Are you a specialty apparel retailer looking to expand overseas? China might be your best bet, according to the 2013 A.T. Kearney Global RetailIndex.
The global consulting firm placed China in the number one spot for apparel sellers due to its huge population and strong growth in apparel sales. United Arab Emirates took second place in overall market attractiveness, followed by Chile, Kuwait and Brazil.
The annually published index analyzes three key components: apparel market attractiveness, which encompasses clothing sales and sales growth, population size and the presence of international retailers within the country, retail development growth and country risk. The latter looks at political andrisks, as well as the level of crime and corruption in each country.
The rankings differ slightly from A.T. Kearney’s 2013 Global Retail Development Index, which measures the attractiveness of emerging markets for all retailers. In that survey, Brazil and Chile took the number one and two spots respectively for the second year in a row due to the growing middle classes in both countries, under-control inflation, sustained economic growth and a stable political situation.
China and United Arab Emirates took the number four and five spots in that Index, with China falling one place from 2012’s rankings and UAE rising two spots.
India has also fallen in the Global Retail Development Index, to 14th place from last year’s fifth, not even making it into the top 10. The country has felt the effect of the global economic slowdown, according to A.T. Kearney researchers, with retail sales growth slowing across all segments. In addition, the cost of finding affordable retail spaces in India continues to be a challenge for international chains.