Low inflation, reduction in rent in smaller cities helped push India score higher than Russia, China, UAE, and Saudi Arabia, according to the study..
The GDRI helps retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries on a set of 25 variables including economic and political risks, retail market attractiveness and the difference between GDP growth and retail growth. Last year Vietnam had toppled India to become the 'most attractive' retail market but recession has changed the scenario differently for different nations.
AT Kearney now believes that 'larger and resilient developing countries' such as India are most likely to lead the economic recovery. The global recession has made prime real estate locations increasingly available in many developing markets. It also has made acquisition valuations of many local-market retailers very attractive, says the report.
Slower retail sales are causing Indian retailers to delay expansion plans and restructure their operations. But this has opened the window of opportunity for global retailers and many, including Wal-Mart, are continuing expansion plans as Indian consumers grow increasingly affluent, brand conscious and familiar with global retail formats."
Developing countries are expected to be the ones who will lead the economic recovery. Unlike most developed markets, GDP in emerging markets is expected to continue to grow and populations in many countries are younger, increasingly urban and showing a "growing interest" in modern retail formats, suggests the report. The road to recovery for U.S. retailers may lead overseas.
Here are AT Kearney's top ten emerging markets:
1. India
2. Russia
3. China
4. UAE
5. Saudi Arabia
6. Vietnam
7. Chile
8. Brazil
9. Slovenia
10. Malaysia |