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?
Apparel 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.
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 global market.
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.