More business in retail beyond obvious candidates
It does't necessarily have to be China and India all the time. The Chicago-founded consultancy Kearney draws a number of conclusions from its latest Global Retail Development Index (GRDI) and sees the global retail landscape "at the crossroads." The report is a bi-yearly survey.
The consultancy stresses the fact that beyond China and India, "other compelling opportunities emerge among their Asia Pacific neighbours". Retail growth is also significant in Apac nations like Malaysia, Indonesia and Bangladesh, which also count "among the top 15 economies for retailers to prioritise establishing a presence in, based on the GRDI."
The global retail e-commerce sector is projected to show a strong increase in sales, adding an absolute value of USD 1.4 trillion from 2022 to 2027. Of this growth, 64% is expected to come from emerging markets, particularly the Apac nations. This development will have strong repercussions on the logistics sector involved.
According to Kearny, Indonesia in particular benefits from a growing middle class, expanding infrastructure, and increasing urbanisation. Currently, the Philippines and Cambodia are catching up, also due to favourable government policies that encourage foreign investment, whereas Bangladesh has attracted major international brands because of its garment export industry.
Kearny's message is that "overall, Apac nations serve as pillars of strength in the growing retail sector." Among the key trends put forward in the latest GRDI, there is the forecast that e-commerce will not slow down, "with expectations to grow at twice the rate of brick & mortar retail by 2027".
Also, omnichannel strategies are set to become a common feature in developing markets. According to Siddharth Pathak, Asia Pacific co-lead, consumer and retail practice at Kearney, the "distinct opportunities for retail investment in the region" will be followed by considerable growth in the logistics sector. (cd)