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Friday, 27 February 2015

International Retail Expansion in India

India dominates the future plans of most CXOs of global enterprises around the world. This is especially due to the new pro-business government inclined to push past facial foreign engagement which was adopted most of the last decade. Serious steps and calibrated operations are put in place to create an internationally savvy, productive ecosystem for major industries like retail, technology, hospitality, manufacturing etc. Most international businesses are planning to accelerate existing operations or enter into fertile ventures in the country. As an emerging market strategy, India accounts for a large chunk of their capital allocation, largely due to the educated, abundant and young work force with proficient skill-sets from manufacturing, engineering to creative arts and life sciences.

“India is blessed with a greater degree of persistence than the average emerging market (EM) when it comes to portfolio inflows. During the market 'taper tantrums' last year and in the more recent October correction, India suffered outflows along with other EM equity and debt markets. But recovery in portfolio flows after each disruption has tended to come sooner and more convincingly in India's case than for other emerging markets.” says Geoff Lewis, Executive Director-Global Market Strategist, JPMorgan AMC in Money Today – December 2014.

Indian retail sector is continuing to grow despite irregular global economic trends. A.T. Kearney, a global consultancy firm, has ranked India as the fourth most attractive nation for retail investment among 30 emerging markets. The Business Monitor International India Retail report has estimated that the total retail sales in India will grow from US$ 411 billion in 2011 to US$ 804 billion by 2015. Robust economic growth, high disposable income with the end-consumer and rapid construction of organized retail infrastructure are key factors behind the forecast.

A panel of retailers and market experts will discuss the challenges and growth opportunities for international retail in India at the Retail Congress Asia Pacific 2015. ETP Group is proud to be the  Key Partner  at the Retail Congress Asia Pacific 2015.

Wednesday, 18 February 2015

Why You Need To Be Pro-Phygital in Retail

The term ‘Phygital’ is derived from the existing and emerging technology which employs the concept of bridging the gap between the physical and digital world, through convenient and interactive experiences.

In retail, phygital signifies the convergence of the physical and digital marketplace which helps brands and enterprises to engage customers on a broader spectrum and create a retail ecosystem which is truly seamless.

To cite a couple of examples, Tesco’s Homeplus pioneered the virtual supermarket where consumers scan the QR code of the product they’d like and the item is automatically added to an online shopping cart. Post payment through the secured mobile app, shoppers can continue towards home to find a bag of groceries on their doorstep. Brazilian fashion retailer C&A created a store with real-time "likes" counters on its clothes hangers. The like data was taken from C&A's Facebook page where the clothes were listed for people to interact with, allowing customers at the store to see how many people online think that a particular product was a good buy.

The last couple of years have shown us the phygital marketplace is teeming with opportunities and retailers have just begun to explore and execute the same. In many ways, it is the organic evolution of the omni channel retail space with a multi-dimensional approach to not just increase customer reach and revenue but also create experiences that weave themselves perfectly into the customers’ lives.

Charles Darwin said, “It is not the strongest or the most intelligent who will survive but those who can best manage change.” Shoppers today have adapted to change and traversed onto the interchangeable, interdependent and integrated multiple channels of retail.

Global leaders in retail will engage and exchange their perspective and ideas on the evolution of phygital retailing at the Retail Congress Asia Pacific 2015. ETP Group is proud to be the Key Partner at the Retail Congress Asia Pacific 2015.

Monday, 2 February 2015

New Hyper Growth Markets in Asia Pacific (APAC)

Global reportsindicate that the APAC economy will increase its slice of world GDP to 43% by the year 2020. This comes as no surprise as the retail industry has been witnessing and in fact been equipping itself for active participation throughout the last decade. APAC wins in the retail arena not just by sheer numbers but also due to their speedy demographic transition and agile adaptive economies which are tuned to the needs of the new age customer and global market conditions.

In 2015, the key emerging retail markets within this eclectic region:
The Philippines: One of the major growth markets in Asia, with over 250 brick and mortar establishments set up in the country in 2014. Its GDP growth is further fuelled by the rise in tourism which is expected to increase by 5.7% year-on-year from 2010-2020. An additional 220 million square feet in shopping center construction is expected to be added by the end of 2015.

South Korea: The country is already APAC’s third largest ecommerce market with sales in South Korea further expected to reach $36.76 billion in 2015. Bloomberg ranked the country second, closely following China, as the Best Emerging Market in 2014.

Vietnam: Vietnam’s population of approximately 90 million is the main driver of growth in the retail market. 70% of the population is currently aged between 15 and 64 years, and this is projected to continue to increase by 2017. 

Other APAC countries that are steadily accelerating their mark in the market are Cambodia, Myanmar and Laos. Today, it is truly a global market with equal customer reach, open sourcing and liberalization on direct foreign investment. And thus, we find the APAC retail universe is filled with possibilities and promise.