The strengthening of Asian currencies has cut heavily into operating margins-usually well below the double-digit levels even in the best of times-of grey market operators, most of whom operate from the Far East.

``With their costs on the increase and yields on the decline, they are finding it difficult to push their products,'' said M P Sharma, director of the Jumbo Group, Dubai. ``Another reason is the shutdown of more C-class retailers in the local market in the second half of the year.''

Grey marketers are finding it difficult to get outlets for their goods, especially when market conditions have been tight. ``Strict action against sources of entry of parallel goods within the local market hasalso helped the industry,'' Sharma said.

More banks to go online
Abu Dhabi banks are set to take the lead in electronic banking with at least two almost ready to go online. Abu Dhabi based Smart Systems, whose core business is e-commerce and e-banking solutions using smart cards, is installing the systems for the two banks using technology from Germany's Data Design, writes Gulf News.

``The projects with the two banks will be completed by next month and soon they will provide e-banking services,'' said Mutaz Zeidan, general manager of Smart Systems. UAE banks are looking into e-banking from two angles-home banking and corporate banking, he said.

The UAE is one of the region's most advanced countries in terms of starting e-banking and the level of awareness is high, he said. ``There are over 300,000 users of the Internet in the UAE, and it is expected that e-banking will have 100,000 users by the end of next year.

Asian brands not famous?
Asian brands need to become famous toachieve global success, says Simon Sherwood, group managing director of UK-based Bartle Bogle Hegarty, a subsidiary of Leo Inc. In the advertising industry, fame means a high-level of awareness among consumers, an understanding of what the brand is about and, most importantly, a positive view shared by millions of people, according to Bangkok Post.

Rolex and Mercedes-Benz are examples of brands that everyone recognises as top quality. ``That's the power of fame, it has the capability to create desire.'' Fame adds enormous value to a brand since it creates a shared experience and is of basic importance when brands ``go global''.

With consumers changing brands faster than ever, brand fame has to be built quickly. That's where advertising comes in. Calvin Klein launched his CK1 product in 36 countries on the same day, without bothering to run pre-market tests and summon focus groups. The brand name is enough to guarantee success, according to Sherwood.

New marine cargo terminal needed
Hong Kongshould build a marine cargo terminal close to the new international airport at Chek Lap Kok for speedier handling of cross-border air cargo traffic with the mainland if it hopes to retain its success as a shipment hub for the Pearl River Delta (PRD), according to Shippers Today, a publication of the Hong Kong Shippers Council.

The November/December issue of the magazine quotes officials from the Airport Authority (AA) and several shipping and transport companies, all of who stress the need for Hong Kong to streamline the movement of cargo from the mainland.

They suggest that using trade waterways for egress and linking to a marine terminal at the airport would be swifter than relying on the present road routes with chances for delays.