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Middle-Class Consumers are fueling Retail growth in Emerging Markets (China, India)

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Middle-Class Consumers are fueling retail growth in Emerging Markets

Middle-Class Consumers are fueling retail growth in Emerging Markets

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    Middle-Class Consumers are fueling Retail growth in Emerging Markets (China, India) Middle-Class Consumers are fueling Retail growth in Emerging Markets (China, India) Presentation Transcript

    • MIDDLE-CLASS CONSUMERS ARE FUELING RETAIL GROWTH IN EMERGING MARKETS (e.g. China, India) Prof. Sameer Mathur, Ph.D.
    • Sameer Mathur BuddingMarkets.com Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 Marketing Professor 2013 – Indian Institute of Management, Lucknow
    • Agenda Emerging Markets are Growing Faster than Developed Markets Retail Industry is growing faster in Emerging Markets Global Retailers are Growing Faster in the East Middle Class Consumers are Fueling Retail Growth
    • 4 Emerging Markets
    • 1. Emerging Markets are growing faster than Developed Markets.
    • BRIC
    • using the A-share marketSource: http://www2.goldmansachs.com/ideas/brics/book/BRICS-and-beyond-intro.pdf Brazil Russia India China BRIC Growth Since 2001
    • 2. The Retail Industry is also growing faster in Emerging Markets.
    • 76.3 76% 10.6 12.4 69.4 72.4% 28.6 22.4 0 20 40 60 80 100 China India US Canada Growth Rate % Retail Industry: Growth Rates & Forecasts 2010-15 % 2005-10% Source: Euromonitor Retail Industry Growth
    • 3) Global Retailers are growing faster in the East than the West.
    • • Entered China in 1996 • operates over 333 stores. Wal-Mart is purchasing Chinese supermarket Trust-Mart in the 2011 fiscal year Source: http://www.wal-martchina.com/english/index.htm Example: Wal-Mart in China
    • While Wal-Mart does not yet have a strong foothold in China’s retail industry, it is showing signs of growth and potential with each passing year.0.2% 0.3% 0.5% 0.6% 0.7% 0.7% 8.5 9 9.5 10 10.5 11 11.5 12 2005 2006 2007 2008 2009 2010 %MarketShare Year China Wal-Mart Market Share Growth
    • Wal-Mart experienced its first market share loss in 2009-2010.9.8% 10.1% 10.5% 11% 11.5% 11.4% 8.5 9 9.5 10 10.5 11 11.5 12 2005 2006 2007 2008 2009 2010 %MarketShare Year USA Wal-Mart Market Share Growth
    • • French • Entered China in 1995 • 6th Largest Retailer • Leading foreign retailer in China Operate 175 hypermarkets and 425 discounters in 40 Chinese cities. Example: Carrefour in China
    • Q1 of 2011… SALES ROSE BY 18% REACHED €1.6 BILLION SALES ROSE BY 1.3% REACHED €9.9 BILLION http://www.marketwatch.com/story/carrefour-sales-rise-on-brazil-china-growth-2011-04-14 Carrefour: China vs. France
    • Organized Retail in India
    • Organized Retail in India
    • 4. Middle-Class Consumers are fueling retail growth.
    • A family in Bangalore 19
    • Commuters in New Delhi
    • 21 A “Chawl” in Mumbai
    • Middle Class Consumers - India
    • Limited Ability-To-Pay Middle Class Consumers - India
    • The Rise of the Middle Class
    • Also in China…
    • Source: Second Among Equals: The Middle-Class Kingdoms of India and China, by Surjit S. Bhalla …and Across the World
    • Middle-Class Consumers are fueling retail growth in Emerging Markets. Summary
    • Summary Emerging Markets are Growing Faster than Developed Markets Retail Industry is growing faster in Emerging Markets Global Retailers are Growing Faster in the East Middle Class Consumers are Fueling Retail Growth
    • Recommended Reading
    • Over 600,000 views from more than 100 countries http://www.BuddingMarkets.com/ Sameer Mathur BuddingMarkets .com http://www.facebook.com/BuddingMarkets/