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The growing potential of the BRIC countries are such that, industry
experts predict by the year 2050, they would become the four major dominating
economies. What hopes do the 'famous four' hold vis-à-vis to the apparel sector?
markets all across the globe witness tremendous changes in the spending pattern
of the consumers, especially from the developing countries. Increasing amount
of disposable income has made them to spend extravagantly. The immediate
category to feel this change is apparel.
makers, and retailers are intensely focusing on the mass markets of the BRIC
countries; Brazil, Russia, India and China. Large population and strong
economic growth of these countries make them irresistible in the eyes of the
global retailers. They have realized that concentrating on core markets such as
Europe, US, and UK alone will not help them to establish successfully in the
The top ten countries of the GRDI have a diverse
mix of small as well as large markets in the nine years history of the index. China ranks first, India; the third, followed by Brazil at sixth, and Russia at the tenth position.
(Source: A.T. Kearney Study, 2010 GRDI)
The BRIC countries cover more than 25% of the
worlds landscape and 40% of the worlds population. They are accountable for a
combined GDP of 15.435 trillion dollars. Aspects that make this market dynamic
are strong polarization of buyers, positive changes in their income level,
changes in their shopping trends, and expectations of the middle, and upper
middle class segments to wear branded, and global brands and many more.
Women make the most influencing factor of the apparel market. They not only
choose their own clothes, but also take decision on the purchase of clothes for
their husband and children. Increasing number of working women, growing number
of nuclear families, and dual income in most of the house holds fuel the market
for apparels in these countries.
Brazil - preference for local brands:
Brazil constitutes the fifth largest apparel market in
the world. Much of Brazil's apparel market is dominated by the domestic players
giving very little room for the entry of multinationals. Only a handful of
retailers such as Mango, Zara, mom-and-pop, C&A, and Miss Sixty are
successfully established in the market.
are very fond of shopping. Their shopping preferences are strongly dominated by
their fashion sense influenced by the local celebrities. A survey done on
Brazilian shoppers reveal that almost 80% of them shop frequently. Their focus
of purchase is mainly to wear while going out with family and friends, whereas
in India shopping is mainly done for occasions such as festivals and weddings. 8%
of them wear similar type of clothing. Majority of the Brazilian consumers
prefer local brands over foreign ones. They also agree with the fact of buying
clothes on credit.
Russia- altering the iron curtain:
are prioritizing their development strategies by concentrative on the expansion
attractiveness of emerging countries based on their political risk, retail
market attractiveness, difference between the gross domestic product and the
retail growth. Retail market for apparels is growing in Russia driven by higher income level, urbanization, and stronger middle class and
infrastructure investments. Global retailers are expanding their brands through
local partners across the region. 11% of the Russians wear similar clothing. Based
on the unique characteristics of the local markets in the country, retail
market is likely to witness sales growth than the previous years.
India - family oriented shopping:
Kearney ranks India as the third attractive retail destination. Important
periods for apparel shopping include festivals, and special events of their
families such as weddings. Per capita income of the Indian consumer is lesser
compared with the other BRIC countries. Size of the mens apparel market is
comparatively larger than the womenswear market. Men also have significant
influence in the purchasing decisions of the family.
of the Indians are habituated to wear similar clothing to work; wedding, formal
parties etc. 50% of them have the opinion that international brands are more
superior in quality. Unlike a consumer from UK or US, apparel shopping is a
family event for an Indian consumer. Almost 70% of the Indians prefer to go
shopping along with their family members, and feel that it is the best way to spend
time with their family.
China - holding greater promise of mass markets:
China's apparel market is the third largest in the
world, next to US and Japan. It is the fastest growing market of the BRIC
countries. China's consumers prefer modern, and fashion shopping. More than 70%
of Chinese apparel market is in modern formats. More than 40% of them wear
similar clothing to work, wedding and other occasions. They have similar
clothing tastes. Around 11% of the consumers prefer foreign brands. Though a
common practice all over the world, Chinese consumers prefer to choose clothing
based on their prices; more.
behavior of China's adult and young population is different, significantly. Youngsters
in the age group 15-25 comprising 15 million of the Chinese people forms the
influencing population of the country with regards to apparel shopping. They are
more brands savvy, have a strong fancy for foreign brands, and shop for it more
over the local ones. They go for shopping more frequently than the adult
the young population is now the prime focus of the retailers. International
players will have to face severe competition with the local garment makers as
they have cost advantages over the former. Renowned brands are quickly replicated
in the Chinese market attracting the attention of the people who would like to
wear branded clothes, but could not afford them. Global players are now
creating outlets offering low-cost and trendy apparels.
market in the BRIC countries transcends national and cultural boundaries
following globalized trends and tastes. They represent good opportunities for
retailers to establish their business, and also take benefits of the urbanized
population. In the coming years these four countries will remain a priority
market for many global retailers. In todays retail market, growth is not of
expanding the business from developed into developing markets, but is about the
retailers using their exceptional insights to foresee the countries that are likely
to come in the global radar in the near future.
BRIC Promise", atkearney.com
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