World Retail Congress says – 'Rethink growth strategy'

While the Chinese market and technology remain top of mind, this year retailers are also focusing on how to manage and meet changing customer expectations, as well as creating a seamless experience across multiple consumer touch points.

WGSN analysis

Timing is everything. Taking the time to develop a solid competitive advantage and a winning business model beats overenthusiasm for new-market potential

Consumer diversity within regions and countries means tailoring the message appropriately, with innovation and brand building needing a local touch to remain relevant to the market

Personalisation is key. Finding ways to speak individually to consumers is important, while effective strategies to harness the power of social media can create an advantage

Gap Inc was one of the later apparel brands to enter China in 2010, but Greater China president Redmond Yeung said the timing was key for the company to gain an in-depth understanding of Chinese consumer behaviour and preferences.

“You’ve got to be loyal to your own offering. If you’re trying to be different things to different folks it never works. When people ask me ‘why are you so late to the China market?’, I firmly believe the market wasn’t ready for us a few years back.”

Tesco’s CEO Philip Clarke said the biggest risk for retailers looking to expand in the market was overenthusiasm. He stressed the importance for a brand to develop its competitive advantage in a particular market before considering new market entries.

“Eyes too big for belly is a way to describe it. Those new markets you want to leap into will still be there for the next 15, 20 years.”

Robinsons Group of Companies’ chief executive and Al Futtaim Group’s head of Asia Jim McCallum added that rising rent in Asia is another reason why retailers must make sure they have a viable business model before they enter a particular market.

For a global brand like adidas, managing director of Greater China Colin Currie said brand building and digital innovation are critical, but they must be done for a reason that is relevant to the local market.

“China is one market, but two worlds, split between lower and higher-tier cities. For higher-tier youth it’s about individuality: they don’t want to follow the herd. At the lower tiers it’s about belonging, and becoming cool.”

Gavin Parker, managing partner of retail consultancy The Renewal Partnership and senior advisor at Boston Consulting Group, said retailers should not assume that a format that worked in one market would work in another.