The FLKI Strategic Committee opined in a statement made yesterday, that notwithstanding a major drop in car sales, that new consumers from emerging markets will boost demand with 375 millions additional vehicles in circulation by 2012 and 715 millions by 2020 increasing the size of its car care product markets by more than 150%.
Notwithstanding the crisis visiting car sales and generally pessimistic predictions for the automobile industry, FLKI believes that its product concept and notably car care products are on the edge of an explosive growth phase.
The Committee also advised, that it believes that the number of vehicles in circulation in the world markets in which its product conceptions are currently actively distributed will increase substantially and will pass the 680 million units (2008) to 1.1 billion in 2020. The statistic translates to sales of 370 million new vehicles between the present and 2013, with a commensurate increase in the used vehicle park to which most car care products are targeted.
By 2020 the number of new vehicles hitting the streets would then be some 720 million opening a huge market for FLKI car care product conceptions in consumer, professional and industrial segments.
FLKI is also particularly optimistic for its well publicized commitment to a solid presence in the BRIC (Brazil, Russian, India and China) FLKI strategic analyst believe that in the next 10 years, millions of families from these markets, as well as the others in which FLKI maintains product conception presences such as Malaysia, Mexico, and Indonesia, will acquire their first vehicles. Presently set at 18 cars per 1000 households, the rate of sales will augment by more than 10% by 2013.
In 2008, China displaced the United States as the biggest automobile market. “Emergent countries in which we are aggressively developing our technologies and product concepts are experiencing an unbelievable increase in their purchasing power which is not likely to stop any time soon.” Said Manuel Garcia Communications Officer. The BRIC will quickly reach the $ 10,000 revenue point which corresponds to the global base for personal mobility. For the Automobile and Automobile After-Markets in which FLKI holds a global leadership position this promises a market environment with enormous potential.
Industrialized nations where the rate of growth is much slower in respect to that of the emergent countries will see their vehicular markets increase by 2020. The growth will be fueled by low cost vehicles adapted to the local infrastructures and which will result from strong demands within large cities where the current market is relatively low.
While FLKI analyst believe that any growth in sales in the US and in Europe will continue a general slow down for the next few years, the Strategic Committee announced a renewed effort in distribution support for these markets - freezing prices for three years, and doubling distributor sales and marketing support. “We are certain that the slow down in these countries will end. Growth is just a matter of time, and when it starts we will have increased presence and market share ensuring the dominance of our market conceptions.” Continued Garcia. FLKI believes that growth in these markets will average 1 or 2%.
FLKI built its global leadership position trough a process that prioritized quality, performance, capacity and price. In a market where competition promises to intensify, it is well placed to continue to increase market share, most notably from its higher priced competitors.
“There are many in the industry who seem to realize that the demands of consumers is changing radically. The future belongs to those that have the capacity to develop new innovative products that are less expensive, that consider the problems of local markets and who propose alternatives” added Garcia. FLKI whose expertise and technologies in chemical and wet wipe productions have earned it numerous industry awards has a material advantage over its competition.
“Strategies such as those in place at many players in this industry and which target only crisis management will prove disastrous. FLKI whose motus operanti has always been to rely on innovation in product development will see distributors of its product conceptions benefit from millions of new consumers” concluded Garcia.
Author Resource:-
John David is one of the nation's most respected expert analysts on the Automobile After-Market Industry. He holds appointments as a covering analyst with some of the world's largest players. He also conducts a private practice as a consultant in capital raises, mergers and acquisitions for small to medium size manufacturers in the consumer, professional and industrial chemical, wipe, wet wipe and car and vehicular care industries.
Falken Industries Ltd OTC : FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.
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