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India
figures among nations with strongest retail potential:
PwC
Chennai: China, India, Turkey, Vietnam, Russia,
Romania and Bulgaria, offer the strongest investment opportunities
for retail and consumer companies, according to the fourth
edition of PricewaterhouseCoopers'
Retail and Consumer study: From Beijing to Budapest:
Winning Brands, Winning Formats.
The
emerging markets (particularly China, and India) demonstrate
the growing perspectives for strong international development
in these regions. Hypermarkets, discount stores and specialised
outlets are the main formats dominating the retail scene
in both regions covered by the report.
The
report says that for both new and foreign entrants and
for investors who want to consolidate their operations
in these markets, partnering with local firms remains
the most viable strategic option. One of the most significant
management challenges is that of recruiting and retaining
good staff.
A
key finding is how entering these markets requires foreign
retail and consumer companies to create new products and
new formats geared to the consumers. Successful development
of brands in the transitional economies lies in finding
the right balance, blend and mix of products, the report
says, mentioning the importance of being sensitive to
local tastes.
The
report says that while achieving a presence in these transitional
markets can be challenging, companies that develop new
products and formats tuned to the quickly evolving tastes
of customers will be successful.
Twenty
countries with the highest growth potential are included
in the report: China, India, Indonesia, South Korea, Malaysia,
the Philippines, Singapore, Taiwan, Thailand, Vietnam,
Bulgaria, Czech Republic, Hungary, Lithuania, Poland,
Romania, Russia, Slovak Republic, Slovenia and Turkey.
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World
GDP growth hinges on India, China
Chennai:
Even though India and China rank 154th and 121st respectively
in a listing of the 230-odd countries ranked by per capita
GDP their share in world GDP is around 6 per cent, due
to their billion-plus populations.
The
other eight in the top 10 countries of the world ranked
by total GDP — the US (No. 1), Japan (No. 2), Germany
(No. 3), UK (No. 4), France (No. 5), Italy (No. 7), Spain
(No. 8) and Canada (No. 9) — together account for
66 per cent of world GDP. However, the sustainable rate
of growth of these countries is generally around 2 per
cent a year, compared to 7 per cent and 10 per cent for
India and China respectively.
Because
of this, the share of India and China in incremental world
GDP (which, at the rate of 4 per cent a year, amounts
to $1.6 trillion a year) is 13 per cent, almost double
their weight in total world GDP.
As
against this the other eight countries in the top 10,
with a 66 per cent share in world GDP, have only a 33
per cent share in incremental GDP. In the absence of a
major breakthrough in technology, this scenario is likely
to remain unchanged over the next four or five decades.
Hence
the growth of world GDP is more critically dependent on
the rate of growth in China and India than on the other
eight countries in the top 10 - which are already functioning
at near-peak potential.
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