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DATE: 23.2.2017.
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GLOBAL RETAIL DEVELOPMENT INDEX FINDINGS.
All the Top Five countries which are listed in the GRDI are from Asia.
INDIA ranks at the Top spot by dominating China for the first time.
All the countries GRDI SCORE has increased or equal except china in Top ten ranks.
Asia is the driving force behind global retail and the expansion of branded food and
beverage, personal care products, apparel, fashion, and luxury
The findings show that Asia is becoming a Future retailing hub.
It also shows Few Latin American make its way to top ten lists despite having crisis
like PERU, COLUMBIA.
Few African countries have shown globalization effect and they have tried to make
huge investments for retailing business like Tanzania.
Russia and other countries in the Commonwealth of Independent States are still
battling with sluggish growth.
Asia Pacific(Five countries in the top 10 , Eight countries in the top 30)
In most emerging markets, online shopping is mobile shopping.
Annual spending on mobile shopping in 10 large emerging markets (China, India,
Indonesia, Philippines, Thailand, Vietnam, South Africa, Nigeria, Brazil, and Colombia)
is estimated at $275 billion
To support payment in cash-heavy economies, retailers have either partnered with or
acquired payment solutions companies. Amazon recently purchased Indian online
payment Emvant age, and in China, Ali pay and We Chat drove high adoption of
mobile. Fulfilment and distribution are also being addressed. In Nigeria, Jumia built
its own fleet of 200 vehicles to deliver in Nigeria’s top cities, and in India, Amazon has
hired small shop owners to serve as pick-up points in exchange for a small
commission on each package.
Influencing shopping behaviours. Traditional methods of influencing customer
behaviours, especially in emerging markets, are often based on static, one-size-fits-all
sales and promotions. And in many emerging markets, heavily discounted or low-
margin items are the primary sales drivers on mobile. However, mobile’s expansion
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and customer and location data present new opportunities to influence shopping
behaviour.
A Paradigm Shift in International Expansion
Successful retail has always been built on an effective format, efficient operations,
and scale. Until recently, the capability to plan and execute a far-flung network of
retail shops was the purview of a handful of global companies or very narrow
vertically integrated luxury firms. But while the business environment makes it harder
for global companies to manage the complexities of a multinational operation,
regional and local companies are getting better at building and executing successful
formats and efficient operations.
This year’s GRDI shows the fault lines in established patterns of development.
Whether those fault lines expand depends on the power of new players, the flexibility
of existing companies, and the disruptive capacity of technology.
Best Buy is a good example of a company that has successfully navigated trends that
you’d think caused a near-death experience.
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They’ve done a good job understanding the implications of pricing and have gone
with a price match with online. They’ve successfully understood the notion that the
consumer is really focused on convenience—on better “experiences”—and they’ve
upgraded their whole offering to provide this. Now when you go to stores, they’ve
made great gains in shop ability, in the quality of service, in knowledgeable staff, in
omni channel integration. And they’ve actually given more control to their vendors -
managing the space better to make it more engaging and convenient to customers.