Featured In
Social Research Digest – July 2012
Summary
The A.T. Kearney Global Retail Development Index (GRDI) ranks the top 30 emerging countries for retail development. It identifies opportunities for global retailers to invest in developing markets.
Key Findings
- Brazil, Chile and China top the index for retail opportunities in developing markets.
- The 2012 GRDI shows an increasingly global world.
- While the BRIC nations still have an impact, there are many opportunities in some of the smaller markets around the globe.
- The annual index is based on 25 indicators and helps mass merchant and food retailers evaluate expansion opportunities in emerging countries.
- The GRDI indicates many opportunities for retailers – not only in BRIC countries but also in small untapped markets such as Oman, Mongolia and Georgia.
- Brazil tops the index, and market made attractive by reduced political and economic risk and high per capita spending.
- Chile, ranked second, has one of the most sophisticated and competitive markets in Latin America.
- It also has high per capita spending, making it a potential market for luxury goods.
- Although China is third due to high expected sales growth, it faces many challenges including increasing inflation and labour costs.
- Botswana is the Best New Market for Global Retailers, driven by long-term growth prospects and increasing investment in the private retail sector.
- South Africa dropped from the rankings this year due to saturation of international retailers.
- Trends in the Middle East include growth of private labels and on-line shopping.
- Oman and the UAE both show strong retail prospects.
- Malaysia tops the Retail Talent Index due to low-cost labour, favourable regulations and a well-educated population; China ranks second.
Author(s)
AT Kearney