Global retailers seem to be going the developing countries way as many developed nations are quite crippled now, especially in Europe after the recent crisis. Major global retailers including the likes of Wal-Mart, Tesco or even Metro witnessed an almost triple revenue growth in developing countries rather than developed countries. Needles to say the big 4 of the developing nations – the BRIC ( Brazil , Russia, India, China) are also witnessing robust growth in its retail sectors. Along with these 4, there is another set of nations which appeal to global retailers – Oman, Azerbaijan, Georgia and Mongolia! Let’s check out who’s made to the top of the GRDI Index.
The GRDI Index sees Brazil, Chile, China, Uruguay and India as the hottest destinations for global retailers. These top 5 nations for the 2012 GRDI Index, have claimed top spots with high scores in multiple categories that include, Market Attractiveness, Country Risk, Market Saturation and Time Pressure ( urgency to enter). China moved up 3 spots from 6th in the 2011 report. Surprisingly, India had to shed 1 spot to move to 5th this year as against last years’ 4th position.
As per the GRDI Window of Opportunity Analysis, in 2003 – India was at the Opening stages to global retail and moved to the peaking stage only by 2009. However, with the robust growth in the past few years, this analysis predicts India to get into a Maturity stage by the end of this year. The report suggests that India will witness an accelerated growth of about 20% in the coming years.
The Retail Talent Index which assess a country’s performance in 3 critical areas – Labor regulations, labor costs and talent availability pegs Malaysia, China and Chile inthe top 3 while India is placed at 6th as talent availability brings the overall score down.
To summarize, with principles of modern trade setting in, the retail format of sales is here to stay. No doubt the online format is growing in developing nations, however, with the FDI norms set to favor retail especially in India- there’s only one way to go and that’s up!
