@Risk

More new research indicates that global companies are setting their sights on growth and global expansion.

As I pointed out last week, nearly all (95 percent) of the CFOs polled in BDO’s annual Global Ambition Survey said they are optimistic about their global expansion plans.

Now, a new report from KPMG concludes that global manufacturers have made top-line growth their number one priority in the next two years, despite persistent economic volatility and uncertain demand.

KPMG surveyed 220 manufacturing executives from global companies with at least $1 billion in revenue and found that: (more…)

Even though the current economic climate is less than rosy, the 750 CFOs surveyed in BDO’s annual Global Ambition Survey, say they are optimistic about cross-border growth.

A whopping 95 percent of those polled reported they are in a confident mood about their global expansion plans. (Although more than three-quarters (78 percent) concede that the challenges when expanding abroad are greater than those associated with growth at home.)

And, surprisingly, there appears to be little concern about access to credit. More than two-thirds (69 percent) said have no difficulty in gaining funding for expansion.

What does pose a challenge for expansion plans? Finding local people with the right skills and knowledge. More than half (52 percent) of all respondents put finding the right people in their top three areas of focus for international investment. Among those struggling to find the right people, a lack of specialist skills (44 percent) and reliability of staff (33 percent) are key challenges.

In addition, survey respondents cited other challenges, including the intensity of local competition, red tape and bureaucracy. As you might expect, concerns about red tape and bureaucracy remain significant for those targeting the BRIC markets: Brazil 58 percent, Russia 57 percent, China 50 percent and India 43 percent.

In other key findings: (more…)

As we have seen across other sectors, the consumer packaged goods (CPG) industry is now in recovery mode, with companies focused on growth and opportunities for global expansion to enhance both their top and bottom lines.

But, new research shows that CPG companies will sorely miss one newly critical capability as they expand to places like China and other emerging markets. Which critical capability is lacking in developing economies?

Digital technology.

Thriving in a Connected World, an intriguing new report from the Grocery Manufacturers Association (GMA) and PwC US, points out that today’s CPG companies have become quite savvy at leveraging digital innovation to optimize service to consumers and trading partners.

For instance, the report suggests that mobile devices have improved workforce productivity in three specific areas: (more…)

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…)