ATKEARNEY

Global Retail Development Index 2012

Team Name: Salesmen Of the Year Gajendra Sisodia Shouvik Das Tejas Deshpande Yagnesh Desai Chiranjeev Dhar Mohit Sangwan Viral Patel

• The GRDI is unique because it identifies today's most successful markets and those that offer the most potential for the future. • The Index analyses 25 macroeconomic and retailspecific variables to help retailers devise successful global strategies and to identify emerging market investment opportunities.What is it about: • The Global Retail Development Index™ is an annual study that ranks the top 30 developing countries for retail expansion worldwide. .

Chile is second once again. and Uruguay is fourth. which has 7 countries among the top 30. leading the way for Latin America. • Brazil is the top country in the GRDI for the second straight year. . in the luxury segments.Some Important Facts In The 2012 Results: • The developing markets of the BRIC countries still offer a huge growth potential for retail investments but some smaller markets are coming up especially.

• Some of the smaller countries with attractive retail markets include Georgia. as double-digit sales growth is expected. and a welleducated population support the operations of international retailers that enter and expand in the market.• China climbs to third place in the GRDI. Oman. rents and labor costs are rising. reintroduced this year. finding and retaining talented workers is a core component to success. . However. so the market still has many challenges. and Mongolia. The Retail Talent Index. • With retail talent a critical differentiator in developing markets. all of which were unranked in the 2011 GRDI but are in the top 10 this year. is led by Malaysia. whose lowcost labor and favorable regulations.

Rankings .

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2012 Retail Talent Index Retail Talent Index: Its calculated based on country’s performance in three areas: talent availability. labor force participation and “brain drain”. •Labor regulations(20 Percent): Scores based on hiring and firing practices and flexibility of wage determinators •Cost of labor(40 Percent): Scores based on retail salaries of an average sales associate. • Talent Availability (40 Percent): Scores based on educational system and management schools. . labor regulations and cost of labor.

Higher the ranking more urgency is there to enter that country. 1 2 3 Country Risk: 35 or higher score in EuroMoney country Risk analysis Population: 2 Million or more Wealth: GDP per capita of more than $ 3000 .The Annual AT Kearney Global RDI ranks 30 developing countries on a 0-to-100 point scale.

lower the risk of failure/doing business .Country Risk Business Risk 80% 20% •Political risk •Economic Performance •Credit Ratiings •Access to bank financing •Business Cost of •Terrorism •Crime •Violence •Corruption Higher the rating.

Market Attractiveness( 25 Percent) Retail sales per capita Population Urban Population Business Efficiency 40 percent 20 Percent 20 Percent 20 prcent •Based on total annual sales of retail enterprise •Score of 100 indicates mature retail market •Score of zero indicates that the country is relatively small with limited growth opportunities •100 indicates a mostly urban country •Parameters include -Govt Effectiveness -Ease of doing business -Infrastructure Quality .

Market Saturation(25 percent) Share of modern retail Number of Int retailers Modern retail sales area per urban inhabit Market share of leading retailers Time pressure 30 percent 30 percent 20 percent 20 percent 25 percent • A score od zero indicates that a large share of retail sales is from the modern format • Countries with the maximum amount of retailers have the lower scores • A score of zero indicates that the country ranks high in total modern retail area per urban inhabitant • A score of zero indicates a highly concentrated market with the top 5 competitors holding more than 55% retail market • A score of zero indicates a rapidly advancing retail sector representing short term opportunity .

Thank You!! .

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