, where banks buy and sell securities on their own account rather than on behalf of clients. The separation of these potentially lucrative but also risky capital market transactions from the retail sector was a consequence of the fact that several financial institutions had to be rescued with taxpayers' money during the financial crisis. Any recommendation to relax the rules is likely to meet resistance from the UK central bank. The British Treasury expects the report within a year. / Text Red.
NEW BEGINNINGS by Eleanor Wyllie | Convention Manager,
Japan Convention Bureau / Japan National Tourism Organization
Here in Japan, we are entering peak cherry blossom season, an annual milestone renowned worldwide as images of these beautiful blooms are shared across the globe. A symbolic flower of spring, cherry blossoms signify a time of renewal, and with a short life span, when they bloom it's a moment to be captured and remembered.
This year, their moment in time feels particularly poignant as we look forward to a brighter future following the pandemic. Just last week, the state of emergency was lifted in Tokyo and three neighbouring prefectures, and although travel restrictions remain in place, this is a positive step forward for the country. This also follows the news that while overseas spectators won't be able to attend the Olympics and Paralympics in Tokyo this year, the event will go ahead. We're privileged to have the opportunity to host such a significant event under such challenging circumstances. The Olympics will provide an opportunity to showcase Japan as a meetings and events destination to a global audience and build confidence with associations and PCOs for when travel restrictions are lifted. Until then, wishing you all a positive, happy and healthy start to spring. We look forward to welcoming you back to Japan soon. / Text Press Release
A huge container ship has run aground in the middle of the Suez Canal. No other ship can get past. Huge traffic jams have formed on the world's main waterway. Supply chains are in danger.
A sandstorm, poor visibility and a watery one-way street in the middle of a desert: these are the ingredients for the drama surrounding container freighter "Ever Given". Like a whale, the ship operated by the Evergreen Line (based in Taipei) is stranded in the Suez Canal, clogging up one of the arteries of the world economy. It has become wedged in a single-lane passage of the canal, of all places: No ship can get past; dredgers are trying to bite chunks out of the banks of the canal to get the ship afloat again. Tugboats are pulling on the monster with all the power of their heavy diesel engines to get the traffic flowing again through the eye of the needle. So far without success.
A traffic jam of 100 container ships has formed south and north of the accident site, according to the Bloomberg news agency. The German Shipowners' Association warns of the possible repercussions if the blockade lasts longer. "This is like the full closure of a major German motorway. The longer it lasts, the more noticeable the effects will be," said a spokesman. For now, a considerable part of world trade is at a standstill with the traffic jam: ten to 15 per cent of global container freight shipping passes through the Suez Canal, according to trade experts.
From soft toys to cars
According to the Suez Canal Authority, which operates the canal, 19,000 ships pass through the 200-kilometre shortcut between the Red Sea and the Mediterranean every year. That's about 50 every day of the year, carrying a total of one billion tonnes of cargo. "It starts with stuffed animals and goes on to mobile phones, printers and other electronic devices. There is machinery in the shipping containers, clothing or even furniture. Business with China and Europe is particularly affected. Here, about two thirds of all goods are transported by ship through the canal. "If this accident is not repaired within the next few days and ships could no longer sail through the Suez Canal, this could well lead to problems in supply chains in Europe as well. According to calculations, almost all ships between China and Europe use the Suez Canal - it is about 98 per cent.
The price of oil has moved violently
While nothing is moving in the traffic jam of the colossi of industrialised shipping, a lot has moved on the financial markets: On Wednesday, the oil price climbed significantly, a barrel of North Sea Brent rose in price by over six percent. This is because a large amount of energy for world trade also flows through the waterway in the bellies of the supertankers. This geographical location makes the Suez Canal an Achilles' heel for the world economy in two respects: firstly, because most of the oil from the Middle East passes through the canal to get to Europe and North America. On the other hand, because there is no real alternative route. That is why the picture of the fully blocked motorway does indeed capture the gigantic traffic jam and its effect. But a traffic jam on the motorway can be corrected comparatively easily - by rerouting the traffic. With the Suez Canal, it is a somewhat bigger problem. For the diversion would lead once around Africa. The fact that this is no easy ride is due to the distance of around 6000 kilometres that would have to be covered. The ships of the world merchant fleet travel at an average speed of 15 knots or 28 kilometres per hour. That means they are underway for at least ten days longer if they choose the route around the Cape of Good Hope at the southern tip of the African continent.
That is why the shipowners are also prepared to pay a small toll to the operator of the passage, i.e. to Egypt: one passage costs around a quarter of a million euros. Last year, the Suez Canal Authority collected a turnover of 4 billion euros this way. In the meantime, the situation on the oil market has eased somewhat, and the price of the most important grades of the lubricant of the world economy fell again somewhat on Thursday. Apparently, it is expected that the ship will soon be afloat again. Then the never-ending stream of containers can once again squeeze through one of the world economy's bottlenecks, which is after all responsible for a transport value of 9.6 billion US dollars in the world economy. Text / Red.
Long feared Brexit consequence: London is no longer Europe's leading stock exchange.
The global world of service, insurance and finance business has always been more important in London since the deregulation of the Thatcher government. However, in the 4 years of talks, negotiations and finally laboriously reached agreements, the "City of London" had no place at the negotiating table and certainly not in the treaties.
The fantasies of the Brexit millionaires of the "Singapore on the Thames" have receded further into the distance as far as trade and the turnover of goods are concerned, because according to the ONS (Office of National Statistics) in London, the UK's exports to the EU in January 2021 fell by 41% and imports by 28%. The situation is even worse for financial services on the Thames: since shares quoted in euros may only be traded within the EU, trading in securities is also shifting to the mainland as a result of Brexit. Therefore, since the beginning of the year, London is no longer the largest marketplace for shares - but neither is its long-time rival Frankfurt.
So the famous "third party" has prevailed again when two quarrel. After the Brexit, London has to cede the leading position among the European trading centres to Amsterdam. More shares were traded on the stock exchanges in the Dutch capital than on the Thames in January, according to data from the futures exchange CBOE Europe.
According to this, the daily trading volume in Amsterdam was 9.2 billion euros, compared to 8.6 billion euros in London. On an annual basis, the British were still clearly in first place with an average of 17.5 billion euros in 2020, Frankfurt am Main came in second with 5.9 billion euros. Amsterdam only made it to sixth place with 2.6 billion.
The financial centre of London had long warned of negative consequences of the UK's exit from the EU single market. Stock exchange representatives suspect that the shift of trade flows from London to Amsterdam is likely to be permanent, as the EU insists that shares quoted in euros must be traded in the EU. Amsterdam's triumph had been heralded when European CBOE equity platforms and London-based Turquoise became active after the Brexit vote in 2016.
London hopes to compensate for a small part of the shortfall with trading in Swiss franc-denominated Swiss shares, which was allowed again this month. On average, 250 million euros change hands daily in the process, which should move the London Stock Exchange back towards one billion. This was the level London ranked at before the EU ended trading in Swiss shares on its markets in June 2019. Since then, Switzerland and the EU no longer recognise each other's exchanges. Now it looks like at least the UK and Swiss exchanges are heading back towards cooperation through mutual recognition and this should be reflected in the London trading venue's books in the coming months. Text / Red.
A highlight in the industry calendar, this year would have been the 30th year of IME, so we weren't going to allow the pandemic to put a stop to celebrations. Instead, the program, inclusive of more than 600 business exchange sessions, was delivered as a virtual event from 24-26 February to 34 overseas buyers. Thanks to all partners, CVBs, hotels and meeting organisers who joined us for this year's event, which provided reassurance that our industry and incentive travel in the Asia Pacific region is still thriving.
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Might be now the last good moment to face up to the update and, for many, the challenge in market or customer communication and to arrive in the 21st Century - because, as is well known, after the crisis is always before the crisis. The global restrictions have of course influenced and permanently changed the demand for goods and services. For many traders, the outbreak of the COVID 19 pandemic could not have come at a worse time.
Before, many companies were already struggling with major uncertainties, keywords such as: Brexit and the creeping recession of the global economy, tensions between the USA and China, polarisation in international trade and protectionism, are only mentioned here in addition.
The impact of the restrictions is already showing an increased administrative burden and media agencies report that more is to be expected in the coming weeks.Reactions to this extraordinary situation differ depending on the industry and the provider. One thing is clear, however: Major shifts in consumer demand.
Customers are now relying on online retailers to meet their needs more than ever before. In the past few weeks, the world has changed so much that we hardly recognise it - and marketing has changed too. If you take a look at the reactions in marketing, you can see different approaches by the suppliers - depending on where they find themselves, want to find themselves and probably will find themselves in the new consumer landscape - even if not always entirely voluntarily and intentionally. Due to market uncertainties, lack of planning and general budget cuts in marketing, some suppliers have reduced their activities within marketing channels.
Let's observe three categories:
First: Too little demand
Suppliers experiencing a decline in customer demand have to make difficult decisions. Management's instructions to cut all costs are understandable - however, research and observation of economic history, has long shown - actually since the Great Depression of 1920 - that those who increase their marketing spend in times of crisis benefit in the long run.
It is important that suppliers separate the impact of the Corona virus from other factors and continue to adhere to best practice. Both commercial customers and consumers will remember how they were dealt with during the crisis, which in turn will affect their brand loyalty in the future. Some suppliers who experienced low demand paused their marketing activities to reflect and reassess their position in the new consumer landscape - including an analysis of inventory and supply capacity.
Second: Too much demand
The grocery industry is a well-known example of excess demand. Here, retailers have been prompted to pause their marketing activities in recent weeks. In some cases - especially with consumer goods, medicines and food - websites even had to be taken offline temporarily and virtual queues introduced in order not to overload server capacities, not to deepen the situation in the customer hotlines and service phone numbers of a wide range of providers, from grocery retailers to credit card companies.
However, it is the niche products of small retailers in particular that tell us what consumers are looking for during the restrictions. Whether it is sports equipment, leisure wear, toys or board games, gardening tools or takeaway food - all of these are in high demand and for the most part it is the small suppliers who are seeing strong demand for their products and services.
Many smaller businesses are usually more agile and can or should react more quickly - and that is an enormous advantage in a time when physical shops had to close overnight. For this reason, they were also often able to successfully get customers from offline to online shops. In addition, smaller companies had the unique opportunity to reach significantly more customers with a small budget, as Amazon, the market leader in online business, drastically reduced its advertising expenditure in March.
So when is an increase in demand too much?
When some retailers couldn't accept new orders because they didn't have the resources to do so - either due to a lack of availability or a lack of delivery capacity. But these measures are usually short-lived. Because with new optimised processes in the supply chain, many of these traders have the chance to establish themselves in the markets and build up new regular customers.
Third: Push/pull effect
There are many suppliers that are still affected by the pandemic, but where online demand remains fairly constant. These include companies like department stores that offer both in-store and online offerings. We see that loyal in-store customers are also buying from the online shops, but at the same time there are drops in demand in certain areas, such as women's clothing. This push/pull effect means that the business performance and thus the customer movements - even these in the online area of the business remain relatively constant. Text / Red.
How should suppliers from these three categories do marketing during the existing restrictions?
Good marketing is as good as the bundling of measures and activities itself. There are several crucial factors: Data-driven decisions: It is more important than ever to make decisions based on data. Because these help to understand which channels deliver the greatest return and, above all, from which campaigns this is generated - so this is how you ensure that marketing activities have the greatest possible impact and that resources are used optimally. However, there is no need to explain that neither marketing nor digitalisation is miraculously self-healing; it is an applied science.
This includes the fact that all relevant information must be stored and retrieved. In this way, the "where-from/where-to" effect can be clearly analysed and promoted. However, many SMEs that certainly belong to the niche businesses listed above have this knowledge and know how to use it profitably in the long run? The entrepreneur should make sure that the above data is taken into account and that it is clear which activity provides added value. Capturing the data and determining movements based on data will ensure that the campaigns that are further up the sales channel cannot be overlooked.
It is important that all decisions made during the crisis are both based on data and implemented according to best practice - but it is also important to stress the importance of continuity - The submarine strategy: you are only temporarily visible in the market - the rest of the days you are submerged, is absolutely counterproductive here and certainly does not generate repeat customers.
Sending the right impulses
No brand or company wants to lose customers or partners because it sets the wrong tone or comes across as putting profits before people. Providers have an obligation to both their employees and their customers to provide the performance to continue. This positioning must be clearly communicated to campaigns and customers. Unfortunately, in many industries - such as aviation - this is currently happening to a very limited extent. Therefore, it is extremely important to understand who the clients are. It may be that even at the beginning of the year it was absolutely clear who the audience was. But because of the pandemic and the economic circumstances and shifts in demand it has caused, a different demographic may now feel targeted by marketing activities than before.
Suppliers will attract new online customers, many of whom are likely to be making their first ever online purchase. This could be particularly true for the older generation of customers. A market study in October 2019 revealed: That 71 per cent of customers in Central Europe prefer to make their first purchase from a brand in-store. Since this was not possible due to the closure of physical, i.e. offline, shops, the opportunity arose to attract new customers online. Even now, online retailers can benefit from limited access to shops and should therefore adapt their messages to this new target group. For this, simple language should be used that is understandable for everyone and puts the USP in focus.
Supporting other businesses
The changes in consumer demand in all parts of the retail industry offer suppliers the opportunity to form so-called affinity partnerships with other brands. With some brands experiencing too much demand and others too little, both customers and other businesses can be supported by directing the volume in the market movement - i.e. traffic - to suppliers that are not in direct competition but offer complementary products and services.
With the help of so-called "publisher tracking", these affinity partnerships can be established and their activity measured. Each brand acts as a reference for the other. It can improve the perception of one's own brand by providing customers with information about other companies that may be relevant to them and thus produce added value.
Networking on the Network
Before a company decides where to invest, industry trends should be analysed and considered. Is the company in line with developments and the current situation? To find out, the network can be asked to regularly provide data showing how much the industry is growing compared to its own activity. This knowledge helps to identify both the success of the company's activities to date and where more focus should be placed. With current events leading to major changes in consumer behaviour on an almost daily basis, the situation can change quickly. Looking at the big picture on a regular basis allows for quick reactions and the best chance of meeting customers' expectations. If neither tools nor knowledge are available for these tasks, professional support is certainly advisable - keyword: market monitoring is becoming more important than ever.
What does the future hold?
The current situation presents marketing experts and companies with new challenges and completely changed parameters. These are parameters that change extremely quickly and redefine the strategists' time horizons. More and more brands are taking advantage of this opportunity to do good - by supporting systemic professions, enabling their customers to easily send donations to charities or adapting their own product variety to the current demand.
Positive examples include: distilleries and breweries that have become the linchpin in the production of disinfectants. Or Chanel that has agreed to make its factories available for the production of personal protective equipment such as mouth and nose protection, etc. However difficult the situation, such actions and initiatives show the strong spirit of community solidarity and cohesion. A big bright spot for all in digital marketing is definitely that the short term forced shift to online shopping and the related willingness to not only accept but also use online as a full-fledged channel will only be beneficial for the long term future of the industry. Text/Red.
Not only is the online purchase of whiskey and other distilled products in the UK a frustrating and expensive undertaking for continental Europeans at the moment, but for small distilleries, especially in Scotland, it is currently extremely difficult to completely impossible to sell alcohol into the European Union Member States.0
The confusion over the necessary forms to send alcohol currently makes it almost impossible to send even a single pallet of spirits on its way. On both sides of the new border, he said, shippers, producers and trade customers are unprepared to deal with the changed conditions, which also vary from country to country in the EU. While large companies can still ship whiskey across borders in large quantities, small distillers are hard-pressed to find carriers willing to take on the multiplied formalities.
Many importers have sold out of stock, and it is currently impossible for distillers to send new goods to Germany. It is already failing because the carriers are unable to quote transport costs.
Many CEO's and Managing Directors of are complaining that no carrier will accept small shipments of one or two pallets to the EU. Alan Powell of the British Distillers Alliance (in reference to press statements) also does not believe, that the situation will improve substantially once the bureaucracy has settled down. Alcohol shipments from the UK to the EU would be much slower and much more expensive compared to before, because the procedure would remain complicated, because even with the authorities in place, it would still be three times the work compared to before Brexit. And that would hit the small producers much harder than the big companies. / Text Red.
US Election year 2020 - The e-technology giants, who included the Chief Executive Officers of worldwide well known global acting businesses as Amazon, Apple, Facebook and Google, in the first hours of the hearing.
The most powerful figures had to present themselves to a congress hearing in Washington D.C. USA. For over a year, US lawmakers have been investigating the four tech giants to determine whether the companies have abused their power and dominancein the online marketplace.
In e-technology were hit with tough questions and documents that raised concerns about their competitive tactics during a high-profile antitrust hearing on Wednesday.
Jeff Bezos, Amazon's CEO, acknowledged, that Amazon may have improperly used third-party seller data to inform its own product decisions, a key concern over the company's approach to competition since quite a long time.
Here are the internal documents that Congress used to grill Big Tech. The Apple CEO Tim Cook, on the other hand, got off relatively light. Despite some early questions about whether Apple favours certain developers on its App Store, there were relatively few questions about Apple's App Store guidelines for developers, which have been a main complaint among critics.
The CEOs at the hearing, Mr Bezos' testimony was arguably the most highly anticipated as the world's richest person had never appeared before Congress. After avoiding any questioning for the first two hours of the hearing, Bezos fielded multiple sharp questions on Amazon's approach to pricing, acquisitions and how it uses data from third-party sellers. Mr Bezos acknowledged that there is a policy that prohibits the use of third-party seller data to support Amazon's own private-label business. But, he admitted, "I can't guarantee you that policy has never been violated." At various times in the hearing, Bezos either said he couldn't answer the question or couldn't recall the incident he was being questioned about.
Facebook CEO Mark Zuckerberg was confronted about internal company emails he sent during 2012 about buying Instagram. In one of these Emails, Zuckerberg said Instagram could be "very disruptive" to Facebook. E-mail correspondence from Facebook's chief financial officer referenced neutralising a potential competitor, which Zuckerberg replied was part of the motivation. In response, Zuckerberg did not deny he viewed Instagram as a threat, but pointed out, that the Federal Trade Commission approved the deal at the time.
All the tech executives sought to drive home the point that their companies are by America, for America. Amazon’s CEO Bezos referenced the "trust" Americans have in Amazon. "We need American workers to get products to American customers," he said in his prepared remarks. America's top tech CEOs cannot agree on whether China steals from them knowledge, infrastructure, business, money and finally power. "Apple is a uniquely American company whose success is only possible in this country," Mr Cook, Apples CEO, said in his remarks, touting the number of US jobs it has helped create. And the US battle with China for tech supremacy informed part of Mr Zuckerberg's argument. "If you look at where the top technology companies come from, a decade ago the vast majority were American," the Facebook CEO said. "Today, almost half of them are Chinese."
The ultimate impact of it will depend on what steps Congress takes or not takes, or recommends to address the antitrust concerns that led to the hearing in the first place. Still to remember, 2020 is a year of US election and many political shows are organised to satisfy the political circus curiosity of millions. Text/Red.
Photo Collection by Unsplash
MARCH 1st 2020, a day we might remember for a long time:
ITB Berlin, the biggest Trade Fair worldwide, is definitive cancelled, over 10,000 companies from 180 countries are affected. Corona-Virus effects: Switzerland prohibited all big scale events nationwide. France declares all events over 5000 participants as prohibited. Air-Transport-Index is falling to the lowest level since years. Italian Tourism is deeply injured. Additional: Refugee Crisis in Syria and Turkey's border to EU.
Brexit: Starting trade relations negotiations between the United Kingdom and the European Union under unfair pressure from government in London and so on - definitely a lot of challenges for businesses all over the world.
Tourism business in all its levels and professions is under tremendous pressure from this challenging global circumstances. What's the best strategy for your brand or business?
Many companies are cutting costs, payroll as well as regular spending. Advertising should be seen under a new light, of course there is no real sense to promote a destination without honesty and authenticity, just to sell and get unhappy customers - even if they are booking.
Later on Travel Gourmet Magazine, we will see more articles at these topics. But the main issue is definitely to use this challenging situation in our days for benefiting your business in the future.
Stay tuned on TGM Business and follow Travel Gourmet Magazine especially on LinkedIn for not missing updates.
Indonesia is famous for its traditional cloth called “Batik”. It is a technique of wax-resist dyeing applied to whole cloth.
Guest Writer: René Mayer / Fairmont Hotel Jakarta
It has diverse patterns, which are symbolic and influenced by a variety of cultures – this especially applies for Javanese batik which has a long history of acculturation and is probably the most developed batik in terms of pattern, technique, and the quality of workmanship.
In October 2009, UNESCO designated Indonesian batik as a Masterpiece of Oral and Intangible Heritage of Humanity. The day, October 2, 2009 has been stated by Indonesian government as National Batik Day.
The late Iwan Tirta was a designer who dedicated his life to introducing batik to the world. He was a world-famous maestro well known for his legendary batik collections, exquisite fabric designs, and extravagant fashion shows. Every single batik cloth of Iwan Tirta Private Collection is arduously hand-made by experienced artisans who, in keeping with the high-standard tradition.
To pay tribute to such craftsmanship, Fairmont Jakarta collaborated with Iwan Tirta Private Collection (ITPC) in offering “Batik Afternoon Tea” to its guests at Peacock Lounge. It was an afternoon tea promotion that is inspired by the artisanal patterns of ITPC’s latest collection.
As an effort to create a sustainable awareness on batik, especially to the younger generations, companies in Indonesia encourage its employees to wear Batik to work every Friday. Many expatriates working in Indonesia like Rene also wears batik to work on Fridays, as part of their respect to Indonesian culture. Text: René Mayer
René Mayer | Director of Sales & Marketing, Fairmont Jakarta / Indonesia
What is your background in the hospitality industry?
During several managing positions in Europe, where I worked at reputable brands such as Intercontinental Hotel Groups, Kempinski and Starwood and Director of Global Sales for Vienna International Hotels & Resorts before I moved to Asia and became the Director of Sales & Marketing for the Sofitel in Hanoi in 2011. In early 2017 I joined Fairmont Jakarta. As much as I love Bali, but I always knew my true passion lies in big cities like Jakarta. (Photo: Courtesy of René Mayer)
Tell us more about your current position at Fairmont Jakarta?
Since my latest appointment as the Director of Sales & Marketing at Fairmont Jakarta, one of my main objectives is to make Fairmont Jakarta be seen as the pioneer and market leader in Jakarta, as well as to gain brand awareness of the hotel. I’m glad that the hard work pays off as we were granted with several awards this year alone in 2018.
Two award platforms that have already been announced are the 2018 International Hotel Awards and 2018 World Travel Awards. We were granted with several titles in each platform such as ‘Best Luxury Hotel in Indonesia’, ‘Best Hotel Marketing in Indonesia’, and ‘Best Hotel Marketing in Asia Pacific’ at the 2018 International Hotel Awards. The latest additions are the titles of’ Indonesia’s Leading Hotel’, ‘Indonesia’s Leading Hotel Residences’ for our Sky Suites’ and ‘Indonesia’s Leading Suites’ for our Presidential Suites at 2018 World Travel Awards.
What was your strategy to earn those awards?
Creating brand awareness, especially if you want to put yourself out there for media exposure, you need content. Great content can be gained through organizing key unique events that only belong to Fairmont Jakarta.
We created what’s then to be the signature event of Fairmont Jakarta – a destination inspired events called “When Jakarta Meets”. The first series we had was in 2017 when we held When Jakarta Meets London, where we flew in key guest chiefs and mixologist directly from London to organize a series of different event every night within a week. Each event has its own characteristic and appeals to different types of customers, so there is something to everyone. We also worked with the right luxury partners that we want to be associated with. Each partner supports and helps promote the event, as well as brought their additional database and integrates their influencers to our event.
You put a lot of interests in digital marketing. What could you say on this subject? What does it fascinate you?
Digital marketing itself is an interesting subject. Digital globalisation is the new and more complex reality of our digitally connected economy and has created an entire new generation. The world is more connected than ever before since digital platforms have changed our entire life. Digital marketing has changed the way we do things; our personal life, our business life, our marketing initiatives and so much more. It also blurs the boundaries between personal and business life.
Our personal lives have been a public consumption through social media. Employers evaluate their candidates also based on what they see on the candidate’s personal social media. And the other way around, wherever you work, you represent your brand/company. Whatever you show on your personal social media reflects who you are as a representative of your company, too.
That means our private life influences our business life?
Yes, that’s correct. Digital marketing has a profound impact on the concept of a personal branding. You might not think of yourself as a brand but the truth is, you are. We are all brands in today’s world, and that means that you need to be knowledgeable of the importance of your personal brand to have a more promising career.
What do you think about upcoming trends in hospitality industry?
Treating our customers is all about personalisation, especially in five-star hotels that what you offer is not only the great product, but also the experience and great service. Personalisation is important in all service-focused industries. It involves fulfilling your guests’ preferences, customising unique experience in every destination, and overall making every moment special. I truly believe not long for now we will take personalisation to the next level.
Imagine sometime in the future, you enter your hotel room that feels like it is built just for you – the correct level of brightness of the lighting, the right temperature of the air conditioning, the style of music and its volume playing in the background, the temperature of rain shower just the way you like it, the firmness of the bed, the scent of the room, etc – only by tapping your key. It is guest preference done in another level, and everything is done automatically using the technology.
We appreciate your time and Interview, We are looking forward to see more in TRAVEL GOURMET Magazine about Fairmont Jakarta soon. Text/Red.
More about Fairmont Jakarta: Jakarta Calling in Travel Gourmet Magazine
Business culture is expressed in meeting quality - not quantity - and personal conversation, even the meeting agenda is not responsible for happiness.
BUSINESS & CULTURE, the terms which are established in the general terms and conditions of business of each company, are not the subject of this article. We are talking today about Business-Culture, no difference, you might think?
Quite a big difference, while the printed terms gives clear indications and security, the Business-Culture is the daily style of expression, communication and habits, which business people are producing interior of a company, with employees, shareholders etc and as well so much to the exterior like clients, contacts, suppliers and last but not least in the Human Resources communication. Global example in companies like "UBER" or "TESLA" or in governments in many capitals on our planet proves it daily.
Since quite a time, specially since the communication style and quality on global level has been deeply devaluated. First time in history so called "Leaders" of almost all political directions and nationalities, are communicating by social media channels - not with much of thinking, but fast - and in deed - without diplomacy and very often without respect too. Since words and expressions like to make "Deals" or not crossing "Red lines" is used in highly inflationary frequency - copied from one to others - it makes clear the global level of intellectual poverty.
Long time ago, lets say - since five or six years ago - in social media terms - ages - if people got messages for congratulations or blessings, they were capable to SAY or WRITE words, like: Thanks for thinking on my birthday, or maybe: We appreciate your kindness to congratulate us to our anniversary etc, today the perfect expression of educational (which might include intellectual) poverty is: The yellow thumb. It's the deeply unstylish and uneducated way to say - I am so busy and important but I accept your commend or congratulations in my generosity - and send like all Dumbs do, the yellow thumb. / Text: Red. bert