@risk _ emerging markets

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China Ranks as Most Attractive Emerging Market in A. T. Kearney’s 2011 Retail ApparelIndex

July 15, 2011 | No Comments →

China is now the most attractive emerging market for apparel retailers, according to A. T. Kearney’s latest Apparel Index, and already, several brands have

aggressively entered the market.

PHV Apparel Group (perhaps best known for its signature brand, Izod) plans to open 3,000 stores in China over the next five years. Likewise, Italian

retailer RDM has invested $910 million to develop five luxury outlet centers there, and Gap, Inc. opened stores in Beijing and Shanghai late last year.

According to A. T. Kearney, China’s growing middle class is expanding its buying behaviors beyond traditional venues.

“Retail formats in China are diversifying beyond traditional department stores. Chinese consumers are beginning to shop at venues such as hyper markets,

specialty stores, outlets, discount stores and online,” Hana Ben-Shabat, a partner with A.T. Kearney and co-leader of the 2011 Apparel Index study, said.

The United Arab Emirates ranked second in the 2011 Apparel Index, driven by a population with a high disposable income and immense fashionconsciousness. In addition, as A. T. Kearney points out, the expatriate populace and tourism also drive consumption in this market. Plus, the UAE is both a

regional commerce center in the Middle East and a preferred market for entering the Middle East, as well as for testing new products and retail formats.

The Retail Apparel Index is calculated on a scale from 0 to 100. It includes analysis of the clothing market attractiveness (60 percent), levels of retail

development (20 percent) and country risk (20 percent). Country risk indicators include political and financial risk, business readiness and business cost of

crime, terrorism and corruption.

Here are the 2011 Apparel Index “top ten,” along with each country’s overall score: (more…)

Tags:A.T. Kearney, Aravo, China, economic recovery, emerging markets, global sourcing, India, retail, retailers, risk management, risk mitigation, risk

strategy, supplier risk

Brazil Tops A.T. Kearney’s 2011 Global Retail Development Index

June 17, 2011 | No Comments →

Brazil is now ranked as the top developing economy for global retail expansion, according to the 10th annual Global Retail development Index (GRDI)

released last week by A.T. Kearney.

A.T. Kearney says the 2011 GRDI ranking mirrors the dramatic changes that have taken place in global markets, and the varying impacts they have had on

different emerging economies.

For example, South American countries have fared well during the recession, posting an impressive 6 percent GDP growth in 2010. In addition to Brazil’s

top ranking, three other South American countries made the Top 10 of the GRDI: Uruguay, Chile and Peru.

Brazil jumped to first place from #5 in last year’s GRDI. Likewise, Uruguay climbed up the rankings to #2 from #8 last year, and Chile rose from #6 in 2010

to #3 this year.

The Middle East and North Africa also ranked highly in the 2011 GRDI. Political unrest in countries like Egypt and Tunisia are undoubtedly current

challenges to growth, but Kuwait, Saudi Arabia, and the UAE (all top 10 GRDI markets in 2011) have not experienced the turmoil of some of their

neighbors and are expected to remain stable going forward.

Here is a complete list of the Top 10 GRDI markets in 2011: (more…)



Tags:A.T. Kearney, Aravo, collaboration with suppliers, economic recovery, emerging markets, global sourcing, retail, retailers, risk management, risk

mitigation, risk strategy, supplier risk , supply chain strategy

BCG Expects Manufacturing to Return to US as China’s Labor Costs Soar

May 09, 2011 | No Comments →

Is US manufacturing poised for a renaissance?

A new study by The Boston Consulting Group (BCG) says it is –and I find the analysis quite convincing.

For starters, BCG points out that the gap between US and Chinese wages is narrowing rapidly. Thanks to the demand for skilled labor in China, Chinese

wages are rising at about 17 percent per year, while the value of the yuan continues to increase.

At the same time, flexible work rules and a host of government incentives are making many states—including Mississippi, South Carolina, and Alabama—

increasingly competitive as low-cost bases for supplying the US market.

According to BCG, net labor costs for manufacturing in China and the US are likely to converge sometime around 2015.

Factor in the costs, risks and headaches of inventory and shipping, and the advantages of offshoring shrink even more.

The BCG analysis, which is part of an ongoing study of the future of global manufacturing, concludes that: (more…)

Tags:Aravo, China, China supply chain, collaboration with suppliers, economic recovery, emerging markets, employment, global sourcing, manufacturers,

manufacturing, nearshoring, outsourcing, risk management, risk mitigation, risk strategy, supplier risk , supply chain alignment, supply chain strategy, supply

risk

What Will the Automotive Industry Look Like in 2025?

March 30, 2011 | No Comments →

A new study predicts that over the next 15 years, the global automotive industry will undergo the greatest transformation in its history.

In particular, the Automotive Landscape 2025 study, conducted by Roland Berger Strategy Consultants, forecasts six significant automotive trends:

(more…)

Tags:Aravo, auto industry, auto manufacturing, automotive industry, automotive suppliers, consumer habits, emerging markets, employment, global sourcing,

procurement, risk management, risk modeling, risk strategy, supply chain alignment, supply chain strategy, supply risk , vendor risk management

Deloitte: New Realities Are Shaping Global Economy

February 02, 2011 | No Comments →

Recent research from Deloitte reveals that the global economy is being shaped by a “new reality,” fueled by big, emerging countries, rather than the

established, well-developed players that have dominated the business landscape in the past.

For example, the report points out that: (more…)

Tags:Aravo, collaboration with suppliers, Deloitte, economic recovery, emerging markets, global sourcing, risk management, risk mitigation, supplier risk ,

supply chain strategy

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