Blog: Leonie BarrieRetail boom in Brazil

Leonie Barrie | 3 June 2008

More confirmation today that the emerging markets of Brazil, Russia, India and China (BRIC) are open to an avalanche of new merchandise from organised international retailers.

A new study by management consultant AT Kearney ranks Brazil ahead of China, India and Russia as the top new market for apparel firms – although these countries all make it into the retail top 10.

What sets Brazil apart from the others, though, is its high spending on apparel items and strong clothing imports – along with its consumers’ preference for the latest fashions.

Interestingly, rising spending in China and India is being offset by their retail tastes. International apparel retailers will need to adapt to the Chinese consumer’s fashion sense, the report warns, while in India it seems consumers tend to be more loyal to a specific retailer than to an apparel brand.

Apparel retail in India is driven by sales promotion, with end of season sales, special events and frequent promotions utilised.

This behaviour presents a challenge to retailers who are used to building their ranges and sales plans around a few key seasons and will now have to think more creatively about adjusting their merchandise plan to the local market.

The study is based on 10 drivers of retail activity – total clothing sales, growth in total clothing sales, clothing sales per capita, growth in sales per capita, total clothing imports, growth in clothing imports, 2007 population, forecast growth in population, growth in GDP per capita and population between 15 and 39.

On this basis, other countries retailers should watch closely are Turkey, Chile, Romania, Argentina, Thailand and the United Arab Emirates.

BRAZIL: Beats China and India as apparel retail hotspot


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