Home / Knowledge / News / Apparel/Garments / Global retail expansion continues unabated
Global retail expansion continues unabated
02
Jun '15
Despite significant regional challenges, international retailers are taking the long-term view on investments in developing markets and are persisting in finding solutions, according to global management consulting firm A.T. Kearney.

The firm’s Global Retail Development Index (GRDI) 2015 ranks the top 30 developing countries for retail investment. Using more than 20 macroeconomic and retail-specific variables, GRDI identified not only the markets that are most successful today, but also those that offer future potential .

China emerged as the GRDI's top country for the first time since 2010, and its retail market is expected to grow to $8 trillion by 2022. Sub-Saharan Africa continued to make inroads into the rankings, with three countries (Botswana, Nigeria, and Angola) in the top 30 and several more on the verge of entering soon. And across the world, "small gems" such as Uruguay, Qatar (ranked for the first time), and Mongolia provide pockets of untapped potential in less populated markets.

One of the GRDI's recurring themes is the "window of opportunity" for investing in physical retail in developing markets. The concept is based on the reality that markets pass through four stages of retail development (opening, peaking, maturing, and closing) as they evolve from informal trading to more mature, organised markets, in a process that typically spans 10 to 15 years.

This year's survey shows how markets such as Peru and Indonesia are beginning to peak, while others such as Chile and Mexico are near maturation. It also shows that the typical path and time frame can vary. For example, Russia's development has taken a nonlinear path as the country took a step back in 2014 due to increased risk.

In this year's special feature, GRDI has examined the prospects for luxury goods in developing markets. Luxury remains a bright spot in emerging markets, as the wealthy have proven less vulnerable to economic woes than the general population, and mall developers have taken advantage of increased consumer spending and mobility. In that section, the GRDI explored which markets present the most long-term opportunity and how luxury brands are adapting their strategies to succeed.

The relative instability in the developing world is reflected in the 2015 rankings. In the Middle East, markets were rocked by a record drop in oil prices and ongoing regional conflicts. Latin America fell from last year's heights as growth decelerated amid concerns over structural economic issues. Meanwhile, Russia took a big step back in the rankings under the weight of international sanctions and a financial crisis. Regional winners this year include Asia, which outpaced other regions despite a slowdown in growth. (SH)

Fibre2fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 15th Feb 2020

Morocco to revise FTA with Turkey

Turkey has agreed to review its free trade agreement with Morocco,...

Pic: Shutterstock

Textiles | On 15th Feb 2020

German, Italian investors interested in investing in Pak

German and Italian investors and manufacturers have evinced keen...

Pic: Nike

Apparel/Garments | On 15th Feb 2020

Nike employs distributors in Brazil, Argentina, Chile

Nike has entered into strategic distributor deals for its Nike Brand...

Interviews View All

Amardeep Singh, Orient Craft

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Textile Industry, Head honchos

Textile Industry
Head honchos

Trade buzz: This could be a landmark budget

Francesca Polato,

Francesca Polato

Berto Industria Tessile was founded in Bovolenta, a small town in the...

Dejan Lalevic,

Dejan Lalevic

Mesdan SPA, a subsidiary of Italian firm Savio Macchine Tessili,...

Larry Fontana,

Larry Fontana

Italy-based Lafer SpA is one of the most innovative surface finishing...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search