Archive for the ‘Europe’ Category

  

How Straight Is Your Banana?

Friday, July 9th, 2010


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As increasingly bizarre stories – or, as often turns out, pure myths – emerge about the European Union, Mark Tipping takes a look at how European law impacts on us.

Question: What do Austria; Belgium; Bulgaria; Cyprus; the Czech Republic; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; the Netherlands; Poland; Portugal; Romania; Slovakia; Slovenia; Spain; Sweden; and the United Kingdom have in common?

Answer: The European Union!!

Britain joined the European Union (EU) or European Economic Community (EEC) and Common Market as it was known then, on Monday, 1st January 1973. And so began a long and chequered relationship!!

It was in October 1971 that Parliament voted in favour of our joining the EEC. Conservative Prime Minister Edward Heath described it as the highlight of his political career. However, in a rather strange ‘cart before horse’ approach to decision making, June 1975 saw the UK hold a referendum to post-rationalise the decision. Labour Prime Minister Harold Wilson had promised that the people would decide “through the ballot box” whether to remain in the EEC. The electorate expressed significant support for EEC membership, with 67% in favour. So far, so good!!

Although the EU has done much to develop infrastructure within the EU and trade links with the rest of the world, there is a widely held belief within British tabloid newspapers that hidden within the EU Parliament are the bureaucrats responsible for producing some very strange laws,. They are often referred to a “barmy Brussels bureaucrats” or “meddling eurocrats.”

This subject came to light again last week with an article entitled, ‘How Europe Got Its Eggs Scrambled’. But what was it all about?

 

Draft food labelling regulations have been produced that aim to standardise food labelling and packaging across Europe. (It’s a 75 page draft with 175 pages of amendments – a great read if you’ve got the time!!). However, within the small print are proposed regulations that would mean the likes of eggs – traditionally sold by number – having to be individually weighed so the weight can be specified on the label. However, common sense objections are being put forward. As one MEP put it, “It would be barking mad if the legislation was passed in its current form.”

This story is similar to many others that have seen the light of day over the years. But how many are true and how many are just euromyths? Is the criticism of the Brussels bureaucrats justified? I suggest you make your own mind up after considering these fine examples.

Let’s start with the humble banana that created the title of this article. Did the EU try to ban straight bananas or was it the bent ones? The truth is that if it’s abnormally curved, it’s not a Class I banana. As Commission Regulation (EC) 2257/94 puts it, bananas must be “free from malformation or abnormal curvature.” However, they have never been banned.

 

Before you make your decision, think of the poor cucumber. Commission Regulation (EEC) No 1677/88 states that whilst Class I and ‘Extra class’ cucumbers are allowed a bend of 10mm per 10cm of length, Class II cucumbers can bend twice as much.

Next, the city once known in English as Bombay is now known as Mumbai. So should the spicy snack known as Bombay Mix have been renamed in order to strip it of colonial overtones? According to one British newspaper in 2006, this is precisely what “nutty EU officials” were demanding, in the name of political correctness. The British nation was united in indignation. Unfortunately, the story was made up by a freelance journalist and 100% euromyth!!

What about the great alarm in 2005 when it was reported that “po-faced pen-pushers” from the EU had ordered a cover-up of barmaids’ cleavages at the Oktoberfest in Bavaria? The story was that a proposed new directive would stop workers exposing their skin to the sun, because of the risk of skin cancer. One paper launched a “Save Our Jugs” campaign. In fact, the draft Optical Radiation Directive said nothing about barmaids’ breasts. It was meant to make employers responsible for ensuring that their staff did not suffer from over-exposure to the sun, by using sun cream or covering up their skin, as appropriate. In the end, a vote ensured that sunshine was dropped from the directive.

And then in 2003, newspapers detected a threat to British yoghurt. In future, it would be known as “fermented milk” or even “mild, alternate-culture, heat-treated fermented milk.” In fact, the idea of producing an EU-wide “harmonised” definition of yoghurt had been debated in 2003, but then abandoned.

And then there was the 2002 European “safety directive” that was accused of forcing fire stations to abandon the poles the firemen had traditionally used to slide quickly from their sleeping quarters to their fire engines. The story went that whilst the pole was fast, one fireman could get squashed by the next one coming down. As a result, Brussels had decreed it unsafe. Actually there was no mention of firemen’s poles in any EU health and safety legislation and poles are still used by many British fire services.

Back in the 1980′s came the story that the European Commission had hatched a plan to re-name the British sausage an “emulsified high-fat offal tube”. It went on to say that a Government minister had successfully repelled the threat thanks to a wave of support for the Great British Banger. His name was Jim Hacker. Unfortunately, this wasn’t the real world. It was the television comedy world of ‘Yes Minister’.

And finally, the ‘Protected Geographical Indication’ (PGI) that gives legal protection to named regional food products against imitation across the EU. Here, there are two wonderful and true stories.

“Newcastle Brown Ale” obtained PGI protection that limited it to being brewed in the city of Newcastle-upon-Tyne. However, in 2004, the brewery decided that it would move across the river Tyne to Gateshead. As Gateshead is technically a separate town it did not fall within the required geographical restriction. The brewery had to apply to the EU to have the geographical restriction revoked. If they had not, they would have been forced either to move back to Newcastle, or stop calling it “Newcastle” brown ale.

In a similar manner, Stilton cheese can only be produced in the three English counties of Derbyshire, Leicestershire, and Nottinghamshire. Stilton village is in the traditional county of Huntingdonshire, now a district of Cambridgeshire. This means that Stilton cheese cannot be produced in Stilton!!

So what do you think? Is it fair criticism or simply a humorous way to sell newspapers?

I don’t know the answer to that question. However, what I do know is that EU is not cheap. The UK’s contribution to the EU budget will rise to an estimated £7.6 billion in 2010/11 and that could be a very expensive joke indeed. But what does the ‘man on the Clapham omnibus’ think of the EU nowadays? In particular, how have views changed since the heady heights of 1975? A poll conducted in December 2009 with just over 1,000 eligible voters asked the question, “Should Britain leave the EU but maintain close trading links?” 55% agreed!!



Research Energises VPhase Product Expansion

Wednesday, February 24th, 2010


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Environmental issues have undeniably come to the fore in recent years. Topics such as carbon emissions, waste reduction and energy conservation are now a central part of the political and commercial agenda in every country. Whilst this trend has created its own unique set of financial pressures for businesses and householders alike, it also represents a major opportunity for companies to develop products and services that can help.

VPhase, part of the Energetix Group, has developed an energy-saving device for domestic premises, which uses the concept of voltage optimisation to significantly reduce electricity costs for householders. By “smoothing” fluctuations and lowering output voltage moderately, the VPhase unit delivers typical cost savings of 17% on fridges and freezers, and 15% on lighting. All of this is achieved using a compact device that can be installed at minimal cost and requires no change in consumer behaviour.

Although voltage optimisation has been used in industrial settings for many years, adapting the technology for use in the home is a significant development. VPhase has made significant inroads in bringing the product to market in the UK, and has teamed with British Gas and Scottish and Southern Energy to offer the technology to their customers. Moreover, VPhase has recently begun selling the VPhase unit directly to householders and the trade.

Given the success of the unit in the UK, VPhase naturally wished to explore opportunities for introducing the device to the European market. Business-to-business market research specialist B2B International was commissioned to conduct a Europe-wide market assessment exercise, designed to appraise the size and nature of the opportunity for selling the product more widely. The research used a combination of extensive desk research and in-depth expert interviews with parties responsible for marketing and distributing energy efficiency products right across the continent.

Results found that there was significant groundswell amongst consumers for taking energy efficiency measures in their homes and that the promise of pain-free, consistent savings in both electricity use and CO2 emissions was especially valuable. The research also revealed that Northern European countries, with higher relative electricity costs, greater average consumption of electricity, and supportive governmental incentives for adopting energy efficiency measures, were especially attractive for launching the product.

B2B International’s research manager Oliver Truman, who directed the project, believes that the positive reaction to VPhase is indicative of a wider shift in attitudes towards environmental products: “We found that it wasn’t just publicly-funded energy efficiency bodies that showed enthusiasm for the product. The commercial sector, particularly large utility companies, have embraced the energy efficiency agenda whole-heartedly and were keen to learn more about what the VPhase product could do. So long as the energy-saving benefits of a product like VPhase are proven and well-communicated, consumers can rationally see the virtues of making an investment in energy efficiency”.

Lee Juby, CEO of VPhase, said: “The principles of voltage optimisation have been delivering energy savings to industrial and commercial buildings for many years. VPhase brings these savings to the home. I am looking forward to rolling out VPhase to many millions of customers across Europe”.



Global market research grows… but only just

Monday, September 14th, 2009


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ESOMAR, the world organization for enabling better research into markets, consumers and societies, confirmed this week a slowdown in market research revenues worldwide.  Although global market research revenues grew by 4.5% in 2008 to reach US$32 billion, this only equates to a net 0.4% increase when inflation is taken into account.  According to the latest ESOMAR Global Market Research Report, market research revenues in 10 of the top 25 market research markets showed a decline after inflation.

While the growth rate has undoubted been affected over the past year because of the economic downturn, according to ESOMAR President Gunilla Broadbent, “the sustained growth in some emerging markets, particularly Latin America, is encouraging.”

North America, which is responsible for almost one third of all global marketing research revenue, was affected by the downturn with both the USA and Canada posting small declines (of negative 2.1 and 2.2% respectively) after adjustment for inflation.

While Europe as a whole showed little growth (slowing to 4.7%, or 0.9% after inflation), both the UK and German market research industries bucked the trend by each posting 2.5% net growth.

The strongest performing region was Latin America where market research revenues grew by 5.6% after inflation (13.4% actual).  Market research in Argentina, Peru and Panama was particularly strong.

Asia-Pacific, which has boasted strong growth in recent years, slowed a little.  However, with 6.3% year-to-year growth (2.1% after inflation), Asia-Pacific still fared better than most other regions.

The annual ESOMAR Global Market Research Report also revealed some interesting statistics about the market research industry in general.  In terms of research methodologies, quantitative research methods account for 80% of global research spend.  Qualitative research methods account for a further 14%, with desk and secondary research taking the remaining 6%.  Online research and online traffic/audience measurement now account for at least 10% of overall research spend in 22 countries (74 countries are covered by ESOMAR’s report), increasing from 18 countries in 2007.



Customer Service: A European Perspective

Monday, December 15th, 2008


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We recently commented on the importance of staying in touch with your customers in one of our Thursday Night Insight slots.  With new research showing that, shockingly, the average European consumer spends more than two-and-a-half hours each week dealing with the customer service departments of various companies, it is important we get customer service right.

Factor in the current economic climate and the curb in consumer spending, and the recent study by DHL Express emphasises the importance of customer service and the impact it can have on the success of businesses.

Notable findings of this online survey of 6,500 adults across France, Germany, Italy, Poland, Sweden and the UK, include:

  • 62% claim they would change provider if they received poor customer service.
  • Two-thirds of respondents dislike automated answering services.
  • The preferred method of communication in Britain and France (43%) is to speak to a representative face-to-face; in the other European countries most (40%) prefer speaking to a representative over the telephone.
  • Banks are rated the best customer service industry by 22% of total respondents from Poland, France and Sweden; Retail companies are ranked highest in Italy and Germany (19%); The hotel industry is chosen by 24% of British respondents; Hotels, restaurants and banks fare equally well among the French (14%).  Telecommunications, utilities, insurance, healthcare, express delivery and online industries we also rated.
  • 17% of Europeans have not had their problem resolved within a day, and have had to wait up to a week.  In one in eight cases, the issue does not get resolved at all. Polish people have most success, with 92% attaining a resolution to their problem.
  • 39% of Britons tip good customer service compared to just 4% of Italians.
  • France, Germany, Italy and Sweden all think that their own countries offer the best customer service in the world; Poles think that customer service in Germany is the best (19%); and 47% of those questioned in Great Britain think that the best customer service is to be found in the United States.
  • The top three dislikes of British people about customer service are waiting times (83%), language barriers (80%) and lack of knowledge (74%). 86% also say that poor customer service affects their decision to make future purchases from a company, and 95% say it affects their perception of the business as a whole.