Tag Archives: shops

Where are Retail’s Hottest Emerging Markets?

Wondering whether to open your new fashion store in China or in Brazil but you don’t have any clue? The annual A.T. Kerney’s Retail Index  provides you with a detailed list of the most emerging countries for apparel retail.

The A.T. Kearney Global Retail Development Index (GRDI)™ ranks the top 30 emerging countries for retail development and identifies windows of opportunity for global retailers to invest in developing markets. The GRDI is unique because it doesn’t just identify which markets are bigger or richer, but rather which markets are hotter and bursting with opportunity. The full annual report can be read at this link, but let’s take a quick look at what the report shows.

 

China ranks as the most attractive emerging market for apparel retailers according to a study by global management consulting firm A.T. Kearney. Its first place ranking was driven by the country’s large population and the growing disposable income of the middle class. With its compound annual growth rate of more than 20 percent in recent years, apparel retail in China has grown at a rapid pace, and this trend is expected to continue for the next five years.

China was followed in the ranking by two Middle East Countries, U.A.E. and Kuwait, then by Russia and Saudi Arabia.

The United Arab Emirates holds the second position in the 2011 Apparel Index, driven by a population with a high disposable income and immense fashion consciousness. The expatriate populace and tourism in particular are driving forces of consumption in this market. Additionally, the UAE is a regional commerce center in the Middle East, and is a preferred market for entering the Middle East as well as testing new products and retail formats.

Kuwait is ranked #3 in the Apparel Index. Key factors driving retail growth in Kuwait are a favorable long-term economic outlook, a sophisticated consumer base with high levels of disposable income and fashion awareness, more women entering the workforce, and a significant expansion in retail real estate. The gross leasable retail space in Kuwait has expanded from 345,000 square meters in 2006 to 1.15 million square meters in 2010.

The remaining top ten markets in the 2011 A.T. Kearney Retail Apparel Index are Russia, Saudi Arabia, India, Brazil, Turkey, Vietnam and Chile. (Source: A.T.Kerney)

LVMH Group to fund India’s Ready-to-Wear Fashion Retail

The world’s largest luxury goods conglomerate, LVMH Group, will launch its private equity fund in India, in an attempt to tap the burgeoning disposable income and rising aspirations of the country’s urban population, especially women.

L Capital, present in New York, Madrid, Milan, Shanghai and Singapore, will invest in India from its fourth fund, which is dedicated to Asia and has a corpus of $650 million. It also will focus on economies such as China, Malaysia, Indonesia and Thailand.

“We are looking at investing in companies in the lifestyle arena in Asia, primarily from the aspirational segment, meaning people who are moving from mass-produced goods to the next layer up,” said Ravi Thakran, managing partner of L Capital. “We are not keen on top-end luxury in India. We may look at that, but that is not our main focus.”

Mr. Thakran said Indian high-end designers are missing out on the real growth story in fashion by focusing on couture, which caters to the richest 500 families, and the wedding apparel business. The opportunity, he said, is in the ready-to-wear segment.

Mr. Thakran–who previously worked at the Swatch Group and helped launch Indian jewellery brand Tanishq in the U.K.–also, is betting on discretionary spending gaining pace in India.

“Today the world is moving towards a new center stage, which is certainly Asia, but China and India are two pillars of that,” he said. “This was the case pre-crisis but post-crisis it is even more so.”

However, India lags behind China when it comes to scalable brands and businesses. “In China, there are already at least 10 businesses we might be interested in which are worth $200 million to $250 million, whereas in India none of the (best known) designers have even reached the $100 million scale,” Mr. Thakran said.

L Capital is looking to bring in expertise on operational improvements in areas such as product design, logistics, store design, visual merchandising, talent search and training and development. Assistance in these areas for an early stage growth company is more important than capital, Thakran said.

He will be looking for deals in shoe, apparel and wine businesses, makers of lifestyle furniture, beauty brands, apart from skincare centers and spas.

“This is where the new consumption is rising in India,” Mr. Thakran said. “When aspirations and disposable incomes rise, consequently consumption in new arenas, our targeted sectors, also rises.”

Fashion designer J.J. Valaya, in an e-mail response, defended the prevalent focus on couture and wedding dresses, citing “lack of infrastructure, distribution and adequate capital.” He added that ready-to-wear is profitable only if it achieves volume.

“At present the top names in the country are not prepared to reach those numbers single-handedly,” Mr. Valaya said. “In the West too, a Louis Vuitton or a Jimmy Choo achieved reach through strategic corporate associations.” According to Mr. Thakran, Indian fashion businesses suffer because the creative force, the designer, is forced to look after operations due to lack of resources.

This shortage of resources has prevented recognized Indian businesses from transforming themselves into brands with greater economic value, he said. “If the creative guy is busy sorting out the accounts and logistics, and looking after the retail store, he cannot focus on the creative part,” Mr. Thakran said. “If you can bring to them knowhow in these areas and to build that front end, these brands can really unleash their potential.” (Source: Online WSJ.com)

GoodGuide for Good Products for a more sustainable Retail

Yesterday I was reading a post concerning Levi Strauss & Co as the Top Jeans Brand, scoring a 7.4. The brand Prana was listed as the next highest, with a score of 6.3—followed by H&M (6.1), Banana Republic (6.1), and Old Navy (6.1).

I did not know what GoodGuide is – shame on me – so I checked out their very interesting website, which is said to be the world’s largest and most reliable source of information on the health, environmental and social impacts of consumer products. And I think it really is, rating over 95000 products, mainly available on the US market only: from food, toys, personal care to apparel, electronics and appliances. What is really striking is the scientific approach they have on their ratings, which are compiled from three sub-scores addressing Health, Environment and Society.


 Each of these sub-scores are based on an analysis of a set of indicators that GoodGuide has determined are the best-available measures of performance in these areas. Their methodology differs from the product belonging to different categories, each and every one having its own scoring methodology. Amazing. Let’s talk about apparel for example.

Quoting the Good Guide site: “Until (apparel) companies do a better job of providing transparency into their supply chain, our ability to accurately score brands based on their relative performance will be subject to significant uncertainties Environment scores are assigned to apparel brands by combining GoodGuide’s standard company indicators of environmental performance (weighted at 50%) with brand-level environmental indicators that address issues that are specific to the apparel sector (weighted at 50%).(….) Social scores are assigned to apparel brands by combining GoodGuide’s standard company indicators of social performance (50%) with brand-level social indicators that address issues that are specific to the apparel sector (weighted at 50%).(…) Health scores are not assigned to apparel brands because this product category does not generally pose health risks to consumers.”

The Good Guide website is also very good at using the Web 2.0 tools to “spread the word” and improve the accuracy of the product information thanks to a “support product info” page which enables visitors to add further details.

It would be also very interesting to test the effect of this kind of structured and scientific information directly at the point-of-sale, to see how the consumer react when discovering that his/her favourite brand of pasta is not that “good”. Because thanks to GoodGuide mobile App this is possible: consumers can scan the product, check the GoodGuide database and then purchase, or decide to choose another brand.

With this detailed level of “scientific” information, producers and retailers have nothing to hide and their achieving a high/low score can have a boomerang effect on brand reputation which must not be ignored and will not be ignored by consumers. Sustainability pays, and it will pay even more in the future.

Asia future retail landscape

Once upon a time, the customer experience depended largely upon luck: the mood of a shop assistant, the time spent waiting at the checkout, being able to find the right product. All of these could make a difference between a boycott or a customer for life. But with consumers more selective than ever about where to spend their hard earned cash, improving the customer experience has become even more critical. According to Ivano Ortis, International Director of leading analyst and trend forecasting agency IDC Retail Insights, customer service is only the latter part of the customer experience. “There is an increasing focus on ‘immersive shopping’ which is the next generation of shopping experience for the customer,” says Ortis. “This is not only about providing an inspirational range of products and displays but also about the instant and accurate delivery of information from the retailer.” It’s an experience that “can, and indeed must, be generated across any retail platform, be that in-store, online or even on a mobile device”. That means a strong multi-channel presence is essential for retailers looking to maximise profitability in the coming decade and that customers have the best experience within those platforms, he adds. One of the key challenges for retailers is to use IT in precision retailing strategies which target the marketing down to individual one-on-one customer communication and interaction. “The point is for retailers to change from a mass-market type of operating company to a very targeted operation, by analysing the intricate characteristics of their customers in order to ensure the customer is seeing the right product, with the right price at the right time to ensure a sale. In other words, that the customer is having the best possible experience,” says Ortis. As with any targeted marketing strategy, it doesn’t matter which platform the retailer is operating from. “It really depends on the customer you’re talking to, what time of the day it is, where the consumer is. I think the underlying technology infrastructure that needs to be put in place should be working regardless of the channels.” Ultimately, though, the key to success is for retailers to utilise technology to gather feedback and use that to develop a positive customer experience. “An immersed and interactive experience for the customer can only mean improved revenues for the retailer. Those retailers who use different platforms to support and enhance the customer experience will truly reap the benefits,” concludes Ortis. (Source: GDS International)

The Ecoacquisti Trentino brand has finally born

DESITA, ECOFFEE, ecology, Fresh Worldwide Press, packaging, retail food, sustainability, , , , , , , ,

The Ecoacquisti Trentino project aims to the reduction of the waste produced in Retail Stores and raises awareness on a more environmental friendly purchase in more than 100 outlets in the city of Trento area (Italy)

But what does it mean in practice "eco shopping?" Means that in the stores that have received this certification you can find canvas bags or other reusable materials, empty cartons to bring your purchases at home, rechargeable batteries, cold cuts and cheese in a ply-separable paper, fruits and vegetables packaged in compostable bags, bottles of water, wine or milk can be purchased in re-fillable containers.You can alsobuy food with special discounts in last-minute market or donate them to charitable organizations.

The project aims to the reduction of the amount of waste, the promotion of recycling practises, requires a constant audit of the POS and sustains educational projects through school and extracurricular activities. (Courtesy of Alternativa Sostenibile)