Retail Demand is Set to Grow at Double Digit Rates in Several Emerging Markets According to Textiles27 Mar 2012
LONDON – Retail demand in several emerging markets will grow at double digit annual average rates in the five years to 2016. The fastest growth will be in China and India, where demand is set rise by an average of 16.9% per annum in each country. Double digit growth is also forecast for Indonesia (13.3% per annum), Russia (12.0% per annum), Saudi Arabia (11.7% per annum), Turkey (11.4% per annum), Peru (10.3% per annum) and South Africa (10.1% per annum), while growth in the high single digits is expected in Brazil, Chile, Colombia and Thailand.
In China, the population is benefiting from rising personal disposable incomes. In fact, the number of households earning over US$50,000 is expected to increase five-fold between 2010 and 2015. Furthermore, there is strong potential for growth in clothing retail demand as a result of urbanisation within the country. However, competition is fierce as several foreign brands are entering the market, and are all vying for market share. Also, several Chinese companies are looking to explore opportunities in their domestic market, given that future export growth is likely to be curtailed by economic uncertainty in Western developed countries.
In India, a growing middle class of about 300 million people with a purchasing power parity of US$30,000 a year are seeking access to world class products. This group of people is adopting international trends much faster than initially expected and consumption is moving beyond big cities, such as Delhi, to smaller cities. In fact, the designer wear market in India is predicted to grow at an average rate of 40% per annum between 2012 and 2020 compared with a global average growth rate of 12% per annum.
In Indonesia, much of the growth in retail demand is likely to be fuelled by cheaper imports. Under the Asean-China Free Trade Agreement (ACFTA) there has been a lowering of tariffs on imports into Indonesia and this has led to a steep decline in Chinese prices. In Turkey, several international brands have entered the market in recent years in the hope of taking advantage of the country’s growing young and fashion conscious population. Indeed, Turkish imports grew by 32.0% in 2011, which represented the eighth double digit increase in imports in nine years.
The List of Related Reports by Textiles Intelligence Includes but is not Limited to:
- Trade and Trade Policy: Clothing Imports, Retail Demand and Trends in Five Key Emerging Markets, 4th Quarter 2011
- Trade and Trade Policy: the EU Clothing Import Market and its Ten Largest Suppliers, 2010 Edition
- Trade and Trade Policy: Clothing Imports, Retail Demand and Trends in Five key Emerging Markets - Australia, Poland, Saudi Arabia and Turkey
- Strategies for Sustainability in the Global Apparel Industry
- Performance Apparel Markets: Product Developments and Innovations, 4th Quarter 2011
- Performance Apparel Markets: Business Update, 4th Quarter 2011
- World Textile and Apparel Trade and Production Trends: South Asia and South-East Asia, June 2011 edition
More new market research reports by the publisher can be found at Textiles Intelligence page.