Retailers should look beyond China for new markets
Faced with a need to continue to book top and bottom line growth at a time when many developed markets are stagnating, retailers and brands are increasingly enticed by the rapid growth of the middle classes in a number of emerging countries. But instead of focusing on China, opportunities are likely to lie elsewhere.
Retailers should look beyond China in their search for new consumer markets, says Financo president and CEO Colin Welch, pointing out that there are better opportunities in some less prominent countries. Welch and the investment banking group's chairman Gilbert Harrison sat down with Petah Marian to talk about emerging markets, the shifting consolidation and M&A landscape, and the opportunities offered by digital technology.
Gap’s update on its global strategy says much about the shift in the balance of power for multinational fashion retail groups – acknowledging difficult times in North America, but also the key role that international markets will play in future growth.
Over the past five years, retail sales of apparel generated stronger incremental growth in Brazil than anywhere else in the world except China. Yet while Inditex is reaping the rewards of double-digit growth, H&M and Gap Inc have yet to grab a piece of the action. Has the best of the opportunity slipped away? asks Magdalena Kondej, head of apparel research at Euromonitor International.
New research has pinpointed Brazil as the most attractive emerging market for retail expansion, while China has slipped to sixth place from pole position last year.
With developed retail markets reaching a point of saturation, global fashion retailers are looking at ways to expand. Ira Kalish, director of global economics at Deloitte Research, reviewed the key emerging retail markets at the Retail London Conference this week. Here is a summary of his comments on the 'CIVETS' markets of Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.
With developed retail markets reaching a saturation point, global fashion firms are looking at new ways to expand. Ira Kalish, director of global economics at Deloitte Research, reviewed the key emerging retail markets at the Retail London Conference this week. Here is a summary of his comments on the BRIC markets of Brazil, Russia, India and China.
- M&S to launch supply chain human rights policy
- Nike reaffirms US production commitment
- VF pushes ahead on chemicals management
- Levi Strauss raises the bar on sustainability
- M&S project benefits garment worker health
- Myanmar minimum wage set at US$3.2 per day
- China cotton stockpile auction may shake up market
- Far Eastern to invest $323m in Vietnam textile hub
- C&A to add "accurate fit" label to garments
- US retail landscape "mediocre" over next 5 years