Emerging Markets Overview And Growth Opportunities Across Retail Channels

Topics: Developed country, Emerging markets, Retailing Pages: 11 (1846 words) Published: February 25, 2015
EMERGING MARKETS: OVERVIEW AND GROWTH
OPPORTUNITIES ACROSS RETAIL CHANNELS
Report extract combining insights from the following global briefings Emerging Markets: Overview and Growth Opportunities in Non-Grocery and Non-Store Channels Emerging Markets: Overview and Growth in Opportunities in Grocery Channels Click to learn more about the full reports

EMERGING MARKETS POWER AHEAD

Strong opportunities outside the BRICs
 The BRICs remain far ahead of other emerging
countries in terms of size, as well as growth in the
case for China, but other emerging countries also
offer significant opportunities.
 Looking at smaller economies, this is the case of
Saudi Arabia, Mexico, Indonesia, Vietnam, Turkey
and Iran, which are in the second tier in terms of
retail market but still offer similar growth potential in
terms of retail sales to the BRICs.
 Indeed, strong economic growth in these emerging
countries is contributing to rising incomes and
changing consumption patterns. As the middle
class expands, consumers’ spending shifts from
basic necessities, such as food, to discretionary
products, such as apparel or electronic products,
boosting the relevant channels where these
products are most purchased.
 As a result, non-grocery retailers are expected to
drive overall retailing in the majority of emerging
countries, reflecting this consumption shift, as well
as consumers’ aspirations towards more premium
and luxury products.

© Euromonitor International

RETAILING: EMERGING MARKETS

PASSPORT 2

EMERGING MARKETS DRIVE GLOBAL GROWTH

Emerging markets will account for half of total retailing by 2018  Retail sales in developed markets represented 58% of
retail sales globally, at US$8.4 trillion in 2014 however
the region’s growth remains slow, with the market only
growing by 2% between 2013 and 2014.
 Meanwhile, EMEs represented US$6 trillion in 2014 and
their strong value growth (+11% in 2014) will allow them
to increasingly contribute to global retail revenues. From
32% in 2009, EMEs are expected to account for almost
half of overall sales by 2019, at 46%.
 Looking at absolute growth, EMEs are also forecast to
be the main contributor over 2014-2019, representing
71% of total growth.
 Within EMEs, the top 10 retailing markets
accounted for a combined 70% in 2014, led by
BRICs countries which represented the lion’s
share, at 54%, and with the Chinese market
alone accounting for 32%. Other key markets
include Mexico, Turkey, Iran and Indonesia.
 As China continues to see high GDP growth
over the forecast period, the country is expected
to be the only market to see its share rise
strongly up to 2019.
© Euromonitor International

RETAILING: EMERGING MARKETS

PASSPORT 3

EMERGING MARKETS DRIVE GLOBAL GROWTH

Channel growth opportunities in emerging markets
 Thanks to higher levels of discretionary spending in EMEs, non-grocery specialists have outperformed grocery retailers over 2009-2014. Within non-grocery, all channels saw similar performance, growing strongly between 10% and 13% over 2009-2014. Looking at non-grocery channels, home and garden specialist retailers remains the largest channel and apparel and footwear specialist retailers slightly outperformed other channels in terms of growth.

 As part of this global briefing on non-grocery channels in emerging countries, Euromonitor International selected the apparel and footwear, electronics and appliance and health and beauty specialists channels for further assessment, looking at their impact on overall retail in EMEs and how they are expected to drive the overall non-grocery channel.

© Euromonitor International

RETAILING: EMERGING MARKETS

PASSPORT 4

INTERNET RETAILING STILL AT ITS BEGINNING

Continued strong growth in direct selling and homeshopping
 Overall non-store retailing size in EMEs is expected to remain considerably smaller than in developed markets. However, in absolute value...
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