Growing consumption of Italian exports in emerging markets.
Thursday, 22 September 2016, by VO+ Magazine
[su_highlight background="#63A498" color="#FFFFFF"]MARKET[/su_highlight]According to A.T. Kearney’s 2016 index, China, followed by India, is the most promising emerging retail market among the top 30 nations.
Consumer spending among the 1.3 billion Chinese nationals has increased substantially and has exceeded the GDP: +8.1% compared to +6.9% in 2015. And that is why A.T. Kearney’s ranking has crowned China as the best-performing emerging retail market in the top-30 index. India follows hot on the heels of China, where growth goes hand in hand with PM Modi’s policies, which have released their grip on foreign investment restrictions, thus leading to a growth of 8.8% in retail sales over the last two years. Asia features four out of five countries among the top five. Malaysia ranks third with a smaller market, which, however, is open to foreign investments, while maintaining a good spending power among its citizens. Then, there is Indonesia with over 250 million inhabitants. But the true surprise is Vietnam and the Philippines. Hanoi – which ranks 11th – has shown a retail growth rate of over 7% and, more importantly, has a very low market saturation margin. In the Philippines, the large shopping centres are currently gaining momentum: the Robinsons group has planned the construction of another 10 malls in the next five years. The index also describes the UAE and Saudi Arabia as nearly mature markets, with their retail market segment consequently slowing down. Among the top emerging countries, Russia and Brazil have shown a downturn. Indeed, while it is true that in Moscow Italian luxury exports have greatly suffered from sanctions and the devaluation of the rouble, it is also true that high-end purchases have been boosted by the influx of Chinese tourists. As a result, Valentino, Fendi, Bulgari, Omega and Audemars Piguet have chosen to enter this market. Africa, too, is playing a major role: Egypt features again in the top-30 index, after a five-year period of post-revolutionary unrest, and together with Morocco, Tunisia and Algeria, makes North Africa a promising destination for the future of the retail segment. Further to the south, A.T. Kearney also bets on Nigeria, Ghana, Zambia, Kenya and South Africa.