Retail Asia 2013 Analysis & Top 40

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Retail Asia's Top 40 Retailers in Asia Pacific Ranking

Top 500 retailers in the region generated sales topping US$1 trillion in 2012. Euromonitor International’s latest retailing research places retail sales for Asia Pacific (including Australa- sia) at US$4 trillion in 2012. The Top 500 retailers alone accounted for nearly 24% of total retail sales in the region.

Copyright 2013 Euromonitor International.

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Retail Asia 2013 Analysis & Top 40

  1. 1. RetailAsiaJune2013 28 2013 retail asia-pacific top 500 o v e r v i e w Internet retailing emerges as a rising star in Asia-Pacific In the 10th edition of the Retail Asia-Pacific Top 500, we review key numbers unveiled by markets and formats across the Top 14 economies in the region. Internet retailing takes the spotlight this year, and for the first time, we are pleased to share the ranking of the Top 10 Internet retailers in the Asia-Pacific region. We also hear from Euromoni- tor International’s team of analysts, led by Geok Leng Loo, head of research, who will bring you up to speed with the latest in Internet retail developments in their respective markets. Market highlights by numbers Top 500 retailers in the region generated sales topping US$1 trillion in 2012. Euromonitor International’s latest retailing research places retail sales for Asia Pacific (including Australa- sia) at US$4 trillion in 2012. The Top 500 retailers alone accounted for nearly 24% of total retail sales in the region. Sales value of the region’s Top 500 retailers grew by 5.4% in current value terms in 2012. Growth was muted as the greenback weakened considerably against a number of local cur- rencies such as the Japanese yen. Having ousted Japan from pole position in the last edition, China emerged once again as the country having the most number of entries in the Top 500 rankings in 2012, taking 147 of the 500 positions available. Retailers in Japan in the Top 500 rankings accounted for the lion’s share of value sales gener- ated, even though this share is being chipped away by the rising presence of Chinese retailers in the rankings over the years. The representation of China in the Top 500 rankings saw the biggest increase of nine entries amongst the 14 Asia-Pacific markets. India’s presence in the rankings was the hardest hit by the ascent of the retailers in China. Retailers in India ceded six entries in this edition of the Top 500. Value sales generated by Indonesian retailers in the Top 500 rankings saw an increase of 19% in 2012. Domestic economy growth remained positive in 2012, with lower unemployment rates and relatedly, rising disposable incomes. Against this positive backdrop, retailers in the country generally benefited. VietnameseretailersintheTop500rankingswitnesseda11%declineinsales,duetoacutback in spending as a result of the faltering domestic economy. US$1,053 billion +5.4% current terms 147 entries 47% value share +9 entries -6 entries +19% current terms -11% current terms p28-39.top500.overview.0613.indd 28 6/26/13 5:00 PM
  2. 2. 29 June2013RetailAsia Having overtaken department stores previously, hardline remained the key format among the Top 500 retailers in this edition. Hardline retailers took 84 of the 500 entries this year. The significance of hardline retailers in the Top 500 can be attributed to Asia-Pacific consumers being house-proud and their embracement of electronic gadgets and appliances. As before, department stores continued to account for the majority of the Top 500 retailers’ value sales. This is despite the format seeing its representation in the rankings being whittled away gradually over the years. Clothing, footwear and accessories retailers saw an increase in representation in the Top 500 rankings this year. The yen for specialised shops offering specific brands not commonly found elsewhere, continued and rising aspirational lifestyles which fuel the expansion of luxury clothing, footwear and accessories retailers as well as the provision of personalised services are but some of the factors working in the favour of clothing, footwear and acces- sories retailers in the region. Format highlights by numbers Ranking Retail Company 1 Alibaba Group Holding Ltd 2 Rakuten Inc 3 Amazon.com Inc 4 360buy.com 5 eBay Inc 6 Apple Inc 7 Dell Inc 8 Suning Appliance Co Ltd 9 Yahoo! Inc 10 Lotte Group 84 entries +20% value share +3 entries In the jostling for a slice of the rankings, convenience stores witnessed a loss of four entries to the other formats. -4 entries Clocking the lowest growth are retailers in the sports goods format. Many other formats such as department stores and even hypermarkets also retail sports apparel and related products. Not to mention, there remain consumers who do not see the need to be fully kitted out to engage in sports. Hypermarkets’ sales per sqm remained the lowest relative to the other formats covered in the Top 500 rankings. Hypermarkets saw the biggest increase in value sales in 2012. The channel’s value-for-money positioning, on top of strong expansion and wide range of both grocery and non-grocery products on offer, served to benefit hypermarkets in this regard. +10.9% current terms +2.4% current terms US$2,650 per sqm W ho leads Internet retailing in Asia-Pacific Internet retailing is a channel that has gained tremendous interest from retail- ers and consumers alike. For the 10th edition of the Retail Asia-Pacific Top 500 rankings, other than shining the spotlight on the Top 500 retailers in the region, the Top 10 retailers by format and the Top 10 retailers by country, we also focus on the leading Internet retailers in the region. Euromonitor International defines Internet re- tailing as the sale of consumer goods to the general public via the Internet. Consumers purchase goods online through the Web platform. Sales data is at- tributed to the country where the consumer is based, rather than where the retailer is based. Sales gener- ated by businesses with consumers through online shopping centres, malls and marketplaces, such as eBay, are included in Internet retailing. Therefore, sales figures should include sales over auction sites Top 10 Internet Retailers in Asia-Pacific Note: Based on 2012 retail value sales ex VAT, US$, current prices Convenience stores continued to come up tops in terms of the format generating the highest sales per sqm. US$1,053 per sqm that are generated between a business and a con- sumer; however, no business-to-business (B2B) sales or consumer-to-consumer (C2C) sales are included. p28-39.top500.overview.0613.indd 29 6/26/13 5:10 PM
  3. 3. RetailAsiaJune2013 30 2013 retail asia-pacific top 500 o v e r v i e w Chinese players take three spots ChinesecompaniescameupthriceamongsttheTop10 Internet retailers in the region. The leading Internet retailer in the Asia-Pacific region was Alibaba Group Holding Ltd. Running Tmall.com, it is the largest InternetretailerinChina,aswellastheregion.Tmall. com will continue its business-to-consumer (B2C) platform strategy, to provide a one-stop shopping experience for online consumers through enriched product and brand portfolios. The online platform will strengthen its coopera- tion with small and medium-sized sellers to increase diversification, assisted by enhanced microblogging marketing and shopping search engines, and so on, in order to provide a smooth shopping experience for consumers. Owing to its growing consumer base and a wide range of consumer products at competitive prices, Taobao.com has enjoyed strong growth in Internet retailing in China. Boasting over 82 million active online members in the first half of 2012, Tmall.com has far outperformed its major rivals in In- ternet retailing in China. Aggressive marketing activities, including the Shopping Spree Festival held annu- ally on November 11 since 2009, as well as massive price discounts, have attracted consumers and kept them active users of Tmall.com in the review period. 360buy.com,alsoanInternetretaileroperatingin China, took fourth position last year. The company is the second-ranked Internet retailer in China. Diversity is an important development strategy for 360buy.com. In addition to being the leading online shopping mall focusing on consumer electronics products in China, 360buy.com continued to explore otherlucrativemarketcategoriesinthereviewperiod, with the successful launch of a series of sub-brand Internet retail platforms, including ehaoyao.com, 360Top.com and minitiao.com in late 2011, focusing on medicines and healthcare products, luxuries, as well as Japan- and Korea-originated commodities, respectively. The latest addition is en.360buy.com, launched in October last year, an English-language onlineshoppingmall,targetingoverseas,particularly western, markets. Suning Appliance Co Ltd is the other Chinese player who took the eighth spot in the ranking of the Top10InternetretailersinAsia-Pacific.Thecompany is one of the leading hardline retailers in the country. To gain a foothold in Internet retailing in China, the company launched the online B2C platform www. suning.com,offeringmainlyconsumerappliancesand electronicstoChineseconsumers.Extensiveproduct lines,convenientonlinepayment,advancedlogistics, an extensive distribution network supported by its existing outlets across the country, and good after- sales service enabled Suning to record strong growth in its Internet business over the period of 2011-12. Suning.com is expected to continue its low price strategy for its online channel, including no annual service fee for suppliers of the online channel. To extend its online business, the company acquired Redbaby.com.cn in mid-2012, a local Internet re- tailer specialised in online retailing of mother and baby products. Vast product offerings win players a place in the Top 10 ItisnoteworthythatthetopfiveInternetretailersare all specialising in more than one particular product type. Rather, these players provide their shoppers with a wide array of products, ranging from apparel to electronics, toys and media products, to name but a few. These platforms find favour among consumers as they offer the convenience of one-stop shopping on top of good deals. Players like Rakuten Inc (No.2), Amazon.com (No.3)andeBayInc(No.5)havetheaddedadvantage of operating across more than a single market, rela- tive to top-ranked Alibaba Group Holding Ltd and the fourth player, 360buy.com. Yahoo! Inc, coming in at the ninth spot, is also similar to these top five players in terms of offerings but is less popular in comparison. Electronics players tap on Internet retailing to their favour Global names, Apple and Dell, took the sixth and seventh spots respectively in the ranking of Internet retailers. Dell’s origins stem from the online plat- form to start with, where the company sold almost exclusively online successfully. Dell’s success as an online retailer of computers and related peripher- als was down to its ability to offer value-for-money deals. In Asia, the company did venture into the brick-and-mortar format — either through the op- eration of its own standalone store or distribution through existing retailers — but is still well known as an online retailer. Dell has been losing its edge as a competitive online retailer over the years as the Internet retail scene heated up in the region. This is due in part to theDellbrandlosingsomeofitslustreasotherbrands started stealing the limelight on the computing front. The Apple name needs no introduction, even in the Asia-Pacific region. Indeed, so successful has Apple been in changing the consumer electronics landscape that the iPad has become synonymous with tablets in many consumers’ eyes. Gadgets like the iPhone and iPad, on top of its Mac and MacBook offerings, remain highly sought-after by consumers in the region. Given the familiarity of consumers with Apple’s products, selling these products online works. Consumers learn about Apple’s products through word-of-mouth. Apple’s products are also heavily featured in magazines — both print and online. It is also not uncommon for retailers, self-operated or otherwise, to have Apple’s products on display for consumers to touch and try — with none or minimal stocks avail- able in-store. This further facilitates online sales at Apple’s Internet store. Lotte Group grows through Internet retailing Cominginat10thplaceisSouthKorea’sLotteGroup, It is noteworthy that the Top five Internet retailers are all specialising in more than one particular product type. p28-39.top500.overview.0613.indd 30 6/26/13 4:08 PM
  4. 4. 31 June2013RetailAsia based on the sales generated by its domestic Inter- net retail operations. Lotte Mart (www.lottemart. com), Lotte Super (www.lottesuper.co.kr) and Lotte department store (www.lotte.com) all offer consum- ers the option of shopping online through their own separate websites, where free delivery is available if consumers’ purchases exceed a certain minimum amount. If the total purchase value does not meet this minimum amount, a delivery fee of Won3,000 is charged. Product portfolio and prices are largely the same as those found in the stores. Lotte Group’s success with its Internet retail operations stems in part from consumers’ familiar- ity with the stores and their offerings. Additionally, InternetandsmartphonepenetrationinSouthKorea are high, which further facilitates online shopping. Internet retail developments across Asia-Pacific Australia While bricks-and- mortar retailers re- ported difficulty in getting consumers to part with their hard- earned cash last year, Australian shoppers were embracing online retail at unprecedented lev- els, flocking to domestic and international shopping sites alike, lured by convenience, price and choice. Online retailing is experiencing current growth due to increasing confidence in, and familiarity with, the Internet and online payment infrastructure, the development of new retail platforms and an overall enhanced user experience. Internet retailing’s robust growth in Australia is evident of a significant behaviourial change from consumers. Australian consumers now expect to be able to interact with brands and retailers online, whether on websites or through mobile applications. Consumers are using the Internet to research products before they buy and to compare prices. Consumers also expect to be able to smoothly transit from learning about a product to purchasing that product and having it delivered to the home or work place, all through the Internet. Retailers are also using the Internet to market directly to customers. Using loyalty cards and cus- tomer history data, retailers can e-mail consumers offers that are customised to their purchasing his- tory and this targeted form of marketing has a more positive response. After a slow start, store-based retailers have be- gun to become successful online; for instance, David Jones Ltd has reported that during the second half of 2012, the average size of transactions online was three times the size in value terms, compared to the size of transactions in store. During the same period, David Jones Ltd had 5.4 million visits to their online store and a third of these visits came from consumers accessing the Internet via mobile phones or tablets. Although convenience is a factor in supporting growth of online sales, price and the pursuit of values are also key factors. In many instances, consumers are switching to online shopping, taking sales away from brick-and-mortar stores rather than generating additional business. Subsequently, online retail is havinganegativeimpactonpricesinmanyAustralian consumer goods industries. This deflationary pres- sure also had an impact on store-based retailing, as brands and retailers look to harmonise some prices across retail channels. In response to the rapid growth of Internet retail- ing,theretailindustrywillquicklydedicateresources to build up its online strategy to complement the traditionalplatforms.Someretailersalreadyhave,or arecurrentlybuildingup,theironlineretailplatforms offshore, so as to become more cost effective and to enjoy the GST-free threshold. The idea of presenting shoppers with a multi- channel shopping experience is what major retailers such as David Jones and Myer are working towards. This approach will allow the more heavily store-based businesses to fully utilise their physi- cal assets by leveraging on the online channel. – Tim Foulds, Head of Australasia Research China With the rise in Inter- net users and online shoppers in China, expected in the next five years, Internet retailing is likely to continue its buoyant value growth. Many pure e- commerce companies, such as 360buy.com and Joyo. com, will continue to open their platforms to third- party sellers, in order to enrich the product portfolio and attract a wider range of consumers. These pure e-commerce companies have been makingeffortstoestablishnationwidelogisticsfacili- ties, to accelerate delivery services and to enhance customers’ shopping experience. More retailers are likely to make their debut in the Internet retail market, including the No.1 player in direct selling, Amway China. Many traditional retailers are expected to strengthen their online presence, but still prioritise the sales of their retail outlets, so as to secure their market share. Their major aim is to complement the sales of their retail stores with Internet sales. However, some may apply a totally different Internet strategy. Suning Appliance Co Ltd, for in- stance, will adopt a dual operational strategybysimultaneouslyemphasisingflagshipretail stores and Internet retailing. Parkson Retail Group Ltd will adopt a similar strategy, and new products are expected to be launched simultaneously via both its online platform and its retail outlets. In spite of the vigorous growth of Internet retail- Many traditional retailers in China are expected to strengthen their online presence, but still prioritise the sales of their retail outlets, so as to secure their market share. p28-39.top500.overview.0613.indd 31 6/25/13 12:47 PM
  5. 5. RetailAsiaJune2013 32 2013 retail asia-pacific top 500 o v e r v i e w ing in China, store-based retailing will maintain a healthy growth in the forecast period. This is mainly because consumers are still expected to rely on re- tail outlets for many daily necessities, such as fresh produce. In-store comparison and quality checks for bulk items such as furniture are also deemed indispensable for many consumers. Most Chinese consumers will remain price- sensitive, due to their relatively low purchasing power. They are expected to maintain the habit of checking prices before making any purchase, using comparisons among various B2C online platforms as well as between online and store-based retail outlets. Many price-comparison websites emerged in the review period, including etao.com, manmanbuy.com and bbbao.com. Such websites are likely to become more sophisticated in the forecast period, with consumers tending to rely more on them when submerged inaseaofonlineshoppingplatforms. –Wang Wei, Analyst Hong Kong Hong Kong consum- ers are increasingly engaging in online shopping. There is the trend of more compa- nies setting up online shopping websites, Facebook stores and mobile sites to cater to the growth in Internet retailing, with de- tailedproductdescriptionsandprices,astheInternet is still a key source for product reviews. Retailers have neither promoted their online of- ferings nor expanded their online range of products, as their major income is still generated from in-store purchases, whereas the Internet remains the key source of product reviews. As the large number of mainland tourists coming to Hong Kong have contributed to long queues and more crowds in shopping malls, Internet retailing is seen as a good alternative for shoppers who prefer to shop from the comfort of their homes, or wher- ever they happen to be. However, Internet retailing still takes a small proportion of overall retail sales in Hong Kong. To capture sales in a highly trend-driven market, timeliness of delivery and product updates are criticaltoInternetretailing’ssuccess in Hong Kong. A more secure, easy and convenient payment service can alsohelpfosterhighersales.AsosPlc is an increasingly popular retailer in Hong Kong. The free shipping service offered and the addition of many new brands’ clothes are effec- tive strategies to encourage purchases. An increasing number of retailers in Hong Kong not only have their own websites, but also mobile sites, which provide better user experience for shop- pers who shop on the go, using their mobile Internet devices such as smartphones and tablets. It can be expected that the maturity of online payments, busy working lifestyles, easy purchasing processes and high acceptance of mobile shopping will continue to develop Internet retailing in Hong Kong. With the already high rate of mobile penetra- tion, it is expected there will be a strong growth in m-commerce business. The retail industry will have mobile sites for mobile shopping and product reviews, with a high penetration of m-commerce. In addition, online apparel will be expected to emerge as a major retail market segment in the coming few years. In the long term, it can be expected that more consumers will gain greater confidence in making payment online with their credit or debit card, increasing sales for Internet retailing. In addition, Hong Kong consumers are still very price-conscious and cost effective; they look for value in products. If products purchased online are cheaper than what is sold in store-based retailers, they will be more willing to make purchases online. – Jane Yeo, Senior Analyst Indonesia As Internet usage in- creases,thenumberof e-commerceshoppers is also escalating, sup- portedbyincreasingly hecticurbanlifestyles, which means that consumers have less time to shop atbrick-and-mortarstores.Convenienceisthemajor reason behind the significant growth, as consumers prefer to simply choose the product online and have them delivered to their homes. Purchases of grocery products remained negli- gible up to the end of the review period, with non- groceryproductsaccountingforthemajorproportion of online sales, including popular categories such as consumer electronics, media products and apparel. Consumers also frequently enjoy the benefits of on- line shopping, such as the ability to compare product prices between both online and brick-and-mortar retailers, especially for consumer electronics. Bhin- neka, one of the leading companies in e-commerce, is one of the more reliable sites generally used to compare prices. WiththeremarkablegrowthofInternetretailing, many small to medium-sized enterprises (SMEs), as well as large companies, have started selling their products online. There are a growing number of pure e-commerce companies with a one-sTop shopping concept, including Dinomarket.com, Blibli.com, and many more. To extend awareness of Internet retail- ing, some companies have started to promote their stores through above-the-line marketing campaigns, such as television commercials and billboards in strategic locations. The online stores are also well supported by part- nerships with leading banks to enable easy payment To capture sales in a highly trend-driven market, timeliness of delivery and product updates are critical to Internet retailing’s success in Hong Kong. p28-39.top500.overview.0613.indd 32 6/25/13 12:48 PM
  6. 6. 33 June2013RetailAsia for the consumers. M-commerce is also becoming increasingly popular, supported by the major use of mobile phones. Internet retailing is looking at a clear prospect as the number of Internet users is expected to continue growing significantly in coming years, to reach two- thirds of the population by the end of the forecast period. The trend is also likely to accelerate as the government finishes its project of National Broad- band Plan in 2015, a project aimed at establishing the broadband Internet infrastructure (backbone fibre-opticnetwork),connectingallcitiesandvillages acrossIndonesiatotheInternet.Moreover,shopping malls, hotels and foodservice outlets will continue to provide free Internet access for consumers as part of theirservice,enhancingthenumberofInternetusers. RealisingthelucrativefutureofInternetretailing in Indonesia, it is likely that there will be more global e-commerce companies expanding into Indonesia. In January this year, Japanese conglomerate, Sumi- tomo Corp, brought online grocery shop Sukamart to the country. Internet retailing also encourages SMEs to thrive, by supplying their products to large e-commerce companies. Nonetheless, the significant growth of Internet retailing is still unlikely to lead to the demise of store-based retailing, as a major proportion of Indonesian consumers still enjoy the process of store-based purchasing, as they can be in physical contact with the goods beforemakingapurchasingdecision. – Yulia Fransisca, Senior Analyst India Internet retailing in India picked up from 2007 with Flipkart becoming the first successful Internet retailer. Internet retailing witnessed strong growth last year. It became one of the first points of contact between a retailer and consumer. Apart from Internet retailers themselves, other non-store and store-based retailers started concentrating on their Internet portals in 2012. Companies such as Flipkart, Myntra, Jabong and eBay aggressively marketed their brands through television commercials, print media and social networking websites. Consumers started to develop trust in this channel due to the introduction of cash- on-delivery option. This helped first-time buyers become loyal customers of Internet retailing. Jabong by Rocket GmbH, launched last year, came with the option of paying by via cash-on-delivery in a few cities, which was a huge success among most of the urban consumers. Consumers were driven towards online shopping duetofactorssuchasconvenience,lowerpricepoints and the vast variety of brand options which helped in the growth of Internet retailing in 2012. This was most visible in non-grocery categories such as ap- parel, electronics, appliances, beauty and personal care, consumer health, and books. Store-basedretailers,amongthemFutureValue’s Big Bazaar, Infiniti Retail’s Croma, K Raheja Corp’s Shopper’s STop, increased their focus on their Inter- net retail arms in order to increase sales and reach out to the consumers. The retailers were among the pioneers who launched their Internet retail arm for shoppingandproductportfoliobrowsingatthesame. Thesewebsitesprovidefreeshippingandpackag- ing along with cash on delivery options. Store-based retailers,bothgroceryandnon-grocery,willdefinitely invest in developing their Internet retail arm, with some expected to focus less on physical outlet expan- sion. It is expected that more retailers in India will focus on developing better and more informative websites of their retail outlets, as well as extend the possibility of actually shopping online. Internetretailingofapparel,beautyandpersonal care, electronics and appliance products, consumer health, personal accessories and eyewear will con- tinue to remain popular over the next five years. Websites such as fashionara.com, fashionandyou. com, yepme.com, yebhi.com, myntra.com, jabong. com were already quite popular in 2012. Grocery retailers will not be affected by Inter- net retailers in the short term; however, in the long run, grocery retailing — at least for packaged foods, tissue and hygiene products — is anticipated to witness a shift towards Internet retailing for the urban consumer base in India. – Shabori Das, Analyst Japan In 2012, Internet re- tailing in Japan con- tinued to post strong growth. With wider access to Internet and attractiveportablede- vices,consumersareincreasinglyshoppingonline.As more women remain longer in the workforce, dual working parents increased in number and consumer lifestyles became busier over the review period. As both parents are at work during thedaytime,Internetretailingbecame one of the most convenient channels offering24-houroperation,sevendays a week. The average working hours for Japanese employees are long and stores such as department stores and other speciality stores close before these workers leave their offices. Companieshaveinnovatedtocater to these changing consumer needs. For example, Shiseido Co Ltd launched its online shopping site, Beauty & Co, in 2012, and offers online counselling services via webcam. Sales representatives demon- strated make-up products on screen and consumers can experience face-to-face counselling, even if they cannot visit department stores’ cosmetic counters. Average working hours for Japanese employees are long and stores such as department stores and other speciality stores close before these workers leave their offices. p28-39.top500.overview.0613.indd 33 6/25/13 12:48 PM
  7. 7. RetailAsiaJune2013 34 2013 retail asia-pacific top 500 o v e r v i e w Additionally, the Internet provides easy access to various products that had been only available in selective stores in large cities previously. Even if consumers live in rural areas, Internet retailing provides a wide range of product selection which is unmet by any other retailers in terms of the number of options available. According to Japan’s Ministry of Internal Affairs and Communication study in 2011, digital media content were the most frequently purchased items online. Men also purchased hobby-related products, while women bought clothes and accessories online. Young consumers are becoming more comfortable shopping online via portable devices. The popularity of smartphones among young consumers contributed to trends such as online surf- ing, which is easier and smoother with smartphones rather than feature phones. Rakuten, one of the biggest online retailers in Japan announced that its salesthroughsmartphonessurpassedthoseoffeature phones in 2012. Internet retailing is expected to continue on its growth path over the next five years. Although the majority of consumers use online shopping for non-grocery items, more consumers are expected to purchase grocery online. Rakuten Inc entered the online grocery market in 2012 and its competition againstothermajorgrocerychainssuchasIto-Yokado Co Ltd is expected to intensify. With growing concerns about “shopping refu- gees”, delivery of groceries and other daily necessi- ties to elderly consumers’ households will remain a key issue, drawing more attention to the potential of Internet retailing. As the majority of Internet retailers provide delivery services, it isimportantforretailerstoapproach elderly consumers, even if they have not realised the potential benefit and convenience of online shopping. – Jared Conway, Research Manager Malaysia In Malaysia, In- ternet retailing is a significant retail channel for non- grocery products, for example, ap- parel, video games, books and traditional toys and games. However, it remains an insignificant channel for groceries; this is particularly applicable to fresh perishable products, as delivery often takes time to be arranged after purchase. More established retailers in Malaysia reacted to the growth in Internet retail by adding an Internet retail channel to give their customers an option to buy online. For instance, Parkson, Senheng Electric and Courts Mammoth were retailers which added Internet retailing to their official company websites, so as to allow consumers to shop online and have the goodsdeliveredtotheirdoorstepwithouthavingthem visiting the physical store themselves. Players such as Senheng Electric also increasingly promoted their online offerings by offering certain privileges, such as an extra year’s warranty for spe- cific products, and free registration to the company’s membership scheme for customers who shop from their online stores. However, the range of offers by retailersintermsofphysicalstoresandInternetstores appears to be the same, with all the stocks available online also made available in physical stores, because a large number of customers still visit physical stores to make their purchases. Pure e-commerce companies such as Zalora, Lazada and Groupon still dominate Internet retailing in Malaysia, with a high percentage of value share ac- counted for by such operators. Specialisation in terms of being sole e-commerce players enabled them to show high efficiency within their business operations and hence, cost savings. In addition, constant promotional and advertising activities are carried out through different social me- dia channels; for instance, advertisement placements on Facebook, whereby online users are aware of the latest promotions of such e-commerce retailers. Most e-commerce companies offer price reductions on certain products, chosen to promote Internet retail- ing, which resulted in a marginal decrease in the unit prices of goods. Internet retailing will not overtake or replace store-based retailing, as shopping is one of the most prevalentculturesinMalaysia;consumersliketospend theirleisuretimewalkingaroundinshoppingmallsand making purchases. It is unlikely that Internet retailing will replace all store-based shopping activity over the forecastperiod.However,theintroductionofInternet retailing by Tesco Malaysia will help to overcome the limits to Internet retailing, moving from mainly non- grocery products to also include groceries. That said, the delivery time set for groceries, especially for perishable goods such as vegetables and fruit, will need to be determined well in order to avoid any damage during delivery. – Yu Yu Ong, Analyst New Zealand Consumers are responding well to the growth in Inter- net retailing. Consumers are increasingly shopping online, as more retailers and companies offer web- sites (traditional and mobile websites), as well as Apple and Android apps which al- low consumers to purchase goods over the Internet. Previously, consumers were somewhat hesitant to provide personal information over the Internet, but this has gradually become more acceptableandnowrepresentsconventionalconsumer behaviour. Priceandproductrangearealsoimportantfactors concerning Internet retailing. New Zealand consum- p28-39.top500.overview.0613.indd 34 6/25/13 12:48 PM
  8. 8. 35 June2013RetailAsia ers have been driven towards international Internet retailers, due to large unit price differences with domestic retailers. Often,NewZealandconsumerswillbeabletopur- chase products at a lower price from an international retailer. This was evident and highly publicised during theRugbyWorldCupin2011.Duringthetournament, the All Blacks Rugby World Cup jersey was being sold for NZ$220 (US$176.27) by domestic retailer Rebel Sport. Consumers realised that the same jersey was also being sold by international Internet retailer worldrugbyshop.com for US$79.99 which converted to NZ$92.68 at the time. Several sportswear retailers contacted the jersey manufacturer, Adidas; however, the company refused to change its wholesale price. Consequently, many domestic retailers lowered their retail unit prices and sold the jerseys at a loss to keep consumers happy. The Internet retail landscape in New Zealand is composedofbothpuree-commercecompaniesaswell as store-based retailers. In fact, during 2012, Progres- siveEnterprisesLtdwastheTop-rankingInternetretail player. Other pure e-commerce companies present in New Zealand include Amazon.com Inc, Trademe Group Ltd and Apple Inc, which were ranked second, third and fifth respectively during 2012. Itisapparentthatstore-basedretailersarebecom- ingmorecompetitiveinabidtorivalpuree-commerce retailers. The Internet retail trend is yet to be fully realised.Growthisexpectedasaresultofgrowinginter- est in m-commerce and reliability on mobile devices. It is expected that Internet retailing will continue toencourageconsumerstoshiftawayfromstore-based retailing, as consumers focus on making cost savings. However, traditional store-based retailers may adapt to this trend by improving the in-store experience for consumers. Such a strategy may help to differentiate store-based retailers from Internet retailers. Store- based retailers may close over the forecast period; however,thiswillbeduetoseveralfactors.Theongoing Internet activities constrained the economic climate within New Zealand, and is expected to be the major cause of store closures over the forecast period. Nonetheless, it is expected that more and more store-based retailers will begin to sell theirproductsonlinetocompetewith pure e-commerce retailers such as Amazon.com Inc and eBay Inc. – Erika Sirimanne, Senior Analyst The Philippines Despite being a novel retail channel for most Filipino consumers, Internet retail- ing continues to experience double-digit growth in 2012. The entry of group-buying sites in the Philippines retail landscape during 2011 has introduced more middle- income Filipino customers to online buying. Groupon sites such as Ensogo, Metrodeal, and Cashcashpinoy’s dealshavestrengthenedFilipinos’confidenceinpur- chasingproductsonline.In2012,manygroup-buying sites’ product lines even included deals from major mainstream brands, such as Huggies, Nestlé, and C2. The deeper Internet penetration rates and usage inthelocalmarketalsostronglyencouragedtheentry of new players in Internet retailing. 2012 welcomed the launch of two new aggressive online stores in the Philippines,namelyZaloraandLazada.Broughtinby German firm RockNet Internet GmbH, both Zalora and Lazada aim to stimulate growth in the Philip- pine retail industry by offering mainstream, trusted brands,instillingcustomerconfidence in online shopping through its 30-day- free return options, and eliminating the problem of online payment by offering cash-on-delivery options. While Zalora is engaged in the re- tailing of men’s and women’s apparel, Lazada’sonlineshopisfocusedonthe saleoffurnitureandhomewares.Both of these new brands advertise online andhaveinvitedsocialbloggerstobeadvocates.Both websitesencouragemanufacturersandretailersalike to sell their products online via these newly opened stores. However, it should be noted that purchase transactions which are not paid online via bank, credit card, PayPal and other electronic payment, are not included in Euromonitor International’s Internet retail data. Thus, even though there is a robust increase in online shopping transactions, consumers’ lack of confidence in using online payment systems and low credit card and online account ownership, became a hindrance in Internet retail growth. As online shopping becomes more prominent amongthemiddle-incomemarket,store-basedretail- erscouldbeencouragedtopursueaclick-and-mortar business model to serve a wider array of customers. Beauty specialist retailer The Body Shop aims to open its online store in the Philippines in the near future, while other retailers might be encouraged to sell their products via online stores like Zalora and Lazada. Even though online shops will be successful in ac- quaintinglocalbuyerstoonlineshopping,thegrowth in Internet retailing in the Philippines will continue to be hindered by the prevailing payment systems available to buyers. As customers are currently of- fered payment options that do not necessitate the use of credit cards or other online payment systems, it is probable that customers will stick to using bank depositsandprefercash-on-delivery.Theselowerrisk payment systems give customers security in dealing onlineandwillcontinuetochallengeonlineretailers. Improvements in credit card us- age as well as customer confidence would be needed in order to fully allow online sellers to gain more online sales. – Jason Wong, Analyst The entry of group- buying sites in the Philippines retail landscape during 2011 has introduced more middle-income Filipino customers to online buying. p28-39.top500.overview.0613.indd 35 6/26/13 4:10 PM
  9. 9. RetailAsiaJune2013 36 2013 retail asia-pacific top 500 o v e r v i e w Singapore Singaporean con- sumers turn to Inter- net retailing for their purchasedecisions,in particular,theyoung- er generation, as they are more familiar with the new technology. Due to the hectic pace of life in Singapore, consumers consider online shopping to be convenient because they can shop anytime without any time restrictions. Some retailers offer cheaper prices online as they are able to reduce unavoidable costs, such as rent and other operational costs. As Internet retailing is growing rapidly, retailers are willing to take advantage of this opportunity and make an effort with their Internet retail platforms. Major store-based retailers, such as Isetan depart- ment store, NTUC Fair Price and Cold Storage supermarket, have already launched their Internet retail platforms during the review period. Store-based grocery stores offer wider ranges of productsattheirphysicalstorescomparedtoInternet retailing, as the majority of consum- ers still purchase such products from their physical stores. Hence, greater sales are generated from physical stores.Puree-commercesitesmainly offer non-grocery items, such as ap- parel, which the younger generation enjoys shopping for. Even though Internet retailing is accepted by Singaporeanconsumers, thereisstillroomforgrowth in this channel. The major non-grocery retailers are likely to introduce their own Internet platforms in order to expand their distribution channels and consumer segmentation. Groupon Singapore launched the group’s first retailconceptstoreworldwide,whereconsumerscan have a face-to-face interaction with shop staff and try out the products on display before purchasing them. There is also the option to exchange products after purchaseatthisstore,withinthetermsandconditions set. This physical store makes consumers feel more secure when purchasing products from Groupon. Store-based retailing is unlikely to be affected by the rise of Internet retailing over the next five years. The main reason is that consumers still pre- fer a shopping experience that allows them to see, touch and try the items before purchasing them. The physical shopping experience also provides security to consumers when purchasing the items. This is the basis for Groupon, a pure e-commerce player up till recently, launching its brick-and-mortar outlet in Singapore in 2012. On the other hand, media products retailers are likely to see a negative impact due to the increasing Internet retail chan- nels. This is likely to lead to further decline in outlet numbers over the forecast period. – Tomoko Takanoura, Analyst South Korea Internet retailing continued to show strong performance in 2012. Players having large store-basedoutletshaveactively made improvements to their online shopping platforms so as to attract more consumers, and shoppers welcomed this additional option to shop at well-known, reputable stores. This is especially so as smartphone penetration is high in South Korea andmorepeoplebecomeaccustomedtoshoppingon their smartphone regardless of where they are. In- creasingly,therefore,Internetretailingisconsidered as almost a necessity for even store-based retailers. More Internet retailers are launching their own mobile sites or apps to cater to smartphone users. Retailers also offer special discounts or promotions for shoppers who buy online. Other innovations to encourage South Koreans to shop on the go have also been lauched. For example, Homeplus Co Ltd established a virtual store in a subway station plat- form in 2011, where consumers can order products by scanning the barcode of each product on display with their smartphone as they wait for their train. As competition in Internet retailing heats up, retailers are focusing on different aspects to attract andretaincustomers.Acommonlyemployedstrategy is the provision of complimentary delivery service for a minimum spending. Lotte Mart provides ad- ditional services when they deliver products that are ordered online. If there are filled waste or recycling bins at these households, the delivery men will help to remove and dispose of these accordingly. Homeplus introduced a flat rate for delivery service where for Won5,000, customers can enjoy no limit on delivery service over three months. In addition, hypermarkets have a delivery schedule by the hour, so consumers can get a delivery at any time they choose. Innovations on the services front to attract customers to shop online are expected to develop further over the next five years. It is anticipated that there will be a greater focus on mobile Internet retailing as retailers try to tap on South Koreans’ usage of smartphones. Accord- ing to trade sources, South Koreans currently tend to shop for necessities using their smartphones. Therefore, it is likely that retailers will focus more on such productsontheirmobilesitestomeet consumer needs. – Minji Kim, Analyst Taiwan In 2012, Internet retailing sustained strong growth. Over the review period, Internet retailing became one of the major retail distribution chan- nels in Taiwan as consumers were more comfortable mak- Groupon Singapore launched the group's first retail concept store worldwide, where consumers can interact with shop staff. p28-39.top500.overview.0613.indd 36 6/25/13 12:49 PM
  10. 10. 37 June2013RetailAsia ing purchases online. Moreover, a wider range of products and brands is now available via Internet sales. Although retail sales via the Internet were much lower compared to store-based retailing, the growing importance of Internet retailing has become significant for many retailers. In view of the rapid growth trend of Internet retailing, Internet retailers tried to enhance their strengthviavalue-addedservicesinordertocompete withotherInternetretailingoperatorsaswellastheir store-based counterparts. In Taiwan, consumers are able to choose delivery services, pick up their pur- chases in nearby convenience stores, use different payment methods, and avail themselves of interest- freeinstalments,allofwhichareconsideredessential services for Internet retail operators. On the other hand, a growing number of store- based retailers are also using Internet retailing in order to increase consumer accessibility and expand theirbusinessscale.Forinstance,7-Elevenwitnessed remarkable penetration in its Internet retail opera- tions. In 2010, the company launched its online retail website and positioned the platform as a second arm of its convenience stores. Furthermore, in order to widen the popularity of this service, people without Internet access have alsobeenabletopurchasethroughinformationkiosk machines in its outlets since 2012. For store-based retailers, expansion in Internet retailing is not only considered necessary to compete with the growing number of Internet retail operators, but also for combining the strength of both brick-and-mortar outlets and Internet sales. After a decade of new developments and invest- ment in websites, increasing security measures for online transactions also led to the growth in Internet retailing. The impact of this emerging trend will con- tinueovertheforecastperiod,astheInternetbecomes increasingly integrated into consumers’ lifestyles. Young generations who are comfortable with using the Internet for a wide variety of shopping purposes will ultimately make the Internet sales channel even more attractive and important, given their increas- ingly sophisticated demands. Internet retailing provides distribution platforms for niche or smaller brands in differ- ent industries. Compared to store- based retailing, Internet retailing offers an easy market entrance opportunity in terms of lower distri- bution costs, and startup resources. – Rachel Lin, Senior Analyst Thailand Thanks to mobile service provid- ers in Thailand, Thai consumers havebetteraccesstotheInternet. In2012,3Gservicewithcompeti- tive Internet packages became availableinThailand.Connectiv- ityisincreasinglybecomingapart of life in Thailand. Aside from the rising access to the Internet, Internet retailing in Thailand is also growingasaresultofhowitallowsconsumerstoshop anywhere, anytime, without leaving the comfort of their homes. Internet retailing appeals to consumers who are weary of the notorious traffic jams associ- ated with Bangkok. Many consumers also perceive that as online retailers have lower operating costs, they would pass on cost savings in the form of lower prices to their customers. In terms of product offering, both grocery and non-grocery products are available via Internet re- tailing in Thailand. However, non-grocery products remain dominant relative to grocery products. This is because Thai consumers still prefer to walk to stores and be able to check the quality of the grocery products they are buying before making the pur- chase. Regarding Internet retailing for non-grocery products, many product varieties were found in the marketplace.SomecurrentplayersareincludePower Buy in consumer electronic products, Central online shoppinginmixedretailersandClub21e-Shoponline website in the clothing sector. As Internet retailing garners much attention both globally and locally, retailers in Thailand have started jumping on the online bandwagon. While some retailers operate their own online shopping platforms (for example, Big C, Tesco, and Central department store), other retailers continued to use their websites only to showcase their product offer- ings or form an online community so that retailers get to interact with their customers and vice versa. Thatsaid,shoppingatbrick-and-mortarstoresremain Top of mind for most Thai consumers. Given that it is still developing in Thailand, In- ternet retailing is expected to continue to grow over the next five years. Consistent with trends in other markets in the region, it is anticipated that there will beashifttowardsm-commercewithretailersoffering mobile sites and/or apps that would allow Thais to shop using their smartphones. That said, store-based retailingisstillexpectedtodominateovertheforecast period, with retailers in Thailand opting to offer Internet retailing as a complementary channel to their brick-and-mortar stores. – Warangkana Anuwong, Senior Analyst Vietnam At the end of 2012, B2C In- ternet retailing continued to be insignificant in Vietnam. Most retailers, except for electronicsandappliancespe- cialist retailers, are showing little interest in promoting or developing Internet retailing. However, C2C Internet retailing continued to gain popularity in 2012. The most popular websites include vatgia.com, rongbay. com and raovat.net. Some consumers also use social media websites such as facebook.com or me.zing.vn to sell products online. The main products sold via p28-39.top500.overview.0613.indd 37 6/25/13 12:49 PM
  11. 11. RetailAsiaJune2013 38 2013 retail asia-pacific top 500 o v e r v i e w C2C Internet retailing are apparel and beauty and personal care, with a focus on low-priced products. The negligible presence of B2C Internet retailing inVietnamismeanwhileduetovariousreasons.First, the key consumers for Internet retailing are teenag- ers and young adults who are very Internet-savvy. However, their income levels are lower compared to those of older consumers. In addition, the Internet infrastructure in Viet- nam is still very weak, especially in rural areas where many potential consumers for B2C Internet retail- ing are located as these consumers struggle to travel to larger cities for shopping. Most Internet retail shops are operated by individuals. Only a handful of major retailers such as Nguyen Kim Trading and Mobile World offer Internet retailing, while Internet retailing contrib- uted a small percentage of these companies’ total retail turnover in 2012. In addition, many small- to medium-sized companies used C2C Internet retail websites to operate virtual shops, as a cheap way of offering their products to consumers. More new players are expected to enter the Internet retail market during the forecast period, in line with growing interest from consumers in this retail channel. Major retailers in supermarkets and hypermarkets or media product stores are, for example, likely to diversify into Internet retailing in order to strengthen their position in overall retailing. In the meantime, existing Internet retailers are expected to focus on expanding their product portfo- lios in order to attract consumers’ attention and also to invest in educating consumers and encouraging them to purchase online. Internet retailing will have a major impact on both consumers and retailers during the forecast period. Internet retailing enables consumers to easily check product prices and thus make a more informed decision about which retailer to buy from. However, Internet retailing is also expected to become a major competitor to apparel specialist retailers and electronics and appliance specialist retailers in store-based retailing, as these retailers have to account for higher costs such as rental and wage costs when setting their selling prices. This results in prices being higher for store-based retailers in comparison to Internet retail players. Therefore, increas- ing sales of Internet retailing may well erode sales for some retailers in store-based retailing. – Trang Nguyen Analyst The Retail Asia-Pacific Top 500 ranking of the leading retailers intheregiondrawsfromEuromonitorInternational’sresearchand analysis of the retail industry around the world. Research for the 2013 edition was conducted by analysts in 54 countries, including the 14 Asia-Pacific economies featured, in the thirdquarterof2012.Wherefull-year2012figureswereunavailable from companies and where publicly stated figures were not to the levelofdetailrequiredinthisstudy,estimateshavebeenmadebased on a variety of sources to produce fully relevant, comparable data. Euromonitor International’s sources for its studies of retailing and of specific consumer product markets are summarised below. The gathering of information and opinion, bottom-up, country by country is supplemented by top-down regional and global analyses and modeling. Visitwww.euromonitor.comformoredetailsonEuromonitor International, including our research methodology. For the Retail Asia-Pacific Top 500, retailers were picked from the following countries: ■ AU Australia ■ CN China ■ HK Hong Kong ■ IN India ■ ID Indonesia ■ JP Japan ■ MY Malaysia ■ NZ New Zealand ■ PH The Philippines ■ KR South Korea ■ SG Singapore ■ TH Thailand ■ TW Taiwan ■ VN Vietnam Retailers were selected and ranked based on the performance of their fascias in each country – and not the region – for the fol- lowing outlet types: Clothing, footwear and accessories (CFA) Retail outlets with a primary focus on selling one or more of the following categories: ■ Clothing ■ Footwear ■ Fashionaccessories(costumejewellery,sunglasses,belts,hats, gloves, handbags, scarves, etc) Sporting brands, such as Adidas, Nike, are included if they pre- dominately offer sports apparel. Convenience stores (C-stores) Retail outlets with a primary focus on selling food/beverages/ tobacco and other groceries. These typically have the following characteristics: ■ Extended opening hours ■ Located in residential neighbourhoods ■ Range includes two or more of the following product catego- ries: audio-visual goods (for sale or rent), take-away food (ready made sandwiches, rolls or hot food), newspapers or magazines, cut flowers or pot plants, greetings cards Includes forecourt retailers. Department stores (Dept stores) The Internet infrastructure in Vietnam is still very weak, especially in rural areas where many potential consumers for B2C Internet retailing are located. About the Retail Asia-Pacific Disclaimer: While every effort has been made to ensure the reliability and accuracy of information presented in the Retail Asia-Pacific Top 500, EuromonitorInternationalcannotbeheldresponsibleforomissionsorerrors. In some instances, the classification of a fascia may have changed from past editions of the Retail Asia-Pacific Top 500 due to changes in ap- plication of outlet type definitions, based on feedback received from the industry in terms of how these fascias compete in their local markets. All sales figures and sales area have been rounded for ease of review. p28-39.top500.overview.0613.indd 38 6/26/13 5:08 PM
  12. 12. 39 June2013RetailAsia Retailers with a sales area normally from 2,500 sqm, with a primary focus on selling a range of non-food/drink/tobacco merchandise across several categories in different departments. These departments include several of the following: ■ Clothing and footwear ■ Beauty ■ Home furniture and furnishings ■ Leisure and personal goods, travel goods ■ Electronics and appliances ■ Toys and games ■ Giftware ■ Grocery Hardline stores Includes furniture and homewares stores, home improvement and gardening stores, and electronics and appliance specialist retailers. Health and beauty stores Retail outlets with a primary focus on selling one or more of the following categories: ■ Prescription-bound medicines ■ OTC healthcare ■ Cosmetics and toiletries ■ Household care products ■ Disposable paper products ■ Nutritionals ■ Medical and orthopaedic goods Hypermarkets Includes stores with a sales area of over 2,500 sqm, and with a primaryfocusonsellingfood/beverages/tobaccoandothergrocer- ies. Hypermarkets also sell a range of non-grocery merchandise. Media products stores Retail outlets specialising in the sale of recorded music, films, video games (including hardware), books, journals and magazines or a combination of these, including digital downloads. Sports goods stores Retail outlets with a primary focus on selling one or more of the following categories ■ Sports apparel and equipment ■ Outdoor pursuits' apparel and equipment ■ Bicycles and cycling accessories Supermarkets Retail outlets with a selling space of between 400 and 2,500sqm and with a primary focus on selling food/beverages/tobacco and other groceries.Supermarketsmayalsosellaselec- tion of non-groceries. Others Includesretailoutletsspecializingfood/drink/ tobacco, toys and games, jewellery, watches, other leisure and personal goods and so on. Thebelowthreedatatypesarepresented for the Retail Asia-Pacific Top 500: Retail sales value (excluding sales tax) Value sales generated (excluding sales tax) from the sale of new and used goods to the general public for personal or household consumption from retail outlets, kiosks and stalls. Excludes revenues generated from services (e.g., banking, insurance, telecoms services) and by specialist retailers of motor vehicles, motorcycles, vehi- cle parts, fuel, foodservice, rental and hire, wholesalers, cash and carry outlets, and so on. Retail sales area Also known as selling space; this refers to the space within a retail store usedfortradingandincludessalesfloor,changingrooms,checkouts,areas behind counters and so on. Space allocated to warehousing, offices and car parks is excluded. Outlets Fixed business units that are used principally for retailing, that is, selling consumer goods to the general public. EuromonitorInternational’sdefinitionofInternetretailingisdetailedbelow. Internet retailing Refers to sales of consumer goods to the general public via the Internet. Internet retailing includes sales generated through pure e-commerce web sites and through sites operated by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. Also includes orders placed through the web for which payment is then made through a storecard, an online creditaccountsubsequenttodeliveryorondeliveryoftheproduct.This payment may be by any mode of payment including postal cheque, direct debit, standing order or other banking tools. Includes m-commerce: where consumers use smart phones or tablets to connect to Internet and purchase the goods online. Internet retailing excludes sales of: (a) Products generated over consumer-to-consumer sales sites, such as eBay. B2C proportion of sites such as eBay will be captured. (b) Sales of motor vehicles, motorcycles and vehicle parts; (c) Tickets for events (sports, music concerts etc) and travel; (d) Sales of tavel and holiday packages; (e) Revenue generated by online gambling sites; (f) Quick delivery services of food, magazines, household goods and DVD rentals, for example: MaxDelivery.com,LicketyShip.com,Netflix.com,LoveFilm(g)Returned products/unpaid invoices. ra c Top 500 p28-39.top500.overview.0613.indd 39 6/26/13 5:08 PM
  13. 13. RetailAsiaJune2013 40 2013 retail asia-pacific top 500 The Region’s Top 500 Retail Companies RANKING 2011 2012 2011 2012 SALES SALES SALES SALES LOCAL SALES SALES OUTLET TYPE FASCIA(S)/BRAND(S) RETAIL COMPANY OUTLETS SALES AREA PER SQM OUTLETS SALES AREA PER SQM UNIT SALES PER SQM SALES PER SQM (sqm) (sqm) (US$ mn) (US$) (US$ mn) (US$) COUNTRY RANKING 1 JP C-store 7-Eleven Seven & I Holdings 14,003 3,234 1,745,730 1,852,738 14,451 3,373 1,801,593 1,872,485 ¥ bn 40,528 23,215 42,764 23,737 2 AU Supermarkets Woolworths, Thomas Dux Woolworths 864 29,337 2,166,920 13,538 886 30,761 2,230,120 13,794 A$ mn 30,260 13,965 31,467 14,110 3 JP Dept store AEON AEON Group 453 2,393 4,518,500 529,541 475 2,417 4,518,500 534,836 ¥ bn 29,982 6,635 30,635 6,780 4 AU Supermarkets Coles, Bi-Lo Wesfarmers 746 27,289 1,509,330 18,080 781 28,502 1,582,990 18,005 A$ mn 28,149 18,650 29,156 18,418 5 JP C-store Lawson, Lawson Store 100 Lawson 10,195 2,100 1,108,650 1,894,376 10,566 2,157 1,148,937 1,877,091 ¥ bn 26,316 23,737 27,339 23,795 6 JP Dept store Ito-Yokado, The Price, Seibu, et al Seven & I Holdings 202 1,905 2,603,480 731,714 208 1,904 2,633,030 723,064 ¥ bn 23,870 9,169 24,134 9,166 7 JP Hardline Yamada Denki Yamada Denki 698 1,977 2,519,130 784,676 730 1,848 2,298,560 804,046 ¥ bn 24,769 9,832 23,428 10,192 8 JP C-store Family Mart, Tomony FamilyMart 8,359 1,279 961,140 1,330,222 8,526 1,290 980,365 1,315,876 ¥ bn 16,020 16,668 16,353 16,681 9 JP C-store Circle K, Sunkus, 99 Ichiba Uny 6,485 1,216 711,800 1,707,994 6,649 1,240 729,783 1,698,567 ¥ bn 15,234 21,402 15,714 21,532 10 CN Hardline Suning Suning Appliance 1,684 85,441 6,828,800 12,512 1,665 90,995 6,826,500 13,330 RMB mn 13,223 1,936 14,433 2,114 11 CN Hardline Yongle, Dazhong, Gome, Sanlian GOME Electrical Appliances Holding 1,697 96,875 5,982,800 16,192 1,702 87,818 5,919,600 14,835 RMB mn 14,993 2,506 13,929 2,353 12 JP Supermarkets MaxValu, My Basket, Kasumi, et al AEON Group 1,016 1,080 1,368,025 789,158 1,038 1,090 1,324,791 823,061 ¥ bn 13,528 9,888 13,822 10,434 13 CN Hypermarkets Auchan, RT Mart Sun Art Retail Group 230 66,540 2,843,450 23,401 270 78,221 3,366,500 23,235 RMB mn 10,298 3,622 12,407 3,685 14 JP Hardline Bic Camera, Kojima, Sofmap Bic Camera 71 544 238,390 2,283,095 280 853 1,034,500 824,616 ¥ bn 6,820 28,608 10,814 10,453 15 AU Supermarkets IGA, Franklins Metcash 1,270 10,260 1,840,640 5,574 1,250 10,364 1,811,390 5,722 A$ mn 10,583 5,750 10,602 5,853 16 JP C-store Daily Yamazaki, Yamazaki Shop Daily Yamazaki 5,407 816 404,300 2,019,342 5,434 821 406,325 2,019,323 ¥ bn 10,230 25,303 10,401 25,598 17 JP Dept store Isetan, Mitsukoshi Isetan Mitsukoshi Holdings 27 856 675,310 1,267,229 27 802 675,310 1,186,977 ¥ bn 10,723 15,879 10,161 15,047 18 KR Dept store Lotte Lotte Shopping 34 10,771 1,091,410 9,868,913 36 11,470 1,162,800 9,864,121 Won bn 9,718 8,904 9,918 8,529 19 CN Hypermarkets CR Sugo, CR Vanguard China Resources Enterprise 596 52,743 3,978,600 13,257 676 62,449 4,501,000 13,874 RMB mn 8,163 2,052 9,905 2,201 20 CN Hypermarkets Smart Choice, Walmart Supercenter Wal-Mart (China) Investment 330 52,084 5,287,500 9,850 392 62,356 6,341,100 9,834 RMB mn 8,061 1,525 9,891 1,560 21 JP Hardline DEODEO, EIDEN, Midori, 100 Bolt Edion Corp 1,123 795 1,047,831 758,652 1,123 755 1,058,309 713,584 ¥ bn 9,961 9,506 9,573 9,046 22 JP Dept store Takashimaya Takashimaya 18 750 529,290 1,417,629 19 743 558,695 1,329,587 ¥ bn 9,402 17,763 9,417 16,855 23 JP Hardline K's Denki K's Holdings Corp 358 755 1,187,626 635,435 359 717 1,223,255 586,081 ¥ bn 9,456 7,962 9,088 7,429 24 KR Hypermarkets E-Mart Shinsegae 139 10,226 1,403,900 7,283,995 142 10,508 1,462,600 7,184,466 Won bn 9,226 6,572 9,086 6,212 25 JP Hardline Yodobashi Camera Yodobashi Camera 21 696 299,250 2,325,146 21 668 287,280 2,325,146 ¥ bn 8,719 29,135 8,468 29,475 26 AU Dept store Target, Kmart Wesfarmers 466 7,991 1,905,510 4,193 465 7,948 1,899,298 4,184 A$ mn 8,242 4,325 8,130 4,281 27 JP Dept store Daimaru, Matsuzakaya J Front Retailing 24 643 675,990 951,307 24 637 675,990 941,794 ¥ bn 8,058 11,920 8,070 11,939 28 KR Hypermarkets Homeplus Homeplus 124 8,519 1,039,120 8,198,735 130 8,970 1,092,000 8,214,286 Won bn 7,687 7,397 7,756 7,103 29 JP Health & beauty Tsuruha, Sakura Pharmacy, et al AEON Group 1,789 590 749,700 786,432 1,803 606 756,063 801,073 ¥ bn 7,388 9,854 7,678 10,155 30 JP CFA Uniqlo, Cabin, GU Fast Retailing 1,101 581 728,327 798,222 1,108 565 739,303 764,619 ¥ bn 7,285 10,002 7,166 9,693 31 TH C-store 7-Eleven CP All 6,276 192,926 727,200 265,300 6,822 215,299 783,800 274,686 Bt mn 6,327 8,701 6,905 8,810 32 AU Others Woolworths Woolworths 1,247 5,960 221,230 26,942 1,282 6,228 227,440 27,384 A$ mn 6,148 27,791 6,371 28,013 33 JP Supermarkets Life LIFE Corp 219 487 562,836 865,503 224 502 574,093 873,988 ¥ bn 6,104 10,845 6,360 11,079 34 CN Hypermarkets Carrefour Carrefour (China) Hypermarket 203 39,018 1,644,000 23,734 230 39,355 1,847,000 21,308 RMB mn 6,039 3,673 6,242 3,380 35 NZ Supermarkets New World, PAK'nSAVE Foodstuffs (NZ) 181 7,384 592,761 12,457 189 7,758 619,270 12,527 NZ$ mn 5,833 9,841 6,239 10,075 36 JP Dept store Daiei Daiei, The 126 515 591,000 871,607 124 489 591,000 828,027 ¥ bn 6,455 10,922 6,203 10,497 37 CN Supermarkets CR Sugo, CR Vanguard China Resources Enterprise 1,906 32,413 1,956,500 16,567 2,061 38,204 2,120,000 18,021 RMB mn 5,016 2,564 6,060 2,858 38 JP Dept store Apita Uny 98 481 1,160,090 414,283 99 471 1,160,090 405,998 ¥ bn 6,022 5,191 5,971 5,147 39 KR Hypermarkets Lotte Mart Lotte Shopping 95 6,360 824,600 7,712,855 98 6,713 852,600 7,873,563 Won bn 5,738 6,959 5,805 6,808 40 AU Others Metcash Liquor Metcash 1,515 5,478 336,110 16,297 1,508 5,479 333,590 16,425 A$ mn 5,650 16,811 5,605 16,802 01-40 * Clothing, Footwear & Accessories top500.0613.version2.indd 40 6/25/13 1:57 PM

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