Please fill in your details to download the Table of Contents of this report for free. We also do customization of these reports so you can write to us at firstname.lastname@example.org in case you need any other additional information.
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. The question now is "Have we entered a multipolar world?"
Russia, India, and China, popularly known as BRIC are predicted by economic
analysts to account for 40% of the GDP by 2050. It is further set to become
four among the world's top five
economies. Jim O'Neill, Chairman of Goldman Sachs coins the word 'Growth
Markets' to describe some of the world's dynamic economies. A report by the
Goldman Sachs states that the BRIC countries have earlier weathered the global
economic crisis in a remarkable manner, and is on pace to equal the G7 by 2032.
Jim O'Neill says, "The fact of the matter is, close to three billion
people around the world, which is half of the world's population, haven't
really been touched by this crisis in the way that most people talk about."
countries comprise more than 25% of the world's landscape and 40% of the world's
population. They are accountable for a combined GDP of 15.435 trillion dollars.
Strong polarization of buyers, growth in their income level, dual income, changes
in shopping trends, and growing expectations of the middle, and upper middle
class segments to wear branded, and global brands etc fuel the growth of these
A.T. Kearney's Global Retail
Development Index, 2012
Kearney's Global Retail Development Index ranks Brazil in the first place for
second time in a row. 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. The
index states the BRIC countries show no signs of weakness, and proves to be the
most tempting for retailers. Despite their small size, they have strong
fundamentals that are irresistible to retailers.
retailers 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.
Global apparel makers, and retailers are now focusing on the BRIC countries;
Brazil, Russia, India and China. Population growth and strong economic growth
of the BRIC countries are making their appeal in the eyes of the global
retailers. They are prioritizing development strategies by planning on
expansion strategies in the emerging countries based on their political risk,
retail market attractiveness, difference between the gross domestic product and
the retail growth.
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. The country's youth population and high per capita spending in apparels
make the country a top destination for retailers.
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. During the past 7 years, Brazil's population has added 40
million middle class people. Brazil is not much exposed to the global market.
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.
is yet to find the magic mix of a competent Government policy, and social
talents. Its cities need to modernize. Only a few of them like Moscow and St.
Petersburg are fashion forward. Furthermore, Russians are still uneasy about
China, anxious over Eastern countries, and do not trust Washington.
Kearney ranks India as the fifth attractive retail destination. With a GDP
growth of 6 to 7 percent, increasing income, dual income, and rapid
urbanization fuel its growth. FDI regulations were altered creating a major
impact in the economic growth of the country. 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 men's 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.
has moved up in A.T Kearney's retail index, to rank three. Future retail growth
for the country remains to be positive, with predicted double digits. China is
one of the world's largest apparel markets with more than 100 active brands. Its
credit rating as per December 2012 it upgraded and is now higher then Italy,
and as same as Japan.
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.
a common practice all over the world, Chinese consumers prefer to choose
clothing based on their prices; more. However, inflationary pressures are
driving up the rents, and labor costs are soaring.
market in the BRIC countries is now rising above national and cultural
boundaries following globalized trends and tastes. These countries represent
good opportunities for retailers to establish their business, and also take
benefits of the urban population. In the forthcoming years BRIC countries will
remain as a priority market for global retailers. In today's retail market,
growth is not about business expansion from developed into developing markets.
It grows beyond that with the retailers using their exceptional insights to
foresee those countries which are likely to come in the global radar in the
Fibre2fashion.com does not warrant or assume any legal liability or responsibility for the excellence, accurateness, completeness, legitimacy, reliability or value of any information, product or service represented on Fibre2fashion.com. The information provided on this website is for educational or information purposes only. Anyone using the information on Fibre2fashion.com, does so at his or her own risk, and by using such information agrees to indemnify Fibre2fashion.com, and its content contributors from any and all responsibility, loss, damage, costs and expenses (including legal fees and expenses), resulting from such use.
Fibre2fashion.com does not endorse or recommend any article on this site or any product, service or information found within said articles. The views and opinions of the authors who have submitted articles to Fibre2fashion.com belong to them alone and do not reflect the views of Fibre2fashion.com.
If you wish to reuse this content on web, print or any other form, please seek for an official permission by writing to us on email@example.com
Subscribe today and get the latest information on Textiles, Fashion, Apparel.