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International Retail Industry Opportunities in the East
The retail industry in the U.S. is well developed and highly competitive - limiting growth opportunities. There are, however, tremendous opportunities in developing eastern countries. In the past decade, the economic upturn in many eastern countries has led to increased purchasing power by an expanded middle and upper class population. South Korea has the highest per capita income among its Asian neighbors. The sheer size of the population in China (1.3 billion), is expected to boost its consumer market ranking into the top 3 within the coming decade. India's urbanization trends, along with a young population, is creating a shift of consumption from rural to city areas, where there are more opportunities for the rising middle class to exercise their spending power. Russia is also positioned as an emerging consumer nation as evidenced by hypermarket giants like Carrefour and Wal-Mart recent entry into Russia's retail mix.
Exploiting Opportunity while there is still time
In Asia, brand loyalties have not yet been well established. There are companies however, such as Coca Cola, P&G, Unilever, Nestle, and others, who have manufacturing plants in China, that have an edge. For manufacturers of hardlines, fashion, and food, though, there are still big opportunities to test their products in these markets.
Top Retailers and Western product importers in these regions are beginning to realize the hunger for Western products. There is a growing segment of consumers in the eastern regions that are enamored with products from the U.S. American products are not only considered to be of top quality, but are also considered very fashionable, resulting in a willingness to pay more for those items. In addition, in these emerging markets, there is a growing population of professionals from the U.S. living abroad, who are craving U.S. products.
Retailers from these Eastern Regions have had a good degree of success capitalizing on the increased consumer spending. At a certain point, it becomes more difficult to manage a large company or efficiently handle the complexities that will further grow and expand that company. As a result, many are susceptible to the strength and the success of the large, multi-national retailers. Those multi-nationals see the opportunity to use their business skills and gain a strong share of a huge market. They are in a position to capitalize on their skills and efficiency to deliver an improved shopping experience to an increasingly demanding and savvy consumer. Those retailers have a choice of continuing business and its results as usual, running the risk of losing share to the global retailers. Their other choice is to learn the improved business practices, combine them with their obvious understanding of the unique culture and demands of their consumer, and have a great chance for success.
GRC Offers Support and Solutions
It is clear that there are big opportunities in the global market. The question that retailers, manufacturers, 3rd party providers, and investors have to ask themselves is, "will we be on the top or the bottom end of benefitting from that region's economic boom?" To take advantage of the opportunities, you will have to develop clear plans and be prepared to solve many problems along the way. Global Retail Connections is uniquely positioned to assist.
GRC's focus is on improving the retail industry in North America, the entire Eastern Region with a strong emphasis on China. My team and I provide experience based, "street-smart" consulting services to retailers and suppliers in both continents. With our extensive experience in the U.S. and internationally, we are able to provide help in almost any aspect of the retail business. We are very experienced in all merchandising and category management areas, operations, advertising, marketing, and overall organizational efficiencies. We can tailor our program to match any retailer's or supplier's needs. We are aligned with HCD Global, a Shanghai-based industry training and consulting group, as their retail experts.
Additionally, I, Roy Fossum, am the CEO of BuyUs International, an importer of consumer products, including wine, from the U.S. In that role, our company is aligned with distributors and retailers throughout the country. Our network that has already been established through the consulting and importing business has uniquely positioned us to be able to work with you, regardless of your role in the retail industry. Not only do we have established contacts, but we have a strong understanding of the unique challenges that will be faced due to the tremendously complicated cultural differences, both for business and for personal life. Our team is available for sales and consulting tasks, as well as speaking and coaching engagements, both in the U.S. and abroad.
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© Global Retail Connections 2009
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