Originally published 12.20.16
A strategic growth opportunity that has not been fully harnessed by many brands in the retail sector is India. India’s economy is growing at a rate faster than all mature economies and most emerging economies.
When analyzing the top 30 developing countries for retail investment based on macroeconomic and retail-specific variables, focusing on the most successful developing markets today, and those that offer the most potential promise, long-term, India rises to second place from 15th in 2015. India benefits from economic stability and regulatory reforms aimed at improving ease of doing business. It is now the world’s fastest growing economy.
Although China still ranks first in the emerging market world for favorable conditions for expansion, India has closed the gap and has outstanding, sustainable opportunities for Western brand investors. Estimated 2015-market size of $1,647 billion, with North America representing approximately 23%, trailing only Asia Pacific. The global apparel and footwear market grew 5% in 2015 despite facing headwinds in developing countries China, Russia and Brazil.
This data is quite compelling as a tremendous opportunity for anyone investing in the Retail Sector. The Indian middle class consumer wants Western lifestyle/Western brands, very similar to China. In addition, India has the highest consumer confidence among countries measured.
In summary, if you have not developed a go-to-market strategy for India, you need to develop one and embed this into your LRP. The Go Global Retail team has the gateway to India to assist your strategy and implementation.