@Risk

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 fashion consciousness.  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…)

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…)

Ninety-four multinational companies recently participated in A.T. Kearney’s global survey of indirect procurement, and the results suggest that unfortunately, many firms remain resistant to updating analytics techniques.

Specifically, the data showed that even though indirect procurement categories like IT, marketing and advertising, facilities management, MRO, Logistics and professional services, have become increasingly important to Chief Procurement Officers and their organizations, most companies are adopting new practices at a much slower rate than analysts expected.

For example, A.T. Kearney found that: (more…)

If you want to successfully compete in today’s complex, global, and increasingly unpredictable business environment, your company needs supply chain strategies that can respond quickly to changing market conditions.

But, how do you go about improving your supply chain agility so that you can better respond to both opportunities and threats? Are there certain steps you should follow to develop the flexibility that’s now required? For starters, take a look at your supply chain alignment. There’s no question that a supply chain that aligns your company with its suppliers, partners, and customers creates end-to-end efficiencies, strengthens your core business, and helps you gain competitive advantage.

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