BDI CODE 2014 - Israel's Leading Companies, Law Firms, Accounting Firms, Best Companies To Work For - page 240

240
commerce
BdiCode 2014
Imports and Exports of Goods According to Years
(In $ Billion)
Commercial sector
The year 2013 concluded with a rise of 3% in the turnover of the
commercial sector, NIS 414 billion as opposed to NIS 401 billion in 2012.
In 2013 the expenditure on private consumption per capita rose by
3.9%, together with a moderate increase of 1% in per capita private
consumption expenditure for non-perishable products.
Along with a reduction of 1.7% in the import of goods (net) that amounted
to $ 71.1 billion, 2013 registered a growth of 5.4% in the export (net) of
goods, $ 56.9 billion. As a result, the commercial deficit shrank by 22%
and totaled $ 14.2 billion. A drop of 15% in the import of energy products,
ascribed to the commencement of production of natural gas, is responsible
for part of the reduction in import.
Imports of rawmaterials (except diamonds and energy products) constituted
38% of imports in 2013, as previously mentioned, the share of energy
products decreased from 22% in 2012 to 20%. The import of consumer
goods made up 16%, diamonds, sailing vessels and aircraft 14% and the
source of the remaining 12%of the total imports for 2013 were in import of
vehicles, equipment and overland transportation equipment for investments
– 12%. In 2013 imports from the European Union constituted 33.8% of
the total imports. Asia with 20.9%, the United States with 11.3% and the
rest of the world with 33.8% completed the picture of segmentation of
imports for this year.
From an examination of the Retail Turnover Index in Israel and the other
OECD countries, a relatively positive picture emerges regarding the state of
the Israeli economy; in 2013 the Index in Israel rose by 2.3% as opposed
to 1.4% in the entire organization. Spain and Greece continue to struggle
with their economic crises, and completed a double-figure decrease in their
Retail Turnover Indices over the past two years.
In 2013 the tendency of growth of the small supermarket chains continued
to the detriment of the two leading chains, on the backdrop of increased
competition and the migration of customers in the direction of the discount
chains. Furthermore, regulatory procedures that began as a result of the social
protest, and which are expected to continue also in the coming year, will
continue to set challenges for the two big chains. In 2013 the earnings of the
23 leading supermarket chains totaled NIS 37.3 billion, an increase of 3%
compared to last year, albeit with continued erosion of operational profits in
the branch. This is especially true for the two major chains –“Shufersal” and
“Ribua Kachol”, which registered drops in operational profits in the amounts
of 54% and 60% respectively in the first quarter of 2014 as opposed to the
same quarter last year. In March 2014 the Knesset passed, in the second
and third readings, the Law for Increasing Competition in the Food Branch,
which was based on the recommendations of the Kedmi Committee, with
the aim of contributing to the increase of competition in the food branch
and thereby reduce the prices of products for consumers.
The situation in the alcoholic beverages branch in 2013 was expressed by
intensification of the competition between manufacturers, importers and
retailers, this on the backdrop of reform concerning taxation of alcohol that
shook up the entire branch. The reform that was implemented in 2013 created
contradictory influences on the extent of activities. On the one hand the
rise in prices of most of the cheaper alcoholic beverages together with the
development of an alcohol consumption culture in Israel over recent years
and the strengthening of the parallel imports contributed to an increase
in earnings in the branch. On the other hand, the rise in prices resulted in
reduced demands, mainly for Arak and Vodka products. It appears that the
players can only lick their wounds and become accustomed to the new
reality. The extent of sales in the alcoholic beverages branch presented
a growth of 7% in relation to 2012, and totaled NIS 2 billion. From the
data concerning development of the Consumer Prices Index for alcoholic
beverages, it becomes apparent that in 2013 there was a growth of 12%
in the prices in the branch compared to the previous year.
The data for private consumption expenditure in Israel substantiate that during
the past few years the Israeli consumer has been buying less, and similarly
to other retail branches, the chains in the fashion industry are not immune
to the phenomenon. The changes in the consumption habits of Israelis are
expressed, inter alia, in a freeze in the total private expenditure on clothing
and footwear, which totaled NIS 16.2 billion. Despite the stability in the total
private expenditure on clothing and footwear, the major companies in the
branch continued to benefit from an increase in earnings also in 2013. The
aggregate income of the 12 leading companies in the code was estimated
at NIS 7.5 billion, a growth of 6% compared to last year.
The increased popularity of the field of design in general and awareness
of furniture and home environment accessories in particular, supported
a growth of 3% in the earnings of the furniture industry in 2013, which
totaled NIS 6.6 billion. The Israeli consumer is becoming more aware of and
influenced by world trends and is becoming less conservative than previously
in relation to design of the items he purchases. Competition in the branch
exacts a price, especially among the small and medium-sized companies; in
April 2013 the Shegem Furniture Company closed down after encountering
difficulties. During the first months of 2014, liquidation proceedings began
with Topaz Kitchens, Ein Harod Furniture, and Divani and Design. We
should state that two months after notification of liquidation of Ein Harod
Furniture, the Shomerat HaZorea Company acquired its activity from the
Official Receiver in May 2014.
80
70
60
50
40
30
20
10
0
2010
58.4
50.9
56.9
72.7
71.1
2011
2012
2013
58.6
72.3
54.0
2011
125
105
85
2013
2012
65
Imports
Exports
Development of the Turnover Index of Retail Commerce
in the OECD Countries
(Baseline: 2010 = 100)
Brazil
Israel
USA
OECD
France
Britain
Japan
Germany
Ireland
Italy
Spain
Greece
1...,230,231,232,233,234,235,236,237,238,239 241,242,243,244,245,246,247,248,249,250,...480